Can you work if receiving SSDI? This is a common question among individuals who are on Social Security Disability Insurance (SSDI) and are considering returning to the workforce. SSDI is designed to provide financial support to individuals who are unable to work due to a disabling condition. However, there are certain circumstances under which SSDI recipients may be able to work without affecting their benefits. In this article, we will explore the rules and regulations surrounding employment while receiving SSDI and provide guidance on how to navigate this complex issue.
Social Security Disability Insurance is a federal program that provides monthly cash benefits to individuals who have worked and paid into the Social Security system, and who are unable to work due to a disabling condition that is expected to last at least one year or result in death. While SSDI benefits are intended to help disabled individuals maintain their financial stability, there are strict guidelines regarding employment for those who receive these benefits.
One of the most important factors to consider when thinking about working while receiving SSDI is the Trial Work Period (TWP). The TWP allows SSDI recipients to test their ability to work without fear of losing their benefits. During the TWP, which lasts for a total of nine months, a recipient can earn up to $910 per month in 2021 (this amount is adjusted annually) without any reduction in SSDI benefits. It is important to note that the TWP does not have to be consecutive months; they can be spread out over a 60-month period.
After the TWP, SSDI recipients enter the Extended Period of Eligibility (EPE). During this period, which follows the TWP, a recipient can still receive SSDI benefits for a period of up to 36 months following the end of the TWP, as long as their earnings do not exceed a certain limit. In 2021, this limit is $18,920 for blind individuals and $27,060 for non-blind individuals. Once a recipient’s earnings exceed these limits, their SSDI benefits may be reduced or suspended.
It is also important to understand that SSDI benefits can be affected by any type of work, including self-employment. The amount of earnings that can be earned before SSDI benefits are affected is determined by the amount of money a recipient has earned in the three years prior to applying for SSDI. This amount is known as the substantial gainful activity (SGA) level. In 2021, the SGA level for disabled individuals is $1,310 per month.
For those who are considering working while receiving SSDI, it is crucial to carefully plan and track their earnings. Failure to comply with the rules and regulations surrounding employment while on SSDI can result in a loss of benefits. Recipients should consult with a Social Security representative or an attorney specializing in SSDI to ensure they understand the rules and to help them navigate the process of returning to work.
In conclusion, while it is possible to work while receiving SSDI, there are strict guidelines and limitations that must be followed. By understanding the Trial Work Period, Extended Period of Eligibility, and the SGA level, SSDI recipients can make informed decisions about returning to the workforce. It is always advisable to seek professional guidance to ensure compliance with the Social Security Administration’s regulations.
