What Should You Know About Employment While Receiving Disability Benefits?

Employment While Receiving Disability Benefits

Navigating employment while receiving disability benefits can be a complex process, but understanding some key aspects can make the journey smoother. Whether you’re considering returning to work or already have, knowing how these factors influence your benefits is crucial. 

From the Trial Work Period (TWP) that lets you test the waters of employment to Substantial Gainful Activity (SGA) thresholds that could impact your eligibility, and finally, the Extended Period of Eligibility (EPE) offering additional support – grasping these elements helps ensure financial stability and informed decision-making as you transition back into the workforce.

3 Things You Should Know About Employment While Receiving Disability Benefits

Unemployment due to Disability

1. Substantial Gainful Activity (SGA)

Understanding Substantial Gainful Activity (SGA) is crucial when you’re receiving disability benefits. SGA determines if the Social Security Administration considers your work significant enough to impact your eligibility for disability benefits.

In 2024, earning more than $1,550 per month generally qualifies as SGA. Once you exceed this amount, your SSDI benefits could be affected or even terminated.

However, it’s essential to remember that certain expenses related to your impairment and necessary work equipment can sometimes be deducted from your earnings. This might help you stay under the SGA threshold longer.

Knowing these rules intimately will help you make informed decisions about returning to work while maintaining financial stability. Ensure you’re up to date with the Iowa SSDI program’s eligibility requirements because they outline limits and exceptions that apply in most scenarios.

2. Trial Work Period (TWP)

The Trial Work Period (TWP) offers a valuable opportunity for you to explore employment while still receiving your disability benefits. Lasting up to nine months within a rolling 60-month window, this period allows you to test your work capabilities and see if returning to the workforce is feasible for you.

During the TWP, you’ll continue to receive full disability benefits regardless of how much you earn, as long as you’re reporting your work activity and have a qualifying disability. For 2024, any month in which you make over $1,110 will count as one of your nine trial months.

This safety net lets you transition slowly back into work without the immediate worry of losing essential support. It provides peace of mind and reduces financial anxiety when contemplating rejoining the workforce after a period of disability.

3. Extended Period of Eligibility (EPE)

The Extended Period of Eligibility (EPE) is a crucial safety net for individuals transitioning back to work after their Trial Work Period. Spanning 36 months, the EPE begins after your TWP ends and ensures that you continue to receive benefits during any month you earn below the Substantial Gainful Activity (SGA) threshold.

During this period, even if your earnings exceed the SGA limit in some months, your benefits will be reinstated without having to reapply if your earnings dip below the threshold again. This flexibility helps mitigate the financial risks associated with fluctuating income, which can often occur when readjusting to a work environment.

The EPE provides security for those navigating unpredictable job markets or dealing with health issues that affect consistent employment. It gives you peace of mind knowing there’s ongoing support as you reintegrate into the workforce.

Don’t Overlook These Facts About Disability Benefits

Taking the leap to return to work while receiving disability benefits is a significant step, and understanding these key elements can help you navigate it successfully. Stay informed, keep track of your earnings, and utilize opportunities like the Trial Work Period and Extended Period of Eligibility. These provisions are designed to support you through this transition. 

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