If you’re receiving disability benefits and considering working part-time, you may wonder, will I lose my disability if I work part-time? Check out our guide to learn more about how part-time work can impact your disability benefits.
Living with a disability is challenging enough without having to worry about losing your disability benefits. Many people wonder whether they can work part-time and still receive the support they need. The answer is not straightforward, and it depends on several factors.
In this post, we’ll explore the facts you need to know to make an informed decision about whether to work part-time while on disability. We’ll look at the rules and regulations surrounding disability benefits and part-time work, as well as the potential risks and benefits of taking on a part-time job. By the end of this post, you’ll have a better understanding of what’s at stake and how to navigate this complex issue.
Note: I’m not a lawyer, speaking to a lawyer that knows your case can be necessary. This information is for the United States, every country will be different.
What Are Disability Benefits?
Disability benefits are financial support provided by the government or private insurers to individuals who are unable to work due to a disability. The purpose of disability benefits is to help people with disabilities meet their basic needs and maintain a certain standard of living.
There are different types of disability benefits, each with its own eligibility criteria and rules. The most common types of disability benefits are:
- Social Security Disability Insurance (SSDI): SSDI is a federal program that benefits people with disabilities who have worked and paid Social Security taxes for a certain period. To be eligible for SSDI, you must have worked in jobs covered by Social Security and you must have a medical condition that meets Social Security’s strict definition of disability.
- Supplemental Security Income (SSI): SSI is a federal program that provides financial assistance to people with disabilities who have limited income and resources. To be eligible for SSI, you must have a disability that prevents you from working and meet certain income and asset limits.
- Workers’ Compensation: Workers’ compensation is a state-mandated insurance program that provides benefits to employees who are injured or become ill as a result of their job. To be eligible for workers’ compensation, you must have a disability that is work-related.
- Private Disability Insurance: Private disability insurance is a type of insurance that you can purchase from an insurance company. Private disability insurance policies vary, but they typically provide benefits to people with disabilities who cannot work due to an illness or injury.
The eligibility criteria for disability benefits vary depending on the program. Generally, to be eligible for disability benefits, you must have a disability that prevents you from working and meet certain other criteria, such as work history, income, and assets. The specific eligibility criteria for each program can be complex, so it’s important to consult with a qualified professional to determine whether you’re eligible for disability benefits.
Can You Work While On Disablity?
Many people with disabilities wonder whether they can work part-time while receiving disability benefits. The answer depends on several factors, including the type of disability benefit you’re receiving and the amount of money you earn from work. In general, the Social Security Administration (SSA) has rules that limit the amount of money you can earn while receiving disability benefits.
The SSA uses two main criteria to determine whether you can work while receiving disability benefits:
- Substantial Gainful Activity (SGA): SGA refers to the amount of money you earn from work. If you earn more than a certain amount of money from work, the SSA considers that you’re engaging in substantial gainful activity and may decide that you’re no longer eligible for disability benefits. The SGA threshold varies by year and disability program, but in 2023, the SGA amount for non-blind individuals is $1,310 per month and $2,190 per month for blind individuals.
- Trial Work Period (TWP): The TWP is a nine-month period during which you can work and earn as much money as you want without losing your disability benefits. The TWP is designed to encourage people with disabilities to try working and see if they can return to work without losing their benefits. Once you complete the TWP, the SSA will evaluate whether your earnings are at the SGA level and whether you’re still eligible for disability benefits.
It’s important to note that the rules regarding working and receiving disability benefits can be complex, and they may vary depending on the specific disability program you’re enrolled in. Additionally, the way that part-time work affects your disability benefits may depend on the amount of money you earn, the nature of your disability, and other factors. Here are a few examples of how part-time work might affect your disability benefits:
- If you’re receiving SSDI and you earn more than the SGA amount, your benefits may be reduced or terminated.
- If you’re receiving SSI and you earn more than the SGA amount, your benefits may be reduced or terminated.
- If you’re in the TWP and you earn more than the SGA amount for any month during the trial work period, that month will count toward your nine-month TWP, but your benefits won’t be affected.
- If you’re in the extended period of eligibility (EPE), which is a 36-month period that follows the TWP, your benefits may be affected if you earn more than the SGA amount during any month of the EPE.
In conclusion, working part-time while receiving disability benefits is possible, but there are rules and limitations to consider. If you’re thinking about working while on disability benefits, it’s important to understand how the rules apply to your specific situation and to consult with a qualified professional to ensure that you don’t risk losing your benefits.
The Social Security Administration has a helpful guide that is worth checking out if you are considering working part-time while receiving disability benefits.
How to Avoid Losing Your Disability Benefits
If you’re receiving disability benefits and you want to work part-time, there are steps you can take to ensure that you remain eligible for your benefits. Here are some options and tips to consider:
- Know the rules: As discussed earlier, there are rules and limitations regarding how much money you can earn while receiving disability benefits. It’s important to understand these rules and to make sure that your earnings don’t exceed the allowable limit. You can find more information on the Social Security Administration’s website or by consulting with a qualified professional.
- Utilize the Ticket to Work program: The Ticket to Work program is a free service that helps people with disabilities find work and achieve financial independence without risking their disability benefits. The program provides vocational rehabilitation, job training, job placement, and other services to help you find and maintain employment. By participating in the Ticket to Work program, you can work part-time or full-time and still receive your disability benefits. You can learn more about the Ticket to Work program on the Social Security Administration’s website.
- Keep accurate records: It’s important to keep accurate records of your earnings, work hours, and other relevant information related to your employment. This will help you ensure that you’re not exceeding the allowable limit for earnings and that you’re meeting the requirements of the Trial Work Period or the Extended Period of Eligibility.
- Report changes to the Social Security Administration: If you start working or your earnings change, it’s important to report these changes to the Social Security Administration as soon as possible. Failure to report changes in a timely manner could result in overpayments or other issues with your benefits.
- Consult with a qualified professional: If you’re unsure about how your part-time work might affect your disability benefits, or if you need help navigating the rules and regulations related to working and receiving disability benefits, it’s a good idea to consult with a qualified professional. An experienced disability attorney, financial planner, or vocational rehabilitation counselor can provide you with guidance and support.
Working part-time while receiving disability benefits is possible, but it requires careful planning, record-keeping, and adherence to the rules and regulations set by the Social Security Administration. By knowing the rules, utilizing the Ticket to Work program, keeping accurate records, reporting changes, and consulting with a qualified professional, you can work part-time and still receive the disability benefits you need to maintain your financial stability and independence.
Working While On Disability Summary
Are you a skimmer? This was a long post with a lot of information so here is the TL;DR. Don’t forget to save the post to refer to later.
- Working part-time while receiving disability benefits is possible, but there are rules and limitations to consider.
- It’s important to understand how the rules apply to your specific situation and to consult with a qualified professional to ensure that you don’t risk losing your benefits.
- To avoid losing your disability benefits, report your work activity to the Social Security Administration, keep track of your earnings, and stay within limits set by the SSA.
- Take advantage of programs and resources that can help you return to work, such as Ticket to Work.
- With careful planning and the right support, you can work part-time and maintain your disability benefits while improving your financial and personal well-being.
References Used in this Article
These are some of the resources that were used to write this article. They can be helpful for finding even more information.
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