Receiving Social Security Disability (SSD) benefits can provide critical financial relief if you’re unable to work due to a disability. However, many individuals wonder if they can still earn income while collecting benefits. This question often arises because working can be a necessity, but it can also raise concerns about how it might affect eligibility for SSD benefits.
The Social Security Administration (SSA) recognizes this dilemma and has specific rules to address it. In this blog, we’ll clarify the rules and limits for earning income while on disability benefits, including programs like the Trial Work Period (TWP) and the Substantial Gainful Activity (SGA) threshold. If you have further questions or need legal guidance, the experienced team at Smith & Beckey Injury Lawyers is here to help.
Understanding Social Security Disability Benefits
Before diving into the rules for working while receiving benefits, it’s important to understand the two main types of Social Security Disability benefits:
- Social Security Disability Insurance (SSDI):
This program provides benefits to individuals who have a qualifying disability and have worked long enough to earn sufficient work credits. - Supplemental Security Income (SSI):
This program is designed for individuals with limited income and resources who have a qualifying disability, regardless of their work history.
Each program has its own set of rules and income thresholds, so it’s crucial to determine which benefits you’re receiving before making decisions about working.
Can You Work While Receiving SSD Benefits?
The short answer is yes, but there are limits and specific rules to follow. The SSA has implemented programs and guidelines to help individuals test their ability to work without immediately losing their benefits. Let’s explore these in detail.
Understanding Substantial Gainful Activity (SGA)
One of the key factors the SSA considers when determining eligibility for SSD benefits is whether you are engaging in Substantial Gainful Activity (SGA). SGA refers to work that brings in earnings above a certain threshold.
For 2025, the monthly SGA threshold is:
- $1,470 for non-blind individuals.
- $2,460 for blind individuals.
If your earnings exceed these limits, the SSA may determine that you are no longer eligible for disability benefits because you’re engaging in SGA.
The Trial Work Period (TWP)
To encourage SSDI recipients to test their ability to return to work without fear of losing benefits, the SSA offers a Trial Work Period (TWP). During this period:
- You can work and earn any amount of income for up to nine months within a rolling 60-month period.
- The nine months do not need to be consecutive.
- For 2025, a month counts toward your TWP if you earn more than $1,050 or work more than 80 hours in self-employment.
During the TWP, you will still receive your full SSDI benefits regardless of how much you earn.
The Extended Period of Eligibility (EPE)
After completing the TWP, you enter a 36-month Extended Period of Eligibility (EPE). During this time:
- You can still receive benefits for any month in which your earnings are below the SGA threshold.
- If your earnings exceed the SGA threshold, you will not receive benefits for that month.
- Benefits can be reinstated without reapplying if your earnings fall below the SGA limit again during the EPE.
Special Rules for SSI Recipients
If you’re receiving Supplemental Security Income (SSI), the rules for working are different:
- SSI benefits are reduced by 50 cents for every dollar you earn after the first $85 (or $65 for earned income and $20 for unearned income).
- Your total income must still fall below SSI’s financial limits to remain eligible.
Additionally, certain work expenses related to your disability may be deducted from your income when calculating SSI eligibility.
Work Incentives for SSD Beneficiaries
The SSA offers several work incentives to help you ease back into the workforce:
1. Impairment-Related Work Expenses (IRWE):
Expenses directly related to your disability that enable you to work can be deducted from your earnings. Examples include:
- Medical devices.
- Prescription drugs.
- Specialized transportation.
2. Subsidies and Special Conditions:
If your employer provides accommodations or reduced duties due to your disability, the value of these accommodations may not count toward your income for SGA purposes.
3. Expedited Reinstatement:
If your benefits stop due to work activity but you’re unable to continue working within five years, you can request expedited reinstatement without starting the application process from scratch.
Tips for Working While Receiving SSD Benefits
If you’re considering working while receiving SSD benefits, keep the following tips in mind:
1. Track Your Earnings
Carefully monitor your income to ensure it stays within the allowable limits. Keep detailed records of your pay stubs and work hours.
2. Notify the SSA
Always inform the SSA when you start or stop working, as well as any changes in your income. Failing to report work activity can result in overpayments and require you to repay benefits.
3. Consult an Attorney
The rules surrounding SSD benefits and work activity can be complex. Consulting an experienced attorney, like those at Smith & Beckey Injury Lawyers, can help you navigate the process and avoid costly mistakes.
Common Mistakes to Avoid
To protect your benefits, steer clear of these common pitfalls:
- Earning Above SGA Without Understanding the Rules: Exceeding the SGA limit without entering a TWP or EPE can lead to termination of benefits.
- Failing to Report Changes: Not notifying the SSA of work activity can lead to overpayments and penalties.
- Misunderstanding Income Deductions: Failing to account for work-related expenses or subsidies can result in inaccurate income calculations.
How Smith & Beckey Injury Lawyers Can Help
Navigating the rules for working while receiving SSD benefits can be overwhelming, but you don’t have to do it alone. At Smith & Beckey Injury Lawyers, we specialize in Social Security Disability cases and can provide the guidance you need to protect your benefits while exploring work opportunities.
Here’s how we can help:
- Explaining the SSA’s rules and limits in plain language.
- Assisting with reporting work activity and income to the SSA.
- Advocating for you in case of disputes or benefit termination.
- Helping you maximize work incentives and deductions.
Final Thoughts
Working while receiving Social Security Disability benefits is possible, but it requires a clear understanding of the rules and limits. Programs like the Trial Work Period and Extended Period of Eligibility offer valuable opportunities to test your ability to return to work without jeopardizing your benefits.
If you’re considering working while on disability benefits or facing challenges with the SSA, Smith & Beckey Injury Lawyers is here to provide expert legal guidance. Contact us today for a free consultation and let us help you navigate the complexities of the Social Security Disability system.
Your financial security matters—let us help you protect it.
