If you rely on disability benefits but want to work part-time, you may wonder: Will I lose my disability if I work part-time? The answer depends on several factors, including the type of disability benefits you receive, your earnings, and government guidelines.
In this article, we’ll break down what you need to know about working part-time while receiving disability benefits.
Understanding Disability Benefits and Work Limitations
There are two main types of disability benefits in the U.S.:
1. Social Security Disability Insurance (SSDI)
SSDI is based on your work history and contributions to Social Security. If you are on SSDI, the Social Security Administration (SSA) sets income limits on how much you can earn while keeping your benefits.
- Substantial Gainful Activity (SGA) Limit: In 2024, the SGA limit is $1,550 per month for non-blind individuals and $2,590 for blind individuals. Earning above this limit could result in losing SSDI benefits.
- Trial Work Period (TWP): SSDI recipients can test their ability to work for nine months without losing benefits, as long as they report earnings properly.
2. Supplemental Security Income (SSI)
SSI is need-based and designed for individuals with limited income and resources. Working part-time can affect your SSI benefits differently than SSDI:
- Income Reductions: The first $85 of earned income does not count toward SSI reductions. After that, SSI payments are reduced by $1 for every $2 earned.
- Resource Limits: SSI eligibility depends on your total income and assets. Exceeding resource limits may disqualify you.
How Part-Time Work Affects Your Disability Benefits
1. Reporting Your Income is Crucial
Both SSDI and SSI recipients must report all earnings to the SSA. Failing to do so can lead to overpayments, penalties, or even loss of benefits.
2. Working Under the SGA Limit for SSDI
If your earnings stay below the SGA limit, you can continue receiving SSDI benefits. However, consistent work may trigger a review of your disability status.
3. Understanding SSI Benefit Reductions
Unlike SSDI, SSI benefits decrease gradually as earnings increase. If you work part-time but earn below the SSI threshold, you may still qualify for partial benefits.
4. The Ticket to Work Program
The SSA offers a Ticket to Work Program, which allows individuals on disability benefits to explore employment opportunities while maintaining medical coverage and benefits during a transition period.
Will I Lose My Disability if I Work Part-Time?
The short answer is: Not necessarily, but it depends on how much you earn and whether you follow SSA rules.
- SSDI Recipients: If you earn below the SGA limit or participate in the trial work period, you can work part-time without immediately losing benefits.
- SSI Recipients: Your SSI payments will decrease as earnings increase, but you can still receive partial benefits as long as your income remains within limits.
Final Thoughts: Should You Work Part-Time While on Disability?
If you are considering working a side-hustle while receiving disability benefits:
- Check your earnings against the SGA limit (for SSDI) or income reduction rules (for SSI).
- Report all earnings to the SSA to avoid penalties or overpayments.
- Explore programs like Ticket to Work for additional support.
- Consult a disability lawyer or benefits counselor if unsure about how work will affect your benefits.
By understanding the rules and reporting your income correctly, you may be able to work part-time while keeping your disability benefits. Always stay informed and plan carefully to avoid unexpected loss of benefits.
Would you like help navigating work and disability benefits? Let us know in the comments!
