How Much Can Someone on Disability Earn?
Living with a disability can present numerous challenges, including financial ones. Many individuals with disabilities may wonder how much they can earn while still receiving disability benefits. The answer to this question varies depending on the specific circumstances and the type of disability benefits one receives. In this article, we will explore the general guidelines for earning income while on disability and address some frequently asked questions on this topic.
General Guidelines for Earning Income While on Disability:
1. Social Security Disability Insurance (SSDI): If you receive SSDI benefits, you can earn up to a certain limit without affecting your benefits. In 2021, the substantial gainful activity (SGA) limit is $1,310 per month for non-blind individuals and $2,190 per month for blind individuals. If your income exceeds these limits, it may result in a reduction or complete loss of your SSDI benefits.
2. Supplemental Security Income (SSI): SSI is a needs-based program for individuals with limited income and resources. If you receive SSI benefits, your earnings will be subject to the “earned income exclusion.” In 2021, this exclusion allows you to earn up to $161 per month without affecting your SSI benefits. However, any income beyond this limit will result in a reduction of your SSI payment.
3. Trial Work Period (TWP): Both SSDI and SSI recipients have the opportunity to participate in a TWP. During this period, you can work and earn any amount without jeopardizing your benefits. In 2021, any month in which your earnings exceed $940 is considered a TWP month. You are entitled to a total of nine TWP months within a rolling 60-month period.
4. Ticket to Work Program: The Ticket to Work Program is a voluntary program that helps individuals with disabilities return to work. Through this program, you can receive vocational rehabilitation, training, job referrals, and other support services while maintaining your disability benefits.
Frequently Asked Questions:
1. Can I work and still receive disability benefits?
Yes, you can work and receive disability benefits. However, the amount you earn must stay within the applicable limits to avoid a reduction or loss of benefits.
2. How much can I earn without affecting my SSDI benefits?
In 2021, the SGA limit is $1,310 per month for non-blind individuals and $2,190 per month for blind individuals. Earning above these limits may impact your SSDI benefits.
3. Is there a limit on how much I can earn without affecting my SSI benefits?
The earned income exclusion for SSI is $161 per month in 2021. Any income beyond this limit will result in a reduction of your SSI payment.
4. What is the Trial Work Period?
The Trial Work Period allows SSDI and SSI recipients to work and earn any amount for up to nine months within a rolling 60-month period without losing their benefits.
5. Can I participate in the Ticket to Work Program while receiving disability benefits?
Yes, you can participate in the Ticket to Work Program and continue receiving disability benefits. It offers various support services to help individuals with disabilities return to work.
6. What happens after the Trial Work Period ends?
After the Trial Work Period, you enter the Extended Period of Eligibility (EPE). During this period, you can earn above the SGA limit and still receive benefits for any month your earnings fall below the SGA threshold.
7. Can I work part-time and still receive disability benefits?
Yes, you can work part-time and receive disability benefits, as long as your earnings remain within the applicable limits.
8. Is there a difference in the income limits for SSDI and SSI recipients?
Yes, the income limits differ for SSDI and SSI recipients. SSDI has a substantial gainful activity (SGA) limit, while SSI has an earned income exclusion.
9. How does self-employment income affect disability benefits?
Self-employment income is subject to the same SGA limits and earned income exclusion as other types of income. However, additional rules and calculations may apply.
10. Are there any work incentives available to disability beneficiaries?
Yes, there are various work incentives available, such as the Ticket to Work Program, Plan to Achieve Self-Support (PASS), and Medicaid Buy-In programs. These programs provide support and incentives to help individuals with disabilities transition back to work.
11. Will my disability benefits stop immediately if my earnings exceed the limits?
Your disability benefits will not stop immediately if your earnings exceed the limits. They will continue during the Extended Period of Eligibility (EPE) if your earnings fall below the SGA threshold.
12. What is the difference between earned income and unearned income?
Earned income refers to wages or self-employment income, while unearned income includes sources like Social Security benefits, pensions, and other forms of assistance.
13. Can I receive disability benefits if I have substantial assets or savings?
SSI benefits are subject to both income and resource limits. If you have substantial assets or savings, it may affect your eligibility for SSI. SSDI benefits, on the other hand, are not affected by your assets or savings.
14. Can I receive disability benefits if I am working but earning below the SGA limit?
Yes, you can continue to receive disability benefits if you are working and earning below the SGA limit. Your earnings will not affect your benefits as long as they remain within the applicable limits.
In conclusion, individuals receiving disability benefits can work and earn income, but it must stay within certain limits to avoid a reduction or loss of benefits. The specific guidelines and programs available depend on the type of disability benefits received. It is advisable to consult with a disability advocate or the Social Security Administration to understand your individual circumstances and navigate the complexities of earning income while on disability.