Can I Work While On Social Security Disability?

Navigating the intersection of employment and receiving Social Security Disability benefits can be challenging. However, it is entirely possible to work while obtaining benefits, although there are specific guidelines and rules you must follow to ensure compliance. Below we will explore the various aspects of working while on Social Security Disability, including the implications, benefits, and potential pitfalls, to provide you with a comprehensive understanding.

Understanding Social Security Disability Benefits

Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are two different programs offered by the Social Security Administration (SSA) to help those unable to work due to a disabling condition. SSDI is related to employment history, while SSI is need-based with a focus on limited income and resources.

Knowing the distinctions between these programs can help you understand how working might affect your benefits.

The Trial Work Period

If you wish to attempt a return to work while on SSDI, the SSA offers a provision known as the Trial Work Period (TWP). This allows you to test your ability to work while still receiving full SSDI benefits, regardless of your earnings during this period, provided your work is reported, and your disability continues.

• Duration: The TWP lasts for nine months, which do not have to be consecutive, within a rolling 60-month period.
• Earnings Threshold: In 2023, a month qualifies as part of a TWP if your earnings exceed $1,050. This threshold is subject to annual adjustments.

The TWP is designed to provide the security to explore your work capabilities without immediate risk to your benefits.

The Extended Period of Eligibility

Following the Trial Work Period, the SSA provides a 36-month Extended Period of Eligibility (EPE) during which your benefits can be reinstated if your income falls below Substantial Gainful Activity (SGA) levels.

• Substantial Gainful Activity Levels: In 2023, this is $1,470 per month for non-blind individuals and $2,460 for the blind.
• Benefit Continuation: During the EPE, your benefits will continue any month your earnings are below SGA levels.
• Cessation of Benefits: If you earn over the SGA amount after the EPE, your benefits may stop.

Impairment-Related Work Expenses (IRWE)

The SSA understands that individuals with disabilities may incur additional costs related to their employment. Impairment-Related Work Expenses (IRWE) are deductions you can claim for expenses like modifications or accessibility devices related to employment.

• Eligibility: Expenses must be necessary for work, relate directly to your disability, and be paid for out of pocket.
• Examples: Wheelchairs, attendant services, specialized transportation.

These expenses can lower your countable income, potentially allowing you to retain more benefits.

SSI Considerations

For those receiving Supplemental Security Income, the rules are different because SSI is intended for individuals with limited income. Here’s how income affects SSI:

• Monthly Earnings Exclusion: The SSA excludes the first $85 of earned income per month; thereafter, each additional dollar earned will reduce benefits by 50 cents.
• Example Calculation: If you earn $1,000 per month, $85 is excluded, leaving you with $915. Your benefits will be reduced by $457.50 ($915/2).

This means if you work, your SSI benefits might be reduced depending on your income, but not dollar for dollar.

Reinstating Benefits

If you’ve ceased work or your earnings fall below the SGA levels, you might be eligible to have your benefits reinstated without having to reapply anew.

• Expedited Reinstatement: If your benefits cease and you're unable to work, you can request expedited reinstatement within five years.
• Provisional Benefits: While the SSA reviews your case, you might receive up to six months of provisional benefits.

Monitoring and Reporting Responsibilities

While working, it’s vital to accurately report any changes in work activity to the SSA, including starting or stopping work, changes in duties, and earnings fluctuations. Failure to correctly report these changes can lead to overpayments, which you'll be required to repay.

Tips for Successfully Working While on Social Security Disability

• Understand Your Thresholds: Familiarize yourself with the limits of the TWP, EPE, and SGA.
• Budget for Expenses: Utilize the IRWE provisions to help reduce the impact of additional work-related costs.
• Regularly Update the SSA: Ensure all work activity is correctly documented and reported.
• Keep Track of Months: Particularly in the Trial Work Period, awareness of what months count towards TWP is crucial.
• Seek Expertise: Engage with a disability benefits counselor who can provide guidance.

Frequently Asked Questions

Can I choose not to use my Trial Work Period?

• No. If you earn above the TWP amount, it will count towards your nine months, irrespective of intent.

What if I have fluctuating work hours and income?

• Monthly earnings and hours must be calculated accurately and reported. Variability can make it harder to predict status in TWP and EPE.

Can I become self-employed while on Social Security Disability?

• Yes, but earnings calculation can be complex. The SSA considers net earnings and involvement in managing the business.

What happens after the EPE?

• Beyond the EPE, benefits are at risk if earnings exceed SGA without qualifying for further accommodations.

Resources for Support

For further assistance, the SSA provides multiple resources and guides accessible through their website. Additionally, disability advocates and legal counsels are available to provide personalized guidance about working while on Social Security Disability benefits.

Remember, working while on Social Security Disability involves understanding rules and mechanisms in place to aid in the transition to potential self-sufficiency without jeopardizing benefits prematurely. Familiarizing yourself with these provisions empowers you to make informed decisions as you explore your employment possibilities.