Working While on SSDI: What South Dakota Claimants Must Know

Working While on SSDI: What South Dakota Claimants Must Know

Receiving Social Security Disability Insurance (SSDI) benefits does not automatically mean you must stop working entirely. The Social Security Administration (SSA) has established specific rules that allow beneficiaries to test their ability to work without immediately losing their benefits. Understanding these rules is critical for South Dakota residents who want to re-enter the workforce without jeopardizing the financial support they depend on.

The Trial Work Period Explained

The SSA grants every SSDI recipient a Trial Work Period (TWP), which allows you to work and receive full benefits regardless of how much you earn — as long as you continue to have a disabling condition. The TWP consists of nine months within a rolling 60-month window. These nine months do not need to be consecutive.

In 2024, a month counts as a trial work month if your gross earnings exceed $1,110. Once you have used all nine trial work months, the SSA evaluates whether your work activity constitutes Substantial Gainful Activity (SGA). For 2024, SGA is defined as earning more than $1,550 per month (or $2,590 per month if you are blind).

South Dakota residents should be aware that state cost-of-living differences do not affect these federal thresholds. Whether you live in Sioux Falls, Rapid City, or a rural county, the same federal SGA limits apply statewide.

What Happens After the Trial Work Period

After your nine trial work months are exhausted, the SSA enters a 36-month Extended Period of Eligibility (EPE). During this window, you are entitled to receive SSDI benefits for any month in which your earnings fall below the SGA threshold. If you earn above SGA in a given month, you will not receive a benefit payment for that month — but you do not need to reapply for benefits if your earnings drop again within the 36-month period.

The practical implication for South Dakota workers is significant: if you take a seasonal job — common in agriculture, tourism around the Black Hills, or temporary construction work — and your earnings fluctuate month to month, you may receive benefits in lower-earning months while forfeiting them in higher-earning months, all without losing your SSDI status.

Once the EPE ends, if you are still earning above SGA, your benefits will terminate. At that point, you would need to file a new application if your condition worsens and prevents substantial work again.

Work Incentives That Protect South Dakota Beneficiaries

Beyond the TWP and EPE, the SSA offers several work incentives that can help South Dakota SSDI recipients transition back to employment more safely:

• Impairment-Related Work Expenses (IRWE): Costs you pay out of pocket for items or services that allow you to work — such as prescription medications, specialized equipment, or transportation adaptations — can be deducted from your gross earnings when the SSA calculates whether you are performing SGA. For example, if a South Dakota resident with a mobility impairment pays $300 per month for a modified vehicle, that amount may reduce the countable earnings figure.
• Plan to Achieve Self-Support (PASS): This program lets you set aside income or resources to pursue a vocational goal — such as education, training, or starting a small business — without those amounts counting against your SGA calculation.
• Ticket to Work Program: SSDI recipients aged 18–64 can receive free employment services, vocational rehabilitation, and job placement assistance through SSA-approved providers, known as Employment Networks. Several providers operate in South Dakota and can assist with resume building, interview coaching, and identifying accommodating employers.
• Expedited Reinstatement: If your benefits ended because of work activity and your medical condition later prevents you from continuing to work, you may request reinstatement within five years without filing a full new application. Benefits can begin provisionally while the SSA reviews your case.

Reporting Requirements and Common Mistakes

One of the most serious mistakes South Dakota SSDI recipients make is failing to report work activity promptly. You are legally obligated to notify the SSA when you start working, when your earnings change significantly, and when you stop working. Failure to report can result in overpayments that the SSA will demand be repaid — sometimes amounting to thousands of dollars — and in severe cases, allegations of fraud.

Report work activity to the SSA by calling 1-800-772-1213, visiting your local South Dakota Social Security field office (located in Aberdeen, Pierre, Rapid City, Sioux Falls, and Watertown), or using your my Social Security online account. Keep documentation of your pay stubs, employer contact information, and start dates organized and accessible.

Self-employment presents particular complexity. If you run a farm operation in rural South Dakota, operate a small business, or do freelance or contract work, the SSA uses a different method to evaluate SGA — one that looks not just at earnings but at the time, energy, and skills you contribute to the work. Self-employed individuals should consult with a benefits counselor or attorney before assuming their activity is below the SGA threshold.

How Working Affects Medicare Coverage

Many SSDI recipients in South Dakota depend on Medicare for medical coverage. The good news is that Medicare does not disappear the moment you begin working. You remain entitled to premium-free Medicare Part A and can maintain Part B coverage throughout the TWP. After benefits terminate due to SGA earnings, you are entitled to a 93-month period of extended Medicare coverage, giving you approximately seven and a half additional years of health insurance protection while you remain employed.

If you lose your job or your condition worsens during that extended Medicare period, your disability benefits may be reinstated through the Expedited Reinstatement process described above. This safety net is particularly valuable in South Dakota, where employer-sponsored health coverage may be limited in certain rural industries.

Steps to Take Before Returning to Work

Before accepting a job offer or expanding your self-employment activities, take these practical steps to protect your benefits:

• Contact a Work Incentives Planning and Assistance (WIPA) counselor to get a personalized Benefits Analysis. WIPA services are free and available to South Dakota residents through federally funded providers.
• Request a copy of your current benefit verification letter from the SSA to confirm your benefit amount and any ongoing reviews.
• Document your medical condition thoroughly with your treating physicians before and during any work attempt, so that if you need to stop working, the record supports continued disability.
• Notify the SSA in writing the day you start working, and keep a copy of that notification for your records.

The rules governing work activity under SSDI are detailed and unforgiving when misapplied. A single misunderstood threshold or an unreported paycheck can trigger a lengthy overpayment dispute with the SSA. South Dakota recipients who want to explore returning to work deserve to do so with a full understanding of the protections and obligations that govern their benefits.

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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