How much you can earn before SSDI payments stop

Social Security sets a substantial gainful activity (SGA) threshold — a monthly earnings limit that determines whether you are considered to be working at a level that conflicts with your disability. For 2024, that threshold is $1,550 per month for non-blind beneficiaries and $2,590 for blind beneficiaries. If you earn more than this amount in a month, Social Security will view that month as a month of work, and your benefits may be affected.

The key word is "may." Earning above SGA does not automatically stop your benefits when ready. Instead, Social Security uses a nine-month trial work period that lets you test your ability to work without losing benefits, even if you earn well above SGA. After the trial work period ends, a different rule — the extended period of may be able to access — gives you nine more months where you can earn above SGA without losing benefits, as long as you do not earn above SGA for nine months within a rolling 60-month window.

These thresholds change each year. You can find the current SGA amount on the Social Security website or by calling 1-800-772-1213. The amount varies slightly by state for blind beneficiaries, so verify the exact figure that applies to you before you start working.

Key Takeaways

  • You can work part time and keep your SSDI benefits as long as your monthly earnings stay below the substantial gainful activity threshold, which is $1,550 per month for most beneficiaries in 2024.
  • The trial work period lets you earn any amount for nine months without losing benefits, giving you a window to test whether you can sustain part-time work.
  • After the trial work period, the extended period of may be able to access allows nine more months of work above the SGA threshold before benefits stop, as long as you do not work above SGA for nine months in a 60-month span.
  • You must report your earnings to Social Security every month, and failure to report can result in overpayments you will have to repay.
  • Work incentives like Impairment Related Work Expenses and Plans to Achieve Self-Support can reduce your countable earnings and extend your ability to work while receiving benefits.

The trial work period: nine months to test your work capacity

The trial work period is a nine-month window during which you can earn any amount without losing your SSDI benefits. The nine months do not have to be consecutive. Social Security counts only months in which you earn $1,050 or more (in 2024) as trial work months. If you earn less than $1,050 in a month, that month does not count toward your nine months.

This is the most generous part of the SSDI work rules. You can use it to test whether part-time work is sustainable, whether your condition worsens under work stress, or whether you can manage a specific job. During these nine months, your SSDI payment continues in full, regardless of how much you earn.

Once you have used all nine trial work months, you enter the extended period of may be able to access. This is where the rules become more restrictive, but you still have protection. Keep track of which months count toward your trial work period — Social Security tracks this, but mistakes happen, and you should verify the count on your Social Security statement or by calling your local office.

The extended period of may be able to access: nine more months of protection

After your nine trial work months end, you move into the extended period of may be able to access, which lasts 36 months. During this time, you can still work and earn above the SGA threshold for up to nine months without losing your benefits. The catch is that these nine months must fall within a rolling 60-month window.

Here is how it works in practice: suppose you finish your trial work period in June 2024. You then have until June 2029 (60 months later) to accumulate nine more months of earnings above SGA. If you work above SGA in July, August, and September 2024, that is three months. You can then stop working or drop below SGA for a few months, and later work above SGA again in, say, January through May 2025 — that is five more months, for a total of eight. You still have one month left before your benefits stop.

Once you have used all nine months of the extended period, or once the 60-month window closes, your benefits will stop if you are still earning above SGA. At that point, you can reapply for benefits, but you will have to go through the medical review process again.

Reporting your earnings and avoiding overpayments

You are required to report your earnings to Social Security every month, even during the trial work period when you are not at risk of losing benefits. Social Security uses your reported earnings to track your trial work months and extended period months. If you do not report, Social Security may incorrectly calculate your benefits, leading to an overpayment — money you will have to repay.

Report your earnings by phone, mail, or online through your Social Security account. The easiest method is to set up an online account at ssa.gov and report each month before the 15th of the following month. For example, report your January earnings by February 15th. If you miss the important date, report as soon as you can — late reporting is better than no reporting.

Keep records of your pay stubs, invoices, or other proof of earnings. If Social Security questions your reported amount, you will need documentation to back it up. Overpayments can be substantial, and repaying them out of your SSDI check can leave you with very little to live on, so accuracy matters.

Work incentives that reduce your countable earnings

Impairment Related Work Expenses (IRWE) are costs you pay to work because of your disability. These might include special transportation to get to work, medication you need to work, medical equipment, or personal care information. If you claim IRWE, Social Security subtracts those costs from your gross earnings before comparing your income to the SGA threshold. This can keep you below SGA even if your gross pay is above it.

To use IRWE, you must document that the expense is directly related to your ability to work and that you would not incur it if you were not working. A wheelchair ramp at home does not count; a wheelchair ramp at your workplace does. Medication you take anyway does not count; specialized medication you take only because work stress triggers your condition might. Social Security can be strict about what qualifies, so keep detailed records and discuss your situation with a work incentives planning specialist before you claim IRWE.

Plans to Achieve Self-Support (PASS) are formal plans you submit to Social Security that set aside income and resources for a specific work goal — usually education, training, or starting a business. While you are following an approved PASS, Social Security excludes the income and resources you set aside from the calculation of your benefits. This can let you earn significantly more than SGA while keeping your full SSDI payment.

A PASS is more complex than IRWE and requires a written plan, but it can be powerful if you are working toward a specific goal. Work incentives planning specialists, available through your state vocational rehabilitation agency or through Social Security's Work Incentives Planning and information (WIPA) program, can help you design a PASS for free.

What happens to Medicare and Medicaid when you work

Working does not affect your Medicare coverage. You keep Medicare Part A (hospital insurance) and Part B (medical insurance) as long as you remain on the SSDI rolls, even if you earn above SGA during your extended period of may be able to access. This is one of the strongest protections in the SSDI work rules — you do not lose health coverage because you are working.

Medicaid is more complicated and depends on your state. Some states tie Medicaid to SSDI status, so if your SSDI benefits stop because you earned too much, your Medicaid stops too. Other states have work incentive Medicaid programs that let you keep coverage even after your SSDI stops. Before you start working, contact your state Medicaid office or your local SSDI work incentives specialist to understand how your state handles this. Losing health coverage can be a bigger problem than losing the SSDI check itself.

Tax treatment of SSDI earnings and benefits

SSDI benefits themselves are not taxable income for federal income tax purposes in most cases. However, if you have other income — including wages from part-time work — you may owe taxes on that income. The earnings from your job are subject to federal income tax, Social Security tax (6.2 percent), and Medicare tax (1.45 percent), just like any other job.

The interaction between SSDI and work income can affect your tax filing. If you earn enough to owe taxes, you must file a tax return even if you would not normally be required to. Consult a tax professional or use the IRS worksheet for SSDI beneficiaries to determine your filing obligation. Some beneficiaries find that working part time pushes them into a tax bracket where they owe money, so factor this into your earnings plan.

Frequently Asked Questions

Can I work more than one part-time job while on SSDI?

Yes. Social Security counts your total monthly earnings from all sources against the SGA threshold. If you have two part-time jobs that together earn $1,400 per month, that counts as one month of trial work. The rules do not care how many employers you have, only what you earn in total.

What if I earn below SGA some months and above it other months?

Only the months in which you earn above SGA (or above $1,050 during trial work) count toward your nine trial work months or your nine extended period months. You can have months where you earn nothing or very little, and those months do not count. This flexibility is built into the rules.

Do I lose my benefits when ready if I earn above SGA after the extended period ends?

No. Social Security sends you a notice explaining that you have used your extended period and that your benefits will stop at the end of the month in which you earn above SGA. You have time to plan. If you then drop below SGA, your benefits can restart, though there may be a delay while Social Security processes the change.

What is a work incentives planning specialist and how do I find one?

A work incentives planning specialist is a counselor trained in SSDI work rules who can help you understand IRWE, PASS, and other incentives. They are free through the WIPA program. Find one by calling 1-866-968-7842 or visiting the WIPA website. They can review your specific job and earnings situation and suggest strategies to keep you on benefits longer.

Can I go back on SSDI if my part-time job ends and I can no longer work?

If your benefits stopped because you earned above SGA, you can request reinstatement within five years without going through the full process process again. Social Security calls this "expedited reinstatement." You must show that you are unable to work again due to your disability. After five years, you would have to reapply and go through medical review.