Taxes, Stimulus Checks, and My Disability
If you are filing for disability or if you are on disability benefits, you need to know what counts as income before filing your tax return for 2021. Each year we see claimants affected by the consequences of filing incorrect income, especially self-employment income, on their tax returns. In many cases, these returns are filed without the filer having knowledge of how it will affect a claim for disability.
The stimulus payments that were given this year do not count as income and you should not report it as such. If you have filed a claim for Disability Insurance Benefits (DIB) or Supplemental Security Income (SSI), the earnings you report on your tax return can and will affect your claim for benefits. If you have worked and earned income, it is important to file your taxes and report that income accordingly. However, if you have not worked or earned very little income but report an inflated amount of self-employment income in order to receive an Earned Income Credit (EIC), your past due benefits WILL be affected.