Working While on SSDI in South Dakota

Receiving Social Security Disability Insurance (SSDI) benefits does not necessarily mean you can never work again. The Social Security Administration (SSA) has specific rules that allow beneficiaries to test their ability to return to work without immediately losing their benefits. Understanding these rules is critical for South Dakota residents who want to explore employment without jeopardizing the disability coverage they depend on.

The Trial Work Period: Your Protected Window

The SSA grants every SSDI recipient a Trial Work Period (TWP) — nine months, which do not need to be consecutive, within a rolling 60-month window during which you can work and earn any amount without losing your benefits. For 2024, any month in which you earn more than $1,110 counts as a trial work month.

During the Trial Work Period, the SSA continues paying your full SSDI benefit regardless of how much you earn. This gives South Dakota beneficiaries a meaningful opportunity to re-enter the workforce, test their physical or mental capacity, and assess whether sustained employment is realistic given their condition.

Once you exhaust all nine trial work months, the SSA evaluates whether your work activity rises to the level of Substantial Gainful Activity (SGA). In 2024, the SGA threshold is $1,550 per month for non-blind individuals and $2,590 per month for blind individuals. Earning above these amounts after your Trial Work Period ends can trigger a cessation of benefits.

The Extended Period of Eligibility

After the Trial Work Period concludes, SSDI recipients enter a 36-month Extended Period of Eligibility (EPE). During this window, your benefits are not automatically terminated. Instead, the SSA pays benefits for any month your earnings fall below the SGA threshold and withholds them for any month your earnings exceed it.

This protection is particularly important for South Dakota workers in variable-income industries such as agriculture, ranching, seasonal tourism, or part-time retail — sectors where earnings fluctuate significantly month to month. If your income drops below SGA during the EPE, benefits resume without requiring a new application.

Once the EPE ends, working above SGA will result in termination of SSDI benefits. However, for five years after termination you can request expedited reinstatement if your disability prevents you from continuing to work — without filing a brand-new application.

Work Incentives That Protect South Dakota Recipients

The SSA offers several work incentives beyond the Trial Work Period that can reduce the impact of employment on your SSDI benefits:

• Impairment-Related Work Expenses (IRWE): Costs you pay out-of-pocket for items or services that enable you to work — such as prescription medications, medical equipment, transportation to medical appointments, or specialized tools — can be deducted from your gross earnings when calculating SGA. For a South Dakota resident managing a chronic condition requiring regular medical care, IRWEs can meaningfully reduce counted income.
• Plan to Achieve Self-Support (PASS): This program allows you to set aside income or resources for a specific work goal, such as starting a small business or completing vocational training. Funds set aside under a PASS are excluded from income and resource calculations, protecting both your SSDI and any Medicaid eligibility.
• Subsidies and Special Conditions: If your employer provides extra supervision, allows more breaks, or accommodates your disability in ways that reduce your productivity compared to non-disabled coworkers, the SSA may reduce your countable income to reflect the actual economic value of your work rather than your gross wages.
• Ticket to Work Program: South Dakota residents can assign their Ticket to an approved Employment Network or the Division of Rehabilitation Services. Participating in the Ticket to Work program protects you from Continuing Disability Reviews while you are making timely progress toward your work goals.

Medicare Continuity While Working in South Dakota

One of the biggest fears SSDI recipients have about returning to work is losing Medicare coverage. Federal law addresses this directly. After your Trial Work Period ends, you receive an additional 93 months of extended Medicare coverage, even if your cash benefits stop because you are earning above SGA. This means South Dakota beneficiaries can work and earn above SGA for nearly eight years after the Trial Work Period before Medicare is at risk.

If Medicare does eventually end due to work, you may be eligible to purchase continued Medicare coverage at a premium. South Dakota also operates a Medicaid Buy-In program for workers with disabilities (sometimes called the Medicaid Work Incentive), which allows people with disabilities who are working to buy Medicaid coverage at a reduced premium based on income. This can serve as a critical safety net during the transition off SSDI.

Reporting Requirements and Avoiding Overpayments

Working while on SSDI creates a reporting obligation. You must report all work activity to the SSA promptly, including the date you start or stop working, your employer's name and address, and your monthly earnings. In South Dakota, you can report work to your local SSA field office in Sioux Falls, Rapid City, Aberdeen, or Mitchell, by phone at 1-800-772-1213, or through your My Social Security online account.

Failing to report work and earnings is one of the most common causes of SSDI overpayments — situations where the SSA paid you benefits you were not entitled to receive. Overpayments must be repaid and can result in withholding of future benefits. Proactive, timely reporting protects you from this risk.

Keep detailed records of every paycheck, every work-related expense, and every communication with the SSA. If your employer provides any accommodations or subsidies related to your disability, document those arrangements in writing. This documentation can be essential if the SSA ever questions whether your work activity rises to the level of SGA.

South Dakota residents working in self-employment face additional complexity. The SSA applies a different SGA test for self-employed individuals, looking at both net earnings and the value of the work performed. If you are considering self-employment while on SSDI, consult with an experienced disability attorney before proceeding to avoid unintended benefit termination.

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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