Can You Work Part-Time on Disability Without Losing Benefits?

Millions of Americans rely on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) for critical financial support. Yet, the desire to work and gain greater independence remains strong for many. 

Many recipients of disability benefits are hesitant to seek employment due to concerns about the potential impact on their eligibility for monthly income, medical insurance, and other essential benefits.

If you share this concern, you’re not alone and may have more work options than you realize. Working part-time while on disability is possible, but it’s crucial to understand the rules and limits involved. 

Will I Lose My Disability If I Work Part-Time?

The short answer is probably. You can work part-time while receiving disability benefits, but there are strict limits and guidelines to follow to ensure you do not lose your benefits. Here are the key points:

Social Security Disability Insurance (SSDI)

• Substantial Gainful Activity (SGA) Limit: For 2024, the SGA limit is $1,550 monthly ($2,590 if blind). If you earn more than this amount, you likely won’t qualify for benefits.
• Trial Work Period (TWP): This allows you to test your ability to work for up to nine months within a 60-month period without losing benefits, regardless of earnings.
• Extended Period of Eligibility (EPE): After the TWP, you have a 36-month period where you can still receive benefits for any month your earnings are below the SGA limit.
• Ticket to Work Program: This program provides free employment services and protects you from continuing disability reviews while participating.

Supplemental Security Income (SSI)

• Income Limits: SSI is needs-based, so any income you earn may reduce the amount of benefits you receive. The exact impact depends on your total income and resources.
• Work Incentives: SSI also has work incentive programs, but they differ from SSDI and are generally more restrictive.

If you receive Supplemental Security Income (SSI), you can also work part-time, but your benefits will be reduced by $1 for every $2 you earn above $85 per month. However, even with this reduction, your total income will still be higher than if you weren’t working.

Reporting Requirements

You must report any changes in your work status or earnings to the Social Security Administration (SSA) immediately to avoid overpayments or underpayments.

The key takeaway is that working part-time on disability is possible, but it’s crucial to understand and stay within the income limits to avoid jeopardizing your benefits.

SSA Work Incentive Programs

The Social Security Administration (SSA) offers several work incentive programs to help disability recipients transition back into the workforce. The most notable programs for SSDI recipients are:

• Trial Work Period (TWP): This is a 9-month period during which you can test your ability to work while still receiving your full SSDI benefit, regardless of how much you earn. In 2024, any month earning over $1,050 counts towards your TWP.
• Extended Period of Eligibility (EPE): After your TWP ends, you enter a 36-month EPE. During this time, you can still receive SSDI benefits for any month when your earnings are below the SGA limit. If you exceed SGA, your benefits will be suspended for that month but can be reinstated if your income drops again.

For SSI recipients, the key work incentive is the Ticket to Work program, which provides free employment services such as job training, vocational rehabilitation, and job placement. Participating in Ticket to Work also protects you from Continuing Disability Reviews, which are regular checks to see if your condition has improved.

Reporting Income and Job Changes

To maintain your eligibility for disability benefits while working part-time, promptly report any changes in your income or employment status to the SSA. This includes:

• Starting or stopping a job
• Changes in your wages or hours  
• Any job-related expenses that you pay because of your disability

By keeping the SSA informed, you can prevent overpayment of benefits, which could lead to having to pay back money in the future. You can report changes by calling the SSA at 1-800-772-1213 or logging into your My Social Security account online.

Preserving Your Disability Benefits

In addition to following the income limits and reporting requirements, there are several strategies you can use to protect your disability benefits while working while on disability part-time:

• Monitor your earnings closely to ensure you consistently stay under the SGA limit. Even one month over SGA during your EPE can affect your benefits.
• Take advantage of work incentives like the TWP and EPE to test your ability to work and gradually transition to higher earnings.
• Keep records of any expenses related to your disability that you pay to work, such as specialized equipment or transportation costs. These Impairment-Related Work Expenses (IRWE) can be deducted from your gross earnings, allowing you to earn more while staying under SGA.
• Consider consulting with a disability lawyer or benefits counselor who can provide guidance specific to your situation. Some organizations, like Easterseals and Goodwill offer free counseling for disability recipients who want to work.

Pursuing Work While Protecting What Matters

Navigating disability benefits while pursuing work can feel daunting, but remember — you’re not alone. With the right knowledge and support, you can enjoy the personal and financial rewards of working without losing the critical safety net of your benefits.

The information and strategies outlined in this article provide a starting point, but everyone’s situation is unique. Don’t hesitate to reach out for personalized guidance through SSA resources like Ticket to Work or local organizations supporting disability employment. 

Most importantly, believe in yourself and your ability to achieve your work goals. Whether you’re trying to supplement your income, gain new skills, or simply engage in meaningful activity, your efforts are worthwhile. 

By taking informed steps and leveraging the resources available, you can find the right balance of work and benefits.