Yes, you can work and receive SSDI, but your earnings are tracked and may reduce or stop your benefits

Social Security Disability Insurance (SSDI) does not automatically end when you work. The program includes work incentives — rules that let you test your ability to work without losing benefits when ready. However, if your earnings exceed a certain monthly threshold, Social Security will reduce or suspend your benefits. The amount you can earn before this happens changes each year, and the calculation depends on whether you are in a trial work period, an extended may be able to access period, or regular SSDI status.

The key is that Social Security measures your substantial gainful activity (SGA) — a term that means earning above a set monthly amount. In 2024, SGA is $1,550 per month for non-blind beneficiaries and $2,590 for blind beneficiaries. If you earn less than this, your benefits continue in full. If you earn more, benefits are reduced or stopped, though you may still may have access to for Medicare coverage.

Key Takeaways

  • You can work and keep your full SSDI benefit as long as your monthly earnings stay below the substantial gainful activity threshold, which is $1,550 in 2024 for most beneficiaries.
  • The trial work period lets you test work for nine months without any benefit reduction, regardless of how much you earn.
  • After the trial work period ends, you enter a 36-month extended may be able to access period where benefits are reduced based on earnings above SGA.
  • You must report your work and earnings to Social Security within the month you start working or your earnings change.
  • Medicare coverage continues for at least 93 months after your trial work period ends, even if your benefits stop due to high earnings.

The Trial Work Period: Nine Months to Test Your Work Capacity

When you first start working while on SSDI, you enter a trial work period (TWP). This is a nine-month window during which you can earn any amount without losing a single dollar of your SSDI benefit. The nine months do not have to be consecutive — Social Security counts only the months in which you earn $940 or more (in 2024). This means you could work sporadically over a longer calendar period and still use up your nine trial months.

The trial work period is designed to let you prove to yourself and to Social Security that you can work sustainably. You report your earnings each month, but no reduction happens. Once you have used all nine trial months, the extended may be able to access period begins, and the earnings rules change.

You can use your trial work period only once per SSDI claim. If you return to work after a break, you do not get a new one. This is why it matters to understand what happens after the trial period ends before you start working.

The Extended may be able to access Period: 36 Months of Reduced Benefits

After your nine trial work months end, you enter the extended may be able to access period (EEP), which lasts 36 months. During this time, your SSDI benefit is reduced or suspended in any month your earnings exceed the SGA threshold. If you earn $1,550 or less in a month, you receive your full benefit. If you earn more, your benefit for that month is reduced by $1 for every $2 you earn above SGA.

For example, if your monthly SSDI benefit is $1,200 and you earn $2,000 in a month, you are $450 above the SGA threshold. Social Security reduces your benefit by $225 (half of $450), so you receive $975 that month. You keep the other $2,000 you earned, so your total income is $2,975.

The extended may be able to access period gives you time to see whether work is sustainable for you. If your earnings drop back below SGA, your full benefit returns when ready. If your earnings stay above SGA for the entire 36-month period, your benefits end, but your Medicare coverage continues.

What Happens After Extended may be able to access Ends

Once your 36-month extended may be able to access period closes, you are no longer in a work incentive period. If you are still working and earning above SGA, your SSDI benefits end. However, you do not lose Medicare automatically. Social Security provides Medicare continuation for up to 93 additional months (about 7.75 years) after your extended may be able to access period ends, as long as you remain disabled according to Social Security's definition.

This means you could work at a high wage, have your SSDI benefits stop, and still have Medicare coverage for years afterward. This is one of the most valuable work incentives in the program, because it removes the fear that working will leave you without health insurance.

If you stop working and your earnings drop below SGA, you can request that your SSDI benefits be reinstated. You have five years from the month your benefits ended to make this request. Social Security calls this expedited reinstatement, and it is faster than a new process.

Reporting Your Work and Earnings to Social Security

You must report your work to Social Security within the month you start working. You also must report any change in your earnings. Social Security uses the information you provide to calculate whether your benefit should be reduced or suspended. If you do not report, and Social Security discovers you have been working, you may have to repay benefits you were not may have access to to receive.

You can report your work by calling your local Social Security office, by logging into your my Social Security account online, or by mailing a report to your field office. Social Security also has a Work Incentives Planning and information (WIPA) project in most states — a free service that helps you understand how work affects your benefits and can help you report earnings correctly.

Keep records of your pay stubs and any invoices or receipts if you are self-employed. Social Security may ask to see proof of your earnings, and having documentation ready makes the process faster.

Self-Employment and SSDI Work Rules

If you are self-employed, the rules are more complex. Social Security looks at your net profit (income minus business expenses) to determine SGA. For self-employment, the agency also examines whether you are doing substantial work — meaning you are working enough hours and putting in enough effort that it would normally be expected to produce income. Even if your net profit is below SGA, Social Security can find that you are doing substantial work and suspend your benefits.

Self-employed beneficiaries should work with a WIPA counselor or a benefits planning service before starting or expanding a business. These services can help you structure your business in a way that does not trigger a work activity finding and can help you understand the tax implications of self-employment while on SSDI.

Other Work Incentives Beyond the Trial Period

Social Security offers additional work incentives beyond the trial work period and extended may be able to access. The Plan to Achieve Self-Support (PASS) lets you set aside income and resources for a specific work goal without affecting your SSDI or Supplemental Security Income (SSI) benefits. For example, you could use a PASS to save money for education, equipment, or business startup costs while continuing to receive benefits.

The Impairment Related Work Expenses (IRWE) deduction lets you exclude certain costs related to your disability from your earnings calculation. If you need a personal assistant, special transportation, or medical devices to work, you may be able to deduct those costs, which lowers your countable earnings and may keep your benefits from being reduced.

These incentives require advance planning and documentation. WIPA projects and benefits planning services in your state can help you set up a PASS or calculate your IRWE deduction.

Frequently Asked Questions

What if I earn money from a side job or gig work?

All earned income counts toward the SGA threshold, including gig work, freelance income, and part-time jobs. You must report this income to Social Security in the month you earn it. If your total earnings from all sources exceed SGA, your benefit may be reduced or suspended.

Does my spouse's income affect my SSDI work rules?

No. SSDI is based on your own work history and earnings record. Your spouse's income does not affect your SSDI benefit or your work incentive periods. However, if you receive Supplemental Security Income (SSI) in addition to SSDI, your spouse's income may affect your SSI payment.

Can I use my trial work period if I have already been working?

Your trial work period begins the first month you earn $940 or more after you start receiving SSDI. If you were working before you applied for SSDI, those earnings do not count toward your trial period. The nine months start fresh once your SSDI benefit begins.

What happens to my Medicare if my benefits stop because I earn too much?

Your Medicare Part A and Part B coverage continues for up to 93 months after your extended may be able to access period ends, even if your SSDI benefits stop. You will still pay your Part B premium, which is usually deducted from your benefit or billed to you directly. After the 93-month period, you can buy Medicare coverage if you are under 65, or you may transition to regular Medicare at 65.

Do I have to tell my employer I am on SSDI?

You do not have to tell your employer. Your SSDI status is confidential. However, some employers offer accommodations or flexibility for employees with disabilities, so you may choose to disclose your condition if it helps you perform your job. That is your decision to make.