Failing to report income while receiving disability benefits—whether from the Social Security Administration (SSA) or the Department of Veterans Affairs (VA)—can have serious consequences. Both agencies require recipients to disclose any income that may affect eligibility or benefit amounts. Not reporting income can lead to overpayments, penalties, and even criminal charges in extreme cases.
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Why Reporting Income Matters
When you receive disability benefits, the amount you receive (or even your eligibility) can depend on your income. Here’s how:
- For SSI (Supplemental Security Income): SSI is a needs-based program. Even small amounts of earned or unearned income can reduce your monthly benefit. If your income exceeds the limits, you may become ineligible.
- For SSDI (Social Security Disability Insurance): While SSDI is not strictly income-based, working and earning above the Substantial Gainful Activity (SGA) threshold can lead to a loss of benefits.
- For VA Disability: VA disability compensation is not typically affected by income, but VA pension benefits are needs-based and do consider income.
Failing to report income that affects your eligibility or payment amounts can result in a violation of program rules.
Consequences of Not Reporting Income
- Overpayment of Benefits If the SSA or VA later discovers that you were receiving more benefits than you were eligible for due to unreported income, they will consider that an overpayment. You will be required to repay the excess funds.
- Loss of Future Benefits Unreported income can result in your benefits being suspended or terminated. In some cases, you may be temporarily barred from reapplying for benefits.
- Penalties and Interest You may be charged interest on the overpaid amount, and civil penalties may apply if the omission is deemed intentional.
- Fraud Investigation If the failure to report income is found to be willful or intentional, it can trigger a fraud investigation. This can lead to criminal charges, fines, or imprisonment in the most severe cases.
What to Do If You Forgot to Report Income
If you realize you haven’t reported income, it’s important to act quickly:

- Contact the SSA or VA as soon as possible.
- Be honest and provide complete income documentation.
- Request a waiver or repayment plan if you're told you were overpaid and are unable to pay it back in full immediately.
Timely disclosure can prevent more serious consequences and may even help you avoid penalties.
How Hogan Smith Can Help
At Hogan Smith, we understand that navigating income reporting rules while receiving disability benefits can be confusing. We’re here to help you:
- Understand reporting requirements for your specific benefits program.
- Correct errors and notify agencies on your behalf.
- Dispute overpayments or assist in requesting waivers or payment plans.
- Represent you in cases involving benefit termination or fraud accusations.
Contact Hogan Smith Today
If you’re facing an issue with unreported income or received notice of an overpayment or penalty, contact Hogan Smith for a free consultation. We’ll help you understand your rights and options, and guide you toward the best possible outcome. Let our experienced team help you protect your benefits and move forward with confidence.
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