Can I Work While On Ssdi | South Dakota

Working While on SSDI: What South Dakota Recipients Must Know

Many Social Security Disability Insurance recipients assume that accepting any paid work will immediately end their benefits. That assumption is wrong—and it costs people real money. The Social Security Administration has built specific rules that allow SSDI recipients to test their ability to work without automatically losing coverage. Understanding those rules is essential for anyone in South Dakota who wants to explore employment while protecting their benefits.

The Trial Work Period: Your Nine-Month Window

The Trial Work Period (TWP) is the SSA's primary mechanism for allowing SSDI beneficiaries to attempt gainful employment. During the TWP, you can work and receive your full SSDI benefit regardless of how much you earn—as long as you continue to have a disabling condition.

The TWP consists of nine months within a rolling 60-month window. In 2024, any month in which you earn more than $1,110 counts as a TWP month. These nine months do not have to be consecutive. Once you exhaust your nine TWP months, the SSA evaluates whether your work constitutes Substantial Gainful Activity (SGA).

For South Dakota residents, the practical reality is that the cost of living is generally lower than coastal states, and the state's labor market includes significant agricultural, healthcare, and tribal employment sectors. Seasonal or part-time work in these industries may or may not trigger TWP months depending on your monthly earnings—tracking that carefully from the start is critical.

Substantial Gainful Activity and What Happens After the TWP

After your Trial Work Period ends, the SSA applies the Substantial Gainful Activity threshold to determine whether you can continue receiving benefits. For 2024, SGA is defined as earning more than $1,550 per month for non-blind individuals, or $2,590 per month for those who are blind.

If your earnings exceed SGA after your TWP concludes, your SSDI benefits will generally stop after a three-month grace period. However, you enter what the SSA calls an Extended Period of Eligibility (EPE), which lasts 36 months following the TWP. During the EPE, any month your earnings fall below the SGA threshold, you can receive your full SSDI payment without reapplying. This creates a meaningful safety net for South Dakota workers whose income may fluctuate seasonally or due to health setbacks.

Work expenses related to your disability can also reduce your countable earnings. These are called Impairment-Related Work Expenses (IRWEs). If you pay out-of-pocket for medications, specialized transportation, adaptive equipment, or other costs directly related to your disabling condition and necessary for you to work, those amounts are deducted before the SSA calculates whether you've exceeded SGA.

The Ticket to Work Program

The SSA's Ticket to Work program is a voluntary initiative specifically designed to help SSDI recipients return to the workforce. When you participate in Ticket to Work, you work with an approved Employment Network or your state's Vocational Rehabilitation agency to develop an employment plan.

South Dakota's Division of Rehabilitation Services (DRS) serves as the state's primary vocational rehabilitation agency and is an active partner in the Ticket to Work program. DRS can provide job training, workplace accommodations support, assistive technology, and counseling. Importantly, while you are assigned to an approved Employment Network or working with DRS under Ticket to Work, the SSA will generally suspend medical Continuing Disability Reviews, giving you greater stability during the transition period.

Participation in Ticket to Work does not affect your Medicare coverage. SSDI recipients who return to work continue to receive Medicare for at least 93 months after the TWP ends—roughly seven and a half years. For South Dakota residents navigating a healthcare landscape where rural access is already a challenge, maintaining Medicare during a work attempt is a significant financial protection.

Reporting Requirements and Common Mistakes

The SSA requires that you report any work activity promptly. Failing to do so—even unintentionally—can result in overpayments that you will be required to repay, sometimes totaling thousands of dollars. Overpayment recovery is aggressive, and the SSA can withhold future benefits to collect what it says is owed.

You must report:

• The start of any new job or self-employment
• Changes in your hours, duties, or pay
• The end of a job
• Any work-related expenses tied to your disability

You can report work activity to your local Social Security field office—South Dakota has offices in Sioux Falls, Rapid City, Aberdeen, and Watertown—or online through your my Social Security account. Keeping detailed records of your pay stubs, work schedules, and any out-of-pocket disability-related expenses provides documentation that can protect you in the event of an SSA inquiry or overpayment notice.

One of the most common mistakes South Dakota SSDI recipients make is assuming that working "under the table" or for cash avoids SSA scrutiny. It does not. The SSA cross-references IRS records, state wage data, and other federal databases. Unreported work income discovered after the fact creates far more serious legal and financial problems than simply reporting it would have.

Self-Employment and Agricultural Work in South Dakota

South Dakota's economy includes a substantial number of self-employed individuals—ranchers, farmers, independent contractors, and small business owners. The SGA calculation for self-employed SSDI recipients is more complex than for wage earners. The SSA does not simply look at net profit. It may apply one of three tests: a Countable Income Test, a Three Tests evaluation based on the nature and value of your services to the business, or a comparison of your work activity to that of unimpaired individuals in similar businesses.

For South Dakota ranchers or farmers who continue to perform some tasks on their land despite a disabling condition, documenting precisely what work they do—and what they cannot do—matters enormously. The SSA may find that even modest involvement in a farm operation constitutes SGA if that work is integral to running the business and would cost significant money to hire out.

If you receive payments from a farm or business but are not personally performing significant services, those payments may not count as earned income under SGA rules. Getting clear guidance on your specific situation before you report or before the SSA contacts you can prevent costly mistakes.

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

Related Articles

• SSDI Processing Times in Arkansas: What to Expect
• SSDI Trial Work Period: Louisiana Guide
• SSDI Work Credits: What Tennessee Claimants Need