Working While on SSDI in South Dakota

Working While on SSDI in South Dakota

Many Social Security Disability Insurance recipients in South Dakota wonder whether taking on part-time work or testing a return to employment will cost them their benefits. The answer is more nuanced than a simple yes or no. Federal rules allow SSDI beneficiaries to work under specific conditions without automatically losing coverage — but the rules are strict, and failing to follow them can create serious financial and legal problems.

Understanding Substantial Gainful Activity

The Social Security Administration uses a standard called Substantial Gainful Activity (SGA) to evaluate whether a person's work disqualifies them from SSDI. In 2024, the SGA threshold is $1,550 per month for non-blind individuals and $2,590 per month for individuals who are blind.

If your gross earnings consistently exceed the SGA limit, the SSA may determine that you are no longer disabled under their definition — regardless of your medical condition. This is true whether you work for an employer or are self-employed. South Dakota residents are subject to the same federal SGA thresholds as claimants in every other state.

• Earning below the SGA threshold generally does not trigger a cessation of benefits
• The SSA looks at gross earnings, not take-home pay
• Certain work-related expenses for your disability can reduce your countable earnings
• Self-employment income is evaluated differently and can include hours worked, not just earnings

The Trial Work Period: Your Protected Window

Federal law gives SSDI recipients a Trial Work Period (TWP) — a protected window during which you can test your ability to return to work without immediately losing benefits. The TWP consists of nine months (which do not need to be consecutive) within a rolling 60-month period.

During the TWP, you can earn any amount and still receive your full SSDI payment, as long as you report your work activity and continue to have a disabling impairment. For 2024, a month counts toward your TWP if you earn more than $1,110 or work more than 80 hours in self-employment.

South Dakota SSDI beneficiaries often use the TWP to try seasonal or agricultural work — common in the state's economy — without risking their benefits. However, the TWP is finite. Once you exhaust your nine months, the SSA begins applying the SGA test each month going forward.

The Extended Period of Eligibility

After your Trial Work Period ends, you enter a 36-month Extended Period of Eligibility (EPE). During this window, your SSDI benefits can be reinstated quickly in any month where your earnings fall below the SGA threshold — no new application required.

This safety net is valuable for South Dakota workers in industries with variable hours or income. For example, a beneficiary who works harvest season and earns above SGA for three months could still collect SSDI during the lower-income months of the year, provided they report earnings accurately and timely.

• The EPE begins the month after your ninth TWP month
• Benefits can be turned on and off monthly based on SGA earnings
• After 36 months, you must file a new application if your disability continues
• Expedited Reinstatement rules apply if benefits terminate after the EPE

Impairment-Related Work Expenses and Reporting in South Dakota

The SSA allows you to deduct Impairment-Related Work Expenses (IRWEs) from your countable earnings. These are out-of-pocket costs directly related to your disability that allow you to work. Examples include prescription medications, medical equipment, transportation to medical appointments, and certain assistive devices.

For South Dakota residents — particularly those in rural areas who face higher transportation costs to access medical care or specialized equipment — IRWEs can make a meaningful difference in keeping countable earnings below the SGA threshold.

Reporting your work to the SSA is not optional. Federal law requires SSDI beneficiaries to report any work activity, including self-employment and occasional or part-time jobs. South Dakota does not have a separate state disability program layered on top of federal SSDI, so all reporting goes directly through the Social Security Administration — either at your local SSA field office (with locations in Sioux Falls, Rapid City, Aberdeen, and other cities) or via the SSA's online portal.

Failure to report work and earnings is considered fraud. Overpayments that result from unreported work must be repaid, and in serious cases, the SSA can pursue civil or criminal penalties. If you have already received an overpayment notice, you have the right to request a waiver if repayment would cause financial hardship.

The Ticket to Work Program and South Dakota Resources

The SSA's Ticket to Work program offers SSDI recipients access to free employment support services without triggering a Continuing Disability Review simply because they are participating. South Dakota has state-approved Employment Networks and the South Dakota Division of Rehabilitation Services (DRS) that can serve as your Ticket to Work provider.

By assigning your Ticket to an approved provider, you can receive vocational rehabilitation, job training, job placement assistance, and benefits counseling. While participating in the Ticket program in good faith, the SSA generally suspends periodic reviews of your medical eligibility — a significant protection for beneficiaries trying to return to work gradually.

South Dakota DRS offices operate throughout the state and can coordinate with your healthcare team to develop a return-to-work plan tailored to your functional limitations. These services are free to SSDI recipients who qualify.

• Ticket to Work does not reduce your monthly SSDI payment while you participate
• You can un-assign your Ticket if employment does not work out
• Benefits counselors certified by WIPA (Work Incentives Planning and Assistance) can explain how earnings will affect your specific case
• Medicaid protection rules may allow you to keep health coverage even as earnings increase

What to Do Before You Start Working

The most common mistake SSDI recipients make is starting work without first understanding the consequences for their specific benefit situation. Before accepting a job or increasing your hours, take these steps:

First, contact a WIPA counselor or a disability benefits attorney to get a written analysis of how your proposed earnings will interact with your TWP status, EPE timeline, and Medicare continuation period. Second, notify your local SSA field office in writing before or immediately after you begin working. Keeping a paper trail of your reporting protects you from accusations of fraud later. Third, track all work-related expenses that qualify as IRWEs so your countable income is as accurate as possible.

Working while on SSDI is legally permitted — but only within carefully defined limits. South Dakota beneficiaries who stay informed, report honestly, and seek professional guidance can take advantage of every protection the law provides while testing their capacity to return to the workforce.

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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