You can work and receive SSDI, but your earnings affect your benefits

Social Security Disability Insurance (SSDI) does not automatically stop when you work. The program has built-in work incentives designed to let you test your ability to work without losing all your benefits at once. However, once your earnings cross a threshold called Substantial Gainful Activity (SGA), Social Security will review whether you still meet the medical definition of disability. If you earn above SGA for nine months in a row, your benefits will end.

The key is understanding which months count, how much you can earn before SGA applies, and what happens to your Medicare coverage if your cash benefits stop. These rules exist because Social Security recognizes that disability is not always permanent and that many people want to try working again.

Key Takeaways

  • You can work while on SSDI, and your first $65 of monthly earnings (in 2024) do not count toward the SGA limit, a rule called the Student Earned Income Exclusion or general work incentive.
  • Once your monthly earnings exceed the SGA amount—$1,550 per month in 2024 for non-blind beneficiaries—Social Security will send you a notice that your case is under review.
  • If you earn above SGA for nine months within a rolling 60-month period, your SSDI benefits will stop, but you keep Medicare for at least 93 more months.
  • The Trial Work Period lets you work and earn any amount for nine months without losing benefits, giving you a protected window to test your work capacity.
  • Work incentives like Impairment Related Work Expenses (IRWE) and Plans to Achieve Self-Support (PASS) can reduce your countable earnings and extend your benefits while you work.

How the Trial Work Period protects your first nine months of work

The Trial Work Period (TWP) is a nine-month window during which you can earn any amount without losing your SSDI cash benefits. The months do not have to be consecutive. Social Security counts only the months in which you earn $940 or more (in 2024); months below that threshold do not count toward the nine.

Once you use all nine TWP months, a three-month grace period follows. During those three months, you keep your full benefit even if you earn above SGA. After the grace period ends, the nine-month SGA rule takes effect: if you earn above SGA for nine months in a 60-month rolling window, your benefits stop.

You do not have to tell Social Security you are starting work. However, you must report your earnings when asked on your annual Continuing Disability Review (CDR) form, and you should report them promptly if your income changes significantly. Failing to report can result in an overpayment that you will have to repay.

What counts as earnings and what does not

Social Security counts wages from a job, net profit from self-employment, and certain other forms of income as earnings. It does not count Supplemental Security Income (SSI), food stamps, housing information, or other means-tested benefits. It also does not count investment income, interest, or dividends.

For self-employed people, Social Security counts your net profit—revenue minus ordinary business expenses—not your gross income. If you own a business, you will need to provide tax returns or profit-and-loss statements to prove your net earnings. The calculation can be complex if you have irregular income or share ownership with others.

Certain work-related expenses can reduce your countable earnings. If you have a disability-related work expense—such as a personal assistant, special transportation, or medical equipment needed to work—you may be able to deduct it through the Impairment Related Work Expenses (IRWE) program. You must document that the expense is directly related to your ability to work and that you would not incur it if you were not working.

The SGA threshold and what happens when you cross it

The SGA amount changes each year. In 2024, it is $1,550 per month for non-blind beneficiaries and $2,590 per month for blind beneficiaries. These figures are based on the federal minimum wage and average earnings data; Social Security updates them each January.

If you earn above SGA in a month, that month counts toward your nine-month limit. You do not lose your benefit that month—you keep your full check. But Social Security will send you a notice saying your case is under review. If you accumulate nine months above SGA within a 60-month rolling period, your benefits will stop at the end of the month in which you reach the ninth month.

The rolling 60-month window means that months drop off the count as time passes. If you earned above SGA in January 2024 and then stayed below SGA for the next 60 months, that January month would no longer count. This gives you a chance to recover if you have a period of high earnings followed by a return to lower income.

How work affects your Medicare coverage

If your SSDI benefits stop because of work, your Medicare coverage does not stop when ready. You keep Medicare for at least 93 additional months (roughly 7.5 years) after your cash benefits end, as long as you remain disabled. This is called Medicare Continuation and is one of the most valuable work incentives in the SSDI program.

During those 93 months, you pay the standard Medicare Part B premium (deducted from any other income or paid out of pocket), but you do not lose coverage. If you return to work and your earnings drop below SGA, you can request that your SSDI benefits restart without going through the full process process again. This restart is called Expedited Reinstatement and is available for up to five years after your benefits end.

After the 93-month Medicare continuation period ends, you can continue to buy Medicare Part A and Part B on your own if you are under 65. At 65, you become may be able to access for Medicare based on age rather than disability, so your coverage continues automatically.

Using work incentives to reduce countable earnings

Beyond the Trial Work Period, Social Security offers two main programs that can reduce your countable earnings and let you keep benefits while working at higher income levels.

Impairment Related Work Expenses (IRWE) allows you to deduct costs directly tied to your ability to work. Examples include a personal care attendant, specialized transportation, prosthetics, medications needed to work, or therapy sessions required to maintain your job. You must document that you would not incur the expense if you were not working and that it is necessary for you to work. IRWE deductions can significantly lower your countable earnings and extend the time you can work before hitting the SGA threshold.

Plans to Achieve Self-Support (PASS) is a more complex tool for people with a specific work goal. A PASS plan lets you set aside income and resources for a defined period to reach a goal like starting a business, getting a degree, or obtaining a professional license. While you are following the plan, that set-aside income does not count toward your earnings limit. PASS requires a written plan approved by Social Security and is typically used by people aiming for substantial self-employment or career change.

Both programs require documentation and advance approval. You should contact your local Social Security office or a Work Incentives Planning and information (WIPA) project—a free counseling service—to explore whether either program fits your situation.

Reporting your work and earnings to Social Security

You are required to report your work and earnings to Social Security. The most common way is through your annual Continuing Disability Review (CDR) form, which asks about your work activity and income. If your earnings change significantly during the year, you should report the change promptly rather than waiting for the CDR.

Social Security also cross-checks your reports against wage records from the Social Security Administration's own database and tax records from the IRS. If there is a discrepancy—for example, you report lower earnings than your tax return shows—Social Security will contact you to clarify. Intentional underreporting can result in fraud charges and repayment obligations.

If you receive an overpayment because you did not report earnings or reported them incorrectly, Social Security will ask you to repay it. You can request a waiver of the overpayment if you can show that you were not at fault and that repayment would cause financial hardship, but the bar for a waiver is high. Reporting promptly and accurately is far simpler.

What happens if your benefits stop due to work

When your benefits stop because you have earned above SGA for nine months, Social Security sends you a notice explaining the reason and the effective date. Your cash benefits end, but as noted above, your Medicare continues for at least 93 months. You do not have to reapply or go through a new medical review to restart benefits if your earnings drop again within five years.

If you want to return to SSDI after your benefits stop, you have two options. If you are still within five years of the month your benefits ended, you can request Expedited Reinstatement. Social Security will restart your benefits for up to six months while they review your medical condition. If you are still disabled, your benefits continue; if not, they stop again. This process is faster than a new process and does not require you to prove disability from scratch.

If more than five years have passed, you must file a new SSDI process and go through the full medical review process. You will need current medical evidence and will have to wait for a information, which typically takes three to six months.

Frequently Asked Questions

Can I work part-time and keep my full SSDI benefit?

Yes, as long as your earnings stay below SGA and you have not used up your nine-month Trial Work Period. Once you use the TWP, you can still work part-time and keep your benefit if you earn below SGA each month. If you earn above SGA, that month counts toward your nine-month limit, but you keep your full check that month.

Do I have to tell Social Security before I start working?

No, you do not have to notify Social Security in advance. However, you must report your earnings when asked on your Continuing Disability Review form or if your income changes significantly. Reporting promptly prevents overpayments and keeps your record accurate.

What if I earn above SGA for a few months and then drop back below?

Those months still count toward your nine-month limit. The rolling 60-month window means that months drop off the count after five years, so if you have a temporary spike in earnings, you can recover by staying below SGA for the remaining months within that 60-month period.

Will I lose Medicaid if my SSDI benefits stop due to work?

That depends on your state. Some states automatically end Medicaid when SSDI stops; others have work incentive programs that let you keep Medicaid for a period after your cash benefits end. Contact your state Medicaid office or your local SSDI work incentives counselor to learn what applies to you.

Can I use a work incentive like IRWE or PASS if I am already working?

Yes. You can request IRWE or PASS at any time while you are on SSDI and working. IRWE takes effect once approved and reduces your countable earnings going forward. PASS requires a written plan and advance approval but can significantly extend your ability to work and earn while keeping benefits.