Can You Get Social Security Disability and Work?

Navigating the intersection of Social Security Disability benefits and employment can be a challenging thought process. Many individuals who receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits may wonder if they can work and still receive their benefits. This article aims to clarify the possibilities and restrictions regarding working while receiving disability benefits, exploring the various facets and implications involved.

Understanding Social Security Disability Benefits

Types of Benefits

Before diving into whether you can work while receiving disability benefits, it's crucial to understand the two main types of Social Security benefits available to individuals with disabilities:

1. Social Security Disability Insurance (SSDI): SSDI is available to people who have previously worked and paid Social Security taxes. Eligibility depends on the individual's work history and the severity of their disability.

2. Supplemental Security Income (SSI): SSI provides financial support for individuals who are aged, blind, or disabled and have limited income and resources. Unlike SSDI, SSI is primarily need-based and doesn't require work history.

Eligibility Criteria

Both SSDI and SSI have strict eligibility criteria. For SSDI, one must have accumulated enough work credits, whereas for SSI, income and resource limits apply. Additionally, the Social Security Administration (SSA) must determine that the applicant has a qualifying disability, defined by their inability to engage in substantial gainful activity (SGA).

Substantial Gainful Activity (SGA)

What is SGA?

Substantial Gainful Activity, or SGA, is a significant factor in determining eligibility for Social Security disability benefits. It measures the level of work activity and earnings. For 2023, the SGA limit is $1,470 per month for non-blind individuals and $2,460 for blind individuals. If a person earns more than these amounts, they are generally considered capable of SGA and may no longer qualify for disability benefits.

Impact on SSDI and SSI

• SSDI: Engaging in SGA can disqualify an individual from SSDI benefits. However, the SSA offers work incentives and provisions allowing SSDI recipients to test their ability to work without losing benefits immediately.

• SSI: SSI recipients can work and continue to receive benefits, although their monthly payments may be adjusted based on income. For SSI, the SSA disregards the first $65 of earnings plus half of the remaining amount, which means that benefits are gradually reduced as income increases.

Work Incentives and Programs

Trial Work Period (TWP)

The Trial Work Period (TWP) is a crucial component of SSDI, allowing beneficiaries to test their ability to work for at least nine months without affecting their benefits. During TWP, any month where the earnings exceed $1,050 counts as one trial work month. Beneficiaries can earn any amount during TWP without losing benefits.

Extended Period of Eligibility (EPE)

After TWP, the Extended Period of Eligibility (EPE) begins, lasting 36 months. During EPE, individuals can still receive SSDI benefits for any month their earnings don't exceed the SGA limit. However, if earnings exceed SGA, SSDI benefits will cease.

Work Incentives for SSI

SSI beneficiaries can benefit from the "SSI Work Incentives," allowing them to exclude certain costs related to working due to a disability when calculating their earnings. These exclusions help to minimize reductions in SSI payments.

Plan to Achieve Self-Support (PASS)

The PASS program allows SSI recipients to allocate income and resources towards achieving work goals or self-supportive services. Assets and income used in the PASS program are excluded from SSI calculation, encouraging recipients to invest in their employment potential.

Impact of Work on Benefits

SSDI

• Initial Work Period: During the nine-month TWP, SSDI recipients can test their work capacity.

• Post-TWP: After TWP, benefits continue during the EPE months if earnings remain below the SGA level. Benefits are suspended for any month that earnings exceed SGA.

• Cessation of Benefits: If a person maintains income above the SGA level after EPE, their SSDI benefits will stop. However, if the individual's income falls back below SGA within five years, they may qualify for expedited reinstatement of benefits.

SSI

• Benefits Reduction: The SSA reduces SSI benefits progressively, taking into account reported earnings. Essentially, benefits decrease by $0.50 for every dollar earned over the first $65 per month.

• Resource Limitations: If a working SSI recipient accumulates resources that exceed the SSI limit, it might affect their eligibility.

Common Misconceptions

Losing Benefits Immediately

One common misconception is that earning any income will immediately cause a loss of disability benefits. Programs like TWP and EPE illustrate that beneficiaries have opportunities to gauge their ability to return to work without instantly losing their benefits.

Earnings Limits

Some believe the earnings limits are absolute ceilings that cannot be exceeded. Understanding provisions such as TWP and the calculation for SSI benefits showcases a more flexible approach, with earnings thresholds that offer a buffer while individuals evaluate their capacity for work.

Frequently Asked Questions

Can you work part-time and still receive disability benefits?

Yes, you can work part-time while receiving disability benefits, but your earnings must not exceed the SGA limit for SSDI, and your SSI benefits will be adjusted based on earnings.

What happens to my Medicare or Medicaid if I start working?

SSDI recipients can retain Medicare for several years after returning to work. SSI recipients may continue receiving Medicaid through the 1619(b) provision even if earnings surpass the SSI threshold, as long as they don't surpass a state-specific income limit.

Is self-employment allowed while receiving disability benefits?

Yes, self-employment is allowed, but the SSA will evaluate earnings differently, factoring in both income and the value of the work performed. It's crucial to ensure earnings remain below SGA or result in an acceptably adjusted SSI benefit.

Can benefits be reinstated after cessation?

If SSDI benefits stop due to earnings surpassing SGA, but the disability persists, one may qualify for expedited reinstatement within five years without a new application. SSI recipients can also reapply if benefits cease and financial circumstances change.

Tips and Recommendations

• Regular Reporting: It's critical to consistently report earnings and any changes in work status to SSA to prevent overpayments and potential disputes.

• Utilize Work Incentives: Thoroughly understand and leverage available work incentives, like TWP and EPE for SSDI and PASS for SSI, to support a smooth transition into employment.

• Consultation and Guidance: Consider consulting with a professional or an SSA representative to explore provisions and ensure compliance with program rules.

The intersection of Social Security Disability benefits and employment can be navigated successfully with a clear understanding of the guidelines and programs in place. By carefully managing earnings and leveraging SSA work incentives, individuals can find a viable balance between working and maintaining necessary income support. Explore additional resources and consult with experts to make informed decisions about combining work and disability benefits.