SSDI Trial Work Period in South Dakota

Receiving Social Security Disability Insurance (SSDI) benefits does not mean you are permanently barred from attempting to return to work. The Social Security Administration (SSA) provides a structured program called the Trial Work Period (TWP) that allows beneficiaries to test their ability to work without immediately losing their benefits. For South Dakota residents navigating SSDI, understanding how this program works can make a critical difference in your financial security.

What Is the Trial Work Period?

The Trial Work Period is a work incentive program administered by the SSA that gives SSDI recipients the opportunity to work for up to nine months within a rolling 60-month (five-year) window while continuing to receive full disability benefits, regardless of how much you earn during those months. The TWP begins the month you start working after your SSDI approval and continues until you have accumulated nine TWP months — they do not need to be consecutive.

In 2024, any month in which you earn more than $1,110 gross (before taxes) counts as a Trial Work Period month. This threshold adjusts periodically for inflation. If you are self-employed, the SSA looks at both your net earnings and the number of hours worked to determine whether a month counts toward your TWP.

The core benefit of the TWP is straightforward: the SSA will not use your earnings during this period to determine whether you are engaging in Substantial Gainful Activity (SGA). Your benefits remain fully intact throughout all nine months, even if your income is well above the SGA limit.

What Happens After the Trial Work Period Ends?

Once you have used all nine TWP months, a 36-month Extended Period of Eligibility (EPE) begins. During the EPE, the SSA evaluates your work activity each month against the SGA threshold. For 2024, SGA is defined as earning more than $1,550 per month ($2,590 for individuals who are blind).

• If your earnings fall below the SGA level in any month during the EPE, you receive your full SSDI benefit for that month.
• If your earnings exceed SGA, the SSA will suspend your benefits for that month.
• If you stop working or drop below SGA at any point during the 36-month EPE, benefits can be reinstated quickly without filing a new application.

After the EPE closes, if you continue working above SGA, your SSDI benefits are terminated. However, you may still qualify for Expedited Reinstatement — a safety net that allows you to request benefits be restored within five years if your medical condition prevents you from continuing to work, without requiring a completely new disability application.

South Dakota-Specific Considerations

South Dakota residents on SSDI should be aware of several state-level resources that can affect how you approach a return to work. The South Dakota Division of Rehabilitation Services (DRS), a branch of the Department of Human Services, offers vocational rehabilitation programs specifically designed for individuals with disabilities. DRS can help with job training, assistive technology, and workplace accommodations — services that can make your Trial Work Period more sustainable.

South Dakota also participates in the Ticket to Work program, a voluntary SSA initiative that connects beneficiaries with Employment Networks and State VR agencies. Assigning your Ticket to an approved provider in South Dakota, such as an Employment Network or DRS itself, can provide ongoing support during and after your TWP without triggering a medical Continuing Disability Review (CDR) while your Ticket is in use.

Additionally, South Dakota has a relatively lower cost of living compared to national averages, which can be both an advantage and a consideration. Lower living costs may make part-time or below-SGA work more financially viable, allowing you to preserve benefits while easing back into employment — a strategy worth discussing with a disability attorney familiar with the state.

Work Incentives That Work Alongside the TWP

The Trial Work Period does not stand alone. Several other SSA work incentives can protect your benefits and income during your return-to-work effort:

• Impairment-Related Work Expenses (IRWE): Costs you pay out-of-pocket for items or services needed to work because of your disability — such as medication, medical devices, or transportation to medical appointments — can be deducted from your gross earnings when the SSA calculates SGA. This can keep your countable income below the SGA threshold.
• Subsidies and Special Conditions: If your employer provides extra support or accommodations that allow you to work when you otherwise could not, the SSA may discount the value of your work output when assessing SGA.
• Plan to Achieve Self-Support (PASS): This allows you to set aside income or resources for a specific work goal, such as education or starting a business, without those funds counting against your SSI or SSDI eligibility.
• Continued Medicare Coverage: Even after SSDI cash benefits end due to work, most beneficiaries continue receiving Medicare for at least 93 months beyond the end of the TWP — a critical protection for South Dakota residents who rely on Medicare for ongoing medical care.

Common Mistakes to Avoid During the Trial Work Period

The rules governing the TWP are detailed, and errors can have serious financial consequences. Some of the most frequent mistakes SSDI recipients make include:

• Failing to report work activity to the SSA. You are legally required to report any work you perform, including part-time or seasonal work. Failure to do so can result in overpayments that the SSA will demand be repaid — sometimes years later.
• Assuming the TWP protects you indefinitely. Nine months is the limit. Tracking your TWP months carefully is essential, especially since they accumulate within a rolling 60-month window.
• Ignoring the impact of self-employment income. Freelance, contract, or farm income in South Dakota is evaluated differently than wages. Net profit and hours worked both factor into whether a month counts as a TWP month or whether you are performing SGA.
• Not using available deductions. Many beneficiaries pay IRWE or have employer subsidies that could reduce countable earnings below SGA but never claim them because they are unaware these deductions exist.

Keeping detailed records of your earnings, work hours, and any disability-related work expenses is essential from the moment you return to work. If the SSA contacts you about your work activity, having organized documentation can prevent overpayment findings and protect your benefits.

Navigating the intersection of SSDI benefits and employment is complex, and a misstep can jeopardize the income and healthcare coverage you depend on. Consulting with an experienced disability attorney before or during your Trial Work Period can help you make informed decisions and avoid costly mistakes.

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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