Many people believe that receiving Social Security Disability Insurance (SSDI) means they cannot work. This misconception prevents countless individuals from pursuing employment opportunities that could improve their financial situation and quality of life. The truth is more nuanced: you can work while receiving SSDI, but specific rules govern how much you can earn and for how long.
The Social Security Administration recognizes that people with disabilities often want to return to work. To support this goal, SSA has created structured programs that allow you to test your ability to work without immediately losing your benefits. Understanding these rules is essential for making informed decisions about your employment. Whether you’re exploring work options or need guidance on SSDI work incentives, having the right information and legal support can make all the difference.
Understanding the Basic Rules
SSDI recipients have access to work incentives designed to encourage employment while protecting their benefits. These programs acknowledge that returning to work is a gradual process. You won’t lose your entire benefit check the moment you earn your first dollar. Instead, SSA uses specific thresholds and time periods to determine how your work affects your benefits.
The key to successfully working while on SSDI is understanding which program applies to your situation and staying informed about your earnings and benefit status. Many people benefit from working with a benefits planner or disability attorney who understands these complex rules. If you’re in Indiana, Hankey Marks & Crider can help you navigate these work incentives and protect your benefits. Our team has extensive experience helping Indianapolis residents understand their SSDI work options.
The Trial Work Period (TWP) Explained
The Trial Work Period is one of the most valuable work incentives available to SSDI recipients. This nine-month period allows you to test your ability to work without jeopardizing your benefits, regardless of how much you earn. Understanding how the trial work period functions is critical to maximizing your earning potential while maintaining your disability benefits.
How the 9-Month Trial Work Period Works
During your Trial Work Period, you can earn unlimited income and continue receiving your full SSDI payment. This means you could earn $5,000 per month or $500 per month, and your benefits will remain unchanged. The only requirement is that you report your earnings to Social Security.
A “work month” during the TWP is any month in which your earnings exceed $1,160 (2025 threshold). You don’t need to work every month to use your TWP months. If you earn below $1,160 in a given month, that month doesn’t count toward your nine-month limit. This flexibility allows you to gradually increase your work hours and earnings without pressure.
Once you’ve used all nine months of your Trial Work Period, your benefits don’t immediately stop. Instead, you enter the Extended Eligibility Period, which provides additional protection as you transition back to work. For more details on how this period works, see our guide on understanding substantial gainful activity. Many clients find that working with a disability attorney during this transition helps them make informed decisions about their work and benefits.
Substantial Gainful Activity (SGA) Limits
After your Trial Work Period ends, the concept of Substantial Gainful Activity becomes critical to your benefits. Understanding SGA is essential for maintaining your SSDI while working. The SGA threshold is one of the most important numbers to track if you’re working while receiving disability benefits.
What Is Substantial Gainful Activity?
Substantial Gainful Activity refers to work that involves earning above a specific threshold set by Social Security. For 2025, the SGA threshold is $1,620 per month for non-blind individuals. If your monthly earnings exceed this amount, Social Security may consider you capable of substantial work and could reduce or terminate your benefits.
Note: Blind individuals have a higher SGA threshold of $2,700 per month for 2025, recognizing the additional work-related expenses they may incur.
However, SGA is not calculated as simply as comparing your monthly earnings to the threshold. Social Security considers various factors, including whether your work is comparable to work performed by non-disabled individuals in your area. Additionally, certain work expenses related to your disability, called Impairment Related Work Expenses (IRWE), can be deducted from your gross earnings when calculating SGA.
The SGA threshold increases annually. Staying informed about current thresholds helps you plan your work schedule and earnings accordingly. Many SSDI recipients maintain part-time employment that keeps their earnings below the SGA limit, allowing them to continue receiving benefits while supplementing their income. Learn more about understanding substantial gainful activity and how it affects your benefits. If you’re unsure whether your current or planned work will affect your SSDI, consulting with a Social Security Disability attorney can provide clarity.
Work Incentives That Protect Your Benefits
Beyond the Trial Work Period, Social Security offers additional programs designed to help you maintain employment while protecting your benefits. These work incentive programs are specifically designed to encourage SSDI recipients to return to work without fear of losing their benefits.
Additional Programs to Keep You Working
Impairment Related Work Expenses (IRWE) allows you to deduct certain disability-related costs from your earnings when calculating whether you’ve exceeded the SGA threshold. These expenses might include specialized equipment, transportation costs related to your disability, or medical treatments necessary for you to work. Understanding IRWE can significantly impact your ability to work while maintaining benefits.
Plan to Achieve Self-Support (PASS) is a more comprehensive program available primarily to SSI recipients that allows you to set aside income and resources to pursue a work goal. While some SSDI recipients who also qualify for SSI may be eligible, consult with a benefits planner to determine if PASS applies to your situation. Through PASS, you can exclude certain earnings from your benefit calculation, potentially allowing you to earn more while maintaining your SSDI.
Expedited Reinstatement (EXR) protects those who lose benefits due to work. If you return to work, lose your benefits, and then become unable to work again within five years, you can request expedited reinstatement of your benefits without going through the full application process. This safety net is crucial for those testing their work capacity.
For Indiana residents, these work incentives provide meaningful opportunities to increase earnings while maintaining the security of SSDI benefits. A qualified disability attorney can help you determine which programs apply to your specific situation and develop a strategy that maximizes your earning potential.
What Happens to Your Benefits When You Work
Understanding the timeline of how your benefits change as you work is crucial for financial planning. The relationship between your work earnings and your SSDI benefits follows a specific progression that you need to understand.
Income Thresholds and Benefit Calculations
After your nine-month Trial Work Period ends, you enter the Extended Period of Eligibility (EPE), which lasts 36 consecutive months. During this time, you receive your full SSDI benefit for any month your earnings are below the SGA threshold ($1,620 in 2025).
If your earnings exceed SGA after the EPE ends, your SSDI benefits will formally terminate. However, you do not lose your healthcare immediately. Under the Extended Period of Medicare Coverage, you generally retain premium-free Medicare Part A for at least 93 months after your Trial Work Period ends, provided you remain medically disabled.
If you are forced to stop working within five years of your benefit termination due to your disability, you can apply for Expedited Reinstatement (EXR). This protection allows you to restart your benefits quickly and receive provisional payments for up to six months while the SSA processes your request, acting as a vital safety net for your return-to-work attempt.
Steps to Take Before Returning to Work
Protecting your SSDI while working requires proactive communication with Social Security. Taking the right steps before you start working can prevent costly mistakes and benefit overpayments.
Protecting Your SSDI While Working
Before starting work, contact your local Social Security office to report your employment plans. Inform them that you’re using your work incentives. This notification ensures your case is properly monitored and helps prevent overpayments. Many people find that having a disability attorney guide them through this process ensures nothing is overlooked.
Report all earnings monthly to Social Security. Accurate reporting protects you from overpayment issues and demonstrates your good faith compliance with program rules. Keep detailed records of your income, work hours, and any disability-related work expenses. Documentation is critical if Social Security ever questions your earnings or benefit calculations.
Consider working with a benefits planner. Social Security provides these services free of charge. A benefits planner can help you understand how your specific work situation affects your benefits and identify which work incentives apply to you. If you need legal guidance, Hankey Marks & Crider offers free consultations to discuss your SSDI work situation. Our Indianapolis-based team can help you navigate these complex rules and protect your benefits.
How Hankey Marks & Crider Can Help
If you’re considering returning to work while on SSDI, or if you’re facing questions about how employment affects your benefits, the experienced team at Hankey Marks & Crider can provide guidance. Our Indianapolis-based firm has over 80 years of combined experience handling Social Security Disability cases.
We help clients understand their work incentives, protect their benefits during employment, and represent them if benefits are threatened due to work-related issues. We offer free consultations to discuss your situation and work on a contingency basis. You pay nothing unless we help you. Our track record of successful case results demonstrates our commitment to protecting our clients’ benefits.
Contact Hankey Marks & Crider today for a free consultation. Call (317) 634-8565 or fill out our contact form. We’re available 24/7 to answer your questions about working while on SSDI. Whether you need help understanding your work options or representation in a benefits dispute, our team is ready to assist.
Frequently Asked Questions
How much can I earn while on SSDI?
During your Trial Work Period (9 months), you can earn unlimited income. After the TWP, you can earn up to $1,620 per month (2025 SGA threshold) without losing benefits. Earnings above this amount may reduce or eliminate your benefits. Understanding these thresholds is essential for planning your work schedule.
What is the trial work period?
The Trial Work Period is a nine-month period during which you can work and earn any amount while continuing to receive your full SSDI benefit. Months only count toward the nine-month limit if you earn over $1,160 in that month (2025 threshold). This period is designed to give you time to test your work capacity without risking your benefits.
Will working cause me to lose my SSDI benefits?
Not necessarily. If you stay within the SGA threshold or use work incentives like IRWE or PASS, you can continue receiving benefits. Even if you exceed SGA, you have the Extended Eligibility Period (36 months) and can request expedited reinstatement if you become unable to work again. The key is understanding your options and planning accordingly.
What is substantial gainful activity?
Substantial Gainful Activity is work that involves earning above the SGA threshold ($1,620/month in 2025 for non-blind individuals). Exceeding SGA can result in benefit reduction or termination. Note: Blind individuals have a higher SGA threshold of $2,700/month for 2025. Understanding how SGA is calculated is crucial for managing your work and benefits.
How do I report my earnings to Social Security?
Contact your local Social Security office or call (317) 659-7367 to report your employment and earnings. You can also report earnings online through your my Social Security account. Timely and accurate reporting is essential to avoid overpayment issues.
Can I work part-time while on SSDI?
Yes. Many SSDI recipients work part-time and maintain their benefits by keeping earnings below the SGA threshold or using work incentives. Part-time work can be an excellent way to gradually return to the workforce while protecting your benefits.
What happens after the trial work period ends?
After the TWP ends, you enter the Extended Eligibility Period (36 months). During this time, you receive benefits for any month your earnings remain below SGA. After 36 months, if you continue earning above SGA, your benefits may terminate. Planning ahead for this transition is important.
Are there work incentives available in Indiana?
Yes. Indiana residents have access to all federal SSDI work incentives, including the Trial Work Period, Extended Eligibility Period, IRWE, PASS, and Expedited Reinstatement. A benefits planner or disability attorney can help you understand which programs apply to your situation. Our Indianapolis office specializes in helping Indiana residents maximize these work incentives.