Will I Lose My Disability If I Work Part-time?
Supplemental Security Income and Social Security Disability Insurance pay disability benefits to people unable to work because of a disability. It makes sense to assume that if you regain the ability to work, you lose disability benefits.
Assumptions, particularly when they apply to disability benefits, frequently turn out to be wrong. The Social Security Administration has work incentives that actually encourage people to try returning to work without giving up their right to disability benefits.
This blog from the disability professionals at the Clauson Law Firm explains the effects of working on disability benefits through SSI and SSDI. It goes into detail about programs that let you retain your disability benefits while earning income that might otherwise make you lose disability benefits. Just remember that answers to your questions about SSI and SSDI are available during a free consultation with a disability lawyer at Clauson Law.
Disability benefits through SSI
If you have a medically determinable physical or mental impairment that prevents you from doing substantial gainful activity for at least one year or is expected to result in death, you may satisfy the criteria used to determine if you are disabled and eligible for SSI or SSDI benefits. Though they use the same definition of disability for adults, SSI and SSDI have different non-medical requirements for eligibility.
SSI is a needs-based program that provides eligible adults and children who are disabled or blind with a monthly cash payment for shelter, food, clothing, and other necessities. Adults age 65 and older without being blind or disabled may qualify for SSI benefits provided they meet the following requirements that all SSI recipients must meet:
- Little or no income from sources other than SSI.
- Resources that may be used to acquire food and shelter cannot exceed $2,000 for individuals and $3,000 for eligible couples.
There are other requirements, including that you reside in the United States and be a citizen or lawful resident.
If you meet the eligibility requirements for SSI, you can receive a monthly benefit payment of $943 for individuals and $1,415 for eligible couples. These reflect the 2024 maximum federal benefit you can receive each month. However, you could receive more if you live in one of the 44 states that give a supplemental payment to their residents approved for SSI.
The following states do not offer supplemental payments:
- Arizona
- Arkansas
- Mississippi
- North Dakota
- Tennessee
- West Virginia
The amounts paid as supplemental payments by other states vary depending on a person’s income and other factors. If you need information about payments made by the state where you live, contact Clauson Law.
If you qualify for SSI, you become eligible for Medicaid to pay for medical expenses. Some states approve Medicaid coverage with your SSI application, but other states require a separate application to a state agency for review and approval.
Disability Benefits Through SSDI
The Social Security Administration uses the same disability definition to determine eligibility for SSDI as it does for adults applying for disability benefits through SSI. The non-medical eligibility requirements are also different for SSDI than for SSI.
SSI is a needs-based program, you SSDI is an entitlement program. That simply means that you must have a work history with payment of Social Security taxes on the money you earned. The minimum work history is generally 10 years, but a younger worker who becomes disabled may qualify for SSDI with a shorter work history.
How much you receive each month in disability benefits through SSDI depends on your average lifetime earnings from working. A cap on a worker’s income subject to payment of Social Security taxes means the most a high-earning worker can receive in monthly SSDI benefits in 2024 is $3,822. According to the Social Security Administration, the average monthly SSDI payment to disabled workers in 2024 is $1,537.
Working Without Losing SSDI Disability Benefits
Federal regulations use monthly earnings to determine whether or not someone applying for disability benefits is capable of doing substantial gainful activity, a key factor in the disability determination process. If you earn more than $1,550 in a month in 2024, the regulations say that you are capable of substantial gainful activity and would not be disabled under the federal rules.
If you receive SSI or SSDI and want to return to work on a part-time basis, you’d risk losing your benefits if you earn more than the substantial gainful activity amount during a month. Loss of disability benefits means going through the lengthy application process again if your medical condition worsens. To prevent that from happening, the Social Security Administration has work incentives and a Ticket to Work program to allow you to work while removing the risk of losing benefits and being forced into the application process all over again.
A few of the work incentives available to recipients of SSDI include the following:
- A trial work period
- An extended period of eligibility
- Expedited reinstatement
If you want to test your ability to return to work, a trial work period lets you do it without risking losing or reducing your SSDI benefits. A trial work period allows you to test your ability to work for up to nine months.
The nine months of a trial work period are cumulative and may be used over a 60-month period. Any month in 2024 that you work and have earnings of more than $1,110 counts as one of your nine trial months. Even if you earn more than the $1,550, which would be considered substantial, it does not affect your eligibility for SSDI.
If you are self-employed, a trial work month is any month when your earnings after the deduction of business expenses exceed $1,110. A month when you work in excess of 80 hours operating your own business counts as a trial month, regardless of your earnings.
You can earn more than the substantial gainful activity amount of $1,550, or $2,590 if you’re blind, and not have it affect your disability benefits eligibility. All you need to do is notify Social Security in advance that you want to return to work during a trial period, and you keep what you.
As long as you report the fact that you are working to the Social Security Administration, you keep your earnings and SSDI benefits. A critical point to remember is that trial work periods only apply when you continue to be disabled. If your medical condition improves and you are no longer disabled, your benefits may be terminated by Social Security.
You may continue to work after using the nine months of a trial work period. An extended period of eligibility allows you to continue working for 36 months after the end of the trial period.
As long as your earnings during an extended period of eligibility do not exceed $1,550 to be considered substantial, you keep your earnings and continue to receive your SSDI benefits. If your earnings during an extended period of eligibility exceed the substantial gainful activity limit of $1,550 with a disability and $2,590 if you are blind, your SSDI benefits may end. However, expedited reinstatement can help you get them restarted.
Expedited reinstatement applies if you request it within five years of when your benefits ended. If your medical condition gets worse after going back to work, your benefits may be reinstated without filing a new application.
Working While Receiving SSI Benefits
SSI work incentives differ from those available for someone receiving SSDI benefits. If you are disabled and receive SSI, you may continue to receive your monthly disability benefits as long as your income from work and other sources does not exceed the income limits for SSI. SSI income limits differ from one state to another, so speak to a disability lawyer at Clauson Law to learn how working may affect your SSI benefits.
When your earnings from work cause the Social Security Administration to stop your SSI benefits, expedited reinstatement may apply. If your medical condition prevents you from continuing to work, you have five years to request reinstatement of your disability benefits without filing a new SSI disability application.
A special program for students with disabilities lets you work while attending school or a training program. Students not yet age 22 are allowed a Student Earned-Income Exclusion to exclude as much as $2,290 of their monthly earnings from work in 2024. The maximum annual student earnings exclusion for 2024 is $9,230.
Helping People Across The Country Fight For Disability Benefits
The disability lawyers at Clauson Law firmly believe that getting the disability benefits you deserve should not be a struggle. Using their knowledge, experience, and skills to fight for disability benefits on behalf of people throughout the United States has made Clauson Law, where people turn for advice they can trust and dedicated representation in all matters related to Social Security disability.
Learn more from an outstanding disability lawyer during a free consultation by contacting Clauson Law today. If you are disabled and cannot work, you let us fight for the benefits that you deserve.
