One thing in Social Security disability law that can often be just as important as medical conditions, is your work history and whether you are working while seeking benefits.
A common misconception among clients is that jobs only “count” if they receive an actual pay check from an employer, meaning that if someone pays them cash, it’s not really a job that needs to be reported to Social Security.
Nothing could be further from the truth.
All the jobs, whether paid by cash, check, or direct deposit should be reported to Social Security when you are seeking disability benefits. And not doing so can have major consequences on a case.
One common issue I see is clients who take on a cash job while their application is pending. Social Security has rules about this, and working part-time under the limits for what’s called substantial gainful activity does not disqualify you from receiving disability benefits.
However, some clients pick up more hours, and essentially start working full-time for cash. Unfortunately, this means they are no longer eligible for disability, even though the earnings have never been reported to the government.
Another situation that arises is when I see the IRS earnings records in a file, it shows a client hasn’t worked at all in many years, yet when we talk about their work history, it turns out they actually were getting paid cash for full-time work up until the time they filed for disability.
This has two major consequences on a case. The first, is that the judge can now consider this position to be past relevant work, and potentially deny a claimant on that basis, saying they could return to that job. The other issue is that if these wages were not reported, it can mean a claimant might only qualify for Supplemental Security Income and not Social Security Disability Insurance, which can potentially mean a drastic reduction in their monthly benefits if they are approved.
So, if you have any questions about working for cash, make sure to bring this up to your disability attorney.
