CAN YOU WORK WITHOUT LOSING DISABILITY BENEFITS?

You must be very careful if you try to work while receiving disability benefits. While the rules do permit some limited work, this is shark infested water and you must know the rules.

First, let me say that the Social Security Administration believes that disability benefits are only for those persons who have come to the end of their working lives. They are not very accomodating to the idea of being disabled and working at the same time.

There are 2 areas you must be watching if you try to work part time while on disability.

AREA 1: THE BLACK AND WHITE REGULATION. By law, you are permitted to work if you keep earnings below "substantial gainful activity" (SGA). Social Security defines SGA every year to adjust for inflation.

In 2021, you are working at SGA if your gross earnings or wages are at least $1,310 per month. If you reach this amount of wages in any given month, you are no longer disabled because you are working at "Substantial Gainful Activity." That's in black and white. Earn $1,310 per month and you are disqualifed for SSDI benefits.

AREA 2: THE GRAY AREA. Let's say you work and earn below $1,310 per month (gross wages). You are OK with the regulation. You do not automatically disqualify yourself for SSDI benefits. But how close do you want to bump the SGA limit? Is it safe to earn $1,200 per month? $1276? $1,300? All these amounts are under SGA for 2021. But could these earnings still cause you problems? Yes, and here's why.

Social Security monitors your earnings. Your employer reports earnings directly to Social Security when FICA taxes are deducted from your pay and sent to Social Security. They know how much you are making. And Social Security conducts what they call "Continuing Disability Reviews" every 2 or 3 years to decide if you are still disabled or if you have improved enough that you're able to work.

Nothing proves you are able to work like WORKING.

So, I tell my clients to keep earnings well below the $1,310. We don't want a Social Security decision maker thinking, "If she can earn $1,299 per month, she could easily earn $1,310. We'd better review her and see if she is really still medically disabled." In other words, working too much may cause Social Security to believe you're no longer disabled.

A final caution: Supplemental Security Income (SSI) is needs based. It's based on your total income. Any income (even well under the $1,310 per month) can and probably will effect the amount of benefit you can receive under SSI. If you're on SSI (not SSDI), any earnings can disqualify you for benefits.

So, you must understand the playing rules so you don't jeopardize Social Security benefits by working.