What changed for SSDI work rules in 2023

In 2023, Social Security made several changes to how much you can earn while receiving SSDI and what happens to your benefits when you work. The most significant change was an increase to the Substantial Gainful Activity (SGA) limit — the monthly earnings threshold that determines whether Social Security considers you to be working at a level that disqualifies you from benefits. For 2023, the SGA limit rose to $1,470 per month for non-blind beneficiaries and $2,460 per month for blind beneficiaries.

These limits change each year based on national wage averages, so the 2023 amounts are different from 2022 and will be different again in 2024. If you earn more than the SGA limit in a month, Social Security may determine that you are engaging in substantial gainful activity and could stop your benefits, though the rules about how quickly this happens are more complex than a straightforward cutoff.

Beyond the SGA limit, Social Security also offers work incentives that let you test your ability to work without when ready losing all your benefits. These programs — like the Trial Work Period and Extended may be able to access — give you months to earn money and see whether you can sustain work before your SSDI stops completely.

Key Takeaways

  • The 2023 SGA limit is $1,470 per month for non-blind beneficiaries; earning more than this in a month may trigger a review of your benefits.
  • The Trial Work Period lets you work and earn any amount for nine months without losing SSDI, though you must report your work to Social Security.
  • After your Trial Work Period ends, you enter Extended may be able to access, which gives you 36 additional months to test whether you can work full-time before benefits stop permanently.
  • Work incentives like Impairment Related Work Expenses (IRWE) and Plans to Achieve Self-Support (PASS) can reduce your countable earnings and extend how long you keep benefits while working.
  • The SGA limit increases each year, so you should check the current year's amount before assuming your earnings will affect your benefits.

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

The Trial Work Period (TWP) is a nine-month window during which you can work and earn any amount without losing your SSDI benefits. This is the most generous work incentive Social Security offers. During these nine months, you report your work to Social Security, but no matter how much you earn, your full SSDI payment continues.

The nine months do not have to be consecutive. Social Security counts only months in which you earn $970 or more (in 2023) as "work months." If you work part-time one month and earn $500, that month does not count toward your nine. This means your Trial Work Period can stretch across a longer calendar period if you work inconsistently.

Once you have used all nine months, you move into the next phase: Extended may be able to access. This is when the SGA limit becomes relevant. If you earn more than $1,470 per month during Extended may be able to access, Social Security will review your case and may stop your benefits.

Extended may be able to access: 36 months after your Trial Work Period

After your nine Trial Work Period months end, you enter Extended may be able to access, which lasts for 36 calendar months. During this time, you can still work, but your benefits are now tied to the SGA limit. In any month you earn $1,470 or less, you receive your full SSDI payment. In any month you earn more than $1,470, Social Security counts that as a month of substantial gainful activity.

If you have more than one month of SGA during Extended may be able to access, Social Security does not stop your benefits when ready. Instead, the agency uses a rule called the "nine-month rule": if you have nine months of SGA earnings during your 36-month Extended may be able to access period, your benefits will stop. Those nine months do not have to be consecutive, and they do not have to happen all in one year.

After your 36-month Extended may be able to access period ends, if you are still working and earning above the SGA limit, your SSDI stops. However, you become may be able to access for a different program called Expedited Reinstatement, which lets you restart benefits quickly if you stop working or drop below SGA within five years.

Work incentives that reduce your countable earnings

Social Security offers several programs that let you subtract certain work-related costs from your earnings before the agency counts them toward the SGA limit. These programs exist because the agency recognizes that some people with disabilities have extra expenses related to working.

Impairment Related Work Expenses (IRWE) are costs you pay specifically because of your disability and that you need in order to work. Examples include transportation to and from work that you would not need without your disability, medical equipment or devices you use at work, attendant care or personal information services, and medications or treatments you need to be able to work. You subtract IRWE from your gross earnings before Social Security counts them toward the SGA limit. If you earn $2,000 per month but have $600 in IRWE, Social Security counts only $1,400 toward the SGA limit.

Plans to Achieve Self-Support (PASS) is a more complex program that lets you set aside income and resources for a specific work goal — like getting a degree, starting a business, or buying equipment. While you are following your PASS plan, the money you set aside does not count as income, which can extend how long you keep your SSDI while you work toward independence. PASS requires a written plan that Social Security must approve, and you must report your progress regularly.

What to report to Social Security when you work

You are required to tell Social Security about any work you do, even during your Trial Work Period when it will not affect your benefits. Social Security provides a form called the Work Activity Report (Form SSA-777) for this purpose. You can submit it online through your My Social Security account, by mail, or in person at your local Social Security office.

You should report your work before the end of the month in which you start working, or as soon as possible after. Failing to report work can result in an overpayment — money Social Security paid you that you were not may have access to to — which you may have to repay later. If you are unsure whether something counts as work or how much to report, contact your local Social Security office or call 1-800-772-1213.

Keep records of your earnings, hours worked, and any work-related expenses. If Social Security questions your income or your IRWE deductions, you will need documentation to back up what you reported.

How the SGA limit affects your benefits after Extended may be able to access

Once your 36-month Extended may be able to access period ends, the SGA limit becomes a hard cutoff. If you are earning more than the current year's SGA amount in a month, Social Security will stop your benefits. However, you do not lose access to the program entirely.

If you stop working or drop below the SGA limit within five years of when your benefits stopped, you can request Expedited Reinstatement. This process is faster than a new process and does not require you to go through the full medical review again. You have five years from the month your benefits ended to request reinstatement.

After five years, if you want benefits again, you would need to file a new SSDI process and go through the full process, including a medical review. This is why understanding the SGA limit and planning your work carefully matters — it affects whether you can quickly restart benefits if your work situation changes.

Planning your work with these rules in mind

Before you start working or increase your hours, consider mapping out your earnings against the SGA limit and the work incentive programs available to you. If you are planning to work part-time and stay below $1,470 per month, you can work indefinitely without losing SSDI. If you want to try full-time work, your Trial Work Period gives you nine months to test it risk-free, and Extended may be able to access gives you another 36 months to see whether you can sustain it.

If your work requires disability-related expenses — transportation, equipment, attendant care — look into IRWE. If you have a specific goal like education or starting a business, ask Social Security about PASS. Both of these can stretch your Extended may be able to access period by reducing what counts as income.

The key is reporting your work honestly and on time. Social Security's work incentives exist to help you transition to self-support, but they only work if the agency knows what you are earning and what your situation is.

Frequently Asked Questions

If I earn $1,500 in one month during Extended may be able to access, do I lose my benefits when ready?

No. One month of earnings above the SGA limit does not stop your benefits. Social Security uses the nine-month rule: your benefits stop only if you have nine months of SGA earnings during your 36-month Extended may be able to access period. One month over the limit is noted, but you keep your benefits that month and beyond, unless you accumulate nine SGA months total.

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

They can be spread out. A "work month" only counts if you earn $970 or more in that month. You could work full-time for four months, take time off, then work again later. Only the months in which you earn $970 or more count toward your nine-month total.

What happens if I do not report my work to Social Security?

If Social Security discovers unreported work, you may owe back an overpayment — benefits you received but were not may have access to to. You will have to repay this money, and it can affect your future benefits. Reporting is required even during your Trial Work Period, when the work will not affect your benefits.

Does the SGA limit explore to self-employment income?

Yes. If you are self-employed, Social Security counts your net profit (income minus business expenses) toward the SGA limit. You must report self-employment income the same way you report wages from an employer.

Can I restart my SSDI if I stop working after my benefits end?

Yes, through Expedited Reinstatement, but only within five years of when your benefits stopped. You must request reinstatement and show that you are no longer working or earning above the SGA limit. After five years, you would need to file a new process.