Key Takeaways
- The Trial Work Period lets you earn any amount for nine months without losing benefits, as long as you report your work to Social Security each month.
- After the trial period ends, your benefits continue for 36 more months if your earnings stay below the substantial gainful activity limit, which is $1,550 per month in 2024 (this amount changes yearly).
- Medicare continues for 93 months total even after benefits stop, but Medicaid rules vary by state and may end sooner if your income rises.
- You must report all work and earnings to Social Security within the month they occur, or you risk overpayment and having to repay benefits you were not may have access to to.
- If work becomes unsustainable and your condition worsens, you can request reinstatement within five years without filing a new process.
The Trial Work Period: Nine Months of Unrestricted Earnings
When you start working, you enter a Trial Work Period that lasts nine months. During these nine months, you can earn any amount — $100 a month or $5,000 a month — and keep your full SSDI payment. Social Security does not count your earnings against you during this time.
A work month counts toward your nine months only if you earn $240 or more in that month (this threshold changes yearly). If you earn less than $240 in a month, that month does not count. So if you work part-time some months and earn under $240, your trial period stretches longer in calendar time.
You must report your work to Social Security each month, either by phone, mail, or through your online account. If you do not report, Social Security will not know you are working, and you may receive an overpayment notice later demanding repayment. Report even if you earned very little.
What Happens After the Trial Work Period Ends
Once you have used all nine trial work months, your benefits do not stop when ready. Instead, you enter a 36-month Extended may be able to access Period. During these 36 months, your benefits continue as long as your monthly earnings stay below the substantial gainful activity (SGA) limit.
The SGA limit for 2024 is $1,550 per month for most workers (it is higher for workers who are blind). This amount increases each year. If you earn $1,550 or less in a month, you receive your full benefit that month. If you earn more, your benefit for that month is reduced or eliminated.
After the 36-month extended period ends, your benefits stop entirely if you are still working and earning above SGA. At that point, you are no longer on SSDI, and you cannot receive benefits again unless you file a new process and go through the approval process.
Medicare and Medicaid: Coverage After Benefits End
Your Medicare coverage continues for 93 months (about 7.75 years) after your SSDI benefits stop, even if you are working and earning above SGA. You keep Medicare Part A (hospital insurance) and Part B (medical insurance) automatically. You still pay the Part B premium, which is deducted from any remaining benefit payment or billed to you directly.
Medicaid is different and depends on your state. Some states end Medicaid when your SSDI benefits stop. Other states continue Medicaid as long as your income stays below a certain threshold, which is usually higher than the SGA limit. A few states have work incentive programs that extend Medicaid coverage even if you earn above the threshold. Contact your state Medicaid office or your local Social Security office to find out your state's rule before you start working.
Losing Medicaid while still working can be a real cost. If you rely on prescriptions, therapy, or specialist visits, losing coverage mid-year can mean paying out of pocket or stopping treatment. Factor this into your decision about whether the job's pay is worth it.
The Impairment-Related Work Expenses Deduction
If your disability requires you to spend money on work-related expenses that a non-disabled person would not need, you can deduct those costs from your earnings before Social Security counts them. These are called Impairment-Related Work Expenses (IRWE).
Examples include a personal assistant to help you at work, specialized transportation to get to the job, medical equipment you use only at work, or medication you need to work. You cannot deduct regular commute costs or items you would buy anyway. You must have documentation showing the expense is directly tied to your disability and necessary for you to work.
If you have significant work-related disability expenses, report them to Social Security before you start working. They can reduce your countable earnings and help you stay below the SGA limit longer.
Reinstatement: Getting Benefits Back If Work Does Not Work Out
If you stop working or your earnings drop below SGA, your benefits do not automatically restart. You must contact Social Security and request reinstatement. The good news: if you request reinstatement within five years of the month your benefits ended, you do not have to file a new process or go through the approval process again.
Social Security will review your current medical condition and work history. If you are no longer working or earning above SGA, and your condition has not improved, reinstatement is usually straightforward. If more than five years have passed, you must file a new SSDI process and meet current approval standards.
Keep records of your work attempts, earnings, and any medical treatment you received while working. If your condition worsened because of work, bring those records when you request reinstatement.
What You Must Report and When
Report all work and earnings to Social Security within the month they occur. You can report by:
- Calling your local Social Security office
- Mailing a written report to your local office
- Using your online account at ssa.gov
- Calling the SSDI work incentives hotline at 1-866-4-WORK-WIN (1-866-496-7594)
Include the month, the amount you earned, and the name of your employer. If you are self-employed, report your net profit (income minus business expenses). Report even if you earned less than $240 in a month — Social Security needs the record to track your trial work period accurately.
If you do not report and Social Security discovers you were working, you will receive an overpayment notice. You will have to repay all benefits you received during months you were not may have access to to them. Overpayments can be large and are difficult to dispute once they are assessed.
Deciding Whether to Work: The Real Calculation
The financial math is not always straightforward. Your SSDI payment plus Medicare is worth something. A job that pays $2,000 a month but costs you $400 in work expenses, causes your condition to worsen, and eliminates your Medicaid coverage may not be worth it financially or health-wise.
Before you accept a job, calculate: your monthly SSDI payment, your work expenses (transportation, equipment, information), the cost of replacing Medicaid with private insurance or out-of-pocket costs, and whether the job's pay covers all of that plus living expenses. Talk to a benefits planner — Social Security funds free work incentive planning services through Work Incentives Planning and information (WIPA) projects in every state. They can model your specific situation and show you the numbers.
Also consider whether the job is sustainable given your condition. A job that pays well but requires you to work through pain or fatigue may cause your condition to worsen, leading you back to full disability and the need to reapply. That risk is real and should factor into your decision.
Frequently Asked Questions
Can I work part-time and keep some of my SSDI payment?
Yes, during your nine-month trial period you can earn any amount and keep your full payment. After that, during the 36-month extended period, you keep your full payment as long as you earn $1,550 or less per month. Above that, your payment is reduced or eliminated for that month.
What if I earn money but do not report it to Social Security?
Social Security may discover the unreported work through tax records or other means. When they do, you will receive an overpayment notice requiring you to repay all benefits you received during months you were not may have access to to them. Overpayments can total thousands of dollars and are difficult to appeal once assessed.
Do I lose Medicare if my SSDI benefits stop?
No. Medicare continues for 93 months after your benefits stop, even if you are working. You keep both Part A and Part B coverage. You still pay the Part B premium, which is usually deducted from any remaining benefit or billed to you.
Can I go back on SSDI if the job does not work out?
Yes, if you request reinstatement within five years of the month your benefits ended, you do not have to file a new process. Social Security will review your current condition and work history. If you are no longer working and your condition has not improved, reinstatement is usually approved quickly.
Where can I get help understanding how work will affect my benefits?
Social Security funds free work incentive planning services through WIPA projects in every state. Call 1-866-4-WORK-WIN to find a planner near you. They can model your specific earnings, expenses, and benefits to show you the real financial impact of working.