Balancing Act: Navigating Employment While Receiving Disability Benefits

Wellman Shew
4 min readFeb 8, 2024

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The intersection of work and disability benefits is a complex landscape that often leaves individuals grappling with questions about financial stability, self-sufficiency, and the impact of work on their eligibility for support. This article aims to shed light on the nuances of working while on disability benefits in the United States, exploring the possibilities, limitations, and strategies for individuals seeking a delicate balance between employment and financial assistance.

Understanding the Two Types of Disability Benefits

In the United States, there are two primary disability benefit programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Each program has its own rules and regulations regarding employment while receiving benefits.

SSDI: The Work Incentive Program

SSDI is designed for individuals who have paid Social Security taxes and earned enough work credits to qualify. The program includes a work incentive called the Trial Work Period (TWP), allowing beneficiaries to test their ability to work for nine months without jeopardizing their benefits. During the TWP, individuals can work and earn any amount without facing a reduction in their SSDI benefits. After the TWP concludes, there is an Extended Period of Eligibility (EPE) during which beneficiaries can continue to receive benefits for any month their earnings fall below the substantial gainful activity (SGA) level. The SGA threshold is adjusted annually and serves as a guideline to determine if an individual is engaged in work that is substantial enough to be considered a hindrance to disability.

SSI: Countable Income and Resource Limits

SSI, on the other hand, is a needs-based program for individuals with limited income and resources. While SSDI focuses on work history and paid Social Security taxes, SSI considers financial need. Individuals receiving SSI benefits must adhere to strict income and resource limits. Working while on SSI introduces complexities due to the impact of earned income on benefit calculations. The SSA considers both earned and unearned income when determining eligibility for SSI. The first $85 of earned income and the first $20 of unearned income are typically not counted, but anything beyond that can result in a reduction in SSI benefits.

The Impact of Work on Disability Benefits

Substantial Gainful Activity (SGA)

For both SSDI and SSI recipients, the concept of SGA plays a pivotal role. Engaging in work that surpasses the SGA threshold can lead to a reduction or cessation of disability benefits. As of 2024, the SGA level for non-blind individuals is $1,350 per month. Blind individuals face a higher SGA threshold, which is $2,260 per month. It’s crucial for individuals on disability benefits to carefully monitor their earnings and ensure they remain below the SGA level to avoid potential repercussions on their financial assistance.

Reporting Requirements

When receiving disability benefits, honesty and transparency are paramount. Beneficiaries are obligated to report any changes in their employment status, income, or work-related activities to the Social Security Administration (SSA). Failure to do so may result in overpayments, penalties, or even termination of benefits.

Work Incentive Programs and Support

Ticket to Work Program

The SSA offers the Ticket to Work Program, a voluntary initiative designed to help disability beneficiaries achieve financial independence through employment. This program provides access to vocational rehabilitation services, training, job referrals, and other support services. The Ticket to Work Program allows beneficiaries to explore work opportunities without immediately risking their benefits. It also protects medical Continuing Disability Reviews (CDRs) during the program’s duration.

Plan to Achieve Self-Support (PASS)

For SSI recipients, the Plan to Achieve Self-Support (PASS) offers an additional avenue for individuals looking to work and gradually reduce reliance on disability benefits. PASS allows recipients to set aside income and resources for specific work-related goals, such as education, training, or starting a business, without affecting SSI eligibility.

Part-Time and Unsubstantial Work

While the SGA threshold provides a guideline, individuals on disability benefits may still engage in part-time or unsubstantial work without risking their eligibility. Understanding the difference between substantial and unsubstantial work is crucial. Part-time employment with earnings below the SGA level generally does not impact disability benefits.

Seeking Professional Guidance

Navigating the intricate relationship between work and disability benefits can be challenging. Seeking advice from professionals, such as vocational rehabilitation counselors, disability advocates, or Social Security attorneys, can provide valuable insights and assistance in making informed decisions.

The Empowerment of Financial Independence

While the fear of losing disability benefits can be a significant concern, the ability to work can empower individuals with disabilities by fostering financial independence and a sense of purpose. The work incentive programs and support services provided by the SSA are designed to encourage beneficiaries to explore employment opportunities and enhance their quality of life.

Balancing work and disability benefits requires careful consideration of individual circumstances, program-specific rules, and the desire for financial independence. The SSDI and SSI programs offer work incentives and support services to facilitate the transition to employment without immediately jeopardizing benefits.

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Wellman Shew
Wellman Shew

Written by Wellman Shew

Fresno resident Wellman Shew has worked in the California health insurance and employee benefits industries for many years as an entrepreneur & business leader