Can you work while on Social Security Disability?

Classroom In this post, we're going to address one of the most commonly asked questions about Social Security Disability - Can you work while on Disability?

Answer: Yes, you can return to work while receiving Social Security disability benefits. However, there are special rules you have to follow in order to avoid putting your benefits in danger. You are allowed a trial work period for nine months to test whether you can work.

Long Answer

If you’re currently receiving Social Security disability benefits, and would like to return to work, but are worried about losing your benefits, there’s good news. You can work and still receive Social Security disability insurance benefits (SSDI) or Supplemental Security Income (SSI) benefits. In fact, the Social Security Administration actually encourages those receiving disability benefits to pursue work opportunities. They have implemented the “Work Incentives” and “Ticket to Work” programs to provide help to those on Social Security who are interested in working. There are rules you have to follow to keep receiving your monthly benefits while you work on disability. We explain how it all works below:

The Work Incentives program includes:

  • Continued cash benefits for a time while you work
  • Continued Medicare or Medicaid while you work
  • Help with education, training, and rehabilitation to start a new line of work

The Ticket to Work program may also help you if you’d like to work. You can receive:

  • Free vocational rehabilitation
  • Job training
  • Job referrals
  • Other employment support

Substantial Gainful Activity (SGA)

To be considered eligible for Social Security disability benefits, you cannot engage in what's known as substantial gainful activity (SGA). The Social Security Administration defines "substantial" as earning more than a certain amount each month. For 2018, you can work and collect your disability benefits as long as your earnings don't exceed $1,180 per month (or $1,970 if you're blind), However, there are also exceptions to this rule.

Social Security Disability Insurance (SSDI) Work Incentives

If you are receiving SSDI benefits, you are allowed to work and make more than the SGA maximum without losing your benefits. However, you have to follow the Social Security Administration’s Work Incentive rules as follows:

Trial Work Period

The trial work period allows you to test your ability to work for at least nine months. During your trial work period, you’ll receive your full Social Security benefits regardless of how much you’re earning as long as you report your work, and you continue to have a disability. Your nine trial work months do not need to be consecutive, so there can be gaps between your employment and they will still count toward your nine-month limit.

In 2017, a trial work month is any month your total earnings are over $840. If you’re self-employed, you have a trial work month when you earn more than $840 (after expenses) or work more than 80 hours in your own business. The trial work period continues until you have worked nine months within a 60-month period.

Once you have completed your nine trial work months during any five-year period, you will have exhausted your trial work period. At this point, you will no longer be eligible to work another trial work period.

However, if you work fewer than nine months during your five-year trial period, you may be eligible to receive another nine trial work months down the road. Trial work months more than five years old are no longer counted, so your entitlement to nine months of trial work may start over, and you may end up getting more than nine trial work months.

Following your trial work period, if your SSDI payments have stopped because your income is substantial, the SSA gives you five years during which your benefits can be reinstated if you stop working again because of your disability. During the five-year period, the SSA will not require you to file a new disability application to get benefits. This is called expedited reinstatement.

Extended Period of Eligibility

After your trial work period, you have 36 months during which you can work and still receive benefits for any month your earnings aren’t “substantial.” In 2018, substantial earnings are defined to be anything over $1,180 ($1,970 if you’re blind) a month. Your eligibility to receive a monthly SSDI check is determined on a month-to-month basis. If you don't make above the SGA amount in a particular month, you can still get your SSDI check. No new application or disability decision is needed for you to receive a Social Security disability benefit during this period.

Expedited Reinstatement

If the Social Security Administration stops your SSDI payments because of your earnings, and you become unable to work again because of your medical condition, you may restart your benefits. You will not be required to file a new disability application if you make this request within five years after the month your benefits stopped.

Offsetting Income with Disability-Related Expenses

If you receive SSDI and are working, the Social Security Administration allows you to deduct certain disability-related expenses from your income. These are expenses related to items and services that people without disabilities don’t have to pay. For example, because of your medical condition, you may need to take a taxi to work instead of public transportation; or you may need to pay for counseling services. The Social Security Administration may allow you to deduct these expenses from your monthly earnings before they make a decision about whether you’re still eligible for benefits. This is especially helpful if your earnings are above the substantial gainful activity (SGA) threshold.

Continuation of Medicare

If your Social Security disability benefits stop because of your earnings but you’re still disabled, your free Medicare Part A coverage will continue for at least 93 months after the nine-month trial work period. After that, you can buy Medicare Part A coverage by paying a monthly premium. If you have Medicare Part B coverage, you must continue to pay the premium. If you would like to end your Part B coverage, you must request it in writing.

How to Contact the Social Security Administration

If you receive SSDI benefits, please contact the Social Security Administration right away when any of the following happens:

  1. You start or stop work
  2. You reported your work, but your duties, hours, or pay change
  3. You start paying expenses for work because of your disability

You can report changes in your work by calling the Social Security Administration toll-free at 1-800-772-1213 (TTY number at 1-800-325-0778). You can also contact them by mail, or in person. Click here to find the nearest Social Security Office Location.

Supplemental Security Income (SSI) Work Incentives

If you are receiving SSI benefits and are currently working despite your disability, you may continue to receive your SSI benefit payments until your earnings (added with any other income) exceed the SSI income limits. This limit is different in every state.

Continuation of Medicare

Your Medicaid coverage will continue until your income reaches a certain level, even after your SSI payments stop. The income threshold level varies by state. You can call the Social Security Administration to find out the Medicaid level for your state. Click here to find the nearest Social Security Office Location and Phone Number.

In most states, for your Medicaid to continue, you must:

  • Need it to be able to work
  • Be unable to afford similar medical coverage without SSI
  • Still be disabled
  • Meet all other requirements for SSI eligibility.

Expedited reinstatement

If the Social Security Administration stops your SSDI payments because of your earnings and you become unable to work again because of your medical condition, you may restart your benefits. You will not be required to file a new disability application if you make this request within five years after the month your benefits stopped.

Offsetting Income with Disability Related Expenses

If you receive SSDI and are working, the Social Security Administration allows you to deduct certain disability-related expenses from your income. These are expenses related to items and services that people without disabilities don’t pay. For example, because of your medical condition, you may need to take a taxi to work instead of public transportation; or you may need to pay for counseling services. The Social Security Administration may allow you to deduct these expenses from your monthly earnings before they make a decision about whether you’re still eligible for benefits. This is especially helpful if your earnings are above the substantial gainful activity (SGA) threshold.

How to Contact the Social Security Administration

If you receive SSI benefits, contact the Social Security Administration right away when any of the following happens:

  1. You start or stop work
  2. Your duties, hours, or pay change
  3. You start paying expenses for work because of your disability

You must report your monthly earnings by calling the Social Security Administration toll-free at 1-800-772-1213 (TTY number at 1-800-325-0778) by the 6th day of the next month.

You can also mail or bring your pay stubs to your local Social Security office by the 10th day of the next month. Click here to find the nearest Social Security Office Location.

March 23, 2018