Almost every recipient of Social Security Disability Benefits has pondered over the question: “will I lose my disability benefits if I work part-time?” The prospect of navigating the intricate rules and regulations can be quite daunting.
Here you can learn how part-time employment can impact your disability benefits, how the Social Security Administration (SSA) interprets your income and work activity, and the various programs that facilitate a transition back to the workforce.
Overview of Social Security Disability Benefits
Before we delve into the specifics, let’s clarify what Social Security Disability Benefits entail. These benefits are designed to provide monetary assistance to individuals who are unable to engage in substantial gainful activity due to a disabling medical condition or illness.
There are two main types of disability benefits: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). To be eligible for these benefits, you must meet certain criteria, including income limitations and the severity of your disability.
Earning Income While Receiving Disability Benefits
The SSA does permit you to work while receiving disability benefits, provided your earnings do not exceed certain income limits. These limits, known as Substantial Gainful Activity (SGA), are updated annually by the SSA. In 2022, the SGA limit for non-blind individuals is $1,350 per month, while for blind individuals, it’s $2,110 per month.
It’s important to note that these limits pertain to gross income, meaning before taxes and other deductions. If your earnings are below these limits, you can continue to receive full disability benefits. However, if your income exceeds the SGA limits, your benefits may be jeopardized.
Balancing Part-Time Work and Disability Benefits
You might be wondering how you can balance part-time work and disability benefits without risking the latter. The answer lies in careful management of your earnings and a thorough understanding of the SSA’s rules.
If you decide to work part-time, you must report your earnings to the SSA. This includes details about when you start or stop work, changes in your duties, hourly wages, or hours worked per week.
The SSA takes into account not just your income, but also your work-related expenses when determining your SGA. Impairment-Related Work Expenses (IRWE) can include costs for transportation, medical devices, prescription drugs, or other expenses necessary for work.
Trial Work Period and Extended Period of Eligibility
The SSA provides a safety net for disability beneficiaries who wish to test their ability to work, known as the Trial Work Period (TWP). During the TWP, you can work and earn more than the SGA limit for up to nine months (not necessarily consecutive) within a 60-month period, without affecting your benefits.
Once the TWP ends, you enter the Extended Period of Eligibility (EPE). During the EPE, which lasts 36 months, you can receive benefits for any month your earnings are below the SGA limit.
Ticket to Work Program
The SSA’s Ticket to Work program is another excellent resource for disability beneficiaries looking to transition back into the workforce. This program provides access to a wide range of services, including job coaching, vocational rehabilitation, training, and other support services.
Importantly, while you participate in the Ticket to Work program, the SSA will not conduct a medical Continuing Disability Review, providing some reassurance as you navigate your return to employment.
Impact of Working on SSI Benefits
For SSI recipients, the rules are a bit different. The SSA excludes the first $85 of your monthly earnings, but beyond that, your SSI benefits are reduced by 50 cents for every dollar you earn. So, if you’re receiving SSI, part-time work can affect the amount you receive in benefits.
However, the SSA also takes into account your resources and living arrangements when determining your SSI eligibility and benefit amount. Therefore, it’s crucial to understand all the factors at play before making a decision about part-time work.
Seeking Legal Guidance
Navigating the complexities of the SSA’s rules can be challenging. Therefore, it’s advisable to consult with a Social Security Disability lawyer who can guide you through the process, ensure your understanding of the rules, and help you make an informed decision about part-time work.
In essence, you don’t have to lose disability benefits if you decide to work part-time. Although it requires careful planning and a clear understanding of the SSA’s rule. Usually, some legal guidance to ensure compliance and avoid disability benefits being suspended. By staying informed and proactive, you can balance the need for additional income with the necessity of maintaining your disability benefits.