Can You Work and Draw Social Security Disability

Navigating the complexities of Social Security Disability Insurance (SSDI) can be challenging, especially when it comes to understanding whether you can work while receiving these benefits. Let's explore this topic in detail to provide clarity on the rules, exceptions, and possibilities of earning an income while drawing SSDI.

Understanding Social Security Disability Insurance (SSDI)

Social Security Disability Insurance is a federal program designed to provide financial assistance to individuals who cannot work due to a medically determinable physical or mental impairment. To qualify, your disability must be expected to last at least one year or result in death, and you must have worked in jobs covered by Social Security.

Key SSDI Qualification Criteria

• Medical Condition: Your disability must significantly impede your ability to work.
• Work Credits: You need enough work credits based on your age at the time of disability.
• Substantial Gainful Activity (SGA): Your earnings must remain below a certain threshold to qualify as disabled.

Can You Work While Receiving SSDI?

Yes, under certain conditions, you can work while receiving SSDI benefits. The Social Security Administration (SSA) provides provisions that encourage beneficiaries to attempt returning to work without immediately losing their benefits. Let's delve into these provisions:

Trial Work Period (TWP)

The Trial Work Period allows SSDI beneficiaries to test their ability to work for at least nine months while still receiving full benefits, regardless of how much they earn, provided they report their work activity to the SSA.

• How It Works: During the TWP, you are free to earn as much as you can without jeopardizing your benefits. A month is considered a trial work month if your earnings exceed a certain amount, which is adjusted annually ($1,050 in 2023).
• Duration: The TWP lasts for nine months within a rolling 60-month period.

Extended Period of Eligibility (EPE)

Following the Trial Work Period, the Extended Period of Eligibility begins, lasting 36 months. During this time, you can work and receive benefits as long as your income doesn't surpass the Substantial Gainful Activity level.

• SGA Limit: The SGA income limit is a critical threshold. In 2023, it is set at $1,470 per month for non-blind individuals and $2,460 for blind individuals. If you earn above this, SSDI benefits will stop.
• Benefits Reinstatement: If your earnings drop below the SGA, benefits can be reinstated without having to reapply, provided you are still within the EPE.

Continuation of Benefits

Even after completing the EPE, some benefits may continue:

• Expedited Reinstatement: If you stop working because of your disability within five years of your benefits ending, you can request expedited reinstatement.
• Medicare Coverage: Even if your SSDI benefits stop, you may continue to receive Medicare coverage for an additional 93 months.

Calculating Earnings and Limits

Understanding how your earnings interact with SSDI is crucial. The SSA considers only countable earnings towards the SGA. Deductions such as Impairment-Related Work Expenses (IRWE) and subsidies can lower your countable income, making it easier to stay below the SGA threshold.

Impairment-Related Work Expenses (IRWE)

• Definition: Expenses related to your disability that are necessary for work, such as specialized transportation or medical devices, can be deducted from your income.
• Impact: By reporting IRWE, your countable income is reduced, helping you remain eligible for benefits.

Subsidies and Special Conditions

• Subsidy: If you receive more supervision or assistance at work due to your disability, a portion of your earnings may be considered a subsidy and not countable towards SGA.
• Special Conditions: If an employer provides special accommodations, these may also affect how your earnings are calculated.

Examples of Working While on SSDI

To provide a clearer understanding, let's consider some scenarios of how different working situations impact SSDI benefits:

Scenario 1: Examining the Impact of a Trial Work Period

Emily starts a part-time job earning $1,200 per month. During her Trial Work Period, all nine months of earnings exceed the $1,050 threshold in 2023 but are below the SGA limit.

• Outcome: Emily will keep her entire SSDI benefits during the TWP, allowing her to save and manage finances better as she gauges her work capability.

Scenario 2: Navigating the Extended Period of Eligibility

John earns $1,600 a month after his TWP. During the EPE, his earnings are above the SGA level.

• Outcome: John's benefits are suspended, but he knows that if he earns less in future months, he could get his SSDI benefits reinstated within the EPE.

Scenario 3: Making Use of Impairment-Related Work Expenses

Sandra earns $1,500 a month. With $200 as monthly IRWE, her countable earnings reduce to $1,300.

• Outcome: Sandra remains below the SGA limit and thus continues receiving her SSDI benefits.

Frequently Asked Questions

Can You Work Part-Time and Keep SSDI Benefits?

Yes, you can work part-time as long as your earnings remain below the SGA limit. The SSA encourages attempts to return to work, understanding it can be beneficial for individuals' well-being.

How Do You Report Work Activity While on SSDI?

You must inform the SSA of any income changes, employment status, and work-related expenses. This helps ensure your benefits are accurately calculated, avoiding overpayments.

What Is the Ticket to Work Program?

The Ticket to Work program aids SSDI recipients in exploring work opportunities without fear of immediate loss of benefits. It offers vocational rehabilitation, training, and job-placement assistance.

Conclusion

Understanding the intricacies of working while receiving SSDI benefits can empower you to make informed choices about employment opportunities. With provisions like the Trial Work Period and Extended Period of Eligibility, you can confidently explore work options while safeguarding your benefits. Always remember to report work activities to the SSA to maintain compliance and receive the necessary support. If you need personalized advice, consider reaching out to a Social Security attorney or advocate for guidance tailored to your unique situation.