How Does Work Affect My Social Security Disability/SSI?

One of the biggest myths associated with the Social Security Disability process is the idea that a person is unable to work and earn money just because they have been found disabled. While it is true that working and generating earnings greater than substantial gainful activity (SGA) will (in some cases) disqualify you from receiving SSI/SSDI, the fact that being found disabled does not prohibit an individual from going out into the workforce in some capacity and still generate earnings. This article is going to look at work from two perspectives: 1.) How does work affect you before being awarded SSI/SSDI? and 2.) How does work affect you after being awarded SSI/SSDI?

Work and earnings while filing for Social Security Disability (SSI/SSDI): Most individuals in the workforce today do not plan to have a medical condition change the trajectory of their lives. The unfortunate truth is this happens more often than many are aware of. Approximately, 3% of the U.S. population is receiving Social Security Disability benefits. The vast majority of these individuals do not have a financial plan that would involve such a significant shift in their earning potential. While Social Security Disability does provide monetary benefits to those who are unable to work, the reality is the money most receive is not enough to cover all of the expenses they had before becoming disabled. Most individuals are unaware that while Social Security does provide an income for the duration of the time you are deemed to be disabled this income is only expected to replace approximately 40% of the income you used to make. That leaves an individual with 60% less income to work with every month. For most, this comes with the realization that changes to a lifestyle are likely. So, for the individual who is suffering from a severe medical or psychological condition realizes that their capacity for work has changed, he/she may not be aware of the options available to them with regards to their work, finances, and their ability to file for Social Security Disability. We will explore the options most individuals need to be aware of so that an injury or illness does not significantly alter their way of life.

When filing for SSI/SSDI, the most important factor to consider before initiating an application is the amount of money you are earning in relation to the work you are engaged in. Social Security allows for an individual to file an application for disability and continue to work provided their earnings are below SGA levels. For the year 2020, an individual is allowed to make up to $1,260 in gross earnings and still be considered disabled. If you file an application for disability and report gross earnings greater than $1,260 ($2,110 for blind individuals) in any work capacity, your claim will be denied for engaging in SGA. You are allowed to continue earning up to the SGA limit and still have your disability claim processed.

Ideally, every individual who is working should have a short-term disability insurance policy through their employer or through a private party. The policies are relatively inexpensive. The benefit is this coverage provides you with a much needed income for a term of up to 6 months in most instances. This is very important to have when you consider that Social Security has a 5 month waiting period for working individuals who are awarded disability benefits. For example, an individual who is found disabled July 1, 2019, will not receive a disability check from Social Security until January 1, 2020. Your 5 month waiting period will be for the months of July, August, September, October, and November. Your first month of entitlement is December. However, Social Security Disability payments are paid a month behind. Having a short-term disability claim will cover the gap that Social Security leaves while you are serving your waiting period. Another way to receive money during your 5 month waiting period is to qualify for SSI. Most individuals who file an application for disability will be given the option to file an application for SSI. However, you must first meet the income requirements for SSI to be eligible for this benefit. There is no waiting period for SSI, so you can begin receiving it immediately once you have been found to be disabled. While you are able to receive money faster on SSI, it does come with some limitations. The primary one being the limit on the amount of money you can receive per month for SSI. For the year 2020, the maximum benefit amount is $783/month, which is significantly lower than the average SSDI benefit of around $1,258. If you are working while your disability claim is processed, there may be a reduction in the maximum SSI benefit amount. The amount will vary based on the amount of earnings you report.

Work and earnings after being awarded Social Security Disability (SSI/SSDI): Individuals who have been awarded Social Security Disability/SSI still have the option of working below SGA limits and still receive their disability benefits. As stated earlier, there are limitations associated with individuals receiving SSI benefits. Those limitations are still applicable while you are receiving benefits. There are some incentives for individuals receiving SSI. There are work benefits for SSDI beneficiaries as well. The two most popular are the Ticket to Work and the Trial Work Period programs. These two programs provide for individuals to make vocational and educational improvements in their lives while still receiving benefits. While they do provide a benefit to individuals trying to reestablish themselves in the workforce, there are rules and regulations that you must educate yourself on before you decide to try out one of these programs.

If you have questions about Social Security Disability, I have an answer for you. Get help with your Social Security Disability claim now.

Published January 22, 2020

Michael Vallien is a Baton Rouge-based non-attorney representative for Social Security Disability claims. He runs and operates Disability Blueprint, LLC, a firm dedicated to helping individuals get the Social Security Disability benefits they deserve. Should you have any questions or comments about anything you have read here, please feel free to give me a call at (225) 663-3370.