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Returning to work while receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits involves understanding specific rules and regulations. Navigating these can help beneficiaries maintain their financial stability while exploring employment opportunities.
Trial Work Periods for SSDI Recipients
What is a Trial Work Period?
A Trial Work Period (TWP) allows SSDI beneficiaries to test their ability to work without losing their benefits. During the TWP, beneficiaries can earn any amount without affecting their SSDI payments. For 2024, any month in which earnings exceed $1,110 qualifies as a TWP month. These months do not need to be consecutive and can span up to nine months within a rolling 60-month period.
Extended Period of Eligibility
After the TWP, beneficiaries enter a 36-month Extended Period of Eligibility (EPE). During the EPE, beneficiaries continue to receive SSDI benefits for any month in which their earnings fall below the Substantial Gainful Activity (SGA) level. The SGA limit for 2024 is $1,470 per month for non-blind individuals and $2,460 for blind individuals.
Reporting Earnings
How to Report Earnings
Accurate and timely reporting of earnings to the Social Security Administration (SSA) is crucial. Beneficiaries must report all income, both earned and unearned. For those who are self-employed, reporting the number of hours worked and net income after business expenses is required. This helps avoid overpayment issues, where the SSA determines that more benefits were paid than owed.
Importance of Accurate Reporting
Failure to report earnings can result in complications such as overpayments. Ensuring accurate reporting can prevent these issues and help beneficiaries navigate the TWP and EPE smoothly.
SSI Work Incentives
Unlike SSDI, SSI does not have a TWP. However, SSI recipients can benefit from work incentives like the Earned Income Exclusion. The SSA excludes the first $20 of earned or unearned income and half of the amount over $65 from countable income. This means SSI recipients can work and earn more without immediately reducing their benefits.
Substantial Gainful Activity (SGA)
Understanding SGA
SGA is a measure used to determine eligibility for SSDI benefits. If a beneficiary's earnings exceed the SGA level after the EPE, benefits may cease. However, there is a safety net called Expedited Reinstatement. If earnings drop below the SGA level within five years due to the original disabling condition, benefits can be reinstated without a new application.
Maintaining Benefits While Working
Medicaid and Medicare
SSDI beneficiaries may continue to receive Medicare coverage for up to 93 months after their benefits stop due to earnings. SSI recipients can maintain Medicaid coverage as long as they meet income and resource limits, even if their SSI payments stop.
Contact The Law Office of Mark J. Keller
Returning to work while receiving SSDI or SSI benefits involves understanding various rules and work incentives. Navigating these successfully can help beneficiaries achieve financial stability while exploring employment opportunities. For personalized assistance, contact The Law Office of Mark J. Keller at 718-297-1890 or email markjkelleresq@yahoo.com.
Additionally, reach out via the contact form on the website. Understanding the complexities of SSDI and SSI benefits can be challenging, but with the right guidance, beneficiaries can make informed decisions and maximize their opportunities.
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