You can work while on SSDI, but your earnings will affect your benefits in specific ways

Social Security has built-in work incentives that let you test your ability to work without losing your entire benefit right away. The key is understanding how much you can earn before your payments stop, and what happens to your Medicare or Medicaid coverage when you return to work.

The most important number is the Substantial Gainful Activity (SGA) limit. In 2024, if you earn more than $1,550 per month (or $2,590 if you are blind), Social Security will consider you able to work and may stop your benefits. But there are programs designed to let you earn money below that threshold, or to test working at higher amounts, without losing coverage when ready.

You do not have to ask permission to work. You also do not have to report your job to Social Security before you start. But you do have to report your earnings once you are working, and the sooner you do, the sooner you will know how your benefits will change.

Key Takeaways

  • You can earn up to $1,550 per month in 2024 without triggering a benefit reduction, though this amount changes yearly.
  • The Trial Work Period lets you test working at any earnings level for nine months without losing benefits, but you must report your work to Social Security.
  • After your Trial Work Period ends, the Extended may be able to access period gives you 36 more months to work while keeping Medicare or Medicaid, even if your benefits stop.
  • Your health insurance through Social Security continues under specific rules during work incentive periods, protecting you if your earnings fluctuate.
  • You must report your earnings to Social Security by the 15th of the month following the month you earned the money.

The Trial Work Period: Nine months to test your work capacity

The Trial Work Period is a nine-month window where you can earn any amount without Social Security reducing your benefits. During these nine months, you keep your full SSDI payment every month, no matter how much you earn. The only requirement is that you report your work to Social Security.

The nine months do not have to be consecutive. Social Security counts any month in which you earn $970 or more (in 2024) as a trial work month. If you work part-time one month and take a month off, that month off does not count. You can spread your nine trial months across several years if you need to.

During the Trial Work Period, you keep your Medicare coverage automatically. If you have Medicaid instead, it continues under your state's rules—some states continue it, others do not, so contact your state Medicaid office to confirm.

Once you have used all nine trial work months, your benefits will be reduced or stop depending on whether your current earnings exceed the SGA limit. This is when the Extended may be able to access period begins.

Extended may be able to access: 36 months of coverage after trial work ends

After your nine trial work months are over, you enter the Extended may be able to access period, which lasts 36 months. During these 36 months, your benefits will stop if you earn above the SGA limit ($1,550 per month in 2024), but your health insurance stays in place.

This is the protection that makes returning to work less risky. If you lose your job, or your hours get cut, your benefits can restart without a new process. You do not have to wait for a new decision from Social Security—your benefits resume automatically the first month your earnings drop back below SGA.

Your Medicare continues for the full 36 months, even if your benefits have stopped. If you have Medicaid, your state determines whether it continues; most states do, but you should confirm with your state Medicaid program before you start working.

After the 36-month Extended may be able to access period ends, the rules change. If you are still earning above SGA, your benefits will stop and your health insurance will end unless you pay for it yourself or find coverage through your employer.

How to report your earnings to Social Security

You must report your work to Social Security, and you must do it by the 15th of the month after you earn the money. For example, if you earn money in January, you report it by February 15th. Reporting late can delay your benefit payment or cause overpayments that you will have to repay.

You can report your earnings online through your my Social Security account at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. Online reporting is usually the fastest. You will need to tell Social Security your gross earnings (before taxes), the month you earned them, and the name of your employer.

Social Security uses your reported earnings to calculate whether you are above or below the SGA limit for that month. If you are below SGA, you keep your full benefit. If you are above SGA during a trial work month, you still keep your full benefit. If you are above SGA after trial work ends, your benefit for that month is reduced or stopped.

Keep records of your pay stubs and any other proof of earnings. Social Security may ask to see them, and having them ready speeds up the process.

What happens to your benefits when you earn above SGA

Once your Trial Work Period ends and you are in Extended may be able to access, Social Security uses a formula called the benefit reduction formula to calculate your payment. For every $1 you earn above SGA, your benefit is reduced by $1. This continues until your benefit reaches zero.

For example, if your monthly SSDI benefit is $1,200 and you earn $2,000 per month, you are $450 above the SGA limit of $1,550. Your benefit would be reduced by $450, leaving you with $750 that month. If you earn $2,750, you are $1,200 above SGA, so your entire benefit stops for that month.

This reduction applies only to months when you earn above SGA. If your earnings drop below SGA in a later month, your full benefit resumes. You do not lose your SSDI status—you are still considered disabled, and your benefits can restart whenever your earnings fall.

The SGA limit changes every year on January 1st. Social Security publishes the new limit in December, so you can plan ahead if you are close to the threshold.

How your health insurance works when you return to work

Your Medicare coverage continues automatically during your Trial Work Period and your entire 36-month Extended may be able to access period, regardless of your earnings. You keep Part A (hospital insurance) and Part B (medical insurance) without paying premiums during this time, even if your benefits stop.

After the 36-month Extended may be able to access period ends, Medicare continues but you must pay the monthly premium for Part B. In 2024, this premium is $164.90 per month for most people, though it can be higher depending on your income. You can pay this premium directly to Social Security, or it can be deducted from any remaining SSDI benefit if you still receive one.

If you have Medicaid instead of Medicare, the rules depend on your state. Most states continue Medicaid during Extended may be able to access, but some do not. Contact your state Medicaid office or your local Social Security office to find out what applies to you before you start working.

If you lose Medicaid when your benefits stop, you may be able to buy coverage through your employer, the health insurance marketplace, or a state program. Some employers offer health insurance to part-time workers, so ask your employer what options are available.

Other work incentives beyond Trial Work Period

Social Security offers additional programs for people who want to work but need extra support. The Plan to Achieve Self-Support (PASS) lets you set aside income and resources to reach a work goal—like paying for training or buying equipment—without those amounts counting against your benefits. PASS is complex and requires a written plan, but it can be powerful if you are working toward a specific job or business.

The Impairment Related Work Expenses (IRWE) program lets you deduct certain costs related to your disability from your earnings before Social Security calculates whether you are above SGA. For example, if you need a personal assistant to help you work, or special transportation, those costs can be deducted. You must document these expenses and show they are necessary because of your disability.

The Student Earned Income Exclusion applies only if you are under 22 and a student. It lets you exclude up to $2,170 per month in earnings (in 2024) from the SGA calculation, up to $8,680 per year.

These programs require paperwork and planning, but they exist specifically to make work possible. Ask Social Security about them when you report your work, or contact your local Work Incentives Planning and information (WIPA) project—a free service that helps people on SSDI understand their work options.

What to do before you start working

Before you accept a job, contact your local Social Security office or call 1-800-772-1213 to confirm your current benefit amount and ask about your Trial Work Period status. Social Security can tell you exactly how many trial work months you have already used, so you know whether you are still in that nine-month window.

Ask about the work incentives that might explore to your situation. If you have disability-related work expenses, ask about IRWE. If you are working toward a specific goal, ask about PASS. If you are under 22 and a student, ask about the Student Earned Income Exclusion. Having this information before you start work helps you plan your earnings and understand what to expect.

If you have Medicaid, contact your state Medicaid office to confirm what happens to your coverage when your SSDI benefits stop. Some states have programs that continue Medicaid for people who return to work, and you want to know this before you lose coverage unexpectedly.

Keep a record of when you start working and how much you earn each month. This makes reporting easier and helps you track whether you are staying below or above the SGA limit.

Frequently Asked Questions

Can I lose my SSDI permanently if I work and my benefits stop?

No. If your benefits stop because you earn above SGA, you are still considered disabled by Social Security. Your benefits will restart automatically the first month your earnings drop below SGA, without a new process or medical review. This protection lasts through your Extended may be able to access period and beyond.

What if I earn money but do not report it to Social Security?

Social Security may discover unreported earnings through tax records or other means. If you do not report earnings you should have reported, you will owe back the benefits you received, and you may face penalties. Reporting on time protects you and keeps your record accurate.

Do I have to use my Trial Work Period all at once, or can I spread it out?

You can spread your nine trial work months across several years. Any month in which you earn $970 or more counts as a trial month. If you work part-time and earn less than $970 in a month, that month does not count, and you can use it later.

What happens to my benefits if I get a raise or my hours increase?

If you are still in your Trial Work Period, your benefit does not change—you keep your full payment no matter how much you earn. If you are in Extended may be able to access and your earnings go above SGA, your benefit is reduced by the amount you earn above the limit. If your earnings drop later, your benefit goes back up.

Can I work part-time and still receive SSDI?

Yes. Part-time work often keeps you below the SGA limit, especially during your Trial Work Period when you can earn any amount. Even after trial work ends, part-time earnings below $1,550 per month mean your full benefit continues. Many people on SSDI work part-time successfully.