Can I Work While Receiving SSDI Benefits (1065)?

Can You Work While Receiving SSDI?

Many Social Security Disability Insurance (SSDI) recipients worry that earning any income will immediately end their benefits. The reality is more nuanced. The Social Security Administration (SSA) has established specific rules that allow beneficiaries to test their ability to work without automatically losing coverage. Understanding these rules is essential for Wyoming residents who want to re-enter the workforce or supplement their income without jeopardizing the benefits they depend on.

The Substantial Gainful Activity Threshold

The SSA uses a concept called Substantial Gainful Activity (SGA) to determine whether a person's work disqualifies them from SSDI. In 2025, the SGA limit is $1,550 per month for non-blind individuals and $2,590 per month for those who are blind. If your earnings consistently exceed these thresholds, the SSA may determine you are no longer disabled and terminate your benefits.

It is critical to report all work activity to the SSA promptly. Failure to report earnings—even part-time or self-employment income—can result in overpayments that you will be required to repay, and in some cases, allegations of fraud. Wyoming residents should contact their local SSA field office in Cheyenne, Casper, or elsewhere in the state to ensure earnings are properly documented.

The Trial Work Period: Testing the Waters

One of the most valuable protections available to SSDI recipients is the Trial Work Period (TWP). The SSA allows you to test your ability to work for up to nine months within a rolling 60-month window without losing your benefits—regardless of how much you earn during those months.

For 2025, any month in which you earn more than $1,110 counts as a trial work month. Once you have used all nine trial work months, the SSA will evaluate your earnings. If you are earning above the SGA threshold after your TWP ends, you enter a 36-month window called the Extended Period of Eligibility (EPE), during which your benefits can be reinstated in any month your earnings drop below SGA.

• Trial Work Period: 9 months, any earnings allowed
• Extended Period of Eligibility: 36 months following the TWP
• Expedited Reinstatement: Available up to 5 years after benefits end if your condition worsens

These protections exist specifically to encourage SSDI recipients to attempt returning to work. Wyoming's rural economy—with its mix of agriculture, energy, and service industries—offers part-time and flexible work arrangements that may fit within these limits for some beneficiaries.

Work Incentives and Impairment-Related Work Expenses

The SSA offers several work incentives that can reduce your countable earnings when determining whether you exceed the SGA limit. The most commonly used is Impairment-Related Work Expenses (IRWE). If you pay out of pocket for items or services necessary to work because of your disability—such as medication, assistive devices, specialized transportation, or attendant care—those costs can be deducted from your gross earnings before the SSA applies the SGA test.

For example, if you earn $1,700 per month but spend $300 on disability-related work expenses, your countable income drops to $1,400—below the SGA limit. Documenting these expenses carefully is essential. Keep receipts and maintain a log of how each expense relates to your ability to work.

Wyoming beneficiaries may also benefit from the Plan to Achieve Self-Support (PASS) program, which allows you to set aside income or resources to pursue a work goal—such as education, vocational training, or starting a small business—without those funds counting against your SSI or SSDI eligibility. Wyoming's vocational rehabilitation agency, Wyoming Vocational Rehabilitation, can assist in developing a PASS plan and connecting you with employment resources statewide.

Self-Employment and Gig Work in Wyoming

Self-employment is common in Wyoming, particularly in ranching, contracting, and skilled trades. The SGA rules apply differently to self-employed individuals. Rather than looking solely at net earnings, the SSA may evaluate the value of your work to your business or apply a "three tests" framework to determine if your activity constitutes SGA.

The three tests for self-employment SGA are:

• Significant Services and Substantial Income Test: You render significant services to the business and have countable income above SGA.
• Comparability Test: Your work is comparable to that of an unimpaired person in a similar business in your community.
• Worth of Work Test: Your work is worth more than the SGA amount per month based on its value to the business.

Gig income—such as driving for a rideshare service or freelance work—is treated as self-employment income and must be reported. Even if individual payments are small, the SSA aggregates your monthly earnings. Wyoming residents engaged in seasonal or contract work should be especially careful to track income month by month.

What Happens If You Earn Too Much

If your earnings exceed the SGA limit after your Trial Work Period ends, the SSA will issue a cessation notice informing you that your benefits will stop. You have the right to appeal this decision, and during the appeal process—if filed timely—you may be able to continue receiving benefits while your case is reviewed.

A common mistake is assuming that one high-earning month ends benefits permanently. That is not how the system works. The EPE provides a 36-month safety net. If your condition deteriorates or you are laid off and your earnings again fall below SGA during that window, your benefits can be reinstated without filing a new application.

If your EPE has expired, Expedited Reinstatement (EXR) allows you to request reinstatement within five years of the month your benefits terminated, provided you are again unable to perform SGA due to the same or related impairment. Provisional benefits can begin immediately while the SSA reviews your request—providing a critical financial bridge.

Wyoming recipients who receive a cessation notice should act quickly. The deadline to appeal is typically 60 days from the date of the notice. Missing this deadline can force you to file a new disability application, which often means starting the lengthy evaluation process over from scratch.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

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