The Impact of Work on Your Social Security Disability Benefits
Many individuals receiving or applying for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) worry that any attempt to work will automatically jeopardize their benefits. While work activity can affect eligibility, the Social Security Administration (SSA) has created several work incentives designed to encourage beneficiaries to test their ability to return to work without immediately losing financial support. Understanding how work impacts SSDI and SSI benefits is essential for making informed decisions and avoiding unintended consequences.
At Lee Cossell & Feagley, LLP, our Indianapolis Social Security Disability Lawyers regularly advise Indiana clients on how employment, part-time work, or attempted returns to the workforce interact with disability benefits. This article explains how the SSA evaluates work activity, outlines key work incentives such as the Trial Work Period, and clarifies the different rules that apply to SSDI and SSI recipients.
How the SSA Evaluates Work Activity
The SSA uses the concept of substantial gainful activity (SGA) to determine whether someone is considered disabled. SGA is measured primarily by monthly earnings. If your earnings exceed the SGA threshold, the SSA may conclude that you are capable of working at a level inconsistent with disability. However, SGA is not applied uniformly at every stage of the disability process, and several exceptions and incentives allow limited work without immediate loss of benefits.
The SSA also considers the nature of the work performed. Subsidized employment, special accommodations, or unsuccessful work attempts may not count against you in the same way as competitive, full-time employment. This is particularly important for individuals whose medical conditions fluctuate or who are attempting a gradual return to work.
The Trial Work Period (TWP)
One of the most significant work incentives available to SSDI recipients is the Trial Work Period. The TWP allows individuals to test their ability to work for up to nine months without losing SSDI benefits, regardless of how much they earn. These nine months do not need to be consecutive and are tracked within a rolling 60-month period.
During a Trial Work Period month, earnings above a designated threshold are counted as a trial work month. As long as you are still medically disabled, you will continue to receive full SSDI benefits during the TWP. This program is designed to reduce fear and uncertainty around attempting to return to work, allowing beneficiaries to explore employment without immediate financial risk.
It is important to understand that the Trial Work Period does not apply to SSI benefits. SSI has different rules that apply as soon as work activity begins.
The Extended Period of Eligibility (EPE)
After completing the Trial Work Period, SSDI recipients enter the Extended Period of Eligibility. This period lasts 36 consecutive months and provides a safety net for individuals whose earnings fluctuate. During the EPE, you may receive SSDI benefits for any month in which your earnings fall below the SGA limit.
If your earnings exceed SGA during a given month, benefits may be suspended for that month but are not terminated outright. If your income later drops below SGA, benefits can be reinstated without filing a new application. This structure recognizes that returning to work after a disability is often unpredictable and may involve setbacks.
Expedited Reinstatement of Benefits
If your SSDI benefits are terminated because of sustained earnings above SGA and you later find that you cannot continue working due to your medical condition, you may be eligible for expedited reinstatement. This provision allows you to request reinstatement of benefits within five years of termination without filing a new disability application.
During the reinstatement review, you may receive provisional benefits for up to six months while the SSA determines whether your disability has returned. Expedited reinstatement is a critical protection for individuals whose attempts to return to work are unsuccessful.
How Work Affects SSI Benefits
SSI operates under a different framework because it is a needs-based program. Unlike SSDI, there is no Trial Work Period for SSI recipients. Instead, SSI benefits are reduced gradually as income increases.
The SSA applies income exclusions when calculating SSI payments. Generally, the first portion of earned income is excluded, and only a percentage of remaining wages is counted against your benefit. As a result, many SSI recipients are financially better off working part-time, even though their monthly SSI payment may be reduced.
However, if your earned income becomes too high, your SSI benefits may be reduced to zero. In some cases, Medicaid eligibility can continue even if SSI cash payments stop, provided certain criteria are met. Because SSI rules are complex and highly individualized, professional guidance is especially important when considering work.
Unsuccessful Work Attempts
Not every attempt to work counts against a disability claim or ongoing benefits. The SSA recognizes unsuccessful work attempts, which generally involve jobs that last a short time and end because of your medical condition or the removal of special accommodations.
Unsuccessful work attempts can be particularly relevant for individuals applying for disability or appealing a denial. Properly documenting why a job ended and how your impairment interfered with work performance can prevent the SSA from misinterpreting brief employment as evidence of work capacity.
Risks of Returning to Work Without Legal Guidance
Although work incentives exist, returning to work without understanding the rules can lead to overpayments, benefit suspensions, or terminations. Failing to report income accurately or misunderstanding how earnings are counted may create long-term financial and legal problems.
Additionally, work activity can affect how the SSA views your medical condition. Inconsistent reporting or work that appears incompatible with alleged limitations may raise credibility concerns during a continuing disability review or appeal.
An experienced Social Security Disability attorney can help you evaluate whether work activity is advisable, how to structure employment within SSA rules, and how to protect your benefits while exploring work opportunities.
Why Legal Representation Matters
The interaction between work and disability benefits is one of the most misunderstood areas of Social Security law. Each program—SSDI and SSI—has distinct rules, and individual circumstances vary widely. Mistakes can be costly and difficult to undo.
At Lee Cossell & Feagley, LLP, we help Indiana clients understand their rights, responsibilities, and options when working while disabled. Whether you are considering returning to work, are already employed, or are facing questions from the SSA about work activity, we provide clear guidance tailored to your situation.
Frequently Asked Questions About Work and Disability Benefits
Can I work part-time while receiving SSDI benefits?
Yes. SSDI recipients may work part-time, particularly during the Trial Work Period or Extended Period of Eligibility. Earnings and work activity must be evaluated carefully to avoid exceeding SGA or triggering benefit suspension.
Does working automatically mean I will lose my disability benefits?
No. The SSA offers several work incentives that allow beneficiaries to attempt work without immediate loss of benefits. However, sustained earnings above SGA can eventually affect eligibility.
How does work affect SSI differently than SSDI?
SSI benefits are reduced as earned income increases, rather than terminated immediately. There is no Trial Work Period for SSI, but income exclusions often make working financially beneficial.
Do I have to report work activity to the SSA?
Yes. All work activity and earnings must be reported promptly and accurately. Failure to report income can result in overpayments and penalties.
What if I try to work but cannot continue due to my disability?
If a work attempt ends because of your medical condition, it may be considered unsuccessful and may not count against your benefits. Expedited reinstatement may also be available in certain situations.
Get Legal Guidance Before Making Work Decisions
Deciding whether to work while receiving or applying for Social Security Disability benefits requires careful planning. The right decision can improve your financial stability and long-term prospects, while the wrong one can put your benefits at risk.
If you have questions about how work may affect your SSDI or SSI benefits, contact Lee Cossell & Feagley, LLP for a free consultation. Our Indiana Social Security Disability attorneys are committed to helping you protect your benefits while exploring your options for the future.
