Can I Work While Receiving SSDI in Vermont?

One of the most common questions Social Security Disability Insurance (SSDI) recipients ask is whether they can work while receiving benefits. The short answer is yes, but with significant limitations and requirements. Understanding the rules governing work activity while on SSDI is crucial to avoid jeopardizing your benefits or facing overpayment issues. Vermont residents receiving SSDI must follow federal Social Security Administration guidelines, which include specific income thresholds and trial work periods designed to encourage beneficiaries to return to work when possible.

Understanding Substantial Gainful Activity (SGA)

The Social Security Administration uses a concept called Substantial Gainful Activity (SGA) to determine whether work activity affects your SSDI eligibility. SGA represents a monthly income threshold that, if exceeded, may disqualify you from receiving disability benefits. For 2024, the SGA limit is $1,550 per month for non-blind individuals and $2,590 for those who are statutorily blind.

When the SSA evaluates whether your work constitutes SGA, they consider several factors:

• Your gross monthly earnings before taxes and deductions
• The value of any in-kind income you receive
• Whether you're self-employed and the value of your work contribution
• Any subsidies or special conditions that affect your productivity
• Impairment-related work expenses that can be deducted from earnings

Vermont SSDI recipients must report all work activity to the Social Security Administration promptly. Failure to report can result in overpayment demands and potential fraud allegations. Even if you believe your earnings fall below the SGA threshold, you should notify the SSA when you start working.

The Trial Work Period: Testing Your Ability to Work

The Social Security Administration recognizes that disability beneficiaries may want to test their ability to work without immediately losing benefits. The Trial Work Period (TWP) is a safety net that allows you to work for up to nine months (not necessarily consecutive) within a 60-month rolling period while continuing to receive full SSDI benefits, regardless of how much you earn.

For 2024, a trial work month is triggered when your earnings exceed $1,110 or when you work more than 80 self-employed hours in a month. During the TWP, you can earn any amount without affecting your benefits, providing valuable time to determine if you can sustain employment despite your disability.

Vermont beneficiaries should carefully track their trial work months. Once you complete nine trial work months within the five-year period, the TWP ends, and the SSA will evaluate whether your work activity constitutes SGA. If your earnings exceed the SGA limit after the TWP, your benefits will cease, but important protections remain in place.

The Extended Period of Eligibility

After completing your Trial Work Period, you enter a 36-month Extended Period of Eligibility (EPE). During this phase, you can continue receiving SSDI benefits for any month your earnings fall below the SGA threshold. If your earnings exceed SGA in a given month, you won't receive benefits for that month, but your benefits can restart automatically if your earnings drop below SGA within the 36-month period.

The first month after your TWP ends when you perform work above the SGA level begins your EPE. The SSA typically provides a three-month grace period during which you continue receiving benefits even if you're working above SGA. After these three months, benefits cease for months when your earnings exceed the substantial gainful activity limit.

Vermont workers in the EPE should maintain detailed records of monthly earnings. This documentation becomes critical if your work situation changes due to your medical condition, allowing you to demonstrate which months you earned below the SGA threshold and should receive benefits.

Impairment-Related Work Expenses and Subsidies

The Social Security Administration allows certain deductions when calculating whether your work constitutes SGA. Impairment-Related Work Expenses (IRWEs) include costs for items and services you need to work because of your disability. These expenses can be deducted from your gross earnings when determining if you've exceeded the SGA limit.

Examples of qualifying IRWEs include:

• Medications and medical supplies required to control your disabling condition
• Medical devices such as wheelchairs, walkers, or specialized equipment
• Attendant care services needed during working hours
• Transportation costs if your disability prevents you from using regular public transportation
• Residential modifications necessary for you to work
• Service animal expenses

Vermont SSDI recipients should document all impairment-related expenses with receipts and medical documentation establishing the connection between the expense and their ability to work. These deductions can make the difference between staying under the SGA threshold and losing benefits.

Additionally, if your employer provides a subsidy—meaning they pay you more than the actual value of your work due to your disability—the SSA may reduce your countable earnings accordingly. You must provide evidence that your productivity is impaired and that your employer is aware of this reduction in productivity.

Returning to SSDI: Expedited Reinstatement

If your SSDI benefits terminate because your earnings exceeded SGA but you later become unable to work due to your disability within five years, you can request Expedited Reinstatement (EXR) of benefits. This provision allows you to restart benefits without filing a new application, provided your inability to work results from the same or related medical condition.

During the EXR process, you can receive up to six months of provisional benefits while the SSA reviews your case. If approved, your benefits resume without the need to prove disability again from scratch. Vermont beneficiaries who struggle to maintain employment should consider EXR as soon as work becomes unsustainable, rather than waiting until financial crisis occurs.

The EXR provision demonstrates that Social Security encourages work attempts. You won't be penalized for trying to return to work if your medical condition ultimately prevents sustained employment. However, you must request reinstatement within 60 months of your benefits ending, so timing matters.

Practical Advice for Vermont SSDI Recipients Considering Work

Before starting employment while receiving SSDI, Vermont beneficiaries should take several precautionary steps. First, contact the Social Security Administration to report your intention to work and confirm your Trial Work Period status. Request documentation showing how many TWP months you've already used.

Second, maintain meticulous records of all earnings, work hours, and impairment-related expenses. Create a filing system with pay stubs, receipts, and correspondence with the SSA. This documentation protects you if questions arise about your benefits.

Third, consider consulting with a benefits specialist or attorney experienced in SSDI work issues before accepting employment. Vermont has work incentive planning and assistance programs that can provide free guidance on how work will affect your specific benefits situation, including any state-level assistance you might receive.

Finally, be aware that working while on SSDI may affect other benefits. Medicare coverage continues for at least 93 months after the Trial Work Period ends, providing health insurance security during work attempts. However, if you receive Supplemental Security Income (SSI) in addition to SSDI, different rules apply, and work may more immediately affect those benefits.

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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