How Much Money Can You Make on SSDI?

Social Security Disability Insurance (SSDI) provides financial support to individuals unable to perform substantial work due to a severe medical condition. This condition must be expected to last at least one year or result in death. SSDI benefits are directly linked to an individual’s past contributions through Social Security taxes. Understanding how employment influences these benefits and the income thresholds is important for beneficiaries considering a return to work.

Earning Limits for SSDI Benefits

The Social Security Administration (SSA) uses the concept of Substantial Gainful Activity (SGA) to determine if an individual’s earnings indicate an ability to perform significant work. If a person’s monthly earnings surpass the SGA limit, the SSA considers them capable of engaging in substantial work, potentially affecting their SSDI benefit status.

For 2025, the monthly SGA limit for non-blind individuals is $1,620. For blind individuals, the limit is $2,700 per month. These amounts are subject to annual adjustments, influenced by changes in national average wages and inflation.

When assessing SGA, the SSA considers gross wages from employment and net earnings from self-employment. However, certain income or expenses, such as Impairment-Related Work Expenses (IRWEs), subsidies, and special conditions, may be excluded from this calculation. This allows some individuals to earn more while remaining below the SGA threshold.

Work Incentives and Continued Eligibility

The Social Security Administration offers various work incentive programs to assist SSDI beneficiaries in returning to employment without an immediate loss of benefits. These incentives provide a supportive pathway for individuals to test their work capabilities and gradually transition toward self-sufficiency.

One program is the Trial Work Period (TWP), which allows beneficiaries to work and earn any amount while still receiving full SSDI cash benefits. The TWP consists of nine months, which do not need to be consecutive, but must occur within a rolling 60-month period. For 2025, any month with gross earnings exceeding $1,160 counts as a TWP service month.

Following the Trial Work Period, beneficiaries enter the Extended Period of Eligibility (EPE), which spans 36 consecutive months. During the EPE, individuals can continue to receive SSDI payments for any month their earnings fall below the SGA limit. If earnings exceed SGA during this period, benefits are suspended for that month. However, they can be reinstated without a new application if earnings subsequently fall below SGA within the 36-month EPE.

Impairment-Related Work Expenses (IRWEs) are another work incentive, enabling beneficiaries to deduct certain disability-related costs from their gross earnings when the SSA calculates SGA. These expenses are unreimbursed costs for items or services necessary for an individual to work due to their disability. Examples include specialized transportation, assistive technology, certain medical devices, and attendant care services required during work hours. By reducing countable earnings, IRWEs allow a person to earn more while staying under the SGA limit.

Beyond IRWEs, the SSA also considers “subsidies and special conditions” when evaluating earnings. A subsidy occurs when an employer provides extra support, resulting in a beneficiary receiving more pay than the actual value of services performed. This could involve receiving more supervision, having fewer or simpler tasks, or benefiting from a job coach. The value of such employer-provided support is excluded from countable earnings for SGA determinations.

Health coverage is a common concern for individuals returning to work. SSDI beneficiaries qualify for Medicare, though a 24-month waiting period from SSDI entitlement applies before coverage begins. Even if cash benefits cease due to work, Medicare coverage can continue for at least 93 months, approximately eight and a half years, beyond the Trial Work Period. During the Medicare waiting period, or if income and assets meet specific criteria, Medicaid may be an option to bridge health coverage gaps.

Reporting Earnings and Benefit Adjustments

Beneficiaries must report all work activities and earnings to the Social Security Administration (SSA). This reporting is mandatory to ensure accurate benefit calculations and compliance with program rules. Prompt reporting helps prevent potential overpayments, which could lead to repayment obligations, or underpayments, which could result in lost benefits.

Individuals can report their earnings through several methods:

• Online via their “my Social Security” account
• By phone
• Through mail
• By visiting a local SSA office

When reporting, provide specific details such as gross wages, copies of pay stubs, and accurate records for self-employment, along with dates worked. Maintaining records of all reported information and communications with the SSA is good practice.

Once earnings are reported, the SSA assesses them against the Substantial Gainful Activity (SGA) limits and applies relevant work incentive rules. If an individual’s earnings consistently exceed the SGA limit after the Trial Work Period and Extended Period of Eligibility have concluded, their SSDI cash benefits may be suspended or cease. Should an overpayment occur due to unreported or misreported earnings, the SSA will notify the beneficiary and may establish a repayment plan, though a waiver of repayment may be possible.

Expedited Reinstatement (EXR) is a provision for beneficiaries whose benefits stopped due to work. EXR allows individuals to restart SSDI benefits without a new application, provided they become unable to work again due to the same or a related disability. To be eligible for EXR, the request must be made within five years from the month benefits originally ended due to work. During the review of an EXR request, individuals may be eligible to receive up to six months of provisional cash benefits and Medicare coverage.