Social Security does not want to penalize people who are receiving disability benefits and attempt to work so it has developed many different guidelines focusing on work attempts and trial work periods. During a period of time Social Security will allow beneficiaries to work and collect disability benefits. Understanding these rules can help avoid owing Social Security money if a person successfully works for a longer period of time and is collecting benefits at the same time. Below are some rules related to work attempts and trial work periods.
Unsuccessful Work Attempt
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) – An unsuccessful work attempt is an effort by a disabled individual to do substantial work that either stopped or produced earnings below the Substantial Gainful Activity level after 6 months or less because of:
The individual’s disabling condition, or elimination of the special services or assistance that the individual needed in order to work.
SSI – Unsuccessful work attempts are not factors when we calculate your SSI payment amount.
Trial Work Period
SSDI – The trial work period allows you to test your ability to work for at least 9 months. During your trial work period, you will receive your full disability benefit regardless of how much you earn as long as your work activity has been reported and you continue to have a disabling impairment. The 9 months does not need to be consecutive and your trial work period will last until you accumulate 9 months within a rolling 60-month period. Certain other rules apply.
Extended Period of Eligibility
SSDI – If your disability benefits stop after successfully completing the trial work period because you worked at the substantial gainful activity (SGA) level, we can automatically reinstate your benefits without a new application for any months in which your earnings drop below the SGA level. This reinstatement period lasts for 36 consecutive months following the end of the trial work period. You must continue to have a disabling impairment in addition to having earnings below the SGA level for that month.
Continuation of Medicare Coverage
SSDI – Most persons with disabilities who work will continue to receive at least 93 consecutive months of Hospital (Part A); Supplemental Medical Insurance (Part B), if enrolled; and Prescription Drug coverage (Part D), if enrolled, after the 9-month Trial Work Period. You do not pay a premium for Part A. Although cash benefits may cease due to work, you have the assurance of continued health insurance. (93 months is 7 years and 9 months.)
Medicare for People with Disabilities Who Work
SSDI- After premium-free Medicare coverage ends due to work, some persons who have returned to work may buy continued Medicare coverage, as long as they remain medically disabled. Some persons with low incomes and limited resources may be eligible for state assistance with these costs under various Medicare Savings Programs. Your state Health and Human Services agency makes the determination about whether you qualify for this help.
