Can I Work While Receiving SSDI in New Mexico?

Can I Work While Receiving SSDI in New Mexico?

Many Social Security Disability Insurance (SSDI) recipients wonder whether they can work while receiving benefits. The short answer is yes, but with significant limitations and requirements you must understand to avoid jeopardizing your disability income. The Social Security Administration (SSA) has established specific rules governing work activity for SSDI beneficiaries, and violating these rules can result in benefit suspension or termination.

As an attorney who has helped numerous New Mexico residents navigate SSDI benefits, I can tell you that understanding the work rules is essential for anyone considering employment while receiving disability payments. The regulations are complex, but with proper knowledge and planning, you may be able to supplement your income without losing your benefits.

Understanding Substantial Gainful Activity (SGA)

The key concept you must understand is Substantial Gainful Activity (SGA). The SSA uses SGA thresholds to determine whether your work activity is significant enough to affect your disability status. For 2024, the SGA limit is $1,550 per month for non-blind individuals and $2,590 for those who are statutorily blind. These figures typically increase annually with cost-of-living adjustments.

If your earnings exceed the SGA threshold, the SSA generally considers you capable of substantial work, which contradicts the fundamental requirement for SSDI eligibility: that you cannot engage in substantial gainful activity due to your medical condition. However, the SSA does not simply look at gross wages. They may consider various deductions and adjustments when calculating your countable income.

Important factors the SSA considers when evaluating your work activity include:

• Your gross monthly earnings from employment or self-employment
• Impairment-Related Work Expenses (IRWE) that can be deducted from your earnings
• Subsidies or special conditions that make your employment possible
• The value of your work compared to what others performing similar duties earn

The Trial Work Period: Your Safety Net

One of the most important protections for SSDI beneficiaries who want to test their ability to work is the Trial Work Period (TWP). This program allows you to work for up to nine months (not necessarily consecutive) within a rolling 60-month period while continuing to receive full SSDI benefits, regardless of how much you earn, as long as you report your work activity and continue to have a disabling impairment.

For 2024, any month in which you earn more than $1,110 or work more than 80 self-employed hours counts as a trial work month. During your TWP, you can assess whether you are capable of sustainable employment without immediately risking your benefits. This provision exists specifically to encourage SSDI recipients to attempt returning to work without fear of immediate benefit loss.

After completing your nine-month TWP, you enter an Extended Period of Eligibility (EPE) lasting 36 months. During the EPE, you will receive benefits for any month your earnings fall below the SGA level, and benefits will be withheld for months when earnings exceed SGA. This provides continued protection as you transition back to work.

New Mexico-Specific Considerations

While SSDI is a federal program with uniform national rules, New Mexico residents should be aware of several state-specific factors that may affect their situation. New Mexico's minimum wage, cost of living, and available support services can impact your decision to work while receiving benefits.

New Mexico offers various employment support programs through the Division of Vocational Rehabilitation (DVR) that can help SSDI recipients explore work opportunities. These services may include job training, placement assistance, and workplace accommodations that can make employment more feasible for individuals with disabilities.

Additionally, if you receive Medicaid in New Mexico along with your SSDI benefits, you should understand that the state's Medicaid program has specific provisions that may allow you to continue receiving health coverage even if your earnings increase. The Medicaid Buy-In Program for Workers with Disabilities can be particularly valuable for SSDI recipients attempting to return to work.

Reporting Requirements and Consequences

If you decide to work while receiving SSDI, you have a legal obligation to report your work activity to the SSA promptly. Failure to report work can result in overpayments that you will be required to repay, and in cases of intentional concealment, you could face fraud charges and benefit termination.

You should report the following to the SSA:

• When you start or stop working
• Changes in your work hours or duties
• Changes in your pay rate or earnings
• Any work-related expenses due to your disability

The SSA provides multiple ways to report work activity, including online through your my Social Security account, by phone, or in person at your local New Mexico Social Security office. Maintaining detailed records of your work activity, earnings, and any disability-related expenses is essential for protecting yourself in case questions arise about your eligibility.

Protecting Your Benefits While Working

Several strategies can help you maximize your ability to work while maintaining SSDI eligibility. First, familiarize yourself with Impairment-Related Work Expenses (IRWE). These are costs for items or services you need to work because of your disability. The SSA deducts these expenses from your gross earnings when determining if you have engaged in SGA. Examples include specialized transportation, medical devices, attendant care services, and medications required for you to work.

Consider consulting with a Work Incentives Planning and Assistance (WIPA) project in New Mexico. These federally funded programs provide free benefits counseling to help you understand how work will affect your SSDI and other benefits. A benefits counselor can help you create a personalized plan for returning to work while maximizing your total income from all sources.

You should also understand that if your benefits are eventually suspended or terminated due to work activity, you may be eligible for Expedited Reinstatement if you stop working within five years due to your medical condition. This provision allows you to have benefits reinstated without filing a new application, which can be crucial if your attempt to return to work proves unsuccessful.

Finally, remember that receiving SSDI does not prohibit all work activity. Volunteer work, for example, generally does not affect your benefits as long as you receive no compensation beyond reimbursement for expenses. This can be an excellent way to stay active and engaged while maintaining your 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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