How to Get Disability Benefits If Self-Employed

Most people who pay Social Security taxes, thus qualifying them for disability benefits from the Social Security Administration (SSA), work for an employer and have their taxes withheld from their gross earnings.  There are also a fair amount of people who operate their own businesses, or are otherwise self-employed; these people pay Social Security taxes on a quarterly or annual basis when they file their federal income tax returns.  Regardless as to how Social Security taxes are paid, however, self-employed people may be eligible for disability benefits through the SSA just as if they were employed by another person or entity.

Getting Disability Benefits for the Self Employed

If you are employed by another person, your employer automatically reports your yearly earnings to the SSA for the purposes of calculating the disability and retirement benefits to which you may be entitled.  If you are self-employed, though, you must take care to report all of your earnings on your federal income tax return in order to ensure that you are eligible for the maximum amount of disability benefits should you become ill or injured and unable to work. 

No one needs more than ten (10) years of work, or forty (40) credits, in order to qualify for the maximum amount of benefits.  For the year 2009, you earn one (1) credit for each $1,069.00 of earnings, up to a maximum of four (4) credits per year.  Thus, if you are self-employed, it is very important to keep track of your earnings for the purposes of computing your potential disability benefits.  Earning sufficient numbers of credits is necessary in order to qualify for Social Security Disability (SSD) benefits, which provide you with more disability income than the Supplemental Security Income (SSI) program, which is not dependent on your earnings record.  However, even if you don’t have sufficient earnings to qualify you for SSD, you may still qualify for monthly SSI benefits.

Starting Your Disability Claim

In order to file any type of disability claim through the SSA, you must fill out an application and provide medical documentation of your medical condition(s) that makes you unable to work.  You can fill out an application online, or you can visit your local SSA office and fill out an application there.  In addition to any medical records that you can provide to the SSA, you typically must sign release forms to allow the SSA to request any additional records that they need in order to review your claim.  The SSA may also direct you to undergo medical examinations and/or testing in order to get more information about your medical condition(s). 

Once the SSA has reviewed your claim, it will notify you by mail as to whether you are entitled to disability benefits.  It can take several months before a decision is made on your claim.  If the SSA denies your claim, you have the right to have your claim reconsidered, and there are several levels of appeals that you can go through, including an administrative hearing, and, ultimately, a federal court case. 

Legal Help

While the SSA will provide you with limited assistance in applying for disability benefits, it may be difficult to properly organize your medical records and describe your medical condition(s) in a way that truly illustrates the nature of your disability.  Additionally, if the SSA initially denies you benefits, it will be helpful to contact a disability attorney who can assist you through the multi-level appeals process.