Can I Work While On Ssdi | Wisconsin

Working While on SSDI: What Wisconsin Recipients Need to Know

Many Social Security Disability Insurance recipients worry that earning any income will immediately terminate their benefits. The reality is more nuanced. The Social Security Administration has established specific rules that allow SSDI recipients to test their ability to return to work without automatically losing benefits. Understanding these rules can mean the difference between maintaining financial stability and inadvertently triggering a benefits termination.

The Trial Work Period: Your Protected Window

The SSA provides every SSDI recipient with a Trial Work Period (TWP) — nine months within a rolling 60-month window during which you can work and receive full SSDI benefits regardless of how much you earn. In 2024, any month in which you earn more than $1,110 counts as a trial work month.

These nine months do not need to be consecutive. You might work for three months, stop, then return to work two years later — those months still count toward your nine. Once you exhaust your nine trial work months, the SSA evaluates whether your work qualifies as Substantial Gainful Activity (SGA).

For 2024, SGA is defined as earning more than $1,550 per month for non-blind individuals and $2,590 per month for blind individuals. If your earnings exceed SGA after your trial work period ends, your benefits may be terminated — but not immediately.

The Extended Period of Eligibility

After your Trial Work Period concludes, you enter a 36-month Extended Period of Eligibility (EPE). During this window, any month your earnings fall below SGA, you are entitled to receive your full SSDI payment. Any month your earnings exceed SGA, benefits are withheld.

This structure provides a meaningful safety net. If you attempt to work but your condition worsens and you cannot sustain SGA-level earnings, you can reclaim benefits without filing an entirely new application. In Wisconsin, where manufacturing, agriculture, and service-industry jobs often involve physically demanding conditions that may aggravate disabling conditions, this protection is particularly valuable.

After the 36-month EPE expires, if you earn above SGA in any month, your benefits will be terminated. You would then need to file a new application or request expedited reinstatement if your disability prevents you from continuing to work.

Work Incentives That Protect Wisconsin Recipients

The SSA offers several additional work incentives that Wisconsin SSDI recipients should know about:

• Impairment-Related Work Expenses (IRWEs): Costs you pay out-of-pocket for items or services that allow you to work — such as prescription medications, assistive devices, or transportation to medical appointments — can be deducted from your gross earnings when the SSA calculates whether you are engaging in SGA. This can keep your countable income below the SGA threshold even if your gross wages exceed it.
• Subsidies and Special Conditions: If your employer provides extra support or supervision beyond what is ordinarily given to employees doing the same work, the SSA may subtract the value of that subsidy from your earnings for SGA purposes.
• Unsuccessful Work Attempts: If you attempt work but must stop or reduce below SGA within six months due to your disabling condition, the SSA may classify that period as an unsuccessful work attempt and exclude it from SGA calculations.
• Plan to Achieve Self-Support (PASS): Allows you to set aside income or resources to fund education, training, or business startup costs aimed at achieving self-supporting employment. Funds set aside under a PASS are excluded from SGA calculations.
• Ticket to Work Program: SSDI recipients between ages 18 and 64 can obtain a Ticket to Work, allowing them to access vocational rehabilitation services, employment networks, and job placement assistance. Participating in Ticket to Work can also provide some protection from continuing disability reviews.

Wisconsin-Specific Considerations

Wisconsin residents on SSDI who attempt to return to work may also be eligible for state-level support. The Division of Vocational Rehabilitation (DVR), administered through the Wisconsin Department of Workforce Development, provides services including job placement, skills training, and assistive technology to individuals with disabilities who are seeking employment. DVR services can complement federal work incentives and help bridge the gap between disability and sustainable employment.

Wisconsin also participates in Medicaid for Employed Adults with Disabilities (MEAD), which allows individuals with disabilities who work to maintain Medicaid coverage even when their earnings would otherwise make them ineligible. For SSDI recipients who rely heavily on medical treatment — which is common given the nature of qualifying disabilities — maintaining health coverage while testing work capacity is critical. Losing Medicare or Medicaid prematurely can expose recipients to catastrophic medical costs.

Additionally, be aware that Wisconsin's unemployment insurance system and SSDI have an important interaction: if you collect unemployment benefits in Wisconsin, the SSA may consider you available for and actively seeking full-time work, which can complicate your disability claim if your case is under review.

Reporting Requirements and Common Mistakes to Avoid

Working while on SSDI creates strict reporting obligations. You must report any work activity to the SSA promptly, including:

• When you start or stop working
• Any changes in your pay, hours, or job duties
• New employers or self-employment activity
• Changes in work-related expenses that you are deducting as IRWEs

Failure to report work activity is one of the most common causes of overpayments — situations where the SSA determines it paid you benefits during months when you should not have received them. Overpayments must be repaid, sometimes totaling thousands of dollars. The SSA can recover overpayments by withholding future benefits, and in cases involving intentional concealment, may pursue fraud charges.

Self-employment presents particular complications. The SSA does not simply look at your net profit when evaluating SGA for self-employed individuals. It applies a three-part test that considers the value of your services to the business, comparable earnings for similar work, and whether you provide significant services. Wisconsin residents who own farms, small businesses, or work as independent contractors should seek guidance before assuming their income structure keeps them safely under the SGA threshold.

Keep detailed records of your earnings, hours worked, and any work-related expenses. If the SSA questions your work activity, documentation is your primary defense.

When Benefits May Be Reinstated

If your benefits are terminated because your earnings exceeded SGA and you later become unable to work due to the same or a related disabling condition, you may qualify for Expedited Reinstatement (EXR). EXR allows former SSDI recipients to request reinstatement within five years of termination without filing a completely new application. During the reinstatement review — which can take several months — you can receive up to six months of provisional benefits.

The ability to work and the ability to sustain SGA-level employment long-term are two different things. The SSA's work incentive programs exist precisely because many people with disabilities can work in limited capacities without having fully recovered. Navigating these rules correctly requires careful planning, accurate reporting, and often professional guidance.

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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