One of the most common questions among individuals with disabilities who receive disability benefits is whether they can work without risking the loss of their benefits. The intersection of disability benefits and employment presents a complex landscape governed by various laws, regulations, and considerations. They understand the rules and implications of working while on disability benefits are crucial for individuals seeking to maximize their financial independence and quality of life.
The United States provides several types of disability benefits to support individuals who cannot work due to a disability, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). While these benefits offer crucial financial assistance, recipients often need more support on their ability to work without jeopardizing their eligibility for benefits.
Social Security Disability Insurance (SSDI) is a federal program that benefits individuals who cannot engage in substantial gainful activity (SGA) due to a disability. While SSDI recipients are generally discouraged from working due to the risk of losing their benefits, some provisions allow for limited employment without penalty.
The Social Security Administration (SSA) defines SGA as the ability to earn a certain amount of income through work. In 2024, the SGA threshold for non-blind individuals is $1,350 monthly. If an individual's earnings exceed this threshold, they may be considered capable of engaging in SGA and may risk losing their SSDI benefits.
To encourage individuals with disabilities to test their ability to work, SSDI includes a trial work period (TWP) during which recipients can earn any income without jeopardizing their benefits. In 2024, a trial work period lasts for nine months within a rolling 60-month. During the TWP, recipients receive full SSDI benefits regardless of their earnings.
Following the trial work period, SSDI recipients enter an extended period of eligibility (EPE) during which they can continue to receive benefits for any month their earnings fall below the SGA threshold. The EPE lasts 36 months, providing recipients additional flexibility to transition back to work without immediately losing their benefits.
Supplemental Security Income (SSI) is a federal program that provides financial assistance to individuals with limited income and resources who are aged, blind, or disabled. Unlike SSDI, SSI benefits are based on financial need rather than work history. While SSI recipients are subject to strict income and resource limits, some provisions allow for limited employment.
SSI recipients must report any income they receive, including wages from employment, to the Social Security Administration (SSA). The SSA applies a complex formula to calculate how earned income affects SSI benefits, taking into account factors such as the individual's countable income and the SSI federal benefit rate.
SSI includes a provision known as the earned income exclusion (EIE), which allows recipients to exclude a portion of their earnings from consideration when calculating their SSI benefits. In 2024, the EIE will enable individuals to exclude the first $65 of earned income and disregard one-half of the remaining earnings when determining their SSI benefit amount.
SSI recipients pursuing employment or self-employment may be eligible for a PASS, which allows them to set aside income and resources to achieve specific work-related goals without affecting their SSI benefits. A PASS can help individuals save for education, vocational training, or starting a business while maintaining their eligibility for SSI.
While the ability to work while receiving disability benefits provides opportunities for financial independence and personal fulfillment, it also presents challenges and considerations that individuals must carefully navigate:
Working while on disability benefits can affect the amount of benefits a person receives or their eligibility. It is essential for individuals to understand how their earnings will impact their benefits and to report their income accurately to the Social Security Administration to avoid overpayments or penalties.
Many individuals with disabilities rely on Medicaid or Medicare for healthcare coverage, which may be linked to their eligibility for disability benefits. Income or employment status changes can affect eligibility for these programs, requiring individuals to explore alternative healthcare options or plan for potential gaps in coverage.
Employment opportunities for individuals with disabilities may require accommodations or modifications to ensure equal access and opportunity. It is essential for individuals to advocate for their rights under the Americans with Disabilities Act (ADA) and to communicate their needs with employers to facilitate a supportive work environment.
Individuals with disabilities may benefit from career counseling, vocational rehabilitation services, or job training programs to enhance their skills and employability. Planning for long-term career goals and considering the potential impact of disability on employment prospects can help individuals make informed decisions about their work options.
Navigating the intersection of disability benefits and employment requires careful consideration of various factors, including income thresholds, program rules, and individual circumstances. While working on disability benefits is possible under certain conditions, individuals must understand the implications and plan accordingly to ensure financial stability, healthcare coverage, and career success. By staying informed and seeking support from resources and professionals, individuals with disabilities can pursue their employment goals while maintaining their eligibility for essential benefits and support services.