My sister is paraplegic and draws permanent disability. She would like to start a small business, but is only allowed to earn $1,000 monthly above her benefits. Is there a way for her to be able to use additional profits for personal needs without being disqualified from her current benefits?
1 Answer from Attorneys
You did not identify the source of the earnings restrictions, such as Medicaid or other government programs. However, there are ways to set up a business and pay only limited or no compensation to the owner(s). You need to consult an attorney or cpa who know the government earnings rules and one who knows the tax rules for a new business. Lastly, if earnings are used for personal benefits, those funds are generally treated as taxable income to her. So, the starting point is to consult a benefits advisor to go over the restrictions in detail.
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