Can You Make Extra Money While on Social Security Disability?

Individuals receiving Social Security Disability Insurance (SSDI) often wonder about earning additional income while maintaining their benefits. SSDI is a federal program providing financial support to those unable to engage in substantial gainful activity due to a severe and long-term medical condition. It replaces lost income for workers who have contributed to the Social Security system through payroll taxes. While SSDI assists those who cannot work, the Social Security Administration (SSA) recognizes some beneficiaries may wish to attempt a return to work or supplement their income. It is possible to work while receiving SSDI, but specific rules and thresholds govern how earnings impact benefit eligibility.

Understanding Work While Receiving SSDI

The core concept the Social Security Administration (SSA) uses to determine eligibility for disability benefits is “Substantial Gainful Activity” (SGA). SGA refers to a level of work activity and earnings that demonstrates an individual’s ability to perform significant physical or mental activities for pay or profit. If a person’s earnings exceed the SGA limit, they are generally considered capable of engaging in work and may no longer qualify for benefits.

The SSA updates the SGA monetary thresholds annually. For 2025, the monthly SGA amount for non-blind individuals is $1,620. For individuals who are statutorily blind, a higher SGA threshold applies, set at $2,700 per month.

The SSA evaluates different types of income for SGA. Earned income, including gross wages from employment or net earnings from self-employment, counts towards the SGA limit. The value of services performed, even if not directly paid, can also be considered. This focus on earned income differentiates it from unearned income, such as investments or inheritances, which typically do not count towards the SGA calculation for SSDI.

The purpose of the SGA limit is to ensure SSDI benefits are directed to those who genuinely cannot perform substantial work due to their disability. Work is considered “substantial” if it involves significant physical or mental effort, and “gainful” if it is performed for pay or profit. Even part-time work can exceed the SGA limit depending on the hourly wage and hours worked.

Social Security Work Incentives

The Social Security Administration offers several “work incentives” designed to encourage SSDI beneficiaries to test their ability to work without immediately losing benefits. One such incentive is the “Trial Work Period” (TWP), which allows beneficiaries to work and receive full SSDI benefits, regardless of earnings.

A Trial Work Period consists of nine months, which do not need to be consecutive, but must occur within a rolling 60-month period. In 2025, any month with gross earnings exceeding $1,160 counts as a TWP service month. For self-employed individuals, working more than 80 hours in a month also counts. During these nine months, beneficiaries continue to receive their full SSDI cash payment.

Following the TWP, beneficiaries enter the “Extended Period of Eligibility” (EPE), which lasts for 36 consecutive months. During the EPE, the SSA evaluates whether a beneficiary’s countable gross earnings are at or above the Substantial Gainful Activity (SGA) level each month. If earnings are below SGA, the beneficiary generally remains eligible for SSDI cash benefits. If earnings are at or above SGA, benefits are typically not paid for that month.

A “grace period” is a specific provision within the EPE, providing a temporary continuation of benefits. This three-month grace period begins with the first month in the EPE where earnings exceed the SGA level, known as the “cessation month.” Beneficiaries receive SSDI benefits for this cessation month and the subsequent two months, regardless of earnings. After the grace period, benefits are suspended for any month earnings remain above SGA, but the case is not terminated during the EPE.

Beyond the TWP and EPE, other work incentives can help reduce countable earnings below the SGA level. “Impairment-Related Work Expenses” (IRWE) are costs for items or services an individual with a disability needs to work because of their impairment. Examples include specialized transportation, assistive technology, or certain medical expenses. These expenses are deducted from gross earnings when the SSA determines if work is at the SGA level, effectively lowering countable income.

“Subsidies and Special Conditions” also allow the SSA to count less of a beneficiary’s gross earnings. A subsidy occurs when an employer provides extra support, such as more supervision or fewer tasks, which results in the beneficiary receiving more pay than the actual value of their work. The value of this extra support is excluded from countable earnings, potentially keeping the individual below the SGA threshold and allowing continued benefit receipt.

Reporting Earnings and Continued Eligibility Review

Maintaining Social Security Disability Insurance benefits while working necessitates strict adherence to reporting requirements. Beneficiaries must promptly report all work activity and earnings to the Social Security Administration (SSA). This includes starting or stopping work, and any changes in pay rate or hours worked. Accurate and timely reporting prevents issues like overpayments or benefit suspension.

The SSA provides various methods for beneficiaries to report earnings, including online, by phone, mail, or in person. Keeping detailed records of work performed, hours worked, and gross earnings is advisable. Failure to report income or changes can lead to significant overpayments, which the SSA will seek to recover.

Work activity can also trigger a “Continuing Disability Review” (CDR) by the SSA. A CDR is a periodic review to determine if an individual’s medical condition still prevents them from performing substantial gainful activity. While work incentives encourage work and do not automatically lead to benefit termination, consistent work activity, especially at or above the SGA level, can prompt a closer look at medical eligibility.

During a CDR, the SSA assesses if the medical impairment continues to meet program requirements. The review considers medical evidence, recent work history, and any accommodations that enable work. Even if work activity triggers a CDR, work incentives or a fluctuating work pattern can demonstrate ongoing disability, allowing benefits to continue or be reinstated.

Other Benefit Considerations

Working while receiving Social Security Disability Insurance benefits can affect other related benefits, particularly Medicare coverage. Individuals receiving SSDI typically become eligible for Medicare after a 24-month waiting period from their entitlement to disability benefits. Even if cash SSDI benefits cease due to work activity, Medicare coverage often continues for a significant period.

The “Extended Period of Medicare Coverage” allows Medicare Part A to continue for at least 93 months (8 years and 6 months) after the Trial Work Period ends, even if SSDI cash benefits stop due to work. This extended coverage ensures access to healthcare services while a beneficiary attempts to transition back into the workforce. After this extended period, individuals may purchase Medicare coverage if they do not qualify based on their work history.

Beyond Medicare, work income can also influence eligibility for other federal or state assistance programs. Programs such as Medicaid or the Supplemental Nutrition Program (SNAP) often have their own income and resource thresholds that differ from SSDI rules. While SSDI focuses on earned income for SGA, other programs may count both earned and unearned income, and may have different deductions or exclusions.

Beneficiaries should understand that increasing earned income might impact their eligibility for these needs-based programs. Careful planning and understanding the specific rules of each program are advisable. Consulting with a benefits planner can help individuals navigate these complexities and determine how increased earnings might affect their overall benefit package.