Can I Work While Receiving SSDI Benefits?

Many Social Security Disability Insurance (SSDI) recipients wonder whether they can supplement their benefits by working. The answer is yes, but with significant limitations and strict rules you must understand to avoid jeopardizing your benefits. The Social Security Administration (SSA) has established specific guidelines that allow limited work activity while receiving SSDI, and these rules apply uniformly across all states, including Indiana.

Understanding Substantial Gainful Activity Limits

The most critical concept to understand when considering work while on SSDI is Substantial Gainful Activity (SGA). The SSA uses SGA thresholds to determine whether your work activity is significant enough to indicate you are no longer disabled. For 2024, the monthly SGA limit is $1,550 for non-blind individuals and $2,590 for those who are statutorily blind.

If your earnings exceed these amounts, the SSA may determine that you are engaging in substantial gainful activity and could terminate your benefits. However, the calculation is more nuanced than simply looking at your gross wages. The SSA considers your net earnings after certain work-related expenses, which can include:

• Impairment-Related Work Expenses (IRWEs) such as medical devices, medications, or modifications needed to perform your job
• Subsidies or special conditions that reduce the value of your work
• Unpaid help from others that allows you to complete your tasks

For Indiana residents receiving SSDI, these federal guidelines apply regardless of local cost of living or state minimum wage laws. Your earning capacity is evaluated based on these national standards.

The Trial Work Period Opportunity

The SSA recognizes that disability beneficiaries may want to test their ability to work without immediately losing benefits. For this reason, they have established a Trial Work Period (TWP) that provides substantial protection while you explore employment.

During a trial work period, you can receive full SSDI benefits regardless of how much you earn, as long as you continue to have a disabling condition and report your work activity. The trial work period consists of nine months, which do not need to be consecutive, within a rolling 60-month period. 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.

This provision offers significant flexibility for Indiana workers who want to attempt a return to the workforce. You might work seasonally, take temporary positions, or gradually increase your hours without immediate benefit termination. The trial work period allows you to genuinely test your capacity for sustained employment while maintaining the safety net of your SSDI benefits.

Extended Period of Eligibility and Expedited Reinstatement

After your trial work period concludes, you enter an Extended Period of Eligibility (EPE) lasting 36 consecutive months. During this time, you will receive benefits for any month your earnings fall below the SGA threshold. If your earnings exceed SGA limits, you will not receive benefits for that month, but your case remains open.

This creates a practical safety net for individuals whose conditions may fluctuate or whose work capacity varies month to month. An Indiana worker with a chronic condition that causes periodic flare-ups can work during good months and receive benefits during months when symptoms prevent substantial employment.

Even after your EPE expires, you may qualify for Expedited Reinstatement (EXR) if you stop working within five years due to your disability. EXR allows you to request reinstatement of benefits without filing a new application, though you must demonstrate that your current inability to work results from the same disabling condition. You can receive up to six months of provisional benefits while the SSA reviews your request.

Reporting Requirements and Consequences of Non-Compliance

When you work while receiving SSDI benefits, you have a legal obligation to report this activity to the Social Security Administration promptly. Failure to report work activity constitutes a serious violation that can result in overpayments, penalties, and potential fraud charges.

You should report any work activity to the SSA immediately, including:

• The start date of employment
• Your employer's name and contact information
• Your gross wages and hours worked
• Any changes in your work duties or earnings
• When you stop working

In Indiana, you can report work activity by calling your local Social Security office, visiting in person, or submitting information through your online My Social Security account. Maintain detailed records of all communications with the SSA, including dates, names of representatives you speak with, and copies of any documents submitted.

If the SSA determines you were overpaid due to unreported work activity, you will be required to repay those benefits. The agency can withhold your current benefits, tax refunds, or even garnish wages to recover overpayments. In cases of intentional fraud, you may face criminal prosecution under federal law.

Special Considerations for Indiana SSDI Recipients

While SSDI is a federal program with uniform rules nationwide, Indiana residents should be aware of how state programs interact with federal disability benefits. Working while on SSDI does not automatically affect eligibility for state programs, but income from employment may impact means-tested benefits such as Medicaid through the Healthy Indiana Plan.

Indiana offers Medicaid for Workers with Disabilities, which may allow you to maintain health coverage even as your earnings increase beyond typical Medicaid limits. This program can be crucial for individuals whose disabilities require ongoing medical care and who want to work without losing access to necessary treatment.

Additionally, Indiana employers are subject to the Americans with Disabilities Act (ADA), which requires reasonable accommodations for disabled workers. If you return to work while receiving SSDI, you have legal protections that may include modified schedules, assistive equipment, or adjusted duties that accommodate your limitations.

Before accepting employment, consider consulting with a disability attorney who understands both federal SSDI rules and Indiana-specific programs. An experienced attorney can help you structure your return to work in a way that maximizes your financial stability while protecting your benefits eligibility. They can also assist if the SSA questions your continued eligibility or if you face benefit termination.

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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