What the 2021 Trial Work Period Rules Were

In 2021, the Trial Work Period (TWP) allowed you to work and earn any amount of money for nine months without losing your SSDI benefits. The nine months did not have to be consecutive. Social Security counted a month as a trial work month only if you earned $940 or more in that month — the threshold that year. If you earned less than $940 in a month, that month did not count toward your nine-month total, and you could use it later.

The purpose was to let you test whether you could work without the risk of losing your benefits when ready. During the TWP itself, you kept your full monthly benefit check no matter how much you earned. After the nine trial work months ended, you entered the Extended may be able to access Period (EEP), which lasted 36 months. During the EEP, you could still work, but if your earnings exceeded the Substantial Gainful Activity (SGA) limit — $1,310 per month in 2021 for non-blind beneficiaries — you would lose benefits for that month.

The TWP rules in 2021 were the same as they had been for years. Social Security did not change the dollar thresholds or the structure of the program that year. The $940 figure and the $1,310 SGA limit were adjusted annually for inflation, so the 2021 amounts reflected that year's cost-of-living adjustment.

Key Takeaways

  • During your nine trial work months in 2021, you earned $940 or more per month and kept your full SSDI check with no reduction.
  • Months in which you earned less than $940 did not count as trial work months and could be used at any point during your TWP period.
  • After your nine trial work months ended, the Extended may be able to access Period began and lasted 36 months, during which earnings over $1,310 per month would cause you to lose that month's benefit.
  • The TWP rules themselves did not change in 2021, but the dollar amounts ($940 and $1,310) were adjusted for inflation from previous years.

How the Nine Months Were Counted in 2021

Social Security counted trial work months based on your earnings in each calendar month, not on hours worked or the type of job. If you earned $940 or more in January 2021, that was one trial work month. If you earned $939 in February, that month did not count. You could then use February later — perhaps in June or September — if you earned $940 or more in those months instead.

The nine months did not have to fall in a row. Many people used their trial work months spread across a year or even longer. For example, you could use three months in 2021, take a break, and use the remaining six months in 2022. Social Security tracked which months counted toward your nine-month total and told you in writing how many you had used and how many remained.

Self-employment income counted the same way as wages. If you were self-employed and your net profit for a month was $940 or more, that counted as a trial work month. You reported self-employment income on your tax return, and Social Security used that information to determine your monthly earnings.

What Happened After Your Nine Trial Work Months Ended

Once you had used all nine trial work months, you entered the Extended may be able to access Period. This 36-month window gave you continued protection, but with a higher earnings threshold. In 2021, if your monthly earnings stayed below $1,310, you received your full SSDI benefit. If you earned $1,310 or more in any month, you did not receive a benefit for that month, but you did not lose SSDI itself — you could return to receiving benefits in a later month if your earnings dropped below the limit.

The Extended may be able to access Period was important because it meant you were not penalized for trying to work. You could test different jobs, increase your hours, or pursue training without fear of losing your SSDI status. If a job did not work out, you could step back and return to benefits.

After the 36-month Extended may be able to access Period ended, the rules changed again. At that point, if your earnings exceeded the SGA limit, you would lose your SSDI benefits entirely, and you would have to go through the process process again if you wanted to reapply. This made the TWP and EEP together a critical window for testing work.

The Dollar Amounts in 2021 and How They Changed

The $940 trial work threshold and the $1,310 SGA limit for 2021 were set by Social Security based on the annual cost-of-living adjustment (COLA). Each January, Social Security raised these figures to account for inflation. In 2020, the trial work threshold had been $910, so the 2021 increase to $940 reflected a COLA of about 1.3 percent.

These amounts applied to all SSDI beneficiaries except those who were blind. Blind beneficiaries had a higher SGA limit — $2,190 in 2021 — because the law recognized that blind workers often faced higher work-related expenses. The trial work threshold of $940 applied to blind beneficiaries as well.

If you were working in 2021 and unsure whether a particular month counted as a trial work month, you could contact Social Security and ask them to review your earnings record. They would tell you exactly how many trial work months you had used and how many remained.

Work Incentives Available Alongside the Trial Work Period

In 2021, the TWP was one of several work incentives designed to help SSDI beneficiaries return to work. Another major program was Plan to Achieve Self-Support (PASS), which let you set aside income and resources to reach a work goal without affecting your SSDI or Supplemental Security Income (SSI) benefits. A PASS plan could run for several years and was useful if you were saving for education, equipment, or business startup costs.

The Impairment Related Work Expenses (IRWE) deduction allowed you to subtract certain work-related costs from your earnings before Social Security calculated whether you had exceeded the SGA limit. For example, if you paid for a personal assistant, medical equipment, or transportation related to your disability, those costs could be deducted. In 2021, this meant you could earn more than $1,310 per month and still receive benefits if your expenses were high enough.

You could combine the TWP with PASS or IRWE. For instance, you might use your nine trial work months while also running a PASS plan to save for a business. Social Security's Work Incentives Planning and information (WIPA) projects in each state offered free counseling to help you understand how these programs worked together.

Reporting Your Work and Earnings in 2021

During 2021, you were required to report your work and earnings to Social Security. The method depended on your situation. If you received benefits by direct deposit, you could report earnings online through your my Social Security account, by phone, or by mail. Social Security asked you to report within 30 days of the end of the month in which you earned the money.

If you did not report earnings and Social Security discovered them later — through tax records, employer reports, or other means — they would recalculate your benefits and you might owe money back. It was always better to report on time. If you were unsure whether you needed to report a particular job or amount, you could call Social Security's work incentives hotline or visit your local office.

Many beneficiaries in 2021 worked with a benefits planning service or a WIPA counselor to track their earnings and understand how they affected their benefits. These services were free and could help you avoid overpayments and make the most of your trial work months.

Frequently Asked Questions

Did the trial work period rules change in 2021?

No. The structure of the TWP — nine months, $940 threshold, followed by a 36-month Extended may be able to access Period — remained the same in 2021 as in previous years. The dollar amounts were adjusted upward for inflation, but the program itself did not change.

What if I earned less than $940 in a month during my trial work period?

That month did not count as a trial work month. You kept your full benefit and could use that month later if you earned $940 or more in a future month. You had flexibility in how you spread your nine trial work months across time.

Could I work part-time and still use my trial work period in 2021?

Yes. The TWP was based on monthly earnings, not hours worked. If you earned $940 or more in a month — whether from part-time or full-time work — that month counted. You could work a few hours a week and still use your trial work months if your total monthly earnings reached the threshold.

What happened to my benefits after the Extended may be able to access Period ended in 2021?

After 36 months of Extended may be able to access, the SGA limit no longer applied. If you earned above the SGA amount ($1,310 in 2021), you would lose your SSDI benefits and would need to reapply if you wanted them back. This made the TWP and EEP together a critical window for testing work without permanent loss of benefits.

Could I use IRWE or PASS at the same time as my trial work period in 2021?

Yes. You could combine the TWP with other work incentives like PASS or IRWE. For example, you could use trial work months while also deducting disability-related work expenses under IRWE, or while running a PASS plan to save for a business goal.