Can I Work While Receiving SSDI Benefits?

Many Social Security Disability Insurance (SSDI) recipients in Indiana wonder whether they can work while receiving benefits. The short answer is yes, but with significant limitations and requirements you must understand to avoid jeopardizing your benefits. The Social Security Administration (SSA) has established specific work incentive programs and income thresholds that govern employment while on SSDI.

Understanding these rules is crucial because returning to work, even part-time, can trigger a review of your benefits and potentially result in termination of payments if not handled properly. This article provides detailed guidance on working while receiving SSDI benefits in Indiana, including the Trial Work Period, Substantial Gainful Activity limits, and practical considerations for beneficiaries.

Understanding Substantial Gainful Activity (SGA)

The concept of Substantial Gainful Activity is central to SSDI eligibility. When you initially apply for SSDI, you must prove that your disability prevents you from engaging in SGA. For 2024, the SSA defines SGA as earning more than $1,550 per month for non-blind individuals and $2,590 per month for blind individuals. These figures are gross income amounts before taxes.

The SSA evaluates whether your work constitutes SGA by examining several factors:

• Your monthly earnings from employment or self-employment
• The number of hours you work
• The duties you perform and how they compare to work in the national economy
• Whether you receive special accommodations or assistance that enables you to work
• The value of any items you produce if self-employed

In Indiana, as in all states, exceeding the SGA threshold does not automatically terminate your benefits immediately. The SSA provides several work incentive programs designed to help SSDI recipients test their ability to return to work without immediately losing benefits or Medicare coverage.

The Trial Work Period (TWP)

The Trial Work Period is perhaps the most valuable work incentive available to SSDI beneficiaries. During your TWP, you can work and earn any amount for up to nine months (not necessarily consecutive) within a rolling 60-month period without affecting your SSDI benefits. 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.

The TWP offers significant advantages for Indiana residents considering returning to work:

• You receive full SSDI benefits regardless of earnings during these nine months
• You maintain Medicare coverage throughout the trial period
• The trial work months need not occur consecutively, giving you flexibility
• You can test different jobs or work schedules without financial penalty

After completing your nine trial work months, you enter an Extended Period of Eligibility (EPE), which lasts for 36 months. During the EPE, you receive SSDI benefits for any month your earnings fall below the SGA level. If your earnings exceed SGA, you will not receive benefits for that month, but you remain eligible to have benefits reinstated without filing a new application if your earnings drop below SGA again within the 36-month period.

Reporting Requirements and Income Verification

Indiana SSDI recipients who work must report their employment to the SSA promptly. Failure to report work activity can result in overpayments that you will be required to repay, potentially with penalties. The SSA requires you to report:

• When you start or stop working
• Changes in your duties, hours, or pay
• Any work-related expenses connected to your disability
• Changes in your medical condition that might affect your ability to work

You can report work activity by calling the SSA, visiting your local Indiana Social Security office, or using your my Social Security online account. Keep detailed records of all earnings, pay stubs, and documentation of any impairment-related work expenses (IRWE). These expenses can be deducted from your gross earnings when the SSA calculates whether you have engaged in SGA.

Impairment-related work expenses might include costs for medications, medical devices, transportation to work due to your disability, or specialized equipment you need to perform your job. Indiana residents should maintain receipts and documentation for all such expenses, as they can significantly reduce your countable income for SGA purposes.

Special Considerations for Indiana SSDI Recipients

Indiana SSDI beneficiaries should be aware of how work income affects other benefits they may receive. While SSDI is a federal program with uniform rules nationwide, returning to work might impact state-administered programs differently:

Medicaid: Indiana operates the Healthy Indiana Plan (HIP), which provides Medicaid coverage to eligible residents. If you qualify for Medicaid based on your SSDI status, returning to work may affect your HIP eligibility depending on your income level. However, Indiana offers Medicaid Buy-In programs that allow working individuals with disabilities to maintain Medicaid coverage even with higher earnings.

Vocational Rehabilitation: Indiana's Vocational Rehabilitation Services (VR) can provide valuable assistance to SSDI recipients who want to return to work. VR services may include job training, education, assistive technology, and job placement assistance. Coordinating with VR counselors can help you develop a realistic plan for returning to work while managing your disability.

Ticket to Work: The Ticket to Work program is a free and voluntary program available to SSDI recipients aged 18-64. Participants work with approved employment networks to develop employment goals and receive support services. A significant advantage of participating in Ticket to Work is that your case typically will not be subject to continuing disability reviews while you are making timely progress toward your employment goals.

Protecting Your SSDI Status When Returning to Work

Before accepting employment, Indiana SSDI recipients should take proactive steps to protect their benefits. Contact the SSA before starting work to discuss your specific situation and confirm how your employment will affect your benefits. Request information about your Trial Work Period status and whether you have already used any trial work months.

Consider consulting with a disability attorney who understands both SSDI regulations and Indiana-specific considerations. An experienced attorney can review your employment plans, help you calculate whether your proposed earnings will exceed SGA thresholds, and advise you on maximizing work incentives.

Document everything related to your disability and work attempts. If the SSA later determines your benefits should be terminated due to work activity, you will need evidence to support any appeal. This documentation should include medical records showing ongoing impairments, evidence of workplace accommodations, records of any work absences due to your disability, and documentation of reduced productivity compared to non-disabled workers.

Finally, never let fear of losing benefits prevent you from attempting to return to work if you feel capable. The work incentive programs exist specifically to encourage SSDI recipients to test their ability to work without risking financial catastrophe. Many beneficiaries successfully transition back to employment, and even if the attempt is unsuccessful, you have protections that can help you reinstate benefits quickly.

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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