If you’re receiving disability benefits, you might wonder if working part time will cause you to lose your benefits. The answer is not as simple as a “yes” or “no,” because it depends on various factors, including how much you earn and how your work activity aligns with the Social Security Administration’s (SSA) guidelines. Working part time while receiving SSDI (Social Security Disability Insurance) benefits is possible, but it is important to understand how your income, type of work, and other factors can affect your eligibility.
This article will explain how part-time work impacts SSDI and SSI Supplemental Security Income benefits, outline key programs that can help you transition to part-time work, and debunk common myths about disability and employment.
Why Do Many Disability Recipients Consider Part-Time Work?
Many SSDI and SSI recipients explore part-time work options for many reasons.
Financial benefits
For many people with disabilities, part-time work is an opportunity to supplement their disability benefits, helping to improve their financial situation. Disability benefits often provide only a basic income level, and working part time can help cover extra expenses or allow for more discretionary spending.
Psychological benefits
Part-time work can offer significant psychological benefits. Many disability recipients find that engaging in work helps boost their self-esteem and mental health. Feeling productive and contributing to society can be an uplifting experience, offering a sense of purpose and accomplishment.
Social interaction
One of the challenges that individuals with disabilities may face is isolation. Part-time work provides a natural setting for social interaction, which can be especially valuable for mental health. Socializing with coworkers can reduce loneliness and create a sense of connection to a community.
Skill development
Part-time work provides an opportunity to learn new skills or refine existing ones. For those who hope to return to full-time employment in the future, part-time jobs can be a great way to gain experience and build a stronger work history.
Increased independence
Earning an income through part-time work can provide a greater sense of independence. Disability recipients may feel empowered to manage their finances and contribute to their households, which can improve their overall quality of life.
Health benefits
In some cases, working part time can lead to physical health benefits. Jobs that involve moderate physical activity, such as walking or lifting, may help improve strength, flexibility, or motor skills.
Structure and routine
Part-time work offers a structured routine, which many people with disabilities find beneficial. A consistent schedule can help improve time management, reduce stress, and create a sense of normalcy.
Potential career progression
For individuals who can return to full-time work in the future, part-time jobs can serve as stepping stones toward career progression. They provide a way to gradually increase work hours or gain relevant experience in a field.
Will I Lose Disability If I Work Part Time?
Working part-time does not automatically disqualify you from receiving disability benefits. The Social Security Administration allows you to work while receiving benefits, as long as you stay within specific income limits.
Substantial Gainful Activity (SGA)
The SSA defines a threshold called substantial gainful activity, which determines whether your earnings from part-time work will affect your disability benefits.
- As of 2024: If you’re non-blind, you can earn up to $1,550 monthly. If you’re blind, you can earn up to $2,590 monthly.
- Beginning in 2025: You can earn up to $1,620 monthly. If you’re blind, you can earn up to $2,700 monthly.
How Working Part-Time Impacts Disability Benefits
The complex relationship between part-time work and disability benefits requires careful consideration to ensure that you do not inadvertently jeopardize your finances.[H3] Income limits
As mentioned, part-time work can affect your disability benefits if you exceed the SGA threshold. For SSDI, earnings above the SGA level can result in a reduction or cessation of benefits. For SSI, your benefits may be reduced based on the income you earn from part-time work.
Trial work period
The SSA offers a trial work period (TWP), which allows you to test your ability to work without immediately losing your benefits. You can work for up to nine months (not necessarily consecutive) within five years without your SSDI benefits being affected. During this period, there are no income limits; you can earn any amount, and your benefits will remain intact. However, after this period, your earnings are evaluated against the SGA limits.
Extended Period of Eligibility (EPE)
After the TWP, you enter the Extended Period of Eligibility (EPE), which lasts 36 months. If your earnings stay below the SGA threshold during the EPE, you can continue receiving your full benefits. However, if your income exceeds the SGA threshold for more than three months in 36 months, your benefits will be stopped.
Continued Medicaid eigibility
Even if your earnings cause you to lose SSDI benefits, you may still be eligible for medical/Medicaid (if you receive SSI) or Medicare (if you receive SSDI). With SSDI, you can generally continue receiving Medicare for at least 93 months after the TWP ends if you still continue to have a disabling medical impairment. If you’re on SSI, medical, or Medicaid (depending on the state), you may still qualify for these benefits based on your income and resources. In many states, there are special programs or protections (such as “working disabled” programs) that allow you to keep Medicaid coverage while working, provided your earnings don’t exceed a specific threshold.
Ticket to Work Program
The SSA’s Ticket to Work Program is designed to help people with disabilities transition back into the workforce. The program offers vocational rehabilitation, job placement, and other support services. It also provides a safety net, allowing individuals to test their ability to work without fear of immediately losing their benefits.
Reporting of responsibilities
You must report any income earned from part-time work to the SSA. Failing to do so could lead to overpayments, penalties, and even the loss of your benefits. Keeping accurate records of your work hours, pay stubs, and other relevant documentation is crucial.
Common Misconceptions About Working Part-Time on Disability
Many people hold misconceptions about working part-time while receiving Social SSDI and/or SSI benefits. These misconceptions can create confusion and anxiety for individuals who are exploring their return-to-work options
You can’t work at all while on disability
One common misconception is that individuals with a disability who receive SSDI and/or SSI benefits cannot work at all. This is not true. SSDI and SSI have work incentives that allow you to work part time while still receiving benefits.
Working will automatically disqualify you from receiving benefits
While it is true that earning too much can affect your benefits, working part time does not automatically disqualify you. You can keep your benefits if your income remains below the SGA threshold.
Part-time work isn’t considered substantial gainful activity Some believe that part-time work isn’t a substantial gainful activity. However, the SSA’s definition of SGA is based on income, not hours worked. Earning more than the SGA limit can impact your benefits.
You’ll lose your medical benefits if you work
Many fear losing their medical benefits if they work. However, SSDI recipients can continue receiving Medicare coverage for 8.5 years after the trial work period, and SSI recipients may retain Medicaid, depending on income. Different rules apply to SSI recipients, but many can still retain Medicaid coverage even when working.
If you lose your benefits, you can’t get them back
If you lose your benefits due to work, you may be able to have them reinstated under the Expedited Reinstatement policy. This allows you to restart your benefits without reapplying if you cannot continue working.
The SSA doesn’t support beneficiaries returning to work
The SSA has programs to help beneficiaries transition back into the workforce. The Ticket to Work program, in particular, offers free employment support services to disability beneficiaries aged 18 to 64.
You can’t save money while receiving disability and working part time
SSA programs such as the Plan for Achieving Self-Support (PASS) allow SSI recipients to set aside money and resources for a specific work goal without affecting their SSI or Medicaid benefits.
Steps to Take Before Starting Part-Time Work While on Disability
Returning to work while receiving disability benefits can be a complex process. Taking proactive steps before starting part-time employment is essential to ensure you understand your rights, protect your benefits, and transition back into the workforce successfully.
Consult a disability benefits advisor
Before starting part-time work, consult with a disability benefits advisor or attorney. They can provide personalized guidance to help you fully understand how working part time will affect your benefits.
Evaluate your health condition
Consider your health and whether you are physically and mentally prepared for part-time work. It’s important not to compromise your health in pursuit of additional income.
Research suitable jobs
Look for part-time jobs that suit your abilities and do not exacerbate your condition. Ensure the job is manageable within the scope of your disability.
Discuss with your doctor
Before making any decisions, it is wise to consult with your doctor. They can provide advice based on your health status and may help you determine whether you are ready for work, suggest reasonable adjustments, or even recommend specific types of work that may be better suited to your current state.
Understand your rights as a disabled worker
Take the time to familiarize yourself with the Americans with Disabilities Act (ADA), which safeguards your rights as an employee with a disability. Understanding the provisions of the ADA can help ensure you receive the accommodations and protections you’re entitled to in the workplace.
Create a financial plan
Create a financial plan to manage your disability benefits alongside your part-time income effectively.
Notify your disability benefit provider
Once you decide to begin part-time work, it is important to inform the SSA about your employment and earnings. Keeping them updated is essential to ensure your benefits remain intact. You can report your earnings by submitting the information to your local SSA office. If you are unsure which office to contact, you can use the SSA’s office locator by zip code page to find the appropriate office and reach out to them directly.
Seek job accommodations
If necessary, consult with your employer about potential accommodations to make your work environment more accessible and supportive of your needs.
Keep records of your work and earnings
Keep detailed records of your work hours, pay stubs, and any other relevant documentation to ensure you can accurately report your earnings to the SSA if needed.
Working part-time while receiving disability benefits is possible, but it is important to be mindful of SSA rules regarding income limits, trial work periods, and eligibility. By understanding how part-time work impacts your benefits, you can make informed decisions about your financial future while preserving your health and well-being.
If you have more questions about working part time while on disability, don’t hesitate to contact La Porte Law Firm. Our disability attorneys are here to answer your questions and ensure you understand your rights and options.
FAQs
Yes, you can work part time and still qualify for ongoing SSDI and/or SSI benefits if your earnings stay within the SSA’s limits for substantial gainful activity. This means your income level won’t automatically disqualify you from receiving benefits; however, your benefit amount may be reduced depending on how much you earn. You should always review information regarding SSA rules and regulations for those working while disabled.
The SSA defines gainful employment based on income, not hours worked. Therefore, the number of hours you can work while on disability depends on several factors.
For SSDI recipients, there are several considerations:
- SGA limit
- In 2024, the SGA limit was $1,550 per month for people with disabilities other than blindness and $2,590 per month for people who are blind. Starting in January 2025, these limits will increase to $1,620 per month for non-blind disabled individuals and $2,700 per month for people who are blind.
- Trial work period
- You can return to work for at least nine months and still receive your full Disability payment. The amount you can earn during that time is not limited. The nine months of your TWP do not need to be consecutive.
- Extended Period of Eligibility
- After completing the trial work period, you can continue to work and still receive Disability payments for up to 36 months, provided your benefits do not exceed the SGA income level.
For SSI recipients:
When an SSI recipient starts working, their benefits are typically reduced. The SSA counts the first $65 of earned income each month and then considers half of any earnings above that threshold. As a result, for every dollar earned above $65, the recipient’s SSI benefits are generally reduced by $0.50. This means that the SSI benefit is reduced by $1 for every $2 earned above $65.
The SSA offers a trial work period, or TWP, which allows you to test your ability to work without immediately losing your benefits. You can work for up to nine months (not necessarily consecutive) within five years without your SSDI benefits being affected. During this period, there are no income limits; you can earn any amount, and your benefits will remain intact. However, after this period, your earnings are evaluated against the SGA.
Working part time does not automatically disqualify you from receiving disability benefits. The Social Security Administration allows you to work while receiving benefits as long as you stay within specific income limits.
Yes, you can lose your disability benefits if you exceed the income threshold:
For SSDI: In 2024, you can lose your SSDI benefits if you earn more than $1,550 per month (for non-blind disabled individuals) or $2,590 monthly if you are blind. In 2025, these limits will increase to $1,620 per month for non-blind disabled individuals and $2,700 monthly for people who are blind. This amount is known as the SGA limit. However, the SSA deducts work expenses related to your disability from your earnings. Impairment-related work expenses (IRWEs) are out-of-pocket costs that people with disabilities incur to work. The Social Security Administration deducts IRWEs from a person’s countable income when calculating their eligibility for Social Security disability benefits.
Examples of IRWEs include:
- Medications and co-pays
- Medical supplies and devices
- Service animals
- Transportation, such as paratransit, Uber, or Lyft
- Home modifications
- Assistive devices, such as software applications or computer support services
- Attendant care services
- Job coaching
- Prostheses
For SSI: Eligibility for SSI while working depends on your state of residence. SSI beneficiaries are protected from losing critical healthcare coverage if their earnings exceed the SSI’s countable earned income limits. However, other high-value items, such as cash gifts, life insurance policies, and inheritances, can put you over the limit.
Earned income exclusion: The SSA will exclude the first $65 of your wages from your countable income. They will also exclude half of any wages you earned over $65. After that, for every dollar earned above $65, the recipient’s SSI benefits are generally reduced by $0.50. Therefore, for every $2 earned above $65, the SSI benefit is reduced by $1.
