Rules for Working While Receiving Social Security Disability Benefits

Social Security's work rules are different for individuals currently receiving SSDI and those receiving SSI. 

Working and SSDI Benefits

Generally, SSDI recipients are not allowed to partake in "substantial gainful activity" (SGA) and continue to receive disability benefits. In a nutshell, individuals are not allowed to make over $1310 per month in 2021 (or $2,190 if you're blind). To encourage SSDI recipients to go back to work, however, Social Security has created some exceptions to this rule. SSDI recipients are entitled to a trial work period during which they can make more than the SGA amount without losing benefits.

For the nine-month trial work period, SSDI recipients are entitled to test their ability to work and continue to receive full benefits regardless of whether they make more than the SGA amount. For 2021, the Social Security Administration (SSA) considers any month where a person has a monthly income of more than $940 to be a trial work month. If you are self employed, any month where you work more than 80 hours can also be considered a trial work month.

Once you have completed the nine-month trial work period (the months need not be consecutive), you can still receive SSDI for any month where your earnings fall below the SGA level, for a period of 36 months. This three-year period is called the "extended period of eligibility." In other words, if you earn less than $1,310 in any month, you will get benefits, but if you earn more than $1,310 in any month, you won't get disability benefits for that month (after a three-month grace period).

Following your trial work period, if your SSDI payments have stopped because your income is "substantial," the SSA gives you five years during which your benefits can be reinstated if you again stop working because of your disability. During this five-year period, called expedited reinstatement, the SSA will not require you to file a new disability application to get benefits.

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Working and SSI Benefits

You can begin to work and continue to receive SSI benefits as long as your wages and other resources do not exceed the SSA’s income limit, however, your monthly benefit amount will be reduced in proportion to your income.

Here's how the SSA reduces your income. Both the federal benefit amount and the SSI countable income limit are $794 (in 2021). The SSA will reduce your benefit by the amount of your countable income. Fortunately, not all of your income is countable income.

If your only income is from your job, the SSA does not include the first $85 you earn toward your countable income. After taking the $85 adjustment off of your income, the SSA will deduct, from your monthly benefits, 50 cents for every dollar you earn. For example, an individual who earns $1,000 a month from working has $457.50 of countable income ($1,000 - $85 = $915 ÷ 2 = $457.50). The individual's monthly SSI benefit amount would be reduced by $457.50. (You can earn up to about $1,675 a month, if you have no other income, before your SSI benefit would be reduced to zero.)

If your SSI payments stop because you earn too much money (that is, if your countable income is over $794 per month), but you are subsequently forced to quit work because of your disability, the SSA will reinstate your benefits without the need for a new application for a period of five years.

Reporting Requirements

Both SSI and SSDI recipients must report to the SSA:

• the start and stop date for any job

• any changes to duties, pay scale, or hours worked, and

• whether you have any work-related expenses as a result of your disability.

You must also report the amount of your monthly wages (if any) to the SSA. If you report your wages by telephone, it must be done by the 6th of the next month; if you mail or bring in your paystub to your local SSA, it must be done by the 10th of the next month. 

Working While Applying for Benefits

Keep in mind that the mere fact that you are working, even if you are making less than $1,310 per month, may influence whether a disability claims examiner or a disability judge believes you are disabled, especially if you're working more than 15 or 20 hours a week. For this reason, many disability lawyers and representatives will advise their clients not to work while their case is pending..