For many Social Security Disability Insurance (SSDI) recipients, the ability to work part-time or on a limited basis can provide financial relief and a sense of independence. However, concerns about losing benefits due to earning too much can prevent people from returning to work.
In 2024 and 2025, the Social Security Administration (SSA) allows SSDI beneficiaries to earn income up to certain limits without losing benefits. Understanding these rules is crucial if you’re considering going back to work while receiving SSDI.
In this blog, we’ll cover how much you can earn while on SSDI, how the Trial Work Period (TWP) works, and what to expect in 2025, including changes in income limits and projected adjustments.
How SSDI Allows You to Work and Keep Your Benefits
While SSDI is designed to provide financial assistance to people who are unable to work due to a disability, the SSA recognizes that some people may want or need to try working again without immediately losing their benefits. This is where the Substantial Gainful Activity (SGA) and the Trial Work Period (TWP) come into play.
Substantial Gainful Activity (SGA) in 2024 and 2025
The SSA uses the concept of Substantial Gainful Activity (SGA) to determine if a person is capable of engaging in productive work. SGA is defined by an income threshold that limits how much you can earn while still being considered disabled.
- SGA Income Limit for 2024: In 2024, you can earn up to $1,470 per month if you are non-blind and still qualify for SSDI. For blind individuals, the limit is higher at $2,460 per month.
- SGA Projections for 2025: Although the exact 2025 limits will be adjusted based on inflation, it’s anticipated that the limits will increase slightly. For example, the non-blind SGA limit may rise to around $1,530, while the blind SGA limit could increase to approximately $2,550.
Example:
A graphic designer who is blind and receives SSDI in 2024 can earn up to $2,460 per month. If they exceed that amount, they may no longer qualify for SSDI benefits. However, if they earn less than this threshold, they can continue receiving benefits.
Trial Work Period (TWP): Testing Your Ability to Work
The Trial Work Period (TWP) is a safety net designed for SSDI recipients who want to test their ability to return to work without the risk of losing their benefits immediately. The TWP allows you to work for nine months (within a rolling 60-month period) while still receiving your SSDI benefits, regardless of how much you earn during those months.
- TWP Income Limit for 2024: In 2024, any month in which you earn more than $1,050 is considered a trial work month.
- How It Works: You can work and earn more than the SGA limit during your TWP without losing your SSDI benefits for those nine months. However, after the TWP ends, the SSA will evaluate whether your earnings exceed the SGA limit, which could result in the cessation of benefits.
Example:
A person who works part-time as a cashier and earns $1,200 per month in 2024 will trigger a trial work month. They can continue working and earning more than the SGA limit for up to nine months before their benefits are re-evaluated.
What Happens After the Trial Work Period?
After you complete your nine-month TWP, the SSA conducts a Continuing Disability Review (CDR) to determine whether you can continue working above the SGA level.
- Extended Period of Eligibility (EPE): After your TWP, you enter a 36-month Extended Period of Eligibility (EPE). During this time, you can still receive SSDI benefits in any month your earnings fall below the SGA limit.
- Benefits Cessation: If you earn more than the SGA limit consistently during your EPE, your benefits will be suspended. However, if your earnings fall below the SGA limit, your benefits can be reinstated without needing to reapply.
Example:
A customer service representative who earns $2,000 a month after their TWP could lose benefits after their EPE if they consistently earn above the SGA limit. If their income drops to $1,200 in a future month, their benefits could be reinstated without needing to reapply.
Projections for 2025: What Changes to Expect
Looking ahead to 2025, there are several key factors that SSDI recipients should be aware of when planning to work while on disability benefits.
- Projected COLA Increase: Based on current inflation trends, SSDI benefits are expected to increase through a Cost-of-Living Adjustment (COLA) in 2025, similar to the 8.7% COLA in 2024. This will impact not only monthly SSDI benefit payments but also income thresholds for SGA and TWP.
- Potential Policy Changes: Some lawmakers have proposed changes to make it easier for SSDI recipients to transition back into the workforce. This could include more flexible income limits or longer trial work periods, though no official changes have been made yet.
Example:
If COLA increases SSDI benefits by another 5% in 2025, the SGA limit for non-blind recipients could rise to approximately $1,530 per month. This would allow recipients to earn more while keeping their benefits.
How to Stay Within the Limits and Avoid Losing Your SSDI Benefits
If you want to work while receiving SSDI, it’s essential to carefully track your earnings and stay informed about income limits and TWP months. Here are some tips to help:
- Monitor Your Earnings Monthly: Keep a close eye on your earnings to ensure they don’t exceed the SGA limit unless you’re in a trial work month.
- Keep Detailed Records: Document your hours worked, pay stubs, and communication with employers to provide accurate information if requested by the SSA.
- Consult with a Disability Attorney: If you’re unsure about how much you can earn or how working might impact your SSDI benefits, consult with a disability attorney. They can guide you through the rules and help you navigate the TWP and EPE periods.
Example:
A warehouse worker who wants to return to part-time work can benefit from legal guidance to ensure they understand the TWP and EPE limits. This helps them avoid unintentionally exceeding the SGA limit and losing their benefits too soon.
Conclusion: Disability Law Group Can Help You Navigate Working While on SSDI
If you’re considering going back to work while receiving SSDI benefits, you don’t have to navigate the process alone. The rules can be complex, and one mistake could jeopardize your benefits. At Disability Law Group, we have the expertise to help you understand how much you can earn, when to use your Trial Work Period, and how to protect your benefits long-term.
Contact us today for a free consultation, and let us help you work while keeping the SSDI benefits you rely on.
