Introduction
Many people who receive disability benefits wonder: Will I lose my disability if I work part-time? This is a valid concern, as financial stability is important, and working can help improve quality of life. The answer depends on the type of disability benefits you receive, how much you earn, and other factors.
In this article, we will explain everything you need to know about working part-time while receiving disability benefits. We’ll cover Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and the impact of part-time work on your benefits.
Understanding Disability Benefits
Before discussing how part-time work affects your benefits, it’s important to understand the two main types of disability benefits offered by the Social Security Administration (SSA):
- Social Security Disability Insurance (SSDI) – This program provides benefits to people who have worked and paid Social Security taxes but are now disabled and unable to work full-time.
- Supplemental Security Income (SSI) – This program provides financial assistance to disabled individuals with limited income and resources, regardless of work history.
The impact of part-time work on your disability benefits depends on which program you are enrolled in.
Working Part-Time While on SSDI
If you receive SSDI benefits, working part-time is possible, but there are specific rules you need to follow. The SSA uses a term called Substantial Gainful Activity (SGA) to determine if your work affects your benefits.
What Is Substantial Gainful Activity (SGA)?
SGA is the maximum amount of income a disabled person can earn without losing SSDI benefits. In 2024, the SGA limit is $1,550 per month for non-blind individuals and $2,590 per month for blind individuals. If you earn more than these limits, the SSA may decide that you are no longer disabled and stop your benefits.
Trial Work Period (TWP)
The SSA offers a Trial Work Period (TWP) to SSDI recipients who want to test their ability to work without losing benefits. During this period:
- You can work and earn any amount without immediately losing your benefits.
- The TWP lasts nine months (not necessarily consecutive) within a 60-month period.
- A month counts toward the TWP if you earn more than $1,110 in 2024.
Once you complete the TWP, the SSA will evaluate whether you are still eligible for SSDI based on your earnings.
Extended Period of Eligibility (EPE)
After completing the TWP, you enter a 36-month Extended Period of Eligibility (EPE). During this time:
- If you earn below the SGA limit, you continue receiving benefits.
- If you earn above the SGA limit, your benefits may stop.
- If your benefits stop but your disability prevents you from working again, you can request Expedited Reinstatement to restart your benefits without a new application.
What Happens If You Earn Too Much?
If you consistently earn more than the SGA limit after your TWP and EPE, your SSDI benefits will stop. However, you may still qualify for Medicare coverage for up to 93 months after your benefits end.
Working Part-Time While on SSI
If you receive SSI benefits, the rules for working are different because SSI is based on financial need.
How Does Income Affect SSI?
Since SSI is a needs-based program, any income you earn affects your monthly benefits. However, the SSA does not count all of your earnings. Here’s how it works:
- The first $65 of earned income each month is not counted.
- After that, the SSA reduces your SSI benefits by 50 cents for every $1 you earn.
- This means if you earn $300 in a month, only $117.50 is deducted from your SSI payment.
Can You Work Part-Time and Keep SSI Benefits?
Yes, you can work part-time and continue receiving SSI, but your benefit amount will decrease based on your earnings. If your income becomes too high, you may no longer qualify for SSI.
However, if your earnings drop again in the future, you may reapply for SSI without starting from scratch.
Special Rules for Students and Workers With Disabilities
There are special programs that allow certain individuals to keep more of their SSI benefits while working:
- Student Earned Income Exclusion (SEIE) – If you are under age 22 and regularly attending school, you can earn up to $2,290 per month (up to $9,230 per year in 2024) without affecting your SSI.
- Plan to Achieve Self-Support (PASS) – This program lets you set aside earnings for work-related goals without reducing your SSI benefits.
Reporting Your Income to the SSA
If you decide to work part-time while receiving disability benefits, you must report your income to the SSA to avoid overpayments and penalties.
How to Report Your Earnings
You can report your wages to the SSA in the following ways:
- Online via your My Social Security account.
- By phone by calling the SSA at 1-800-772-1213.
- In person at your local SSA office.
- By mail by sending pay stubs to your SSA office.
Failing to report your income on time may result in overpayments, meaning you might have to pay back extra benefits you received.
Can You Lose Medicaid or Medicare If You Work?
Many people worry that working part-time will cause them to lose their healthcare coverage. Here’s how working affects Medicaid and Medicare:
- Medicare (for SSDI recipients) – You can keep Medicare coverage for at least 93 months after your SSDI benefits stop due to work.
- Medicaid (for SSI recipients) – Many states allow you to earn above SSI limits and still keep Medicaid under Section 1619(b) if your disability continues.
Key Takeaways
- SSDI recipients can work part-time, but if earnings exceed the SGA limit ($1,550 in 2024), benefits may stop after the Trial Work Period.
- SSI recipients can work part-time and still receive benefits, but SSI payments decrease as earnings increase.
- Programs like PASS and SEIE allow certain individuals to work without losing all benefits.
- Medicare and Medicaid may continue even if disability benefits stop.
- Always report earnings to the SSA to avoid overpayment issues.
Conclusion
So, will I lose my disability if I work part-time? The answer depends on the type of disability benefits you receive, how much you earn, and how long you work. While it is possible to work part-time and still receive benefits, staying within the income limits and following SSA guidelines is crucial.
If you are considering working part-time, it may be helpful to consult with a disability benefits expert or a Social Security representative to ensure you make informed decisions. Working can be a great way to gain independence while maintaining financial stability, as long as you understand the rules.
If you have any questions or concerns, reach out to the Social Security Administration for the most up-to-date information on your specific situation.
