Many individuals receiving Social Security Disability benefits want to know if they can work part-time without losing their benefits. While working part-time is possible, there are strict limits on how much you can earn before your benefits are affected. The Social Security Administration (SSA) has established specific guidelines regarding how much a person can work and still maintain eligibility for disability benefits.
The key to answering this question lies in understanding the rules governing work activity, which are primarily based on a monthly earnings limit called Substantial Gainful Activity (SGA). The SSA sets annual SGA levels, and exceeding this limit can impact your eligibility for benefits.
What Is Substantial Gainful Activity (SGA)?
SGA is a measure the SSA uses to determine whether a person’s work activity is significant enough to impact their eligibility for benefits. It reflects the level of earnings that a person can receive while still being considered disabled. The SSA adjusts the SGA threshold annually based on national wage trends.
For 2024, the SGA amounts are as follows:
- Non-Blind Individuals: $1,550 per month.
- Blind Individuals: $2,590 per month.
If your earnings exceed these amounts, the SSA may determine that you are engaging in substantial work, and you could lose your disability benefits.
How SGA Impacts SSDI Benefits
The effect of part-time work on Social Security Disability Insurance (SSDI) benefits largely depends on whether your earnings exceed the SGA limit. As of 2024, if you are earning more than $1,550 per month as a non-blind individual, the SSA may conclude that you are no longer disabled under their rules.
However, the SSA does provide some safety nets to allow you to test your ability to work without immediately losing your benefits. These include the Trial Work Period (TWP) and the Extended Period of Eligibility (EPE).
Trial Work Period (TWP)
The Trial Work Period allows SSDI recipients to work and earn any amount of money for nine months without risking their benefits. During this time, you can test your ability to work without losing your SSDI payments, regardless of how much you earn.
- Trial Work Period Earnings Limit for 2024: For any month in which you earn more than $1,050, it will count as a trial work month. If you earn less than this amount, it does not count towards your TWP.
- You are allowed nine trial work months within a rolling 60-month period. These months do not need to be consecutive.
During the TWP, you will continue to receive your full SSDI benefits even if your earnings exceed the SGA level. However, once the TWP is over, the SSA will review your work and earnings to determine if you continue to qualify for disability benefits.
Extended Period of Eligibility (EPE)
After the TWP ends, the Extended Period of Eligibility (EPE) kicks in. The EPE lasts for 36 months and allows you to continue working without losing your benefits entirely, provided that your earnings remain below the SGA level.
- If you earn less than the SGA amount during any month of the EPE, you will continue to receive SSDI benefits.
- If your earnings exceed the SGA threshold during the EPE, your SSDI benefits will be suspended for that month.
- If your earnings later fall below the SGA limit during the EPE, your benefits can be reinstated without having to reapply for SSDI.
After the EPE concludes, if you are still working and earning above the SGA limit, your benefits will be terminated. However, if you stop working or your earnings fall below the SGA level after your benefits are terminated, you may be able to have your benefits reinstated through the Expedited Reinstatement (EXR) process.
How SGA Impacts SSI Benefits
Supplemental Security Income (SSI) operates differently from SSDI. Since SSI is a needs-based program, any income you earn from working part-time will affect your monthly benefit amount.
The SSA uses a formula to reduce your SSI benefits based on your earned income. Here’s how it works:
- The first $65 of earned income is excluded from the calculation.
- After that, SSI benefits are reduced by $1 for every $2 you earn.
For example, if you earn $500 per month from part-time work, the SSA will subtract $65, leaving $435. Then, they will reduce your SSI benefit by half of $435, which is $217.50. This means your SSI benefit will be reduced by $217.50 that month.
The maximum federal SSI payment for 2024 is $914 per month for an individual. So, if you are earning $500 from part-time work, your monthly SSI benefit would be reduced from $914 to approximately $696.50.
If your earnings, combined with other income, cause your total countable income to exceed the federal benefit rate, you may no longer qualify for SSI. However, even if your SSI payments stop due to earnings, you may still retain Medicaid coverage in many states.
Social Security’s Work Incentives and Support Programs
The SSA offers several work incentives designed to encourage beneficiaries to return to work without immediately losing benefits. These programs include:
- Ticket to Work Program: This voluntary program provides free employment services to help SSDI and SSI beneficiaries find and maintain employment. It includes career counseling, vocational rehabilitation, and job placement services.
- Impairment-Related Work Expenses (IRWE): If you need certain services or equipment to work because of your disability, the SSA may deduct the cost of these items from your earnings when determining if you meet the SGA limit. For example, the cost of assistive devices, medications, or personal care services could be deducted from your earnings, making it easier to stay below the SGA threshold.
The possibility of working part-time while receiving disability benefits is certainly achievable, but there are strict rules that govern how much you can earn without jeopardizing those benefits. For SSDI recipients, the key is to stay aware of the SGA limits—$1,550 per month for non-blind individuals and $2,590 for blind individuals in 2024. Programs like the Trial Work Period and the Extended Period of Eligibility provide additional safeguards for those who want to try working without the immediate risk of losing benefits. SSI recipients, on the other hand, will see their benefits reduced based on their earnings, but work is still possible.
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