What are the Rules for Working While on SSDI

Working while receiving SSDI benefits is allowed, but recipients must comply with rules around the Trial Work Period (TWP) and Substantial Gainful Activity (SGA).

These rules determine how long you can work and how much you can earn before your eligibility is affected.

Trial Work Period (TWP) and How It Works

The Trial Work Period (TWP) allows individuals to test their ability to work for up to nine months while continuing to receive full SSDI benefits.

During these months, there is no limit on how much you can earn.

In 2024, any month in which you earn more than $1,110 will count toward your TWP.

Key points about the TWP include:

• The TWP is nine months long but does not have to be consecutive.
• Full SSDI benefits continue regardless of how much is earned during these nine months.
• After completing the TWP, recipients enter the extended period of eligibility (EPE), which lasts 36 months.

During the EPE, your benefits may continue based on your income level and compliance with SSA guidelines.

Substantial Gainful Activity (SGA) Limits for SSDI Recipients

After completing the Trial Work Period, the SSA assesses whether you are earning above the Substantial Gainful Activity (SGA) limit.

In 2024, the SGA limit is $1,550 per month for non-blind individuals and $2,590 for those who are blind.

Important details about SGA include:

• Earnings above the SGA limit after the TWP may result in loss of benefits.
• Countable income, including wages, is considered when determining SGA. However, unearned income such as investments or passive earnings is not included.
• If your earnings fall below the SGA threshold after the TWP, you may continue receiving benefits.

To work while receiving SSDI benefits, it’s essential to comply with specific reporting and income guidelines.

The SSA monitors your income to determine whether you continue to qualify for benefits while working.

Reporting Your Work and Income to the SSA

If you are working while on SSDI, it is necessary to report your earnings and work activity to the Social Security Administration.

Failure to properly report income can result in overpayments and potential penalties.

When reporting income to the SSA, you must:

• Report any changes in employment or income levels.
• Provide pay stubs or other evidence of earnings.
• Update the SSA regarding any changes in your work status.

Maintaining accurate communication with the SSA is critical to staying compliant and avoiding complications.

How Work Can Affect Your SSDI Benefits

Work can affect your SSDI benefits depending on how much you earn and how long you’ve been employed.

After the Trial Work Period and extended period of eligibility, any earnings over the SGA limit may result in suspension of benefits.

However, if your income drops below the SGA level during the extended period, your benefits can be reinstated without a new application.

Key points regarding how work affects SSDI benefits include:

• Working during the TWP does not affect benefits, but exceeding the SGA limit after the TWP can result in loss of benefits.
• During the extended period of eligibility, earnings that exceed the SGA limit will trigger a suspension of benefits for that month.
• After the extended period, consistent earnings over the SGA threshold can lead to permanent termination of SSDI benefits.

At TruLaw, we assist individuals with all aspects of Social Security Disability Insurance (SSDI) claims, from the initial application process to navigating the rules of working while receiving benefits.

Our experienced legal team can help you understand your rights and ensure that you comply with Social Security’s rules while managing your work and income.

Common Issues to Avoid When Working While on SSDI

Working while receiving SSDI benefits can raise challenges, especially when dealing with income reporting and the Substantial Gainful Activity limits.

Some common issues that SSDI recipients face include misunderstandings about income thresholds, failing to report changes in income, and confusion about unearned income or other sources of earnings.

Common issues include:

• Misunderstanding the Trial Work Period and how many months of work are allowed before benefits are impacted.
• Not reporting changes in income to the SSA, leading to overpayments.
• Uncertainty about whether different forms of income, like unearned income, count toward the SGA limit.
• Concerns about how earnings affect benefit eligibility during the extended period of eligibility.

At TruLaw, we can help clarify these issues and provide guidance on how to continue working without jeopardizing your SSDI benefits.

By following the rules for working while on SSDI, you can make informed decisions about employment and income without losing your benefits.

If you have questions about working while on SSDI or need assistance with your claim, TruLaw is here to guide you through the process.

Contact us today to learn more about protecting your SSDI benefit.