Working While Receiving SSDI Benefits in Colorado

Social Security Disability Insurance (SSDI) provides crucial financial support to individuals who cannot work due to disabling conditions. However, many beneficiaries wonder whether they can attempt to return to work without immediately losing their benefits. The short answer is yes—the Social Security Administration (SSA) has established several programs and protections specifically designed to encourage SSDI recipients to test their ability to work. Understanding these rules is essential for Colorado residents who want to explore employment opportunities while maintaining their financial security.

Understanding Substantial Gainful Activity Limits

The Social Security Administration uses a concept called Substantial Gainful Activity (SGA) to determine whether your work activity affects your SSDI eligibility. For 2024, the monthly SGA limit is $1,550 for non-blind individuals and $2,590 for those who are statutorily blind. These figures represent gross income before taxes and deductions.

If you earn more than the SGA threshold consistently, the SSA may determine that you are no longer disabled and terminate your benefits. However, several important protections exist to prevent immediate benefit loss when you attempt to return to work. Colorado residents should be aware that these are federal thresholds that apply uniformly across all states, including Colorado, regardless of the state's cost of living or minimum wage laws.

The SSA does not count all income toward the SGA limit. Impairment-related work expenses (IRWEs) can be deducted from your earnings. These include costs for items or services you need to work because of your disability, such as medical devices, specialized transportation, or attendant care services. Colorado's geography and climate may result in unique IRWEs, such as four-wheel-drive vehicle modifications for rural mountain residents or air quality equipment for those with respiratory conditions.

The Trial Work Period: Testing Your Ability to Work

The Trial Work Period (TWP) is one of the most valuable protections for SSDI beneficiaries who want to return to work. During this period, you can test your ability to work for at least nine months without losing your SSDI benefits, regardless of how much you earn. This period does not need to be consecutive—the nine months can be spread over a rolling 60-month period.

In 2024, any month in which you earn more than $1,110 or work more than 80 self-employed hours counts as a trial work month. Once you complete nine trial work months within a 60-month period, your TWP ends, and the SSA begins evaluating whether your work constitutes substantial gainful activity.

Colorado workers should carefully track their trial work months and maintain detailed records of earnings, work hours, and work-related expenses. The state's diverse economy—from Denver's technology sector to mountain resort communities to agricultural regions—means that work opportunities vary significantly, and proper documentation becomes critical for protecting your benefits.

The Extended Period of Eligibility

After your Trial Work Period ends, you enter an Extended Period of Eligibility (EPE) that lasts for 36 consecutive months. During this time, you will continue to receive SSDI benefits for any month your earnings fall below the SGA threshold. If your earnings exceed the SGA limit, your benefits will be suspended for that month, but not terminated.

This safety net is particularly important because it acknowledges the reality that many people with disabilities experience fluctuating conditions and varying work capacity. For example, a Colorado resident with a chronic illness might work successfully during summer months but struggle during winter when their condition worsens or when seasonal employment ends in tourism-dependent communities.

If your earnings drop below SGA during the EPE, you can request reinstatement of benefits without filing a new application. After the 36-month EPE ends, if you are still working above SGA, your SSDI benefits will terminate. However, you still have options for expedited reinstatement if your condition prevents you from continuing to work within five years of termination.

Expedited Reinstatement and Continued Medicare Coverage

Expedited Reinstatement (EXR) allows former SSDI beneficiaries to request reinstatement of benefits without completing a new application if they stop working due to their disability within five years of benefit termination. During the EXR process, you may receive up to six months of provisional benefits while the SSA reviews your request.

Medicare coverage represents another critical consideration for Colorado SSDI recipients contemplating work. After receiving SSDI for 24 months, you become eligible for Medicare. If you return to work and your cash benefits are suspended or terminated due to earnings, your Medicare coverage typically continues for at least 93 months after the Trial Work Period ends.

Colorado residents should be particularly aware of how employment affects Medicare coverage, especially in rural areas where medical provider networks may be limited. Some employer health insurance plans may coordinate with Medicare, potentially reducing out-of-pocket healthcare costs. The state's Health First Colorado (Medicaid) program may also provide additional coverage options for individuals transitioning back to work.

Reporting Requirements and Best Practices

SSDI beneficiaries have a legal obligation to report work activity to the Social Security Administration promptly. Failure to report can result in overpayments that you will be required to repay, potentially with penalties. You should report any of the following situations:

• Starting or stopping work
• Changes in work duties, hours, or pay
• Increases or decreases in business expenses if self-employed
• Receipt of work-related benefits such as sick pay or vacation pay

Colorado residents can report work activity by calling the SSA, visiting a local Social Security office, or using the online reporting system. The state has Social Security offices in major cities including Denver, Colorado Springs, Aurora, Fort Collins, and Grand Junction, though many services are now available remotely.

Maintaining thorough documentation is essential. Keep copies of pay stubs, time sheets, tax returns, documentation of work-related expenses, and all correspondence with the SSA. If your condition fluctuates, maintain records from your healthcare providers documenting how your impairment affects your work capacity. This documentation becomes invaluable if questions arise about your continued eligibility or if you need to request reinstatement.

Consider consulting with a vocational rehabilitation counselor or disability employment specialist before returning to work. Colorado's Division of Vocational Rehabilitation offers services to help people with disabilities prepare for, find, and maintain employment while understanding how work affects benefits. These professionals can help you develop a strategic plan that maximizes both income and benefit protection.

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

• How Long Does SSDI Take in New Jersey?
• SSDI Payment Amounts in New Mexico
• Applying for SSDI Benefits in Hawaii