Social security is defined as a federal program that provides benefits to retired people and those who are unemployed or disabled. That seems like a relatively straight forward idea, but oftentimes it is anything but simple. Social security benefit can be split into two major categories: SSDI and SSI.
What is Social Security?
Social Security Disability Insurance (SSDI) is classified as a benefit paid to you or your dependents when you are entitled to the program, meaning you have worked for a required length of time (typically 10 years minimum), are classified as disabled and have paid into the program in the form of social security taxes. Supplemental Security Interest (SSI) pays you based upon your financial need. To qualify for these programs, you need to meet the Social Security Administration’s definition of “disabled.”
Disability, as defined by the agency for the purposes of SSDI benefit, is defined as the following:
- You are unable to do the same, or similar, work as you were doing before.
- The SSA determines that you can’t learn and/or adjust to a new field of work.
- Your injury or disability is long term; that means that it has, or is projected to, last more than one year or result in death.
Qualifying for Your SSDI Benefit
If you are determined by the Social Security Administration to meet the intent and qualify for the SSDI benefit program, you cannot be working in any “substantial gainful activity.” For most Americans, this is defined as any work pursuit where you make $1,130 per month or more. This number is flexible once you have qualified for SSDI, but when applying you cannot make more than this amount.
The amount of benefit you can collect each month will depend upon the amount of money you earned prior to becoming disabled, how long since you have been able to work and how long your working life was. The average SSDI benefit earned in 2016 is $1,166 per month, but for qualifiers with a higher recent income, the benefit could be up to $2,639 per month.
Working and Collecting Your SSDI Benefits
If you have qualified for the SSDI benefit program, you are able to work, within a set of guidelines. The Social Security Administration does have a provision allowing for a trial work period. During a trial work period, you have up to nine months of working in a new or similar field where you are working, earning $810 or more per month.
In the five years following your trial work period, you are automatically qualified for the program if you stop working, meaning you can collect benefits without reapplying. Any time in the three years (36 months) after the end of your trial work period where you earn less than your established SSDI benefit, you can apply to collect SSDI benefit to compensate for this shortfall.
While you are working, the amount of money you earn will reduce the amount of benefit you collect. This calculation can be simplified in order to determine a ballpark figure. The first $85 you earn in a month from working will not be counted. Anything above and beyond that baseline will be subtracted, fifty cents for every dollar, from your benefit collected. An example is shown below:
$1,130 (the maximum amount you can earn and collect benefit) minus $85 (not counted baseline earned income) equals $1,045. Of the remaining earned income, calculate 50 cents for every dollar: $1,045 / 2 = $522.50. The SSA will subtract $522.50 from your calculated money benefit.
For many of us, it is not just the paycheck that is earned when working. If you collect SSDI benefits, but miss the sense of purpose and accomplishment working provides, and are able to find a job which you can safely perform, don’t be deterred from pursuing it. The SSDI benefit program allows you to work within set guidelines while collecting your benefits. Contact your local and professional attorney today to learn more.
Navigating Work While Receiving SSDI Benefits
Social Security Disability Insurance (SSDI) provides essential financial support to individuals who cannot work due to a severe and long-term disability. However, the intersection of working while receiving SSDI benefits can present several challenges and considerations. It’s essential to understand how working can affect your SSDI benefits, the potential issues that may arise, and the options available to manage these complexities effectively. The following are some FAQs. For more detailed information regarding your situation, call our office to speak with an Illinois SSDI disability benefits lawyer.
1. How Does Earning Income Affect My SSDI Benefits?
When you work while receiving SSDI benefits, your earnings can impact your eligibility for benefits. The Social Security Administration (SSA) uses the Substantial Gainful Activity (SGA) limit to determine if your income is too high for you to qualify for SSDI. For 2024, the SGA limit is $1,470 per month for non-blind individuals and $2,460 per month for blind individuals. If your earnings exceed these thresholds, the SSA may review your case and potentially suspend or terminate your benefits. However, the SSA allows a Trial Work Period (TWP), during which you can earn any amount without affecting your benefits. After the TWP, if your earnings are consistently above the SGA limit, your benefits might be reconsidered.
2. What Is The Trial Work Period (TWP), And How Does It Work?
The Trial Work Period (TWP) is a provision that allows SSDI beneficiaries to test their ability to work for up to nine months without losing their benefits. During the TWP, you can earn any income which will not affect your SSDI benefits. The purpose of the TWP is to provide a safety net for those trying to return to work, ensuring they do not lose their benefits while testing their ability to sustain employment. After the TWP ends, your benefits may be reviewed to determine if you still qualify if you continue to work and earn above the SGA limit. It’s important to track your earnings and report them to the SSA to avoid potential issues with your benefits. Your Illinois SSDI disability benefits lawyer can help you set up a system to ensure you are keeping track of these earnings.
3. Are There Any Programs Or Provisions To Help If I Want To Return To Work?
Yes, several programs and provisions are designed to assist SSDI beneficiaries who want to return to work. One key program is the Ticket to Work program, which offers vocational rehabilitation, job training, and other support services to help individuals transition back into the workforce. Additionally, the SSA provides the Extended Period of Eligibility (EPE), which allows beneficiaries to continue receiving SSDI benefits for up to 36 months after the Trial Work Period if their earnings are below the SGA limit. This helps to provide a financial cushion while you adjust to working and earning income.
4. What Happens If My Work Income Decreases Or I Stop Working?
If your work income decreases or you stop working after your SSDI benefits have been affected, you may be eligible to have your benefits reinstated. The SSA has a process for reestablishing benefits if you stop working due to your disability or if your earnings fall below the SGA limit. The Expedited Reinstatement (EXR) process allows you to request reinstatement of benefits within five years of their termination without needing to reapply. It’s important to keep the SSA informed of any changes in your employment status and income to ensure a smooth transition back to receiving benefits if necessary.
Need Legal Assistance?
Understanding how working while on SSDI affects your benefits is crucial for effectively managing your financial and professional life. By being aware of these issues and utilizing available resources, you can navigate the complexities of balancing work and disability benefits. If you need further assistance or have specific concerns, consulting with an Illinois SSDI disability benefits lawyer from Disparti Law Group can provide additional guidance and support.
