Understanding Social Security’s Trial Work Period

People receiving Social Security Disability Insurance (SSDI) benefits face a difficult decision if they feel they would like to try and work. Do they go to work and risk making too much money, which would cutoff their disability benefits, or do they decide not to work and continue collecting benefits? Luckily people don’t have to choose one or another. Social Security instituted the trial work period, which allows people to continue to receive benefits while working for a specific period of time.

During a trial work period, a beneficiary receiving Social Security disability benefits may test his or her ability to work and still be considered disabled. We do not consider services performed during the trial work period as showing that the disability has ended until services have been performed in at least 9 months (not necessarily consecutive) in a rolling 60-month period. In 2017, any month in which earnings exceed $840 is considered a month of services for an individual’s trial work period. In 2018, this monthly amount increases to $850.

How The Trial Work Period Is Triggered

Monthly earnings in 2018, used to determine whether a month is part of a trial work period, is such amount for 2001 multiplied by the ratio of the national average wage index for 2016 to that for 1999, or, if larger, such amount for 2017 ($840). If the amount so calculated is not a multiple of $10, we round it to the nearest multiple of $10. Below are details on how we determined the latest amount.

The Calculation

Amounts in

Formula                                  2001 monthly earnings  $530

1999 average wage index         30,469.84

2016 average wage index         48,642.15

 

Computation                           $530 times 48,642.15 divided by 30,469.84 equals $846.09, which rounds to $850

 

Higher amount                       $850 exceeds the amount for 2017, so the amount for 2018

is $850