Returning to work while receiving Social Security Disability (SSD) benefits can feel overwhelming. Many people worry about losing their benefits or facing financial instability. Misunderstandings about how the Social Security Administration (SSA) handles employment often discourage individuals from re-entering the workforce. Clearing up these misconceptions helps people make informed decisions about their financial future.
SSD benefits do not stop immediately after returning to work
Many believe that SSD benefits end as soon as a recipient starts working. However, the SSA provides work incentives, such as the Trial Work Period (TWP). During this period, individuals can test their ability to work for up to nine months without losing their benefits. Even after the TWP, an Extended Period of Eligibility allows benefits to continue for 36 months if earnings remain below the Substantial Gainful Activity (SGA) limit.
Working does not automatically trigger a disability review
Some worry that returning to work will result in an automatic review of their disability status, potentially leading to a loss of benefits. While the SSA periodically reviews cases, employment alone does not immediately trigger a Continuing Disability Review (CDR). Instead, the SSA evaluates medical improvement and work activity together before making any decisions.
Part-time work does not lead to benefit loss every time
Another common myth is that any earnings will immediately disqualify a person from receiving SSD benefits. The SSA sets an SGA limit, which changes annually. As long as earnings do not exceed this amount, individuals can continue receiving benefits. Additionally, impairment-related work expenses may be deducted from total income, allowing recipients to earn more without exceeding the limit.
Returning to work does not necessarily mean losing Medicaid or Medicare
Many SSD recipients in California rely on Medi-Cal or Medicare for medical expenses. SSA work incentives, such as the Extended Period of Medicare Coverage, allow continued healthcare benefits even after returning to work. California also offers the Working Disabled Program, which allows individuals with disabilities who earn above traditional Medi-Cal limits to buy into the program at a reduced cost, ensuring continued access to healthcare while employed.
Programs like Ticket to Work provide free employment support, vocational training, and job placement services. These resources help SSD recipients re-enter the workforce with confidence while maintaining financial security. Understanding these programs can make returning to work a smoother process.
