Many blind and low vision individuals are exploring investing as a way to build long-term financial stability. We’ve also heard from members who receive Social Security Disability Insurance (SSDI) and want to better understand how investing, including cryptocurrency, affects their benefits and taxes.
Here’s what you need to know as you prepare your 2025 tax return.
Investing Does Not Affect SSDI — But Taxes Still Matter
Investment income, including gains from stocks or digital assets like cryptocurrency, is not considered earned income for SSDI. That means investing generally does not put SSDI benefits at risk.
However, that does not mean investment activity is tax-free.
New IRS Reminder: Digital Assets Must Be Reported
According to a recent IRS Tax Tip, taxpayers who sold or disposed of digital assets in 2025 may receive a new tax form called Form 1099-DA from their broker.
Digital assets include:
- Cryptocurrencies like Bitcoin
- Stablecoins
- Non-fungible tokens (NFTs)
Brokers are required to send Form 1099-DA by February 17, 2026. This form reports proceeds from digital asset transactions to both you and the IRS.
Important note:
Most 1099-DA forms do not include cost basis, which means you may need to calculate your gain or loss yourself.
Even Without a 1099-DA, You Must Still Report Activity
Whether or not you receive a Form 1099-DA, you are required to report any income, gains, or losses related to digital assets.
In addition, every taxpayer must answer the digital asset question on their federal tax return — even if they did not buy or sell digital assets.
Why This Matters for Blind and Low Vision Investors
Many younger members of the blind community are interested in cryptocurrency and other emerging investments. That curiosity and engagement can be empowering — but it’s essential to pair investing with good tax compliance.
Failing to file a return or properly report digital asset activity can lead to penalties, even if your SSDI benefits are unaffected.
Penny Forward’s Bottom Line
- ✅ Investing does not count as earned income for SSDI
- ✅ You can invest without risking SSDI benefits
- ⚠️ You still must file a tax return if required
- ⚠️ Digital asset activity must be reported accurately
If you’re unsure how to handle digital asset reporting, consider working with a qualified tax professional who understands disability benefits and investment income.
At Penny Forward, we believe financial empowerment includes understanding both opportunities and responsibilities — so you can build wealth with confidence.
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