Returning to work while receiving disability benefits can be a challenging decision, but the Social Security Administration (SSA) offers several programs to support both Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) recipients. These programs encourage beneficiaries to explore employment opportunities without the immediate risk of losing their benefits. Here’s an overview:
SSDI Work Incentives
Trial Work Period (TWP)
A Trial Work Period (TWP) is a provision under the SSDI program that allows beneficiaries to test their ability to work for at least nine months without losing their benefits. Here’s how it works:
Key Points of the Trial Work Period
Duration:
- The TWP lasts for nine months, which do not have to be consecutive, within a rolling 60-month period.
Earnings Threshold:
- In 2024, if a beneficiary earns more than $1,050 in a month, it counts as a TWP month.
- The threshold amount may change annually.
Benefits During TWP:
- During the TWP, you will continue to receive your full SSDI benefits regardless of how much you earn.
- There are no restrictions on earnings during this period.
After TWP:
- After completing the TWP, you enter the Extended Period of Eligibility (EPE). This is a 36-month period where you can still receive benefits for any month your earnings fall below the substantial gainful activity (SGA) level, which is $1,470 per month in 2024 (or $2,460 if you are blind).
Cessation of Benefits:
- If your earnings exceed the SGA level consistently after the TWP and EPE, your SSDI benefits may cease.
- However, there is a grace period where benefits are still payable for the first month of SGA and the following two months, regardless of earnings.
Reinstatement of Benefits:
- If your benefits stop due to substantial work and you must stop working again within five years, you can request expedited reinstatement without needing to reapply.
Example of a Trial Work Period
- Month 1-3: You earn $1,200 each month. These months count as TWP months.
- Month 4-6: Your earnings drop to $800 each month. These months do not count as TWP months.
- Month 7-9: You earn $1,500 each month. These months count as TWP months.
- After 9 TWP months: You continue working and enter the EPE. During this period, your benefits will be evaluated based on the SGA threshold.
SSI Work Incentives
- Ticket to Work Program: This program provides vocational rehabilitation, training, job referrals, and other employment support services to help recipients work towards financial independence.
- Earned Income Exclusion: Under SSI, the first $65 of monthly earned income plus half of the remaining earned income is excluded from countable income. This means that not all your earnings will count towards the income limit for SSI, allowing recipients to work without immediately losing their benefits.
- Student Earned Income Exclusion (SEIE): For SSI recipients under the age of 22 and regularly attending school, up to $1,930 of earned income per month (with an annual limit of $7,770 in 2023) can be excluded.
- Plan to Achieve Self-Support (PASS): This allows SSI recipients to set aside money for a specific work goal, such as starting a business, attending school, or obtaining training.
- 1619(a) and 1619(b): Section 1619(a) allows SSI recipients to continue receiving benefits even if their earned income exceeds the substantial gainful activity (SGA) level. Section 1619(b) allows SSI recipients to keep Medicaid coverage even if their earnings become too high to qualify for SSI cash payments, if they still have a disabling condition and meet other requirements.
Understanding and navigating these work incentive programs is crucial for SSI and SSDI beneficiaries who want to test their ability to work without risking their benefits. These provisions provide a safety net, allowing individuals to explore their work capabilities and achieve financial independence.
If you or someone you know has a pending claim or needs to file for Social Security Disability or Social Security Supplemental Income, consider calling us, Sage Disability for personalized assistance and expert guidance at 800-316-2794 or visit our website at www.sagedisability.com.