Can You Work While Receiving SSDI Benefits?

Many Social Security Disability Insurance (SSDI) recipients in Alabama wonder whether they can earn any income without losing their benefits. The short answer is yes — but only within strict limits set by the Social Security Administration (SSA). Understanding those limits can mean the difference between keeping your benefits and triggering an unexpected overpayment or termination of coverage.

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 $1,620 per month for non-blind individuals and $2,700 per month for individuals who are blind. If your gross earnings exceed these amounts, the SSA will generally consider you no longer disabled and may terminate your benefits.

This threshold applies nationwide, including in Alabama. However, the SGA test is only the starting point. The SSA also looks at whether your work involves significant physical or mental activities performed for pay or profit — even if you earn below the SGA limit, certain types of work could still raise questions about your disability status.

It is important to note that unearned income — such as investment returns, rental income, or alimony — does not count toward SGA. The SGA calculation focuses exclusively on wages and net self-employment earnings.

The Trial Work Period: A Protected Window to Test Yourself

The SSA recognizes that disability is not always permanent and encourages recipients to attempt returning to work. To facilitate this, the agency provides a Trial Work Period (TWP), one of the most valuable — and most misunderstood — provisions in SSDI rules.

During your TWP, you can work and receive your full SSDI benefit regardless of how much you earn, as long as you continue to report your work activity and remain medically disabled. The TWP consists of 9 months (not necessarily consecutive) within any rolling 60-month period. In 2025, a month counts as a trial work month if you earn more than $1,110.

After you exhaust your 9 trial work months, the SSA enters a 36-month Extended Period of Eligibility (EPE). During the EPE, you receive your full benefit for any month your earnings fall below SGA, but your benefits are suspended in months when you exceed SGA. If your earnings drop below SGA again within this window, benefits can be reinstated without filing a new application.

Reporting Work Activity in Alabama

Alabama SSDI recipients have a legal obligation to report any work activity to the SSA promptly. Failure to report earnings — even unintentionally — can result in overpayments that the SSA will demand be repaid, sometimes years later. These overpayments can be substantial and financially devastating.

You should report the following to the SSA as soon as possible:

• Starting any job, including part-time or seasonal work
• Changes in pay rate or hours worked
• Starting a self-employment venture, even a small one
• Stopping work for any reason
• Receiving bonuses, sick pay, or vacation pay

Reports can be made by calling the SSA's national line at 1-800-772-1213, visiting the Birmingham or Mobile field offices in Alabama, or using your my Social Security online account. Keep written records — dates, amounts, and confirmation numbers — of every report you make. In disputed overpayment cases, documentation is often the only thing standing between a recipient and a significant financial liability.

Work Incentive Programs That Protect Alabama Recipients

Beyond the TWP and EPE, the SSA offers additional work incentives that Alabama recipients should know about:

• Impairment-Related Work Expenses (IRWEs): If you pay out-of-pocket for items or services that allow you to work despite your disability — such as prescription medications, specialized equipment, or transportation to medical appointments — those costs can be deducted from your gross earnings before the SGA comparison. This can keep your countable income below the SGA threshold even when your gross wages exceed it.
• Subsidies and Special Conditions: If your employer provides extra support or accommodations that go beyond what a non-disabled worker would receive — such as additional supervision, reduced quotas, or frequent breaks — the SSA may calculate the value of those subsidies and subtract them from your countable wages.
• Plan to Achieve Self-Support (PASS): A PASS allows you to set aside income or resources for a specific work goal, such as starting a business or completing a training program, without those resources counting against your benefits. PASS plans must be approved by the SSA in advance and require detailed documentation.
• Ticket to Work Program: SSDI recipients ages 18–64 can use a Ticket to Work to receive free employment services from approved providers, including vocational rehabilitation, job placement, and benefits counseling. Participating in the Ticket to Work program also suspends continuing disability reviews while you are making progress.

What Happens If You Earn Too Much for Too Long

If your earnings exceed SGA after your EPE expires, the SSA will terminate your SSDI benefits. However, there is still a safety net: Expedited Reinstatement (EXR). If your benefits are terminated due to work and your condition worsens within 5 years, you can request reinstatement without filing a full new disability application. During the reinstatement review period, you may receive provisional benefits for up to 6 months.

Alabama residents who lose SSDI may also lose access to Medicare, which typically continues for at least 93 months after your TWP begins — providing a significant period of health coverage even if your cash benefits stop. This continuation of Medicare can be critical for individuals managing expensive chronic conditions or ongoing treatment.

If your benefits are terminated and you believe the SSA made an error in calculating your SGA — for example, by failing to account for an IRWE or subsidy — you have the right to appeal. Alabama recipients have 60 days from the date of the notice to file an appeal, and you may request to continue receiving benefits while your appeal is pending.

Working while on SSDI is legally permissible and, in many cases, encouraged by the SSA's own rules. But the regulations are layered and unforgiving of mistakes. Reporting errors, misunderstood thresholds, and missed deadlines regularly result in large overpayment demands and benefit terminations that could have been avoided with proper guidance. If you are considering working or have already started working, consult with a disability attorney before assuming your benefits are safe.

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

Related Articles

• SSDI Application Help in Alabama
• Getting SSDI for Back Pain in Wyoming
• SSDI Work Credits: How Many Do You Need?