Munchie1950
Member
What is the name of your state (only U.S. law)?
VIRGINIA
Greetings:
I am now in the preliminary stages of the Pre-Administrative Hearing Stage of my denial for Social Security Disability Income benefits.
My attorney, who works out of state, recently asked me to send me my income figures for the past 18 months for the part-time work I do as a private math tutor.
It is my understanding that you can still work while applying for SSDI, as long as your income falls under the limits for what is called "Substantial Gainful Employment" (SGA).
In my tutoring work, I drive out to the student's home or meet the student at a public library. Either the student or the parent pays me for the session when it is over. Therefore, I am essentially "self employed."
My attorney told me to send her my monthly gross income figures for my tutoring work. To my attorney, this means the figures for my monthly "gross receipts or sales", which is the money that is given to me at the end of each tutoring session.
When I asked her about "profit or loss", and the expenses of my tutoring practice, such as the gasoline I use for my car while driving to these tutoring sessions, and the tutoring supplies I buy out of pocket, she said: "That doesn't count."
She said that all the SSA is interested in is the figures for my gross receipts, regardless of whether my tutoring practice shows a profit or a loss.
Is this correct? Somehow, this doesn't sound right to me.
According to my calculations, I average a total of about 1,500 miles a month alone by driving to my tutoring sessions. This is worth a deduction of 55 cents per business mile and a business expense of over $700 per month.
I am looking at my 2007 tax return right now. Schedule C on my Form 1040 lists my total gross receipts (from another self-employed business) as being approximately $12,000.
However, this is NOT the figure that went on line 12 (Business Income Or Loss) on the front page of my Form 1040, which was approximately $8,000.
It is this figure of $8,000 for my Business Income Or Loss -- not the $12,000 figure for my Gross Receipts Or Sales -- that is calculated on the front of my Form 1040 to derive my "Adjusted Gross Income" on line 37.
I had about $4,000 in business expenses which reduced my Gross Receipts or Sales from $12,000 to my actual net Business Income of $8,000.
Yet, my attorney says this doesn't count. She says that only the figures for my Gross Receipts or Sales count when applying for SSDI.
Is this really true?
If the figure for my Gross Receipts or Sales do NOT count when it comes to the calculation for my Adjusted Gross Income on my Form 1040, then why should the figures for my monthly Gross Receipts or Sales be the only ones that count when applying for SSDI?
For all they know, I could be operating a loss.
Why is it that my business expenses, which could very well result in a loss, DO NOT COUNT when applying for SSDI?
Maybe I am misunderstanding my attorney and we are not communicating.
Comments? Feedback?
Any clarification on the above would be deeply appreciated.
Thanks in advance.
Best Wishes,
MunchWhat is the name of your state (only U.S. law)?
VIRGINIA
Greetings:
I am now in the preliminary stages of the Pre-Administrative Hearing Stage of my denial for Social Security Disability Income benefits.
My attorney, who works out of state, recently asked me to send me my income figures for the past 18 months for the part-time work I do as a private math tutor.
It is my understanding that you can still work while applying for SSDI, as long as your income falls under the limits for what is called "Substantial Gainful Employment" (SGA).
In my tutoring work, I drive out to the student's home or meet the student at a public library. Either the student or the parent pays me for the session when it is over. Therefore, I am essentially "self employed."
My attorney told me to send her my monthly gross income figures for my tutoring work. To my attorney, this means the figures for my monthly "gross receipts or sales", which is the money that is given to me at the end of each tutoring session.
When I asked her about "profit or loss", and the expenses of my tutoring practice, such as the gasoline I use for my car while driving to these tutoring sessions, and the tutoring supplies I buy out of pocket, she said: "That doesn't count."
She said that all the SSA is interested in is the figures for my gross receipts, regardless of whether my tutoring practice shows a profit or a loss.
Is this correct? Somehow, this doesn't sound right to me.
According to my calculations, I average a total of about 1,500 miles a month alone by driving to my tutoring sessions. This is worth a deduction of 55 cents per business mile and a business expense of over $700 per month.
I am looking at my 2007 tax return right now. Schedule C on my Form 1040 lists my total gross receipts (from another self-employed business) as being approximately $12,000.
However, this is NOT the figure that went on line 12 (Business Income Or Loss) on the front page of my Form 1040, which was approximately $8,000.
It is this figure of $8,000 for my Business Income Or Loss -- not the $12,000 figure for my Gross Receipts Or Sales -- that is calculated on the front of my Form 1040 to derive my "Adjusted Gross Income" on line 37.
I had about $4,000 in business expenses which reduced my Gross Receipts or Sales from $12,000 to my actual net Business Income of $8,000.
Yet, my attorney says this doesn't count. She says that only the figures for my Gross Receipts or Sales count when applying for SSDI.
Is this really true?
If the figure for my Gross Receipts or Sales do NOT count when it comes to the calculation for my Adjusted Gross Income on my Form 1040, then why should the figures for my monthly Gross Receipts or Sales be the only ones that count when applying for SSDI?
For all they know, I could be operating a loss.
Why is it that my business expenses, which could very well result in a loss, DO NOT COUNT when applying for SSDI?
Maybe I am misunderstanding my attorney and we are not communicating.
Comments? Feedback?
Any clarification on the above would be deeply appreciated.
Thanks in advance.
Best Wishes,
MunchWhat is the name of your state (only U.S. law)?
