Working While on SSDI in South Dakota

Many Social Security Disability Insurance (SSDI) recipients in South Dakota wonder whether earning any income will cost them their benefits. The answer is nuanced: the Social Security Administration (SSA) does allow beneficiaries to work under carefully defined rules. Understanding those rules can mean the difference between maintaining your benefits and losing them unexpectedly.

The Substantial Gainful Activity Threshold

The SSA uses a concept called Substantial Gainful Activity (SGA) to determine whether your work disqualifies you from SSDI. For 2025, the SGA limit is $1,550 per month for non-blind individuals and $2,590 per month for those who are blind. If your monthly earnings consistently exceed these figures, the SSA may conclude you are no longer disabled and terminate your benefits.

It is critical to report all work activity to the SSA promptly. Failing to report earnings—even if you believe they fall below SGA—can result in overpayments that you will be required to repay, and in some cases, civil penalties. South Dakota residents should contact their local Social Security office in Sioux Falls, Rapid City, or Aberdeen to report changes as soon as they occur.

The Trial Work Period: Testing Your Ability to Work

The SSA provides a structured opportunity called the Trial Work Period (TWP) that allows SSDI recipients to test their ability to return to work without immediately jeopardizing their benefits. During the TWP, you can earn any amount for up to nine months (not necessarily consecutive) within a rolling 60-month window and still receive your full SSDI payment.

For 2025, a month counts as a trial work month if your earnings exceed $1,110. Once you have used all nine trial work months, the SSA evaluates whether your work constitutes SGA. If it does, your benefits will cease—though a grace period applies.

• Trial work months do not have to be consecutive
• The nine-month clock resets based on a 60-month rolling window
• Full SSDI payments continue throughout all nine trial work months regardless of earnings
• Keep detailed records of all hours worked and wages earned

The Extended Period of Eligibility

After your Trial Work Period ends, you enter a 36-month Extended Period of Eligibility (EPE). During this window, you are entitled to receive your SSDI benefit for any month in which your earnings fall below the SGA level—without filing a new application. This safety net is especially valuable for South Dakota workers in seasonal industries, agriculture, or positions where income fluctuates month to month.

If your earnings drop below SGA during the EPE, simply notify the SSA and your benefits can be reinstated quickly. Once the 36-month EPE expires, however, you would need to file a new disability application if you again become unable to work—a far more burdensome process.

Work Incentives That Can Reduce Countable Earnings

The SSA offers several work incentives designed to encourage SSDI recipients to return to the workforce. These programs can reduce the income the SSA counts against your SGA limit:

• Impairment-Related Work Expenses (IRWEs): Costs you pay out-of-pocket for items or services that allow you to work despite your disability—such as prescription medications, specialized transportation, or medical equipment—can be deducted from your gross earnings before the SSA applies the SGA test.
• Subsidy and Special Conditions: If your employer provides extra support, supervision, or accommodations beyond what other employees receive, the SSA may determine that your actual value to the employer is less than your paycheck suggests. This can reduce your countable earnings below SGA.
• Unsuccessful Work Attempts: If you attempt to work but are forced to stop or reduce earnings below SGA within six months due to your disability, the SSA may disregard that period entirely.
• Plan to Achieve Self-Support (PASS): Allows you to set aside money and resources toward a work goal, which are then excluded from income and resource calculations.

South Dakota residents can access assistance with these programs through the South Dakota Division of Rehabilitation Services, which offers vocational counseling and can help you coordinate with the SSA's Ticket to Work program.

Self-Employment and South Dakota-Specific Considerations

Self-employment adds additional complexity to the SGA analysis. The SSA does not simply look at your net profit; it also considers the value of your labor to the business and the number of hours you work. Sole proprietors, ranchers, and farmers—all common in South Dakota—must be especially careful. The SSA may apply a "three tests" evaluation for self-employed individuals to determine whether work is substantial, even if the business shows little profit in its early stages.

South Dakota has no state supplemental payment program layered on top of federal SSDI, so your benefit amount is determined entirely by your federal earnings record. This means the federal SGA rules apply without modification at the state level. However, South Dakota's relatively lower cost of living can make it more feasible for some recipients to stay within earnings limits while supplementing their income with part-time work.

If you are considering self-employment or freelance work, document everything meticulously: contracts, invoices, hours worked, and business expenses. This documentation is essential if the SSA ever audits your work activity.

What to Do If Your Benefits Are Terminated

If the SSA determines your work exceeds SGA and terminates your SSDI, you have important rights. You can appeal the decision within 60 days of receiving the notice. During an appeal, you may request that your benefits continue while the case is reviewed—though you may have to repay those continued benefits if you ultimately lose.

Expedited Reinstatement (EXR) is another critical protection: if your benefits ended because of work activity and you become unable to work again within five years due to the same or a related disability, you can request reinstatement without filing a new application. Provisional benefits may be paid for up to six months while your request is evaluated.

Working with an experienced SSDI attorney before returning to work—not after a termination notice arrives—gives you the best chance of navigating these rules successfully and protecting the benefits you have earned.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

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