Part-time employees can receive SSDI, but your earnings will reduce or stop your benefits

Yes, you can be a part-time employee and receive Social Security Disability Insurance (SSDI). But SSDI has strict rules about how much you can earn each month. If your part-time pay goes over a certain amount, Social Security will reduce your monthly benefit — and if it goes high enough, your benefits stop entirely.

The key number is called Substantial Gainful Activity, or SGA. In 2024, if you earn more than $1,550 per month (for non-blind individuals), Social Security considers you able to work and will stop your SSDI payments. This limit changes each year. Even if you stay under the SGA limit, you should report your earnings to Social Security every month, because they track your income carefully.

Part-time work is actually one of the most common ways people test whether they can return to work while still receiving SSDI. But the rules are different depending on how long you have been receiving benefits and what kind of work you do.

Key Takeaways

  • You can work part-time on SSDI as long as your monthly earnings stay below the Substantial Gainful Activity limit, which is $1,550 in 2024 for non-blind workers.
  • If you earn more than the SGA limit, Social Security will stop your SSDI payments, though you may keep Medicare for a period of time.
  • You must report your earnings to Social Security every month, and they will ask for proof of how much you earned.
  • The Trial Work Period allows you to test part-time work for nine months without losing benefits, even if you earn above the SGA limit during those months.
  • After the Trial Work Period ends, your benefits will stop if you earn above SGA, but you can request a new Trial Work Period after a waiting period.

How much can you earn before benefits stop

Social Security uses the SGA limit to decide whether you are working at a level that shows you can support yourself. For 2024, the limit is $1,550 per month for non-blind workers. If you are blind, the limit is higher: $2,590 per month. These numbers increase each January.

The limit applies to your gross earnings — the money before taxes are taken out. If you work part-time and earn $1,400 one month and $1,600 the next, the month you earn $1,600 will trigger a benefit reduction or stoppage. Social Security looks at each month separately.

If you go over the SGA limit, your entire monthly SSDI payment stops for that month. You do not get a partial payment. However, you keep your Medicare coverage for at least 93 days after your benefits stop, which gives you time to see whether the part-time job will continue.

The Trial Work Period: testing part-time work without losing benefits

Social Security offers a Trial Work Period specifically so you can test part-time work without the risk of losing benefits when ready. During the Trial Work Period, you can earn any amount — even well above the SGA limit — and keep your full SSDI payment. This period lasts for nine months, but the months do not have to be consecutive.

A month counts toward your Trial Work Period only if you earn more than $220 (in 2024) during that month. So if you work part-time some months and earn less than $220, those months do not count. This means your Trial Work Period can stretch across a longer calendar period while you use up your nine may have access to months.

You must report your earnings to Social Security during the Trial Work Period, just as you do at any other time. Social Security will not stop your benefits during these nine months no matter how much you earn, but they are tracking your income to see whether you can sustain work.

After your nine Trial Work Period months are used up, you enter the Extended may be able to access Period. During this period, which lasts 36 months, your benefits will stop in any month you earn above the SGA limit — but you can restart benefits in months when your earnings drop below SGA. This gives you a safety net if the part-time job ends or your hours are cut.

What happens after the Trial Work Period ends

Once you have used all nine months of your Trial Work Period, the rules change. If you continue earning above the SGA limit, your SSDI payments will stop. You cannot use another Trial Work Period right away — you must have a break in benefits first.

If your part-time earnings drop below the SGA limit in a future month, your benefits will restart automatically. You do not have to reapply. Social Security will resume payments the month after your earnings fall below the limit, as long as you report the lower earnings.

If you want to test part-time work again after your benefits have stopped, you can request a new Trial Work Period. But Social Security will only grant a new one if you have had a break in benefits of at least 12 months. This rule exists to prevent people from cycling through Trial Work Periods indefinitely.

Reporting your part-time earnings to Social Security

You are required to report your earnings to Social Security every month, even during the Trial Work Period when your benefits will not stop. You can report earnings by phone, by mail, or through your online Social Security account. Social Security will ask you to provide proof of your earnings — usually a pay stub or a letter from your employer.

If you do not report earnings and Social Security finds out later that you earned money, they may overpay you. An overpayment means you received benefits you were not may have access to to, and Social Security will ask you to repay the money. This can happen months or even years after the earnings occurred, so reporting on time protects you.

Some people worry that reporting earnings will cause problems, but the opposite is true. Social Security expects you to report, and they have systems in place to handle it. If you do not report and they discover unreported income, that creates a much bigger problem.

Self-employment and part-time work on SSDI

If your part-time work is self-employment — you are running your own business or freelancing — the rules are slightly different. Social Security looks at your net profit (earnings after business expenses) rather than gross income. You also have to report your business activity, not just your monthly earnings.

Self-employment income is counted differently during the Trial Work Period as well. A month of self-employment counts toward your nine months if you work 15 or more hours per week in your business, regardless of how much you earn. This is different from regular employment, where the $220 threshold determines whether a month counts.

If you are considering part-time self-employment while on SSDI, it is worth asking Social Security directly how they will count your specific situation. Self-employment can be more complex to report, and getting clarity upfront prevents problems later.

Medicare and Medicaid when you work part-time

One of the biggest advantages of the Trial Work Period is that you keep your Medicare coverage the entire time, even if you earn a lot. After your benefits stop because you earned above the SGA limit, you can keep Medicare for at least 93 days. Many people do not realize this, and it is one reason part-time work is less risky than it appears.

If you receive Medicaid (the state health program, not Medicare), the rules vary by state. Some states continue Medicaid while you work; others reduce or stop it based on your earnings. You should check with your state Medicaid office before starting part-time work to understand how your earnings will affect your coverage.

Frequently Asked Questions

Can I work part-time and keep all my SSDI benefits?

Yes, during your nine-month Trial Work Period. After that, you can keep your full benefits only if your monthly earnings stay below $1,550 (in 2024). If you earn more than that, your benefits stop for that month, though you can restart them when earnings drop below the limit.

What if I earn $1,600 one month and $1,400 the next?

Social Security looks at each month separately. The month you earn $1,600, your benefits stop. The month you earn $1,400, your benefits restart. You must report both months to Social Security so they can adjust your payments correctly.

Do I have to report my part-time earnings every single month?

Yes. You must report your earnings every month, even if you earned nothing. Social Security uses these reports to determine whether you are above or below the SGA limit and whether your benefits should continue.

What if my part-time job ends and I want to go back on SSDI?

If your benefits stopped because you earned above SGA, they will restart automatically the first month your earnings fall below the limit. You do not have to reapply. Just report your lower earnings to Social Security.

Can I use the Trial Work Period more than once?

Not when ready. You can request a new Trial Work Period only after your benefits have stopped for at least 12 months. This prevents people from using multiple Trial Work Periods in a short time span.