Working While on SSDI: Guide for New Mexico, New Mexico

Introduction: Why SSDI Matters to New Mexico, New Mexico Residents

New Mexico’s breathtaking mesas, vibrant pueblos, and diverse cities such as Albuquerque, Santa Fe, and Las Cruces are home to more than 2.1 million residents. According to the Social Security Administration (SSA), approximately 10.5% of New Mexico adults report a disability severe enough to limit work activity. For those individuals, Social Security Disability Insurance (SSDI) provides an essential lifeline. Yet many otherwise qualified New Mexicans see their initial SSDI applications denied—often for technical reasons that have little to do with the severity of their impairment. If you live in New Mexico, New Mexico and find yourself asking how to appeal, how much you can work while on SSDI, and whether an attorney can help, this guide offers fact-checked answers anchored in federal law and regional realities.

This article slightly favors the interests of claimants while remaining firmly rooted in authoritative sources such as the Code of Federal Regulations (20 CFR §404), the Social Security Act, and published SSA data. You will also find local contacts—from the Albuquerque Hearing Office to New Mexico’s Disability Determination Services (DDS)—to help you navigate every stage of the appeals process. Whether you are considering working part-time while receiving benefits or appealing a denial after your Trial Work Period, the following sections break down what you need to know.

Understanding Your SSDI Rights

The Federal Foundation of SSDI

SSDI is a federally administered insurance program. Workers pay into the system through FICA taxes; in return, they may claim benefits if they meet the statutory definition of disability found in 42 U.S.C. §423(d). In practical terms, you must show that:

• You have a medically determinable impairment expected to last at least 12 months or result in death.

• The impairment prevents substantial gainful activity (SGA), defined by 20 CFR §404.1571–404.1576.

• You earned sufficient work credits (usually 20 credits in the last 10 years for adults over 31).

Work Incentives & “Working While on SSDI”

Contrary to popular belief, SSA encourages beneficiaries to test their ability to work. Key provisions include:

• Trial Work Period (TWP) – Under 20 CFR §404.1592, you may work up to nine non-consecutive months within a rolling 60-month window while still receiving full SSDI payments. In 2024, any month you earn more than $1,110 (SSA figure for 2024) counts as a TWP month.

• Extended Period of Eligibility (EPE) – After TWP, you have a 36-month EPE during which benefits can be reinstated any month your earnings fall below SGA ($1,550 for non-blind, $2,590 for blind workers in 2024).

• Expedited Reinstatement (EXR) – If benefits stop because you performed SGA and within five years you cannot continue, EXR allows provisional benefits while SSA reviews your medical condition.

New Mexico claimants benefit from these work incentives just as claimants in any state do, but misunderstandings often lead to erroneous terminations or overpayment notices. Knowing your rights early can prevent significant stress down the road.

Common Reasons SSA Denies SSDI Claims

Roughly 67% of initial SSDI applications nationwide are denied, and New Mexico’s denial rate is comparable. The most frequent denial rationales include:

• Insufficient Medical Evidence – Missing treatment notes, incomplete diagnostic imaging, or gaps in care can lead adjudicators at the New Mexico DDS (located at 2500 Louisiana Blvd NE, Albuquerque, NM 87110) to find “Not Severe.”

• Earnings Above SGA – If your recent pay stubs show income above SGA, DDS may believe you can engage in substantial work. Accurate, up-to-date earnings statements are critical.

• Failure to Cooperate – Missing a Consultative Examination (CE) or ignoring requests for additional forms (SSA-3373 Function Report, SSA-827 Medical Release) often triggers a technical denial.

• Duration of Impairment – Impairments projected to improve within 12 months do not satisfy the statutory duration requirement.

• Lack of Work Credits – Self-employed individuals or seasonal workers may find they have not accrued enough credits in the required time frame.

If you receive a denial letter (Form SSA-56U5) citing any of these reasons, remember you have the right to appeal. The appeals window is short—usually 60 days from the date you receive the notice—so act quickly.

Federal Legal Protections & Regulations

Key Regulations Every New Mexican Should Know

Below are the most pivotal federal rules governing SSDI denials and appeals, all of which apply equally to New Mexico residents:

• 20 CFR §404.909 – Establishes the 60-day deadline for filing a Request for Reconsideration after an initial denial.

• 20 CFR §404.933 – Sets forth procedures for requesting a hearing before an Administrative Law Judge (ALJ).

• Social Security Act §205(g), 42 U.S.C. §405(g) – Provides the right to judicial review in U.S. District Court (for New Mexico claimants, the venue is the U.S. District Court for the District of New Mexico in Albuquerque or Las Cruces).

• 20 CFR §404.1592(d) – Details Trial Work Period earnings thresholds.

• 20 CFR §404.1594 – Outlines Continuing Disability Reviews (CDRs) and when benefits may be ceased.

Due Process Safeguards

Throughout the SSDI process, claimants are entitled to procedural due process. That includes:

• Notice – SSA must provide written notice explaining any adverse action.

• Opportunity to be Heard – You may submit evidence, question witnesses, and testify (in-person or via video) before a neutral ALJ.

• Impartial Decision-Maker – The ALJ cannot have participated in the initial determination (20 CFR §404.940).

Steps to Take After an SSDI Denial

1. Request for Reconsideration

The first appeal level involves a new DDS examiner and medical consultant who were not part of the initial determination. In New Mexico, submit Form SSA-561 online or deliver it to your local SSA field office—such as:

• Albuquerque SSA Office – 4300 Cutler Ave NE, Albuquerque, NM 87110

• Las Cruces SSA Office – 2141 Summit Ct, Las Cruces, NM 88011

Attach updated treatment notes, physician letters referencing specific functional limitations (e.g., sit/stand restrictions), and any new diagnostic tests.

2. Administrative Law Judge Hearing

If reconsideration fails, file Form HA-501 within 60 days. Hearings for New Mexico residents are usually held at the Albuquerque Hearing Office (6255 San Antonio Dr NE, Suite 202), but video hearings may also be scheduled. You can introduce witnesses, including vocational experts and treating physicians.

3. Appeals Council Review

The Appeals Council in Falls Church, Virginia may issue a favorable decision, dismiss the appeal, or remand it for a new hearing. Submit any additional evidence within 30 days of filing form HA-520.

4. Federal Court

Under 42 U.S.C. §405(g), dissatisfied claimants may file a civil action within 60 days of the Appeals Council’s denial. The U.S. District Court for the District of New Mexico has courthouses in Albuquerque, Santa Fe, and Las Cruces.

When to Seek Legal Help for SSDI Appeals

While claimants may represent themselves at every level, a licensed New Mexico attorney can substantially improve the odds of success, particularly during ALJ hearings where the burden of proof shifts to the claimant. Federal regulations cap contingency fees at 25% of past-due benefits or $7,200 (whichever is lower) per 20 CFR §404.1728. Attorneys must be licensed and in good standing with the State Bar of New Mexico. If you decide to work part-time while appealing, counsel can monitor your earnings to ensure you stay below SGA or properly document TWP months, reducing the risk of overpayment. Legal representation is particularly critical if:

• Your medical condition involves complex or rare diseases.

• You have been scheduled for a video hearing and require technical assistance.

• You are close to Medicare eligibility and cannot afford coverage gaps.

Local Resources & Next Steps

New Mexico State & Federal Agencies

• New Mexico Division of Vocational Rehabilitation (DVR) – Offers job placement and training for disabled workers. Phone: 1-800-224-7005.

• Ticket to Work Program – Provides free employment services for SSDI beneficiaries. Managed locally by DVR in collaboration with SSA.

• Disability Rights New Mexico – A federally mandated Protection & Advocacy agency offering free legal services for certain SSDI issues. Phone: 1-800-432-4682.

Major Medical Facilities Familiar with SSDI Documentation

• University of New Mexico Hospital (UNMH) – 2211 Lomas Blvd NE, Albuquerque, NM 87106

• Presbyterian Hospital – 1100 Central Ave SE, Albuquerque, NM 87106

• Memorial Medical Center – 2450 South Telshor Blvd, Las Cruces, NM 88011

Physicians at these institutions routinely complete Residual Functional Capacity (RFC) forms, a critical component of SSDI evidence. Make sure the RFC addresses sitting, standing, lifting, and mental limitations in line with SSA’s POMS DI 24510.050.

Your Next Move

Gather your denial letter, confirm the appeal deadline, and request your entire electronic claims file (eFolder) from SSA. If you plan to work, track every hour and wage using SSA-821 or SSA-820 forms. Finally, consult a qualified New Mexico disability attorney to map out a strategy customized to your vocational profile and medical evidence.

Legal Disclaimer

This article is for informational purposes only and does not constitute legal advice. Laws and regulations change, and individual circumstances vary. Consult a licensed New Mexico attorney for guidance on your specific situation.

If your SSDI claim was denied, call Louis Law Group at 833-657-4812 for a free case evaluation and claim review.