SSDI Earnings Limits in 2020

In 2020, you can earn up to $1,260 per month and still receive your full SSDI payment. This amount is called the Substantial Gainful Activity (SGA) limit. If you earn more than this in a single month, Social Security will consider you no longer disabled for that month and will not pay you.

The $1,260 figure applies to most people receiving SSDI. However, if you are blind, the limit is higher: $3,350 per month in 2020. Social Security uses different rules for blind beneficiaries because it assumes blindness creates higher work-related expenses.

These limits change once per year, usually in January, based on national wage averages. The 2020 amounts are specific to that year — if you are reading this in a different year, the limits will be different.

Key Takeaways

  • You can earn up to $1,260 per month in 2020 without losing your SSDI payment, or $3,350 if you are blind.
  • Social Security counts only your gross earnings — the amount before taxes — when deciding if you have exceeded the limit.
  • If you earn more than the limit in one month, you lose your SSDI payment for that month only, not your entire case.
  • You must report all earnings to Social Security within 10 days of the end of the month in which you earned them.
  • The earnings limit resets each month, so a high-earning month does not affect your payment in the following month.

How Social Security Counts Your Earnings

Social Security counts gross earnings, which means the money you make before taxes, deductions, or anything else comes out. If you earn $1,500 gross but taxes bring your take-home pay to $1,200, Social Security counts the $1,500 toward your limit.

Self-employment income is counted differently than wages from an employer. If you are self-employed, Social Security counts your net profit — the money left after you subtract legitimate business expenses. You will need to keep records of what you spent on the business to prove what your net profit actually was.

Certain types of income do not count toward the earnings limit at all. These include Social Security benefits themselves, Supplemental Security Income (SSI), veterans benefits, workers' compensation, and some other government payments. If you receive money from sources other than work, report it to Social Security, but it will not reduce your SSDI payment.

What Happens If You Earn Over the Limit

If you earn more than $1,260 in a single month, Social Security will not pay you for that month. You do not lose your SSDI case or your may be able to access — you straightforward do not receive a payment that one month. The following month, if your earnings drop back below the limit, your payment resumes.

This is different from the Trial Work Period, which is a separate program that lets you test your ability to work without losing benefits. During the Trial Work Period, you can earn any amount for up to nine months (not necessarily consecutive) without losing your SSDI payment. After the Trial Work Period ends, the regular $1,260 limit applies again.

If you consistently earn more than the limit month after month, Social Security may eventually decide you are no longer disabled and will terminate your case. However, this does not happen after a single high-earning month — it is a decision made after a longer pattern of work.

Reporting Your Earnings to Social Security

You must report your earnings to Social Security within 10 days of the end of the month in which you earned them. You can report by phone, by mail, or through your online account on Social Security's website. If you miss the important date, Social Security may overpay you, and you will have to repay the money later.

When you report, have your pay stubs or business records ready. Social Security will ask how much you earned, when you earned it, and whether you are still working. If your earnings change — for example, you get a raise or lose a job — report that change as soon as it happens.

Some people set up a representative payee to help manage their benefits. If you have a representative payee, they may help you report earnings, but you are still responsible for making sure the information is correct and on time.

The Trial Work Period and Extended Earnings Rules

The Trial Work Period is a nine-month window during which you can earn any amount without losing your SSDI payment. These nine months do not have to be consecutive — you can use them over several years. Once you have used all nine months, the regular $1,260 limit kicks in for the rest of your case.

After your Trial Work Period ends, there is a second protection called the Extended may be able to access Period. For 36 months after your last Trial Work Period month, you can still receive your SSDI payment in any month you earn less than $1,260, even if you work above the limit in other months. This gives you a gradual transition from full benefits to no benefits as your work increases.

If you stop working and your earnings drop below the limit again, your SSDI payment will restart. You do not have to reapply or go through the approval process again — Social Security will straightforward resume paying you the next month your earnings are low enough.

Planning Your Work and Income

If you are thinking about working while on SSDI, plan ahead with Social Security. You can ask for a work incentive planning consultation, which is free and confidential. A work incentive planner can explain how your specific job or business will affect your benefits and help you understand the Trial Work Period and Extended may be able to access Period.

Keep detailed records of all your earnings, including pay stubs, invoices, and business expenses. Social Security will ask for these records, and having them organized makes reporting faster and reduces the chance of overpayment disputes later.

Remember that the $1,260 limit is about your earnings, not your total income. If you have savings, investments, or other money in the bank, that does not affect your SSDI payment. SSDI is based on your work history and disability, not on how much money you have.

Frequently Asked Questions

What if I earn $1,260 exactly — do I lose my payment?

No. The limit is $1,260, so you can earn exactly that amount and still receive your full SSDI payment. You only lose your payment if you earn $1,261 or more in a single month.

Do I have to report earnings if I earn less than $1,260?

Yes. You must report all earnings to Social Security within 10 days of the end of the month, even if you earned only $100. Failing to report can result in overpayment and a debt you will have to repay.

Can I use my Trial Work Period months all at once or do they have to be spread out?

You can use them however you want. You could use all nine months in a single year, or spread them out over several years. Once all nine are used, they are gone — you cannot get more Trial Work Period months.

If I earn over $1,260 one month, will my payment come back the next month automatically?

Yes, as long as you earn $1,260 or less in the next month. You do not have to reapply or do anything special — Social Security will resume your payment automatically once your earnings drop back below the limit.

Does my spouse's income count toward my SSDI earnings limit?

No. SSDI is based on your own work history and earnings only. Your spouse's income does not affect your SSDI payment at all, though it may affect other benefits you receive.