Does Investment Income Affect Social Security Disability?

How investment income impacts federal disability benefits depends entirely on which of two programs a person receives from the Social Security Administration (SSA). The programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), have fundamentally different rules. Understanding this distinction is the first step in determining how dividends or capital gains might affect monthly payments. For one program, investments are largely irrelevant, while for the other, there are strict limits on all incoming funds.

Social Security Disability Insurance (SSDI) and Unearned Income

Social Security Disability Insurance is an earned benefit, functioning like an insurance program based on a person’s work history and the FICA taxes they have paid into the Social Security system. The primary factor the SSA considers for ongoing eligibility is whether a recipient is engaging in work it defines as Substantial Gainful Activity (SGA). This test only looks at income earned through employment or self-employment.

For 2025, the SSA sets the monthly SGA limit at $1,620 for non-blind individuals. If earnings from work exceed this threshold, the SSA may determine they are no longer disabled for program purposes. However, income from investments, such as stock dividends or capital gains, is classified as “unearned income.” This type of income does not count toward the SGA limit. An individual receiving SSDI could have significant investment income without it affecting their monthly disability payments.

Supplemental Security Income (SSI) and Unearned Income

Supplemental Security Income is a needs-based program designed to provide a minimum income to aged, blind, or disabled individuals with very limited financial means, regardless of their work history. Because it is needs-based, the SSA examines nearly all income a person receives, both earned from work and unearned from other sources like interest and dividends. This income directly impacts the monthly SSI payment.

The calculation begins with the maximum federal benefit rate (FBR), which in 2025 is $967 per month for an individual and $1,450 for a couple. The SSA applies a $20 general income exclusion, meaning the first $20 of most income is not counted. After this exclusion, any remaining unearned income reduces the SSI payment dollar-for-dollar. For example, if a recipient receives $100 in stock dividends, the SSA subtracts the $20 exclusion, leaving $80. This $80 is then subtracted from the $967 FBR, resulting in a reduced SSI payment of $887 for that month.

Understanding the SSI Resource Limit

Beyond monthly income rules, the SSI program imposes a strict limit on the value of assets, which the SSA calls “resources.” To be eligible for SSI, an individual cannot have more than $2,000 in countable resources, and a couple cannot have more than $3,000. This limit has not been adjusted for inflation for many years. Resources include things that can be converted to cash, such as bank accounts, stocks, and bonds.

This means that while the dividend from a stock is counted as unearned income, the stock itself is counted as a resource. If the value of the stock, combined with other assets, exceeds the limit at the beginning of a month, the person will be ineligible for an SSI payment. The SSA does not count all assets toward this limit, with major exclusions including:

• The home a person lives in
• One vehicle used for transportation
• Household goods and personal effects
• Burial funds up to $1,500
• Certain life insurance policies

How to Report Income and Resources to the SSA

For SSI recipients, reporting changes in income and resources is a mandatory part of maintaining eligibility. Deadlines vary by the type of income; unearned income, such as a stock dividend, must be reported by the 10th day of the month after it is received. The deadline for reporting monthly wages is by the 6th day of the month after the wages are paid. Failure to report on time can lead to overpayments, which must be paid back, or even penalties.

The SSA offers several reporting methods:

• Online through a “my Social Security” account
• The SSA’s toll-free number or automated telephone system
• The SSA mobile app
• Mail or in-person at a local Social Security office

When reporting, it is helpful to have documentation like bank or brokerage statements. Keeping a copy of your report and any receipts from the SSA is a good practice for your records.

Using ABLE Accounts to Protect SSI Eligibility

An Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account for individuals whose disability began before age 26. Starting in 2026, this age of onset will increase to 46, expanding eligibility. The primary benefit of an ABLE account for SSI recipients is that funds held within it are not counted as a resource.

An individual can save up to $100,000 in an ABLE account without it affecting their SSI eligibility. This provides a way for individuals and their families to save money for qualified disability expenses—such as housing, education, and transportation—without violating the $2,000 resource limit. Contributions can be made by anyone, including the account owner or family, up to an annual limit. This allows a person to hold savings, including from investments, in a protected way that does not jeopardize their monthly benefits.