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Leslie Parker

Will my disabled son's craft hobby affect his Social Security DAC survivor benefits?

My son (26) receives Disabled Adult Child survivor benefits from his late mother's record. Recently, he's started creating wooden birdhouses with his friend who also has special needs. They've been selling these at local markets and have a small online store. All profits (about $150/month after materials) go directly to a local animal shelter - they're not keeping any earnings for themselves. My questions: 1) Will this activity impact his DAC benefits at all, even though he's not actually earning income? 2) Would creating a small nonprofit organization for this activity affect his benefits? 3) Has anyone navigated something similar? Our family accountant recommended checking with SSA directly, but thought I'd ask here first since getting through to someone at Social Security feels impossible lately.

Sergio Neal

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This is a good question about how work activity impacts DAC benefits! The key factors SSA looks at are Substantial Gainful Activity (SGA) and whether your son is actually receiving income. Since all profits are being donated and he's not keeping any earnings, this shouldn't count as SGA or income that would affect his benefits. However, I would document everything carefully - keep clear records showing all proceeds are donated to the animal shelter. As for creating a nonprofit, that gets more complicated. Being an unpaid officer of a nonprofit typically doesn't affect benefits, but if he were to receive any compensation (even below SGA levels), it could potentially trigger a review. The nonprofit structure itself isn't the issue - it's whether he receives compensation.

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Leslie Parker

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Thank you! That's reassuring. We're definitely keeping detailed records of all sales and donations. Do you think we need to proactively report this activity to SSA even though he's not earning anything from it?

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my cousin had something similar with his Down syndrome daughter who makes jewelry. they told him as long as she wasn't making profit FOR HERSELF it didn't effect her SSI checks. But the social security people told him different things depending on who answered the phone!!! so frustrating

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Leslie Parker

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That's exactly what I'm worried about - getting different answers from different SSA representatives. It's so difficult to get consistent information!

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Juan Moreno

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You need to be very careful here. While your son may not be keeping the profits now, SSA could potentially view this as an ability to perform SGA, which could trigger a medical review of his disability status. DAC benefits require that the disability began before age 22 AND that the person cannot perform SGA. The hobby itself isn't the issue - it's whether this activity demonstrates capacity for gainful work. I recommend reporting this activity to SSA for two reasons: 1) transparency prevents future problems, and 2) they might provide written guidance specific to your situation. Document EVERYTHING - all expenses, all donations, time spent on the activity. Never commingle these funds with personal accounts. Regarding the nonprofit question - forming one adds complexity without necessarily providing protection for his benefits. The administrative burden might outweigh any advantage.

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Amy Fleming

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This is EXACTLY why the system is so broken!!!! A disabled person tries to do something meaningful and give back to society and they risk LOSING THEIR BENEFITS???? How does that make any sense? The fact that he has to worry about showing too much ability while doing charity work is ABSURD. Sorry for the rant but this makes my blood boil.

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Alice Pierce

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Have you tried calling SSA directly? They're the only ones who can give you a definitive answer for your specific situation.

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Esteban Tate

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Good luck with that! I spent 3 hours on hold last week only to get disconnected when they finally answered. Tried again the next day and gave up after 2 hours. Their phone system is the worst!

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I went through something similar with my daughter who receives DAC benefits. She volunteers at an animal shelter and occasionally gets small gift cards as thank you gifts (like $25-50 per month). We contacted SSA and they confirmed this doesn't affect her benefits since it's not regular wages and falls under their income exclusions. For your situation, I'd definitely recommend documenting everything clearly. Keep separate bank accounts for the craft business, maintain clear records of all donations to the animal shelter, and have receipts for all expenses. Regarding forming a nonprofit - we looked into this too and decided against it. The paperwork and annual filing requirements were just too much hassle for a small operation. Instead, we just keep meticulous records of everything being donated.

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Leslie Parker

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That's really helpful insight! We've been keeping everything separate so far but haven't set up a dedicated bank account yet - that's a great suggestion. Did you formally notify SSA in writing about your daughter's volunteer activities, or was a phone call sufficient?

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Esteban Tate

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my nieghbor got his benifits cut because he was mowing lawns for free for elderly people in our neighborhood! SSA said he COULD be earning money with that skill even though he WASNT. took 9 months to get his checks back. the whole system makes no sense

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Amy Fleming

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This is exactly what I'm talking about!!! The system PUNISHES disabled people for trying to contribute to society. It's like they WANT people to sit at home and do nothing. Makes me so angry.

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Sergio Neal

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To follow up on some of the concerns here: There's an important distinction between SSI (which has strict income and resource limits) and DAC benefits (which are Title II benefits based on a parent's work record). DAC benefits have different rules. For DAC benefits, the main concern is whether your son is performing Substantial Gainful Activity (SGA) - which in 2025 means earning more than $1,550/month. Since he's not earning income for himself, this shouldn't be an issue. However, I do agree with others that documenting everything and potentially reporting the activity is wise. I've worked with several families in similar situations, and the outcome usually depends on how the activity is structured and documented. The key is showing this is therapeutic/recreational rather than demonstrating capacity for competitive employment.

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Leslie Parker

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Thank you for clarifying the difference between SSI and DAC benefits - that's really helpful. His birdhouse making is definitely therapeutic and part of his routine that brings him joy and purpose. We'll focus on documenting everything properly to show that.

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just wondering has anyone tried that Claimyr service to get through to SSA faster? i keep seeing it mentioned here but never tried it myself

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Yes! I used Claimyr last month when I was desperate to reach someone at SSA about my mother's benefits. After trying for days on my own with no luck (either endless hold times or disconnections), Claimyr got me through to a real person in about 20 minutes. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU - basically they navigate the phone tree and wait on hold for you, then call you when they have an agent on the line. Saved me hours of frustration and I actually got my issue resolved. For complex questions like what the original poster is asking, I think getting official guidance directly from SSA is worth it.

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Amy Fleming

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My advice after 15 years dealing with the SSA for my brother's benefits: DOCUMENT EVERYTHING IN WRITING and don't rely on verbal guidance! I can't tell you how many times we were told something was fine over the phone only to have problems later because there was no record of that conversation. Send everything certified mail with return receipt and keep copies of EVERYTHING. And yes - report the activity. Not because you have to, but because it protects you if questions come up later. You can show you were transparent from the beginning.

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Leslie Parker

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That's really solid advice - thank you. I think I'll prepare a detailed letter explaining exactly what he's doing, how the money is handled, and send it certified mail to our local SSA office. Better to have everything documented upfront.

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Juan Moreno

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One more important point: make sure you're clear about which type of benefits your son receives. You mentioned DAC (Disabled Adult Child) benefits from his mother's record, which are Title II benefits (sometimes called SSDI). These are different from SSI (Supplemental Security Income), which has much stricter income and resource limits. For DAC benefits, the primary concern is whether he's engaging in Substantial Gainful Activity (SGA). Since he's not earning income from this activity, it's unlikely to affect his benefits, but as others have mentioned, documenting everything and potentially reporting it is a good idea for transparency. I've helped many families navigate these waters, and in your situation, I recommend: 1. Keep detailed records of all sales, expenses, and donations 2. Consider sending a letter to your local SSA office describing the activity 3. Focus on the therapeutic/social aspects of the activity in your documentation 4. Keep the business funds completely separate from personal funds Regarding forming a nonprofit - this adds significant administrative burden without necessarily providing additional protection for his benefits. A simpler approach might be to partner with the existing animal shelter as a program under their nonprofit umbrella.

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Leslie Parker

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Thank you for the thorough advice! Yes, these are definitely DAC benefits from his mother's record, not SSI. The partnership idea with the animal shelter is brilliant - I hadn't thought of that option. I'll reach out to them to see if that might work instead of creating our own nonprofit.

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Javier Cruz

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I'm dealing with a similar situation with my daughter who has autism and receives DAC benefits. She's been making and selling greeting cards at craft fairs, but like your son, all proceeds go to charity (in her case, a local food bank). What I learned from our experience: SSA cares more about the structure and documentation than the actual activity itself. We created a simple written agreement with the food bank showing they receive 100% of proceeds, and we maintain a separate checking account just for this activity. Every penny in gets documented and donated. The key insight our disability attorney shared: frame this as a therapeutic/social activity rather than a business venture in any communications with SSA. Emphasize the social skills development, routine building, and community connection aspects. This helps distinguish it from competitive employment. One practical tip: consider having the animal shelter sell the birdhouses directly rather than your son selling them and donating proceeds. This removes him from the "sales" aspect entirely and makes it clearly volunteer work/donation of goods. Best of luck navigating this - it's wonderful that your son has found something meaningful to do that helps animals!

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