SSDI Trial Work Period in Colorado

Social Security Disability Insurance (SSDI) beneficiaries in Colorado who want to test their ability to return to work have an important opportunity through the Trial Work Period (TWP). This provision allows recipients to work and earn income for a limited time without losing their disability benefits, providing a crucial safety net for individuals attempting to re-enter the workforce after a disability.

Understanding how the Trial Work Period works is essential for Colorado SSDI recipients considering employment. The rules governing this program are complex, and mistakes can result in unexpected benefit suspensions or terminations. This article explains the Trial Work Period requirements, how it operates in Colorado, and what you need to know to protect your benefits while testing your work capacity.

What Is the Trial Work Period?

The Trial Work Period is a work incentive program created by the Social Security Administration (SSA) to encourage SSDI beneficiaries to attempt returning to work without immediately losing their benefits. During the TWP, you can receive full SSDI benefits regardless of how much you earn, as long as you continue to report your work activity and remain disabled according to Social Security's definition.

The TWP recognizes that many individuals with disabilities want to work but need time to determine whether they can sustain employment given their medical conditions. Rather than forcing beneficiaries to choose between attempting work and maintaining benefits, the TWP creates a testing ground where both can coexist temporarily.

Colorado residents receive the same TWP benefits as SSDI recipients in all other states, as this is a federal program administered uniformly across the country. However, Colorado-specific considerations may affect how you approach work attempts, including the state's job market, cost of living, and available vocational rehabilitation services.

How the Trial Work Period Works

The Trial Work Period consists of nine months during which you can work and earn any amount while still receiving full SSDI benefits. These nine months do not need to be consecutive; they can occur over a rolling 60-month period. Once you use all nine trial work months within that five-year window, your TWP is complete.

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. The earnings threshold adjusts annually for inflation. Months where you earn less than this amount do not count toward your nine trial work months, even if you are working.

Key aspects of the Trial Work Period include:

• Your SSDI cash benefits continue unchanged during all nine trial work months
• You remain eligible for Medicare throughout the TWP
• The SSA will not conduct a medical review of your disability during the TWP
• You must report all work activity to Social Security promptly
• The TWP begins the first month you perform services while receiving SSDI benefits

Colorado beneficiaries should be particularly aware that the state's minimum wage and typical salary levels may cause workers to exceed the trial work month threshold quickly. As of 2024, Colorado's minimum wage is higher than the federal minimum, meaning even part-time work at minimum wage could trigger trial work months.

What Happens After the Trial Work Period Ends

Once you complete your nine trial work months, you enter what the SSA calls the Extended Period of Eligibility (EPE). This 36-month period immediately follows your TWP and determines whether your benefits will continue based on your earnings level.

During the EPE, Social Security evaluates your work using Substantial Gainful Activity (SGA) standards. For 2024, the monthly SGA amount is $1,550 for non-blind individuals and $2,590 for blind individuals. If your earnings exceed the SGA level in any month during the EPE, you will not receive benefits for that month. If your earnings fall below SGA, you receive benefits for that month.

The first month after your TWP ends in which you perform SGA-level work is called the "cessation month." Your benefits continue through that month and the following two months (the "grace period"), regardless of your earnings. After the grace period, benefits are paid only for months when you earn below the SGA threshold.

If you stop working or your earnings drop below SGA during the 36-month EPE, you can have your benefits reinstated without filing a new application. This safety net is crucial for Colorado workers whose conditions may fluctuate or who discover they cannot sustain employment long-term.

Colorado-Specific Considerations

While the Trial Work Period operates identically across all states, Colorado SSDI beneficiaries should consider several state-specific factors when planning work attempts:

Vocational rehabilitation services: Colorado's Division of Vocational Rehabilitation offers services to help people with disabilities prepare for, find, and maintain employment. Coordinating with these services before or during your TWP can improve your chances of successful work attempts.

Cost of living variations: Colorado's cost of living varies significantly between urban areas like Denver and Boulder and rural communities. When evaluating whether to attempt work during your TWP, consider whether potential earnings will meaningfully improve your financial situation given local living costs.

Healthcare considerations: Colorado has its own health insurance marketplace, and some beneficiaries may need to evaluate whether employment-based insurance or marketplace options provide better coverage than Medicare, particularly if work continues beyond the TWP.

Altitude and physical demands: Colorado's high-altitude environment may affect individuals with certain respiratory, cardiac, or other conditions. Consider how altitude may impact your ability to sustain work when evaluating TWP opportunities.

Protecting Your Benefits During the Trial Work Period

To maximize the value of your Trial Work Period while protecting your SSDI benefits, follow these essential practices:

• Report all work activity immediately: Inform Social Security about any work attempts, even if you believe your earnings fall below the trial work month threshold. Failure to report can result in overpayments that you must repay.
• Keep detailed records: Maintain documentation of all earnings, work hours, job duties, and any accommodations you require. These records are invaluable if questions arise about your benefits.
• Understand your medical limitations: Consult with your treating physicians about whether proposed work is medically advisable given your conditions.
• Track your trial work months: Keep your own count of which months qualify as trial work months to avoid surprises.
• Seek guidance before starting work: Consulting with a disability attorney or benefits specialist before beginning work can help you structure your work attempt to maximize benefit protections.

Many Colorado SSDI recipients unnecessarily avoid work attempts because they fear losing benefits. Understanding the Trial Work Period empowers you to test your work capacity without immediately jeopardizing the financial support you depend on. However, the rules are complex, and individual circumstances vary significantly.

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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