Can I Earn Money While On Disability?

This is one of the most common questions disability advocates hear from individuals applying for or receiving Supplemental Security Income and Social Security Disability Insurance. The short answer is yes. However, there some limitations to be considered. Let’s begin with the rules for SSI since this is a little more complicated.

For SSI, some income is excluded from consideration by the Administration and is therefore not “countable income.” This is usually the first $65 to $85 (depending upon certain circumstances) of earned income and then half of the amount over the $65 to $85. Here is’s example of how that works:

For example, if you make $1,465 per month, the SSA will subtract $65 (to get $1,400) and then half of the amount over $65 (to get $700). That $700 is your countable income from work, and it will be subtracted from your monthly SSI payment (which is $733 without a state supplement). You would still get an SSI payment of $33.

Nolo concludes by stating that, “In a nutshell, you can make about $1,550 a month before your SSI benefit is reduced to zero.” One thing to consider about that, though, is that SSA can infer that you are actually capable of working full time if your SSI benefit is so substantially offset most or every month. This is, in part, because the substantial gainful activity earnings limit of $1,130 per month still applies to non-blind individuals collecting SSI. In other words, while you can possibly earn that much while receiving benefits, doing so could cause your benefits to be terminated.

There are other types of income that are excluded from consideration as well as work incentive programs that can help you keep your benefits while you work and earn money. There are also some types of income that SSA will consider along with earned income when deciding whether to offset your SSI benefit such as settlement payments, child support, investment dividends, and more. The SSA has a guide to earning money from work while collecting benefits that anyone considering working while collecting SSI should read.

For SSDI, things are a bit simpler. A person may not earn over the substantial gainful activity (SGA) limit in order to continue to qualify for SSDI payments. Many, if not most, types of unearned income are not considered in analyzing whether a person is earning SGA. Generally, SGA is based on earned income. So, you must not work and earn in excess of the $1,130 monthly limit in order to continue to qualify for benefit payments.

If your earnings do happen to exceed SGA, then there are a few exceptions to the SGA rule that can apply. For instance, if you earn in excess of SGA for one to three months but then stop working you will likely be considered to have completed an unsuccessful work attempt and the income you earned will not be counted against you. For work attempts up to six months, the same rules apply, however, you will have to show SSA that you had difficulty meeting the requirements of the job and ultimately stopped working due to your conditions. There is also the trial work period rule that will allow you to work and earn over SGA for nine months out of a rolling sixty month period. There are other types of work, sheltered workshops for instance, where the earned income may not be counted against you for the purposes of computing SGA.

SSA has these exceptions to the earnings rule to encourage people living with a disability to attempt to adjust to any manageable types of work without losing the benefits that they otherwise may need to live. However, as with most things in the disability process, for the exceptions to the rules to apply, you must be willing to work with SSA by reporting your work activity and providing records of accommodations, subsidies, or anything else your employer may be doing to help you get back to work.

Please contact us today if you have any more questions about earning money while on disability or if you are considering filing a disability application.