Can You Work While Receiving Social Security Disability Benefits?

If you have been receiving social security disability (SSD), you might find the payments aren’t meeting your monthly expense needs. If your condition allows you to find a part-time job, you might be wondering if Social Security Administration allows you to work to add to your monthly wage. Here explain how disabled individuals receiving social security disability benefits can pursue part-time work to help make ends meet.

Who Receives Social Security Disability Benefits?

SSDI benefits are paid to those with disabilities who have paid Social Security taxes on recent earnings over the past ten years. However, you must meet certain medical requirements based on medical conditions outlined in the Social Security Administration’s “blue book” to qualify. The conditions must be expected to last for at least a year, impacting your ability to work or resulting in death.

Can I Work and Continue to Receive SSDI?

The Social Security Administration does allow you to work when receiving social security disability benefits. However, you cannot earn more than the monthly wage limit updated by SSA each year. In 2022 this amount was $1,350 per month or $2,260 if you are blind. To continue to receive disability payments, you can’t perform “substantial gainful activity” (SGA). The reason for this is that if you can perform SGA, you can work. The SSA considers earnings over $1,350 SGA.

How Does a Part-Time Job Impact My SSDI Benefits?

As mentioned above, you can only earn $1,350 in monthly wages when receiving SSDI benefits. However, your additional monthly wages also impact your SSDI payments. The SSA calculates your benefit payments based on your income earned. The “countable income” limit for 2022 is $841, which means they will reduce your benefit payout by this amount. However, not everything you earn is considered countable income. The way this is calculated is that the first $85 earned is deducted from your countable income. After the initial deduction, they then deduct 50 cents from your benefits for every dollar earned from your part-time job.

Impairment-related work expenses

Social Security Administration also deducts impairment-related work expenses from your countable income. This would include costs for things such as special transportation to get to and from work or counseling services.

Part-Time Work Hours and SSA Work Incentives

Although the SSA wants you to return to work, they also must ensure you are able to do so safely. Therefore, as part of your SSDI benefits, the Social Security Administration offers work incentives. Your part-time work could show your level of work activity has improved. This could mean your part-time work hours impact your trial work period. This work incentive helps determine whether you are fit to return to full-time work and boosts your credibility.

The nine-month trial work period allows you to receive your full benefits even if you make more than the substantial gainful activity amount. However, because the nine months do not have to be consecutive, if you earn more than $970 from your part-time job in any given month, those hours are considered part of your trial work month. For those who are self-employed, working more than 80 hours in one month becomes part of your trial work month. A disability advocate can help you sort it out, if you’re unsure.

What Other Work Incentives are Available on SSDI?

There are two other work incentives when receiving SSDI:

1. Extended period of eligibility: Once you complete your trial work period, the SSA offers an extended period of three years to receive SSDI for any month you earn less than the SGA level.
2. Expedited reinstatement: The Social Security Administration provides what is known as “expedited reinstatement” for five years following the discontinuation of your SSDI benefits. This provides a safety net should your condition relapse and impact your SGA. If you find your condition causes you to stop working again, your benefits are reinstated without having to reapply for benefits.

These work incentives allow you to ease back into the workforce without worrying about losing your benefits if your earnings drop or your health worsens.

How Does the SSA Know What to Deduct from My Benefits?

When receiving social security disability benefits, you are expected to report the following work-related information to the Social Security Administration:

• All monthly earnings
• Start and end dates for hours worked
• Changes to pay scale or hours worked
• Changes to your work duties
• All impairment-related work expenses

Wages must be reported before the 6th of each month by phone or by the 10th if submitting wages by mail or at the SSA office.

How Do I Report My Part-Time Job Earnings When Receiving SSDI?

You can report your earnings by phone, mail or bring your pay stub to your local Social Security Administration office. The SSA also has a phone app and website where you can use your SSDI account to log in.

What Happens If I Fail to Report My Part-Time Job Earnings?

Any overpayment made for SSDI benefits must be repaid. The SSA also applies penalties deducted from your payments which can range from $25 to $100. However, if you knowingly fail to report important changes or wages, the SSA will withhold your payments for six months. If you fail to report wages more than once, the sanction periods become longer, extending to a year for the second reporting incident and then two years for the third.

Can I Work While Applying for Benefits?

Because you are claiming you are unable to perform substantial gainful activity, any work performed during your SSDI application process would work against your case. Even if the work performed is a part-time job and in a very different capacity from your full-time job, the very fact you are working tells the Social Security Administrator your medical condition is not serious.

A disability claims examiner considers your current state both mentally and physically and how it impacts your ability to work. If you work over 15 to 20 hours a week or are earning over the SGA amount, you are very unlikely to meet the criteria required to receive SSDI. This is also true if your case is under appeal and the final decision is pending a disability judge’s decision. To avoid any confusion during the application or appeal process, a disability advocate can provide assistance.

If you are applying for SSDI benefits, the disability advocates at Princeton Disability can ensure you follow the proper process for approval. 

Click here to get a free consultation.