Can I Work While on SSDI? Texas Guidelines

Social Security Disability Insurance (SSDI) recipients frequently ask whether they can work while receiving benefits. The answer is yes, but with significant limitations and specific rules you must follow. Understanding these guidelines is crucial to avoid jeopardizing your disability benefits or creating an overpayment situation that could take years to resolve.

The Social Security Administration (SSA) recognizes that some individuals receiving SSDI benefits may want to test their ability to return to work or supplement their income with part-time employment. Federal law provides several work incentive programs designed to help beneficiaries transition back to the workforce without immediately losing their benefits. However, navigating these programs requires careful attention to income thresholds and reporting requirements.

Substantial Gainful Activity Limits

The primary restriction on working while receiving SSDI centers on Substantial Gainful Activity (SGA). The SSA uses SGA as a measure to determine whether your work activity demonstrates that you are no longer disabled. For 2024, the SGA limit is $1,550 per month for non-blind individuals and $2,590 per month for individuals who are statutorily blind.

If your earnings exceed the SGA threshold, the SSA may determine that you are engaging in substantial gainful activity and are therefore no longer disabled under their definition. This does not necessarily mean immediate termination of benefits, but it triggers a review process that could ultimately result in benefit cessation.

In Texas, as in all states, these federal SGA limits apply uniformly. The SSA counts gross wages before taxes and deductions when calculating whether you have exceeded SGA. However, certain work expenses related to your disability may be deducted from your earnings when determining if you have exceeded SGA limits.

Trial Work Period Provisions

The Trial Work Period (TWP) is one of the most valuable work incentives available to SSDI recipients. This program allows you to test your ability to work for at least nine months without losing your benefits, regardless of how much you earn during those months. The nine months do not need to be consecutive, but they must occur within a rolling 60-month period.

For 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. During your TWP, you continue to receive full SSDI benefits regardless of your earnings level. This provides a safety net for Texas residents who want to explore employment opportunities without immediately risking their financial security.

Once you complete your nine-month TWP, you enter an Extended Period of Eligibility (EPE) that lasts for 36 months. During the EPE, you receive benefits for any month your earnings fall below the SGA level. If your earnings exceed SGA, you do not receive benefits for that month, but you do not need to file a new application if your earnings later drop below SGA within the 36-month period.

Impairment-Related Work Expenses

The SSA allows you to deduct Impairment-Related Work Expenses (IRWE) from your gross earnings when calculating whether you have exceeded SGA. These are costs for items or services that you need because of your disability in order to work. Texas SSDI recipients should understand that these deductions can make the difference between maintaining eligibility and losing benefits.

Common examples of IRWE include:

• Medical devices such as wheelchairs, walkers, or specialized equipment
• Medications and medical supplies required to control your disabling condition
• Attendant care services needed during working hours
• Transportation costs to and from work if you cannot use public transportation due to your disability
• Residential modifications necessary for you to work
• Service animal expenses

To claim IRWE deductions, you must provide documentation proving the expense is directly related to your impairment and necessary for you to work. Keeping detailed records and receipts is essential for Texas beneficiaries who plan to use this provision.

Reporting Requirements and Compliance

SSDI recipients who work have strict reporting obligations to the Social Security Administration. You must report your work activity immediately when you start or stop working, or when your work circumstances change. Failure to report can result in overpayments that you will be required to repay, sometimes with penalties.

When reporting work activity to the SSA, provide the following information:

• Your employer's name and address
• The date you started or stopped working
• Your gross wages and hours worked each month
• Any changes in job duties or work schedule
• Information about any self-employment activities

In Texas, you can report work activity by calling the SSA's toll-free number, visiting your local Social Security office, or submitting information through your my Social Security account online. Documentation such as pay stubs, tax forms, and employer statements should accompany your reports.

The consequences of failing to report work activity can be severe. The SSA may impose overpayment penalties, and in cases of intentional fraud, you could face criminal charges. Even unintentional failures to report can create financial hardship when the SSA demands repayment of benefits you received while working above allowable limits.

Special Considerations for Self-Employment

Self-employment while receiving SSDI presents unique challenges and requires additional scrutiny from the SSA. The agency evaluates self-employment not only based on income but also on the value of your work activity compared to non-disabled individuals in your community performing similar work.

For self-employed individuals, the SSA considers factors such as the time you devote to your business, your skills and responsibilities, the amount of energy required, whether you receive help from others, and the actual income you earn. In Texas, where self-employment and small business ownership are common, SSDI recipients must be particularly careful about documenting their work activities and limitations.

The three tests the SSA uses to evaluate self-employment are:

• Significant services and substantial income test: Did you render significant services to the business and earn more than the SGA amount?
• Comparability test: Is your work comparable to that of non-disabled individuals in your community engaged in the same or similar businesses?
• Worth of work test: Is the value of your services worth more than the SGA amount when compared to what an employer would pay someone to do the same work?

Working while on SSDI is possible and can be beneficial for your physical, mental, and financial well-being. However, the rules are complex, and mistakes can be costly. Understanding SGA limits, utilizing work incentive programs like the TWP, properly documenting IRWE, maintaining strict reporting compliance, and carefully structuring any self-employment activities are all critical to successfully balancing work and 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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