Working While on SSDI in Vermont: What You Need to Know

Working While on SSDI in Vermont: What You Need to Know

Many Social Security Disability Insurance recipients wonder whether they can earn additional income without jeopardizing their benefits. The short answer is yes — but within strict limits set by the Social Security Administration. Vermont residents collecting SSDI must understand these rules carefully, because a misstep can trigger overpayments, benefit suspension, or even termination of your disability status.

The Substantial Gainful Activity Threshold

The SSA measures your ability to work using a standard called Substantial Gainful Activity (SGA). For 2025, the monthly SGA limit is $1,550 for non-blind individuals and $2,590 for those who are blind. If your gross earnings exceed these thresholds in any given month, the SSA may consider you no longer disabled and begin the process of terminating your benefits.

This threshold applies regardless of your diagnosis or the nature of your disability. A Vermont SSDI recipient with a severe back condition faces the same SGA limits as someone with a cognitive impairment. The SSA evaluates what you earn, not what you do.

Important: the SGA calculation looks at countable earnings, not gross wages. The SSA may deduct certain work-related expenses — called Impairment-Related Work Expenses (IRWEs) — from your gross income before comparing it to the SGA limit. If you pay out-of-pocket for medication, special equipment, or transportation directly related to your disability and your ability to work, document every expense carefully.

The Trial Work Period: A Protected Window to Test Employment

The SSA provides a valuable safety net called the Trial Work Period (TWP). This allows SSDI recipients to test their ability to work for up to nine months within a rolling 60-month window without losing benefits, regardless of how much they earn during those months.

For 2025, a month counts as a TWP month if you earn more than $1,110 — even if that amount is below SGA. Once you've used all nine TWP months, the SSA begins evaluating your work against the SGA standard during what's called the Extended Period of Eligibility (EPE), which lasts 36 months. During the EPE, you receive benefits in months where your earnings fall below SGA and lose them in months where your earnings exceed it.

Vermont residents should use the TWP strategically. If you're considering a return to part-time or seasonal work — common in Vermont's agricultural, tourism, or small business sectors — track your TWP months precisely. The SSA's records are not always accurate, and discrepancies can create serious problems down the line.

Ticket to Work and Vermont's Vocational Rehabilitation Resources

The SSA's Ticket to Work program offers SSDI recipients an additional layer of protection while they explore employment. By assigning your Ticket to an approved Employment Network or state vocational rehabilitation agency, you may receive job training, placement assistance, and continued benefits while you work toward financial independence.

Vermont's designated vocational rehabilitation agency is the Vermont Division of Vocational Rehabilitation (VocRehab Vermont), part of the Department of Disabilities, Aging and Independent Living. VocRehab Vermont offers individualized services including job coaching, assistive technology, and workplace accommodations — all without cost to eligible participants.

Participating in the Ticket to Work program also suspends continuing disability reviews while you're making timely progress toward your employment goals. This means the SSA is less likely to re-examine your disability status while you're actively working with an approved provider. For Vermonters who are uncertain about their long-term ability to work, this protection is significant.

Reporting Requirements and Avoiding Overpayments

One of the most serious risks for working SSDI recipients is the accumulation of overpayments. If the SSA continues paying benefits during months when your earnings exceeded SGA — and you failed to report your work activity — the agency will demand repayment, sometimes years after the fact. Overpayments can reach tens of thousands of dollars and can be collected by withholding future benefits or through other means.

Your obligations as a Vermont SSDI recipient who works include:

• Reporting any new job or self-employment to the SSA promptly — ideally within 10 days of the end of the month in which you started working
• Reporting changes in pay, hours, or job duties
• Reporting the end of employment
• Keeping copies of all pay stubs, employer letters, and documentation submitted to the SSA

You can report work activity online through your my Social Security account, by phone at 1-800-772-1213, or in person at the SSA field office in Burlington, Montpelier, Rutland, or St. Johnsbury. Always follow up any verbal report with written documentation and keep proof of submission.

If you receive a notice of overpayment that you believe is incorrect, you have the right to appeal or request a waiver. An overpayment waiver may be granted if you were not at fault in causing the overpayment and repayment would cause financial hardship. These requests must be filed within 60 days of receiving the overpayment notice.

Self-Employment and Remote Work Considerations

Vermont has seen significant growth in remote work and self-employment, particularly since 2020. SSDI recipients who are self-employed face a different SGA calculation than traditional employees. The SSA evaluates self-employment income using one of three tests — the Significant Services and Substantial Income test, the Comparability test, or the Worth of Work test — depending on which yields the most favorable comparison.

Self-employed Vermonters must be especially careful about how business income and expenses are reported. The SSA may scrutinize whether services performed in a business are truly significant, and whether net profit accurately reflects the value of your work. Working with a Social Security attorney or advocate before starting any self-employment activity is strongly advisable.

Additionally, Vermont residents who work remotely for out-of-state employers are still subject to federal SSDI rules. The location of your employer does not change your obligations or your eligibility — your earnings are evaluated the same way regardless of where the work is performed.

Returning to work while on SSDI carries real opportunity, but also real risk. The rules are complex, timelines matter, and mistakes can be difficult and expensive to correct. Understanding your rights — including the Trial Work Period, Ticket to Work protections, and proper reporting procedures — gives you the best chance of exploring employment without losing the benefits you've earned.

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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