Hey, I have a question about how starting a small business will impact my VA non-service connected pension. I’m planning to turn my woodworking hobby into a business, but I’ve been getting this pension since 2011. I’m 70 years old and not sure if this will mess with my benefits. Anyone here know how this works?
It could potentially affect your pension since the VA looks at your income and assets. If your business starts making significant money, it might push you over their income limits. The VA doesn’t subtract business expenses either, so even if you’re not making a ton of profit, it could still count against your pension.
@Gabi
That’s crazy. I didn’t realize they’d consider the business income like that. So, even if I’m not making a lot, it could still mess with my benefits?
Kim said:
@Gabi
That’s crazy. I didn’t realize they’d consider the business income like that. So, even if I’m not making a lot, it could still mess with my benefits?
Yeah, unfortunately. It’s based on gross income, not profit. So, even if you’re breaking even, they still count it. It’s always best to keep good records just in case.
If you’ve been receiving it for a while, it might depend on how much you actually make with the business. If it’s a small side thing, they might not care too much. But big investments could get tricky.
@Axel
Good point. I guess I’ll need to watch my sales closely. I don’t want to mess with my benefits if I can help it.
Yeah, I’d be careful about how much money you make. VA checks your income, and any extra from your business could count. I’d suggest reading through the VA’s income guidelines just to be safe.
Larkin said:
Yeah, I’d be careful about how much money you make. VA checks your income, and any extra from your business could count. I’d suggest reading through the VA’s income guidelines just to be safe.
Definitely a good idea. They do publish income limits, so it’s worth taking a look. Better safe than sorry, right?
You might be able to keep your pension if you keep your business as a side hustle and don’t make a lot of money from it. Maybe focus on low-level sales if that’s the case.
Dakota said:
You might be able to keep your pension if you keep your business as a side hustle and don’t make a lot of money from it. Maybe focus on low-level sales if that’s the case.
That’s a good thought! I don’t want to give up my pension, but I also don’t want to quit my hobby. I’ll try to keep it low-key for now.
Definitely check with the VA guidelines. If you’re planning to invest a lot in tools or materials, that could also be considered in your assets. But if it’s just a hobby-turned-business with minimal investment, it might not make a huge impact.
@Oscar
Yeah, it’s all about keeping track of those investments. You want to be sure you don’t go over any limits. But you’re right, a small hobby business might not raise any red flags.