How the Trial Work Period works right now

The Trial Work Period (TWP) in 2024 lets you work and earn as much as you want for nine months without losing your SSDI cash benefit. During those nine months, Social Security counts any month in which you earn $1,090 or more as a "work month." Once you use up nine work months, your cash benefit stops — but your Medicare coverage continues for at least 8.5 more years, even if you earn above the substantial gainful activity (SGA) limit.

The $1,090 threshold is the same as it was in 2023. Social Security adjusts this figure once per year, usually in January, based on national wage data. The amount you earn does not matter during the TWP itself — you could earn $1,090 or $10,000 in a single month and it counts as one work month either way.

The nine months do not have to be consecutive. If you work three months, stop for six months, then work again, those later months still count toward your nine. Social Security tracks your work months across your entire work history, so if you used some months in a previous year, you have fewer left now.

Key Takeaways

  • During your nine-month Trial Work Period, you can earn any amount without losing your SSDI cash benefit, as long as you report your work to Social Security.
  • A work month is any month in which you earn $1,090 or more; the actual amount you earn does not change whether it counts as one month or not.
  • After you use nine work months, your cash benefit stops, but Medicare continues for at least 8.5 more years regardless of how much you earn.
  • The nine months do not have to be consecutive, and Social Security tracks them across years, so you need to know how many you have already used.
  • You must report your work to Social Security each month; failing to report can result in overpayments you will have to repay.

What happens after your nine work months end

Once you have used all nine work months, you enter the Extended may be able to access Period (EEP), which lasts 36 months. During the EEP, your cash benefit stops in any month you earn $1,090 or more, but you keep it in months you earn less than that threshold. This is different from the TWP: during the EEP, the amount matters.

After the EEP ends, you move into the Expedited Reinstatement (ER) window, which lasts 60 months. If you stop working or drop below SGA during ER, you can get your SSDI back without filing a new claim or going through medical review — Social Security will reinstate your benefit based on your original approval. Once the 60-month ER window closes, you lose this protection and would have to file a new claim if you needed benefits again.

Throughout all three phases — TWP, EEP, and ER — your Medicare stays active. You do not lose it when your cash benefit stops. This is one of the most valuable parts of the work incentive structure, because it means you can test your ability to work without losing health coverage.

How to report your work to Social Security

You are required to report your earnings to Social Security each month. The easiest way is through my Social Security, the online portal at ssa.gov. You can log in, go to the "Benefit and Work" section, and report your monthly earnings. Social Security will ask for your gross earnings (before taxes) and the number of hours you worked.

If you do not have online access or prefer to report by phone, you can call the Social Security work incentives hotline at 1-866-4-WORK-WIN (1-866-496-7594). A representative can take your earnings report over the phone. You can also visit your local Social Security office in person, though this usually takes longer.

Report your earnings by the 15th of the month after you earned them. If you miss the important date, Social Security may overpay you — meaning you will owe money back later. If you are self-employed, the rules are slightly different and based on net profit rather than gross earnings; ask Social Security for the self-employment reporting form if that applies to you.

The difference between work months and SGA

The $1,090 figure that defines a work month during the TWP is not the same as the SGA limit. SGA in 2024 is $1,550 per month for non-blind workers. This matters because after your TWP ends, SGA becomes the threshold that determines whether you keep your benefit.

During the TWP, the lower $1,090 threshold is what counts a month as "used." You could earn $1,500 in a month and it still counts as just one work month. But once you move into the EEP and then beyond, the SGA limit of $1,550 is what matters for keeping your benefit. If you earn $1,551 in a month after your TWP, your benefit stops that month.

The SGA limit also applies to non-work income in some cases. If you receive other income — such as rental income, investment income, or royalties — Social Security may count that toward SGA depending on how it is structured. Work income is the main focus, but it is worth understanding that SGA is broader than just wages.

Medicare and Medicaid during and after the Trial Work Period

Your Medicare coverage does not stop when your cash benefit stops. After your TWP ends and your benefit terminates, you stay on Medicare for at least 8.5 more years. This is called Medicare Continuation or Extended Medicare Coverage. You must continue to pay your Medicare premiums (Part B and Part D, if you have them), but the coverage itself stays active.

Medicaid works differently and depends on your state. Some states tie Medicaid to SSDI — when your SSDI stops, Medicaid stops too. Other states have "Medicaid Buy-In" programs that let you keep Medicaid even after your SSDI ends, as long as you meet income and resource limits. A few states offer "1619(b)" coverage, which continues Medicaid for people whose earnings are too high for SSDI but who are still disabled. Check with your state Medicaid office or your local disability work incentives counselor to learn what your state offers.

Because Medicaid rules vary so much by state, it is worth having a conversation with a work incentives counselor before you start working. These counselors are free and can tell you exactly what will happen to your coverage in your state. You can find one through the Work Incentives Planning and information (WIPA) project or the Ticket to Work program.

Work incentives and tax treatment of SSDI during the TWP

SSDI benefits are generally not taxable as income on your federal tax return, even during the TWP when you are working and earning. However, if you have other income sources, a portion of your SSDI might become taxable under the "combined income" test. This is rare for most SSDI beneficiaries, but it can happen if you have substantial investment income or other non-work income.

Your work income during the TWP does not reduce your SSDI benefit and does not count against you for tax purposes in the way that earned income might for other programs. However, you still owe income tax on your wages themselves. Social Security does not withhold taxes from your SSDI benefit, so if you are working, you may need to pay estimated taxes or adjust your withholding at your job.

There are other work incentives beyond the TWP that can help you keep more of your earnings. The Plan to Achieve Self-Support (PASS) lets you set aside income and resources for a work goal without affecting your SSDI. The Impairment Related Work Expenses (IRWE) deduction lets you subtract certain disability-related costs from your earnings before Social Security counts them. These are more complex but can be valuable if you have significant work expenses or a specific vocational goal.

Tracking your work months and planning ahead

You can ask Social Security how many work months you have already used. Call 1-800-772-1213 or visit your local office with your Social Security card. They can tell you exactly where you stand in your TWP. This is important information to have before you start working, because once you use all nine months, your benefit stops and you need to be prepared for that.

Some people use the TWP strategically — working intensively for a few months to test whether they can sustain employment, then stopping to preserve remaining work months for later. Others work steadily through all nine months and then transition to living on wages alone. There is no single right approach; it depends on your health, your job stability, and your financial situation.

If you are thinking about working, talking to a work incentives counselor before you start is worth the time. They can help you understand what your specific situation will look like — how your benefits will change, what your Medicare and Medicaid coverage will be, whether a PASS or IRWE makes sense for you, and how to report your earnings correctly. This planning step can save you from overpayments and help you make better decisions about when and how much to work.

Frequently Asked Questions

Do I have to report my work if I earn less than $1,090 in a month?

Yes. Social Security asks you to report all your work and earnings each month, even if you earn less than $1,090. Months under $1,090 do not count as work months, but Social Security still needs to know about them to track your income accurately and make sure you are not overpaid.

What if I go back to work after my TWP ends and my benefit stops?

If you stop working or your earnings drop below SGA during the Extended may be able to access Period or Expedited Reinstatement window, you can get your benefit back without a new process. Once the 60-month Expedited Reinstatement window closes, you lose this protection and would need to file a new claim.

Can I use my work months in any order, or do they have to be recent?

Work months do not have to be recent or consecutive. Social Security counts any nine months in which you earned $1,090 or more, going back through your entire work history since you started receiving SSDI. If you worked before and used some months, those count toward your nine.

Will working during the TWP affect my Medicare or Medicaid?

Medicare continues through and beyond the TWP regardless of your earnings. Medicaid depends on your state — some states continue it, others stop it when your SSDI stops. Ask your state Medicaid office or a work incentives counselor what applies to you before you start working.

What counts as a work month if I am self-employed?

For self-employed people, a work month is any month in which your net profit from self-employment is $1,090 or more. Net profit means your gross income minus business expenses. Social Security has a self-employment reporting form; ask for it when you report your first month of self-employment income.