Don't want to lose my SSDI Disability

[maxdwinter]

I'm on SSDI disability but to make ends meet I also have an S Corp to make additional money. How do I file taxes without being personally tied to it and possibly losing my disability?

[MamaYard]

Sometimes we need to give up the good for the best. What if God Bless you so that the SCorp would earn astronomical figures. The ssd is not worth hanging on to it. Set your self free to succeed. Pay your taxes. How honest can one be if you are dead set on earning behind the veil. Honesty is personal empowerment. Do not personally choose to be a slave shackled by the iron chains of ssd.

I will NEVER file for ssd. I have no plans to live off social security. I will not receive any social security benefits. Yes, I am US citizen. My choice to live free of Social Security inspires my creativity. I live so that I shall NEVER need Social Security. Be sure to know that longevity is common in my family. My aunt 103 year old died last November. I documented so that no one will turn to file for my Social Security when they decide that I am not competent to make decisions.

Blessings to your SCorp so that it flows with success and abundance. Refuse to be limited in your earnings.

[Fulcrum]

So you would shut your business down, even if highly profitable, to maintain a disability handout (that you have figured out how to work around)?

I've got no problem helping those who truly need it. What you have described wanting to do do is unethical at best and fraudulent at worst.

[tallen]

... to make ends meet I also have an S Corp to make additional money. How do I file taxes without being personally tied to it...?

You can't, not as an S-Corp.

The S-Corp is a pass-through entity. The corporation files it's own tax return, but it does not itself pay taxes on the income (profits) it generates; rather, those get reported as income to the shareholders who then pay taxes on it themselves, even if the shareholders take no actual distributions.

If you gave up the S-Corp election and converted back to a C-Corp, then the corporation would pay the taxes on it's profits, not you, and you would not be tied to the income -- unless and until you actually take a distribution, which you would then have to report as income to you, and pay taxes on it again. In the meantime, you would not be able to spend any of the corporation's money to help make ends meet (for you), without taking such a distribution or somehow demonstrating that those expenses are in fact usual and necessary business expenses for the corporation (tricky waters you ply there, the IRS is onto those playing these games).

But I am just some guy on the internet, you should probably consult with an appropriate professional directly.

[Harold Mansfield]

You can't do it. That is to say that I'm sure there's a way to temporarily hide your additional income, but eventually you will get caught and they'll probably demand you repay a lot of money, if not suggest jail time.

What you are describing is fraud. You know the rules, you know additional income has to be reported. Sorry, but we can't advise you on how to cheat the government and ourselves (the American tax payer).

Sounds like you need to make a decision of whether or not you want to take disability, or take a chance at business success. I understand the risk, and how hard it is to start something without a safety net. Most of us started without a safety net.

I have this conversation with my best friend all of the time. He too is disabled, but is now figuring out that he's still capable of earning money and is scared to risk losing his benefits for a chance at better.

Look, the fact that you're already doing this, and have your name on a corporation means you're already in it and it's already too late to hide. It's time to get ahead of it and make a decision and play things straight.

[jamesray50]

Social Security Disability is for individuals who are unable to work. If you are able to work, which it seems like you are, you need to report all your income, pay the taxes on it, like I do on mine, and stop taking money that could be going to someone who really is disabled. Sorry, you get no sympathy from me.