Can you work while receiving disability? Yes, you can. However, you should be aware of certain limitations on income imposed by the U.S. Social Security Administration (SSA) that could temporarily stop or even permanently end your Social Security Disability Insurance (SSDI) benefits.
The Social Security disability lawyers of Kraft & Associates, Attorneys at Law, P.C., have put together some information you should know if you want to work while on Social Security Disability.
What Is Substantial Gainful Activity (SGA)?
An applicant for SSDI must initially pass through a gauntlet of five questions, the first of which is, “Are you working?” This is where most people encounter the term “SGA” for the first time.
SGA, or substantial gainful activity, is the limit on monthly earnings that the Social Security Administration has set to determine whether a person is gainfully employed. Under SSA rules, if your monthly earnings exceed the SGA amount, you are ineligible for SSDI benefits.
Substantial gainful activity for SSDI purposes was $1,690 for non-blind people in a recent year. For blind people, the SGA was $2,830. If your current monthly earnings do not exceed the SGA, you can be eligible for benefits, provided you meet the other eligibility criteria.
Once you are receiving SSDI benefits, if you decide to go back to work, you can participate in a trial work period (TWP). While there are income limits, the SGA is not the number to worry about during your trial period. The SSA will monitor your income, though, to determine whether you can once again engage in SGA, and they can stop paying SSDI benefits.
How Much Can You Earn While on Disability in Texas?
Can you work on SSDI? Yes, but there are conditions and restrictions. If you are on SSDI and go back to work, you enter a TWP. During this nine-month period, you may continue to collect your benefits if your income does not exceed a particular amount. That amount increases each year. In one recent year, the limit was $1,210.
What Happens If You Earn Too Much While on Disability?
When you feel ready to go back to work, you must proceed with caution. You may ease your way back into the work force with part-time work. Your goal at first should be just to determine whether you can handle the stress and routines of working. Keep in mind that if you exceed the SSDI income limits, your SSDI benefits may be withheld or terminated.
If you’re self-employed, it may not be the money you make that disqualifies you from ongoing SSDI payments. If you work more than 80 hours per month, that can work against you, as well. You must report your earnings and work hours to the SSA to continue to qualify for benefits during the trial work period.
What Is the Trial Work Period (TWP)?
When you first go back to work, the SSA allows you a trial work period (TWP). Your SSDI benefits won’t be reduced while you’re in the nine-month TWP. Those nine months do not have to be consecutive. Each person gets only one TWP.
Once you’re working again, any month in which you exceed the specific monthly earnings amount counts toward your TWP. If you exceed the maximum earnings amount for two months in a row, don’t earn more than the maximum amount for the next three months, but exceed the maximum in the next month, you will have used up three of your nine months of TWP. The three months in which you fell below the maximum earnings amount don’t count, even though six months have passed since you returned to work. Your TWP only includes the months in which you’ve earned more than the maximum amount.
At the end of your TWP (provided those nine months occur within a 60-month period), you enter into the Extended Period of Eligibility (EPE). The EPE lasts for 36 months, as long as you still meet the definition of disability. You’ll continue to receive full benefits for any month when your gross earnings fall below the then-current SGA amount.
If you think you will need your SSDI benefits to continue to handle all your financial obligations, you will want to keep your income under the SGA amount if possible. The SSA allows two types of deductions that may help. The first of these is the Impairment-Related Work Expense (IRWE). These are expenses you might have to pay that enable you to work.
For example, if you need to purchase durable medical equipment in order to do your job, or if you have transportation expenses (but not public transportation expenses), these items count as IRWE. They can be used to reduce your income, as long as they were not paid for by another source.
Another type of deduction you can use is work subsidies. For example, if your supervisor must spend 20 percent more time supervising you than others doing the same job because of your disability, you can reduce your gross income by 20 percent. Alternatively, if you live in a group home that provides you with transportation to your job, the home can put a value on that transportation. Then, you can deduct that amount from your gross income, even though you don’t actually pay for the transportation yourself.
You should take advantage of every possible way to reduce your monthly income. In doing so, you can retain your SSDI benefits and still work until you feel ready to live on your income alone, or until you are no longer disabled.
Can Working Trigger a Disability Review or Termination?
Returning to work does not trigger an automatic disability review. However, during your EPE, if you exceed the SGA amount in a given month, the SSA will give you a three-month grace period before they stop sending your checks.
As an example, if you exceed the SGA in March, the SSA will send a cessation of disability notice effective for March. However, you’ll still receive SSDI checks for March, April, and May. If your income drops below the SGA later in the year, you’ll receive SSDI benefits for that month, because you’re still in the EPE, but there is only one three-month grace period. The purpose of the EPE is to provide a safety net for people returning to work.
When you reach the end of your EPE, your SSDI benefits will be terminated. However, you enter a five-year period where you can get an “expedited reinstatement of benefits.” If you consistently fall below your SGA during this five-year period, you can ask to regain your SSDI benefits without going through the application process all over again. You’ll answer a few questions, and then the SSA will review your request. You might also get benefits for up to six months during that review period.
Common Mistakes That Lead to Benefit Reductions or Overpayments
You can accidentally cause your benefits to change. Avoid the following situations to maintain the benefits you need:
- You Failed to Report a change in Income – This can result in the SSA requiring you to pay back money.
- You Didn’t Report a Change in Your Disability Status – The SSA can take back money if your change in status eliminates your disability.
- Your Benefits Were Incorrectly Calculated – If the agency identifies a miscalculation, it can request repayment of any overpaid money.
- Your Benefits Were Retroactively Calculated – The SSA can adjust benefits retroactively if it gets new information.
- Your Earnings Exceed SGA – The SSA monitors earnings through IRS data to see if it must adjust any benefit payments.
- The SSA Delayed Processing Updates You Sent – If the SSA processes your new information late, overpayments or underpayments can result. If that happens, you may get temporary benefit adjustments or payment requests.
Talk to a Dallas Social Security Disability Lawyer Today
If you are on SSDI and are thinking of going back to work, review your situation with an experienced SSDI benefits lawyer from Kraft & Associates, Attorneys at Law, P.C., first. When your SSDI benefits are the income you live on, you can’t afford to make any mistakes.
Our team has more than 50 years of experience in helping people get the benefits they deserve. We are experienced in handling SSDI applications, claims, and appeals. We’ll be happy to answer all your questions about SSDI and the return-to-work process.
Here’s what one of our satisfied clients had to say about working with us:
“I had the pleasure of working with Mr. Stewart and Tressa Gregory for my social security disability claim. Two of the best people I have met with. Both Mr. Stewart and Ms. Gregory were compassionate and caring about me. This firm truly shows that they care about their clients and not just the fees. All of my emails were answered within 12 hours with detailed information. Without the knowledge that this firm has I am not sure if I would have received a favorable determination. By far the best firm to work with. If you are looking for a firm to help represent you, and actually care about you, contact Kraft and Associates.” – William C.
Call at (214) 999-9999 or contact us online today for your free, no-obligation consultation. You can discuss your case confidentially with one of our team members in our Dallas office.
