How to Make Money While Waiting for Disability
Secure your finances while awaiting a disability decision. Discover safe ways to earn income and find financial support without risking your application.
Applying for disability benefits can be a lengthy process, often extending for months or years. During this waiting period, individuals may face financial hardship and seek ways to earn income. Understanding the specific rules and limitations set by the Social Security Administration (SSA) is crucial to avoid jeopardizing a pending disability application.
Earning Limitations During the Application Process
The Social Security Administration (SSA) uses Substantial Gainful Activity (SGA) to determine if an individual’s earnings indicate they can perform significant work. If earnings exceed the SGA limit, the SSA generally considers them not disabled, which can lead to a denial of benefits. For 2024, the monthly SGA limit is $1,550 for non-blind individuals and $2,590 for blind individuals.
Exceeding the SGA threshold signals to the SSA that an applicant can work at a level that disqualifies them from receiving disability benefits. While exceeding SGA can lead to denial for both Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) applications, earnings are treated differently. For SSI, a needs-based program, even earnings below the SGA limit can reduce the monthly benefit amount due to specific income counting rules.
Impairment-Related Work Expenses (IRWE) can be deducted from gross earnings when calculating SGA. These expenses are costs for items or services necessary for an individual to work due to their disability. Examples include specialized medical equipment, certain transportation costs, medications, and job coaching or support services. The SSA also has provisions for “unsuccessful work attempts,” allowing individuals to test their ability to work for a limited period without jeopardizing their claim, provided the work ends or is reduced due to their impairment.
Work Options While Applying
When considering work options, flexibility and accommodation for one’s medical condition are important. Part-time employment can be a viable choice, allowing individuals to manage their health while earning income below the Substantial Gainful Activity (SGA) limits. Remote work and freelance opportunities, such as online tutoring, virtual assistant roles, or data entry, offer adaptable schedules and environments that may be less physically demanding. Crafting and selling goods online also presents an opportunity to generate income with control over hours and physical exertion.
Self-employment is another avenue, where the Social Security Administration considers net earnings (gross income minus business expenses) when evaluating income against SGA. This allows for greater control over work conditions and hours, which can be tailored to an individual’s limitations. Regardless of the chosen work, select activities that do not exacerbate existing health conditions or contradict the disability claim. Maintaining detailed records of all hours worked, earnings, and any related expenses is essential for accurate reporting to the SSA.
Other Financial Assistance
Beyond employment, various financial assistance programs exist that are generally not counted against Substantial Gainful Activity (SGA) limits. State and local government programs, such as Temporary Assistance for Needy Families (TANF), offer temporary cash assistance and support services. The Supplemental Nutrition Assistance Program (SNAP) helps individuals and families purchase nutritious food. Medicaid provides health insurance, and various housing assistance programs can help with rent or utility costs.
Non-profit organizations and charities also serve as valuable resources, offering financial aid, utility assistance, and food from food banks. While these forms of assistance typically do not affect SGA calculations, some unearned income could potentially impact Supplemental Security Income (SSI) benefit amounts due to SSI’s broader income counting rules. Personal resources, including support from family members, existing savings, or private disability insurance policies, can also provide financial stability.
Reporting Your Income
Prompt and accurate reporting of all income to the Social Security Administration (SSA) is a strict requirement for individuals with pending disability applications. This includes earned income from employment and any unearned income. Failing to report income or providing inaccurate information can result in serious consequences, such as overpayments, delays in the disability decision, or even accusations of fraud.
To report income, individuals can contact their local SSA office, call the SSA’s toll-free number, or utilize available online reporting portals. When reporting, provide comprehensive details, including gross monthly earnings, the dates work was performed, employer information, and any applicable Impairment-Related Work Expenses (IRWEs). Keeping meticulous records of all income received, expenses incurred, and every communication with the SSA, including dates and names of representatives, is crucial for demonstrating compliance. If there is any uncertainty about reporting requirements, consulting with a disability advocate or attorney can provide clarity and help ensure all procedures are followed correctly.