Wednesday, September 28, 2022

Can You Work While Your On Social Security Disability

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Student Earned Income Exclusion

Can I work if I’m getting social security disability benefits?

If you are a student who is under the age of 22, the SSA may disregard up to $1,900 of your gross wages when figuring your countable income. “Gross wages” means the amount of your paycheck before things like taxes are deducted. Note that the SSA limits this exclusion to $7,770 per calendar year, however .

To use this incentive, you must go to school on a regular basis. If you are between 7th and 12th grade, this means going to school at least 12 hours a week. If you go to a college or university, you must attend at least eight hours of classes a week. And if you are enrolled in a work-training program, you must attend between 12 and 15 hours a week depending on the type of training you are getting. Even if you can’t go to school because of your disability but you are educated at home, you may be eligible for this incentive.

Adults Disabled Before Age 22

An adult who has a disability that began before age 22 may be eligible for benefits if a parent is deceased or starts receiving retirement or disability benefits. We consider this a “child’s” benefit because it is paid on a parent’s Social Security earnings record.

The disabled “adult child” including an adopted child, or, in some cases, a stepchild, grandchild, or step grandchild must be unmarried, age 18 or older, have a disability that started before age 22, and meet the definition of disability for adults.

Example

It is not necessary that the disabled “adult child” ever worked. Benefits are paid based on the parent’s earnings record.

  • A disabled “adult child” must not have substantial earnings. The amount of earnings we consider “substantial” increases each year. In 2021, this means working and earning more than $1,310 a month.

Working While Disabled: How We Can Help

Are There Exceptions To The Sga Limit

There is some argument that the SGA limit is essentially arbitrary, and is therefore unfair. Someone working at a minimum-wage level in South Carolina, for instance, can work 32 hours a week and still have their monthly earnings come in well under the SGA limit, while someone employed at $12/hour would be capped at a much lower hourly limit for the week. The requirements of jobs at different income levels can vary wildly, and the Social Security Administration has actually taken that into account.

The Social Security Administration can choose to look at things that affect what is called the worth of an individuals work, and that might influence whether or not a particular individual is therefore limited by the SGA amount. One example of this is that Social Security claims representatives are expected to look into whether an individuals work activity is matched by their pay.

Many employers subsidize disabled employees work by paying them a full wage even if theyre not performing to the level that would normally be required to earn that amount, due to their disability.

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How Much Can You Earn And Still Receive Social Security

When you take benefits while you’re still working, Social Security may withhold part of your benefit depending on your income if you haven’t reached full retirement age. Your full retirement age is between 66 and 67 if you were born from 1943 to 1959 it’s 67 if you were born in 1960 or later.

Social Security will withhold benefits at the following rates in 2021:

  • $1 for every $2 of earned income above $18,960 until the year you reach full retirement age. Let’s say you’re 64 and earn $20,000 from working, and you’re already getting benefits. You’ve earned $1,040 above the earnings limit, so Social Security would withhold $520 from your benefit.
  • $1 for every $3 of earned income above $50,520 the year you reach full retirement age until the month before you’re eligible for your full benefit. Suppose you reach full retirement age in October. Social Security would only reduce your benefits if you earned more than $50,520 between January and September.

These rules apply whether you’re an older worker taking benefits based on your own work record or you’re getting a spousal benefit or a survivor benefit.

The key to understanding Social Security’s rules about working and benefits is that everything changes when you reach the date when you can fully retire. After that point, you can earn as much as you want and still keep all your benefits. Earlier, though, you can give up some of your benefits.

Experts Advice: Dont Go It Alone

Can You Work While Receiving Social Security Disability ...

Vieillet says the intricacies of each program are confusing, even to the experts. For the average person, it can be downright overwhelming.

When letters from Social Security start coming in the mail, they scare the bejesus out of people, says Teresa Nier, benefits and employment manager with My Employment Options.

For disabled workers, joining a free work-incentive program and employment network can help. Ticket to Work offers benefits protection for recipients who want to test the employment waters. And organizations like My Employment Options have certified benefits counselors on staff to help applicants trudge through the paperwork and fine print all while finding a job that fits their unique needs.

To avoid unexpected benefits cuts or having to return overpayments to the agency, people need to keep Social Security updated with phone numbers and addresses, Nier says. Open those letters. Ask questions.

For James, the idea of not working is unsettling. He doesnt want to be a burden.

Im more of an entrepreneur, he says. Im a very social person. Im very outgoing.

I want to try to make this work. Somehow.

Adam Hardy is a staff writer at The Penny Hoarder. He specializes in ways to make money that dont involve stuffy corporate offices. Read his latest articles here, or say hi on Twitter .

Also Check: When Can You Start Social Security

Working While Applying For Benefits

Keep in mind that the mere fact that you are working, even if you are making less than $1,310 per month, may influence whether a disability claims examiner or a disability judge believes you are disabled, especially if you’re working more than 15 or 20 hours a week. For this reason, many disability lawyers and representatives will advise their clients not to work while their case is pending. For more information, see our article on whether you have to quit work when applying for disability benefits.

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    The Extended Period Of Eligibility

    Once you’ve exhausted your nine-month TWP, you enter the Extended Period of Eligibility . The EPE is a 36-month period during which you’ll continue to receive your full benefit every month as long as you remain disabled and earn less than Social Security’s substantial gainful activity threshold. In 2020, the SGA level is $1,260 for non-blind individuals and $2,110 for the blind.

    If you earn over SGA in any month during the EPE, you’ll lose that month’s entire benefit, a situation sometimes referred to as the “cash cliff.” This will also cause Social Security to find that your disability has “ceased.” Once that happens, you will be paid in full for that month and an additional two-month grace period, before benefits terminate.

    If you later stop working, or your earnings fall below the SGA level during the EPE, contact Social Security and your benefits will be restarted without having to file a new application. Because it’s so easy to re-start your benefits if your work attempt doesn’t work out, Social Security calls the EPE the “re-entitlement period.”

    When the 36-month re-entitlement period ends, your benefits will continue as long as you are medically disabled and not earning SGA. If you earn over SGA for even one month after the 36-month period of re-entitlement, your benefits will terminate. However, if your medical condition makes you stop working again, you may be eligible for expedited reinstatement, if it’s within five years of the EPE.

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    Disability Benefits And Part

    Disability benefits are available to those who suffer from a disability or medical condition that makes it so they are unable to work. These benefits are offered by the Social Security Administration and are meant to help you pay medical bills and every day living expenses.

    If you are receiving disability benefits from the SSA and are working part-time work, there are certain factors you should know about that may affect your disability benefits status. Exceeding the Substantial Gainful Activity income limit while working part time on disability may jeopardize your benefits.

    Tax Implications Of Working While On Social Security

    Social Security Disability FAQ: Can I Work while applying for Disability?

    Not only can working while receiving benefits lower the amount of your Social Security check, but it can also have tax implications as well. Remember that whether or not your Social Security benefits are taxable depends on your income level. All your income factors into this as well not just income from working a job. So, any income that you receive from annuities or other investments counts toward the total. You might find yourself in a situation where your benefits are reduced and up to 85% of them might become taxable as well. Most retirees want to maximize their income, so you should wait until full retirement age to start receiving your benefits if at all possible. While your benefits might still be taxable based on your personal finances, you would no longer have to worry about a reduction in benefits because of other income.

    Also Check: Will I Receive Social Security

    Employment: Social Security Disability Work Incentives At A Glance

    SSDI WORK INCENTIVES

    Trial Work Period – The trial work period allows you to test your ability to work for at least nine months. During your trial work period, you will receive your full Social Security benefits regardless of how much you are earning as long as you report your work activity and you continue to have a disabling impairment. In 2021, a trial work month is any month in which your total earnings are $940 or more, or, if you are self employed, you earn more than $940 or spend more than 80 hours in your own business. The trial work period continues until you have worked nine months within a 60-month period.

    Extended Period of Eligibility – After your trial work period, you have 36 months during which you can work and still receive benefits for any month your earnings are not substantial. In 2021, earnings of $1,310 or more are considered substantial. No new application or disability decision is needed for you to receive a Social Security disability benefit during this period.

    Expedited Reinstatement – After your benefits stop because your earnings are substantial, you have five years during which you may ask Social Security to start your benefits immediately if you find yourself unable to continue working because of your condition. ou will not have to file a new disability application, and you will not have to wait for your benefits to start while your medical condition is being reviewed to make sure you are still disabled.

    Can You Work While Applying For Social Security Disability Benefits

    Applying for Social Security disability benefits can take months, even years. In the meantime, many applicants struggle to make ends meet.

    Can you work while applying for Social Security disability benefits? Maybe. It depends on:

    • Your gross monthly income
    • Which disability program youre applying for
    • How many hours youre working
    • How long you intend to work or remain in the workforce

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    Can You Work While On Social Security Disability Yes But Use Caution

    Social Security Disability benefits are for individuals who genuinely need financial help and cannot maintain full-time work. Can you work while on Social Security Disability? Yes! However, its important not to abuse the system. Use caution and make accurate earning reports when choosing part-time work to supplement your disability benefits from the SSA.

    If you need help navigating the rules of your disability benefits, we can help! Contact our team or call us 617-825-0965.

    Frequently Asked Questions About Working With A Disability

    Social Security Disability Insurance: Will Your ...

    How will working affect my disability benefits and health care coverage?

    This is a complicated question and the answer varies by situation and individual. In order to address your specific concerns about how working will affect your disability benefits or health care coverage, we have Disability Resource Coordinators available in some of our One-Stop Career Centers around the state. All of our Disability Resource Coordinators are certified benefits counselors who can provide free benefits counseling and tell you about the Ticket to Work Program. Go to the Disability Employment Initiative , to locate a Disability Resource Coordinator near you.

    What is the Ticket to Work Program?

    Ticket to Work is a free and voluntary program that can help Social Security Beneficiaries go to work and become financially independent. Individuals ages 18-64 who receive Social Security Disability Insurance or Supplemental Security Income may qualify for this program. To find out more about the Ticket to Work Program, go to the Disability Employment Initiative to contact a Disability Resource Coordinator.

    Can I return to work while receiving Social Security Disability or Supplemental Security Income ?

    If I go to work, will I automatically lose my Medicare or Medicaid?

    If I use my Ticket to go to work, will the Social Security Administration conduct a medical review of my case?

    How can the local One Stop Career Center in my county assist me with the Ticket to Work Program?

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    Applying For Ss Disability Were Here To Help

    At Bluestein Attorneys, we do have experience with Social Security Disability cases, Workers Compensation, Veterans Affairs Disability, and many other areas of legal practice. Wed be happy to sit down with you and go over your unique situation, in order to help you make the decision on what steps you may need to take next. Reach us by phone at 779-7599 or contact us online to request your FREE consultation today.

    What If I Work Many Hours For Someone Else

    Generally, your monthly income matters most for your eligibility. However, working too many hours could affect your case.

    For example, maybe youre working close full-time hours even though you dont earn over $1,260 per month. The SSA might consider you able to work a full-time job and deny you for benefits. It will be harder to convince Social Security that youre disabled if you can work many hours.

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    Understanding The Substantial Gainful Activity Limitations

    The short answer is yes. You can work part time while on Social Security Disability. You just have to make sure your income doesnt exceed the limitations for substantial gainful activity, or SGA. The SGA amount is a set maximum monthly wage that helps the Social Security Administration determine whether or not your disability prevents you from earning a living. Essentially, if you exceed this limit, they may think you dont need disability benefits anymore.

    While the SGA limit for 2020 is $1,260, SS disability beneficiaries who make a gross income of $910 a month will trigger whats known as a trial work month. Its not impossible to work part-time while receiving Social Security disability benefits, but its important to keep in mind that the rules surrounding disability claims and work activity are extremely complicated. For this reason, the vast majority of people choose not to work while getting benefits, so they can avoid overpayments that can jeopardize their benefits.

    Can I Work & Receive Social Security Disability Benefits

    Can you work if you are receiving Social Security Disability benefits?

    If you are currently receiving Supplemental Security Income or Social Security Disability Insurance benefits, you must comply with strict rules regarding your employment. Generally speaking, you cannot work while receivingSocial Security Disabilitybut there are some exceptions.

    As of 2020, you can earn up to $1,260 per month and still receiveSSDI benefits.

    There is no limit to unearned income, such as your spouses earnings, inheritances, gifts, etc. associated with SSDI. Understanding your options and your rights can help you avoid a mistake that could cost you your benefits. Since 1922,Handler, Henning & Rosenberg LLC has served the hard-working people of Pennsylvania, fighting for the fair treatment and benefits they deserve when they are disabled and cannot work. Federal and state benefit programs are in place to help those who cannot support themselves, andour attorneys believe in upholding the principles upon whichSSDI and SSI were founded.

    To find out how we can help you, call.

    Also Check: When Should You Apply For Social Security

    Can You Work Part

    Once you begin benefits, the rules about part-time work are slightly different. After you have started Social Security disability insurance , the SGA limit still technically applies, but there is also what is known as a trial work period. The trial work period lasts for nine months and during that time, you are allowed to earn over the SGA limit.

    If you receive SSI, the SGA limit will only apply during the first month that you receive benefits. After that first month, the SSI income limit will apply instead. Due to the manner in which income is considered, with over half of it not counting towards the limit, the SSA does not outline an SSI income limit for individuals that work part-time. Still, the more you earn in wages, the lower your SSI payment will be. If you are making more than $1,600, any SSI payment you receive will likely be reduced to zero.

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