Working Part Time on Disability in South Dakota

Many South Dakota residents receiving Social Security Disability Insurance (SSDI) benefits wonder whether they can work part-time without jeopardizing their monthly payments. The answer is yes, but with important limitations and conditions that must be carefully followed. Understanding these rules can help you supplement your income while maintaining your disability benefits.

The Social Security Administration (SSA) recognizes that some individuals with disabilities want to test their ability to work or need additional income beyond their SSDI payments. The agency has established specific guidelines and work incentive programs designed to encourage beneficiaries to return to work when possible, without immediately losing their benefits.

Understanding Substantial Gainful Activity Limits

The most critical concept for SSDI recipients considering part-time work is Substantial Gainful Activity (SGA). This is the threshold amount of earnings that the SSA considers significant enough to indicate you may no longer be disabled. For 2024, the SGA limit is $1,550 per month for non-blind individuals and $2,590 per month for those who are statutorily blind.

If your gross monthly earnings exceed the SGA threshold, the SSA may determine that you are no longer disabled and terminate your benefits. However, earnings below this amount generally will not affect your SSDI eligibility. It is important to note that these limits apply to earned income from work, not to investment income or other unearned sources.

For South Dakota residents, these federal thresholds apply uniformly. The SSA does not adjust SGA limits based on state cost of living or minimum wage differences. Your part-time earnings from any job in South Dakota must stay below the applicable SGA threshold to maintain your SSDI benefits safely.

The Trial Work Period Protection

The SSA provides an important safety net called the Trial Work Period (TWP) that allows SSDI beneficiaries to test their ability to work without immediately losing benefits. During a TWP, you can earn any amount of money for up to nine months (not necessarily consecutive) within a rolling 60-month period without affecting your SSDI payments.

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. Once you have used nine trial work months, the TWP ends, and your earnings will be evaluated against the SGA limit.

South Dakota SSDI recipients should track their trial work months carefully. The SSA sometimes makes errors in counting these months, and maintaining your own records can protect your benefits. Document your monthly earnings, hours worked, and the dates of employment.

Extended Period of Eligibility and Expedited Reinstatement

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

This provision offers significant flexibility for South Dakota workers whose part-time employment may vary seasonally or whose health conditions fluctuate. For example, if you work in retail during the holiday season and earn above SGA for three months, your benefits would be suspended only for those specific months, then automatically resume when your earnings drop below the threshold.

Even if your benefits are terminated after the EPE because your earnings consistently exceed SGA, you have an additional safety net. Expedited Reinstatement (EXR) allows you to request reinstatement of benefits within five years if you stop working or your earnings drop below SGA due to your medical condition, without filing a new disability application.

Reporting Requirements and South Dakota Considerations

SSDI beneficiaries who work part-time have strict obligations to report their work activity to the SSA. You must inform the SSA when you start or stop working, and report any changes in your work duties, hours, or pay. Failure to report work activity can result in overpayments that you will be required to repay, potentially with penalties.

South Dakota residents should report work activity by:

• Calling the SSA at 1-800-772-1213
• Visiting your local South Dakota SSA office in Sioux Falls, Rapid City, Aberdeen, or Watertown
• Using your online Social Security account at ssa.gov
• Submitting Form SSA-1099 work report documentation

Keep detailed records of all communications with the SSA, including dates, names of representatives you speak with, and confirmation numbers. South Dakota beneficiaries can also work with Ticket to Work service providers who can help coordinate reporting and provide employment support services at no cost.

Impairment-Related Work Expenses and Subsidies

The SSA allows certain deductions from your gross earnings when calculating whether you have exceeded SGA. Impairment-Related Work Expenses (IRWE) are costs for items or services you need to work because of your disability. These might include medications, medical devices, transportation to work if you cannot use public transportation due to your disability, or assistive technology.

Additionally, if your employer provides special assistance or accommodations that subsidize your work, or if you earn less than others doing similar work due to reduced productivity, the SSA may subtract these amounts when evaluating your earnings against SGA.

For South Dakota workers, documenting these expenses is essential. Keep receipts, invoices, and written statements from employers about accommodations or productivity limitations. These deductions can mean the difference between maintaining your benefits and losing them due to seemingly excessive earnings.

Practical Guidance for South Dakota SSDI Recipients

Before starting part-time work while receiving SSDI in South Dakota, take these important steps:

• Contact the SSA to discuss your specific situation and work plans
• Consider consulting with a disability attorney or advocate who understands SSDI work rules
• Calculate your expected monthly earnings carefully, leaving a buffer below the SGA limit
• Discuss your disability and any needed accommodations with your potential employer
• Set up a system to track your earnings, hours, and work-related disability expenses
• Report your work activity to the SSA promptly and keep confirmation of your reports

Part-time employment can provide financial relief and personal fulfillment for South Dakota residents on SSDI. However, navigating the complex rules requires careful attention and often professional guidance. The penalties for unreported work or misunderstanding the SGA limits can be severe, including benefit termination and demands for repayment of thousands of dollars in overpayments.

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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