Working While Claiming Benefits: Understanding Allowable Work Options for Disability Benefits

When it comes to claiming disability benefits, many individuals are unsure about their options for working while receiving these benefits. It's important to understand the rules and regulations surrounding allowable work options to ensure that you don't jeopardize your benefits.

Understanding Disability Benefits

Disability benefits are designed to provide financial support to individuals who are unable to work due to a disability. These benefits are typically provided by government programs such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).

While disability benefits are intended to replace lost income, they are not meant to discourage individuals from working altogether. In fact, many disability programs offer work incentives and allowances to help individuals transition back into the workforce.

Allowable Work Options

There are several allowable work options that individuals can explore while claiming disability benefits:

1. Trial Work Period: The Social Security Administration (SSA) allows individuals to test their ability to work for a period of nine months without losing their disability benefits. During this trial work period, individuals can earn any amount without it affecting their benefits.

2. Substantial Gainful Activity (SGA) Threshold: Once the trial work period ends, individuals must be mindful of the SGA threshold. In 2021, the SGA threshold is set at $1,310 per month for non-blind individuals and $2,190 per month for blind individuals. If an individual earns above this threshold, it is considered substantial gainful activity and may result in a loss of benefits.

3. Impairment-Related Work Expenses (IRWE): IRWE refers to expenses that are directly related to an individual's disability and are necessary for them to work. These expenses can be deducted from an individual's earnings, potentially reducing their countable income and helping them stay below the SGA threshold.

4. Work Incentives: Many disability programs offer work incentives to encourage individuals to return to work. These incentives may include continued healthcare coverage, assistance with job training, and ongoing support services.

Reporting Work Activity

It is crucial to report any work activity to the SSA or the agency administering your disability benefits. Failure to report work activity can result in overpayments and potential legal consequences. It's always best to be transparent and keep the appropriate authorities informed.

Conclusion

Working while claiming disability benefits is possible, as long as you understand the allowable work options and follow the rules and regulations set by the governing agencies. By exploring these options and reporting your work activity, you can ensure that you continue to receive the financial support you need while pursuing your professional goals.