What happens to your SSDI when you start working

When you work while receiving SSDI, Social Security does not when ready stop your payments. Instead, your benefits are reduced based on how much you earn. The reduction follows specific rules that Social Security calls the Substantial Gainful Activity (SGA) threshold — a monthly earnings limit that changes each year.

For 2024, the SGA threshold is $1,550 per month for non-blind beneficiaries and $2,590 for blind beneficiaries. If you earn more than these amounts in a month, Social Security counts that month as a month of work. Once you have nine months of work above the SGA threshold in a rolling 60-month period, your benefits stop entirely — though you enter a period called the Trial Work Period first, which lets you test your work capacity without losing benefits.

The key point: you can work and keep some or all of your SSDI, but the amount you earn directly affects how long you can keep receiving it. The rules are designed to let you try working without the fear of losing everything when ready.

Key Takeaways

  • You can earn up to the SGA threshold ($1,550 per month in 2024 for non-blind beneficiaries) without triggering a work month that counts toward losing benefits.
  • The Trial Work Period lets you work nine months above the SGA threshold within a 60-month window while keeping your full SSDI payment each month.
  • After the Trial Work Period ends, your benefits stop if you continue earning above SGA, but you can return to benefits if your earnings drop below the threshold.
  • Social Security tracks your work history and earnings automatically if you report them, so you must tell them when you start working or your earnings change.
  • Work incentives like Impairment Related Work Expenses (IRWE) and Plans to Achieve Self-Support (PASS) can reduce your countable earnings and extend how long you can work while receiving benefits.

The Trial Work Period explained

The Trial Work Period is a nine-month window during which you can earn any amount above the SGA threshold and still receive your full SSDI payment. These nine months do not have to be consecutive — Social Security counts any month in which you earn above SGA, so you could use them over several years if you work part-time or have months with lower earnings.

During the Trial Work Period, Social Security pays you in full regardless of how much you earn. This is the only time you can earn unlimited amounts without your payment being reduced. The purpose is to let you test whether you can sustain work while managing your disability, without the financial penalty of losing benefits when ready.

Once you have used all nine months of your Trial Work Period, you move into what Social Security calls the Extended may be able to access Period. During this 36-month period, your benefits are reduced or stopped based on your earnings, but you can still receive benefits in months when your earnings fall below SGA. This gives you a safety net if your work becomes inconsistent or you need to reduce your hours.

How your earnings are counted and reported

Social Security counts gross earnings — the money you earn before taxes, deductions, or expenses are taken out. If you are self-employed, they count your net profit after business expenses. You must report your work and earnings to Social Security, and you should do this as soon as you start working, not wait until the end of the year.

You can report earnings by phone, mail, or online through your Social Security account. Social Security also receives wage information from your employer's tax reports, so discrepancies between what you report and what they receive will be caught. Underreporting or failing to report earnings can result in overpayments that you will have to repay.

Social Security counts earnings in the month you earn them, not the month you receive the payment. If you are paid on the 15th and the 30th of each month, both payments count toward that month's earnings total. If you receive a bonus or lump sum, it counts in the month you receive it, which can push you over the SGA threshold that month.

Work incentives that reduce what you earn

Impairment Related Work Expenses (IRWE) are costs you pay to work because of your disability. These might include medications you need to work, transportation to medical appointments during work hours, assistive devices, or personal care attendants. If you claim IRWE, Social Security subtracts these costs from your gross earnings before checking whether you have crossed the SGA threshold. This can keep you below SGA even if your gross pay is higher.

To use IRWE, you must document the expense, show that it is related to your disability, and show that you would not incur it if you were not working. A doctor's statement or your own detailed records usually suffice. You report IRWE on your earnings report to Social Security.

Plans to Achieve Self-Support (PASS) let you set aside income and resources for a specific work goal — like paying for training, buying equipment, or starting a business. Money set aside in a PASS plan does not count as income for SSDI purposes, which can keep your countable earnings below SGA even if your gross earnings are much higher. A PASS plan requires a written agreement with Social Security that spells out your goal, the steps you will take, and a timeline.

Both IRWE and PASS require paperwork and ongoing reporting, but they can significantly extend how long you can work while receiving SSDI. A Social Security work incentives planner — available free through your local Social Security office or through Work Incentives Planning and information (WIPA) projects — can help you figure out whether either tool fits your situation.

What happens after your benefits stop

If you work above the SGA threshold for nine months during your Trial Work Period and Extended may be able to access Period, your SSDI benefits stop. This does not mean you can never receive SSDI again. If your earnings later drop below SGA, or if you stop working, you can request that your benefits restart without having to file a new process or go through the approval process again.

The restart process is faster than the original process, but you must contact Social Security to request it. You cannot straightforward wait and expect benefits to resume automatically. Social Security will review your current medical condition and work status, but because you have already been approved for SSDI once, the medical review is usually simpler.

If you stop working or reduce your earnings below SGA, contact Social Security right away. There is a grace period of up to three months after your benefits stop during which you can request a restart without a new medical review, so timing matters. After that window closes, you may need to provide updated medical evidence.

Medicare and Medicaid while you work

One major advantage of working while on SSDI is that your Medicare coverage continues even after your cash benefits stop. Once you have been on SSDI for 24 months, you become may be able to access for Medicare Part A (hospital insurance) and Part B (medical insurance). This coverage continues as long as you are alive, even if you return to work and your SSDI payments end.

Medicaid coverage varies by state. Some states continue Medicaid as long as your earnings stay below a certain threshold, while others tie Medicaid to SSDI status. You should check with your state Medicaid office or your local Social Security office to understand how your work will affect Medicaid in your state. In some cases, you may be able to keep Medicaid even after SSDI stops, which is a significant work incentive.

Telling Social Security about your work

You are required to report work and earnings to Social Security within 30 days of starting a job or when your earnings change significantly. You can report by calling Social Security at 1-800-772-1213, by visiting your local Social Security office, or by logging into your my Social Security account online and reporting through the message center.

When you report, have the following information ready: your job title, the name and address of your employer, the date you started, your pay rate or expected monthly earnings, and how often you are paid. If you are self-employed, you will need to provide information about your business and expected net profit.

Social Security uses your reports to track your Trial Work Period months and to calculate whether your benefits should be reduced or stopped. Reporting promptly prevents overpayments — if Social Security pays you more than you are may have access to to because you did not report earnings, you will have to repay the difference. Reporting also protects you by creating an official record of your work history.

Frequently Asked Questions

Can I work part-time and keep some of my SSDI?

Yes. If you earn below the SGA threshold ($1,550 per month in 2024 for non-blind beneficiaries), your SSDI payment is not affected. You can work part-time indefinitely at this earnings level. If you earn above SGA, you can still receive benefits during your Trial Work Period and Extended may be able to access Period, but your benefits will eventually stop if you continue earning above SGA for nine months.

What if I earn a lot one month but less the next month?

Social Security counts each month separately. A month in which you earn above SGA counts as one Trial Work Period month, regardless of how much above the threshold you earn. A month in which you earn below SGA does not count. So if you earn $2,000 in January and $1,000 in February, only January counts as a work month, and February does not affect your Trial Work Period.

Do I lose Medicare if my SSDI stops?

No. Once you have been on SSDI for 24 months and become may be able to access for Medicare, your Medicare coverage continues for life, even if your SSDI payments stop due to work. This is one of the strongest reasons to try working while on SSDI — you keep your health insurance even if your cash benefits end.

Can I use a work incentive like PASS if I am already working?

Yes. You can set up a PASS plan at any time, even if you are already working and earning above SGA. A PASS plan can help you redirect earnings toward a specific goal like education or training, which reduces your countable income and extends how long you can receive SSDI while working toward that goal.

What if I made a mistake reporting my earnings?

Contact Social Security as soon as you notice the error. If you reported earnings incorrectly and Social Security overpaid you, you can work out a repayment plan. If you failed to report earnings and Social Security discovers the overpayment later, you will still owe it back, but reporting the error yourself usually results in more favorable repayment terms than waiting for Social Security to find it.