Social Security wants to encourage people on SSDI to return to work. To help facilitate this, they’ve designed program rules and work incentives to make it easier for people to do just this.
Trial Work Period
Social Security provides every SSDI beneficiary a nine-month "Trial Work Period" to test the waters and decide if they’re able to re-enter (or more fully enter) the workforce. During your Trial Work Period, you can work and earn any level of income while still maintaining your full SSDI benefit.
Trial Work Month
A Trial Work month is any month within your Trial Work Period that your gross earnings are greater than $720 (2010).
If you earn more than $720 in a month, you’ve used up one Trial Work month. If you earn less than $720, you haven’t. Either way, you continue to receive a full SSDI benefit.
Your Trial Work Period consists of nine Trial Work months occurring within a five-year window. Your nine Trial Work months may occur consecutively or sporadically within that period of time. The window stays open until you have used up all nine Trial Work months.
Example:
Carolyn is an SSDI beneficiary who works part-time in a flower shop. Her hours vary from month to month.
Her gross monthly earnings for the first four months of 2009 were:
January
$800
February
$900
March
$600
April
$400
Because she earned more than $720 in January and February, both months were considered Trial Work months. March and April were not considered Trial Work months because her earnings were less than $720.
She continued to receive a full SSDI benefit in all four months because she was in her Trial Work Period.
Note: Before you start working, you should check with Social Security or a benefits planner to see if you've used up any Trial Work months. You may have used up some or all of your Trial Work months in the past and not realize it.
During your EPE, you will continue to receive SSDI benefits as long as your gross monthly earnings don’t exceed the Substantial Gainful Activity (SGA) level ($1,000 per month in 2010, $1,640 if you’re blind). Note: When determining whether or not you've reached SGA, you can reduce your countable monthly income if you receive a wage subsidy or have Impairment Related Work Expenses (IRWEs).
Once your earnings reach SGA in one month, a three-month Grace Period begins. During that time, you will continue receiving SSDI cash benefits regardless of your wages. After your Grace Period ends, however, your SSDI benefit will be zero in any month that you earn above SGA.
If you’re not working above SGA in the 37th month, you will continue to receive an SSDI cash benefit until you do work above SGA or medically improve.
Example:
Tony’s Extended Period of Eligibility begins in March 2008. He earns $600 per month in March, April, and May. Because $600 is less than SGA, Tony receives an SSDI benefit in each of these months.
In June, however, Tony earns $1,200. Because $1,200 is more than SGA ($1,000), his June earnings cause his Grace Period to begin. Tony receives an SSDI benefit in June and in the following two months because he’s in his three-month Grace Period.
In September, Tony earns $1,200. Because he’s now used up his Grace Period and his earnings are above SGA, Tony doesn’t receive an SSDI benefit that month. In October, his earnings dip below SGA though and he receives an SSDI benefit. In November, he earns more than SGA and doesn’t receive one.
This pattern will continue for the rest of Tony’s Extended Period of Eligibility. Every month he earns less than SGA, he receives an SSDI benefit. Every month he earns more than SGA, he doesn’t.
Notes:
In the month that Tony's earnings dip below SGA, he needs to contact Social Security to ask that his benefits be "reinstated." If he fails to do this, he won't receive an SSDI benefit in months that his earnings are less than SGA.
Tony also needs to make sure he reports any changes in his work and income to Social Security so that he avoids overpayments. This is very important. More detail on overpayments is provided below.
For a detailed example on Trial Work Periods and Extended Periods of Eligibility, read DB101’s Work Rules Close-up.
Note: Social Security rules allow you to reduce your gross earnings by any Impairment Related Work Expenses (IRWEs) during your EPE, but not during a Trial Work month.
Expedited Reinstatement
Expedited Reinstatement is another work incentive that Social Security has created to encourage people to return to work.
It allows former SSDI beneficiaries who have gone back to work and used up their Trial Work Period and Extended Period of Eligibility, to receive up to 6 months of temporary SSDI cash benefits if their income drops below the Substantial Gainful Activity (SGA) level.
During those six months, Social Security (SSA) will conduct a medical review to determine whether or not the beneficiary still meets SSA disability requirements. If Social Security determines the beneficiary is still disabled, they’ll be placed back on benefits without having to reapply for SSDI. If the beneficiary is not redetermined disabled, their SSDI benefit will stop.
To be eligible for Expedited Reinstatement, you must request it within 5 years of the last month that you received an SSDI cash benefit.
If you have questions about Expedited Reinstatement, Extended Periods of Eligibility, or any other Social Security work incentives, talk to a benefits planner.
Report your income carefully
If you go back to work or if your income changes for any other reason, be sure to report your change in earnings to Social Security right away. If you don’t, you’re putting yourself at risk of an overpayment. If you receive an overpayment, you will likely be held responsible for repaying those benefits to Social Security.
Be sure to report any change in your earnings to Social Security and your county human services agency right away.
When reporting wage changes to Social Security, make sure you report all of your gross income. Your Social Security claims representative will tell you when you need to report. You should mail copies of your pay stubs to Social Security or drop them off at your local Social Security office and get a receipt. If you are self-employed you can use your most recent IRS tax return to report your earnings.
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