{"id":2961,"date":"2019-04-15T04:32:43","date_gmt":"2019-04-15T04:32:43","guid":{"rendered":"https:\/\/www.esperaiellolawgroup.com\/?p=2961"},"modified":"2025-11-03T15:57:01","modified_gmt":"2025-11-03T21:57:01","slug":"social-security-when-you-are-self-employed","status":"publish","type":"post","link":"https:\/\/www.aiellolawgroup.com\/news\/social-security-when-you-are-self-employed","title":{"rendered":"Social Security When You Are Self-Employed"},"content":{"rendered":"

\"Social<\/a><\/p>\n

Collecting Social Security Disability Insurance (SSDI)<\/a> when you\u2019re self-employed<\/a> is a little different than if you were to have a traditional employer. However, with the information below to guide you, we\u2019re confident you will have everything you need to make the most informed decisions if and\/or when the time comes.<\/p>\n

Who Is Considered Self-Employed<\/strong><\/p>\n

According to the Social Security Administration<\/a>, in order to be considered self-employed<\/a> you must \u201coperate a trade, business, or profession, either by yourself or as a partner.\u201d  If you are self-employed<\/a>, you will be responsible for reporting your own earnings and pay your own taxes, including Social Security<\/a> and Medicare.<\/p>\n

Earning Credits<\/strong><\/p>\n

Just like any other gainful employee, self-employed people also receive \u201cSocial Security<\/a> credits\u201d for earning annually, which are required to receive SSDI<\/a>. As of 2019, a person must make at least $1,360 in order to earn one credit, with a maximum of four credits per year able to be earned ($5,440+ annually). Typically, in order for a person to qualify for SSDI benefits<\/a> they will need to have earned 40 credits, though if you become disabled at a young age this number may be significantly lowered to accommodate limited work experience. Keep in mind, however, if you\u2019re ever in a situation in which you have not earned enough credits to qualify for SSDI<\/a>, you can apply for Supplemental Security Income (SSI) instead \u2013 which does not depend on your credits.<\/p>\n

Paying Self-Employment Taxes<\/strong><\/p>\n

If you are self-employed<\/a>, you are responsible for paying the entire 12.4% for Social Security<\/a> and 2.9% for Medicare so long as you are earnings are more than $400. This applies to all self-employed<\/a> persons unless you\u2019ve earned more than $200,000 ($250,000 if married and filing jointly), then you will need to pay an additional 0.9% for Medicare.<\/p>\n

\u201cSubstantial Gainful Activity\u201d<\/strong><\/p>\n

In order to be approved for SSDI<\/a>, you must be able to prove that you\u2019re unable to \u201cengage in substantial gainful activity\u201d (SGA). As of 2019, this means you\u2019re unable to make more than $1,220 per month because of your disability<\/a>; unless you\u2019re blind, then that figure is increased to $2,040. Furthermore, applicants will often be put through \u201cThe Three Tests\u201d to confirm that their work activity is in fact SGA. For a person\u2019s work to be considered SGA, it must:<\/p>\n