Key Takeaways
- In 2026, monthly Social Security Disability Insurance (SSDI) benefits may be paid to recipients as long as the recipient’s countable income is under the substantial gainful activity limit of $1,690 a month for people who are not blind, or under the substantial gainful activity limit of $2,830 for those who are blind, as long as the recipient is otherwise eligible. The recipient’s earnings may be monitored during this time, and work incentive programs are available to help the recipient maintain eligibility.
- Recipients also have a trial work period, which is a 9-month trial to see if the recipient is able to perform at a level of gainful activity. The trial work period has a “rolling” window of 60 months. After the trial work period ends, the recipient becomes eligible for an extended period of eligibility (EPE), which extends the recipient’s eligibility for 36 months from the end of the trial work period.
- Recipients may utilize the Ticket to Work program to provide themselves with job training or employment assistance. If you are receiving SSI or SSDI but your benefits have been stopped because of a job or wages, you may be able to apply for expedited reinstatement by showing that you cannot continue working at a substantial level and meeting other SSA requirements for reinstatement.
Your Search for Help Ends Here.
Get FREE Legal Advice Now!
Book Consult
Call NowThe minute you sign with Shuman Legal® – we start working.
Navigating Part-Time Work While on Disability
If you’re an SSDI recipient, you’ll likely be happy to learn that you are allowed to keep working, although your benefits will depend on your earnings and SSA eligibility rules. Your continued eligibility for SSDI is contingent upon your continued income; if you earn too much money, the Social Security Administration (SSA) has a series of work limits that could result in either a suspension or termination of your benefits. The SSA defines what constitutes “Substantial Gainful Activity” (SGA) for the purposes of determining eligibility. The 2026 monthly substantial gainful activity (SGA) limits are $1,690 for non-blind individuals and $2,830 for statutorily blind individuals; however, these limits generally apply to work evaluations for claimants of SSDI, while separate income and eligibility rules govern SSI benefits claims. It’s thus crucial for anyone applying for a part-time job while receiving disability benefits to understand the work and earnings rules that apply to their specific benefits.
But what if you find a job that pays significantly over the SGA limit? Don’t count yourself out of consideration. The SSA has many special employment incentives that provide flexibility with respect to earning potential when it comes to employment.
Reporting Income Changes to Social Security
The first way to protect your rights when you make a transition from full-time to part-time work will be to let the SSA know about the new job or changes that you may experience with respect to your income. Consider how receiving a large settlement check may affect your SSI eligibility prior to depositing or spending these monies, as large amounts received through personal injury settlements have different treatment options in terms of both SSI and SSDI. However, any additional income, such as your part-time wages, could result in an overpayment or underpayment of your Social Security benefits.
The SSA requires that recipients report income changes to them within a time frame (SSA has certain deadlines for reporting income changes), as well as the SSI recipient’s obligation to report changes in general no later than the 10th day of the next month after the change occurs. This will enable them to accurately determine your eligibility for the correct amount of benefit payments.
The Impact of Additional Income on Benefits
You may wonder how a part-time job will affect your Social Security Disability Benefits. The monthly SGA amount is either $1,690/month for non-blind individuals or $2,830/month if you are blind, although the effect on SSDI will depend on your individual work incentive situation. There are several strategies available to allow you to work at a level above those amounts, yet still maintain your Social Security disability benefits.
Some of these methods include using “job-related” expense deductions. Certain qualifying disability related job costs are allowed as deductions in evaluating your income by SSA. This enables you to possibly make money that is over the SGA limits and therefore continue to receive your SSDI benefits. For example, if you pay for certain work-related items (disability related work expenses), they can be deducted from your gross income. This may help you remain under the SGA limits. In addition, employer-supported subsidies (such as extra support or lighter workload) may also assist you with maintaining your earnings at a level that remains within the acceptable benefit limits.
The Trial Work Period Explained
Now that we have reviewed the basics of balancing work with benefits, we will explore another type of benefit provided through the SSA: the Trial Work Period (TWP). The Trial Work Period (TWP) provides Social Security Disability Insurance (SSDI) recipients the opportunity to try working at some capacity for a defined period of time, while continuing to receive their disability benefits.
How does this work in real terms? An eligible SSDI recipient may earn any amount during the 9-month TWP and generally still be able to continue receiving full SSDI benefits as long as all other eligibility requirements are met. A Trial Work Period is made up of the months that an applicant for Social Security Disability Insurance (SSDI) who is disabled qualifies as working at his/her “qualifying work,” which typically would have included a month where he/she earns more than $1,210 in 2026 or meets the relevant self-employment test. For self-employed individuals, a month may be considered part of the Trial Work Period if the individual works more than 80 hours or exceeds the applicable monthly earnings threshold.
Maximizing Your Trial Work Period
The Trial Work Period (TWP) is an excellent time frame in which to test your capacity to work and be compensated by Social Security Disability Insurance (SSDI). It is, however, very important to note that the Trial Work Period (TWP) generally occurs only one time in the course of a particular disability entitlement; so plan carefully and keep track of the TWP months.
To optimize your TWP, begin tracking your utilized months and your earned income each month. Tracking these factors can help you take full advantage of your TWP and determine when you have completed nine qualifying trial work months. After the TWP is completed, SSA provides an extended period of eligibility, which includes a grace period of three months when work first causes disability benefits to cease. Thus, optimizing your TWP means taking advantage of up to nine months to evaluate job opportunities and earning potential, while generally continuing SSDI payments and potentially improving long-term financial security.
Navigating After the Trial Work Period
If your trial work period has been completed, then there are three possible paths that you could take. During the Extended Period of Eligibility, SSDI payments may be suspended for months when countable earnings reach the SGA level; however, payments can generally resume when earnings fall below that level, subject to SSA’s grace-period and eligibility rules.
If you find yourself to be unable to work at or above the SGA levels because of your disability, then Expedited Reinstatement may be available. With expedited reinstatement, you may be able to restart your SSDL benefits without having to file a new application if your disability benefits terminated due to work in the last five years and you meet all of SSA’s requirements for disability and reinstatement. Additionally, should your earnings fall below the SGA levels during the 36-month extended eligibility period, you may have your SSDI started again and won’t need to apply all over again if you continue to meet SSA requirements.
Extended Period of Eligibility and SSDI
Let’s take a closer look at how the extended period of eligibility works. The extended period is the 36 months of continued eligibility to receive payments while continuing to earn less than the applicable 2026 SGA limit, as long as you remain otherwise eligible. If SSA first finds that your earnings are above SGA at the end of your TWP, you may generally receive benefits for the initial cessation month when your earnings stopped and the two subsequent months, subject to applicable SGA rules.
After the Extended Period of Eligibility, SSDI benefits may continue if you remain eligible and your work is below SGA, but SSDI benefits can end if your work reaches SGA or you medically recover from your disability.
Understanding the Earnings Limit During EPE
As long as you do not make more than the applicable SGA limit during the EPE, you may continue to receive disability benefits, as long as you remain otherwise eligible. This SGA limit has increased from $1,220 for non-blind individuals in 2019 to $1,690 per month in 2026.
How can you possibly work and get paid more than that? Since you may deduct certain impairment-related expenses for work from your total earnings before they are counted toward determining whether you have reached the SGA limit, you can potentially earn more than the SGA limit without exceeding the applicable countable earnings threshold.
Your Search for Help Ends Here.
Get FREE Legal Advice Now!
An experienced Chicago Workers' Compensation Lawyer knows what needs to be done. The minute you sign with Shuman Legal® – we start working.
The Ticket to Work Program: An Overview
In addition to being able to manage part-time work with disability payments, we now need to discuss the Ticket to Work program. The Ticket to Work program provides job training and employment support to assist SSI/SSDI recipients in returning to work. A beneficiary is generally eligible for participation in the Ticket to Work Program if they are between 18 and 64 years old, receive SSI/SSDI (disability) benefits, and continue to be otherwise eligible.
The Ticket to Work Program has been developed using Employment Networks. The Ticket to Work program includes state vocational rehab agencies, while some American job centers may also provide services for jobs. Both types of networks provide key services to aid in the participant’s ability to reach certain employment and income thresholds. If you participate in the Ticket to Work program, you may have access to complimentary employment support services and protection from certain medical continuing disability reviews while you meet the program’s applicable requirements.
How the Ticket to Work Program Affects SSDI
The Ticket to Work Program does much more than provide assistance. It has the potential to greatly impact your Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). A participant in the TWP program may utilize their tickets to seek out services related to work preparation, job entry, and ongoing work-related issues; payments to the provider will be made under SSA’s applicable milestone and outcome payment rules. A recipient may continue to receive their SSDI cash benefits while participating in TWP, depending on their earnings threshold, status of work-incentive, and continued eligibility.
Additionally, certain Social Security Work Incentives may allow recipients to decrease their countable income and potentially continue receiving cash benefits while considering possible work options or looking for employment. If you’re concerned that you could lose your SSDI benefit entitlement because of your disability, do not worry. SSA has an expedited (five years) “safety net” for reinstating qualifications based on eligibility after the same or related disability causes a qualified individual to be unable to perform substantial work in their normal job. Additionally, work expenses directly attributed to your disability, such as transportation costs to and from work, or special work-related equipment, will be subtracted from your gross income when calculating your countable income.
Legal Implications of Working Part-Time on SSDI
Navigating the complex legal implications of applying for disability benefits while working part-time can certainly be intimidating, but do not allow it to discourage you from seeking assistance. An attorney experienced in SSDI matters can help guide an SSDI recipient through the application process in several ways, such as:
- Educating them on SSA requirements and compliance
- Assisting them with handling notice of overpayment letters
- Instructing them on their rights to contest, appeal, or apply for a waiver
- Stressing the significance of adhering to deadlines associated with these options
Seeking Free Consultation from Experienced Attorneys
While hiring an attorney can be expensive, it’s worth noting that most attorneys will give you a complimentary consultation; additionally, a legal firm has its own staff of experienced attorneys. In addition to providing your own insight into the possibilities of working while disabled and receiving disability benefits, consulting with an attorney experienced in SSDI law can also protect your rights as a client by explaining appropriate rules for continuing to receive disability benefits.
Shuman Legal Personal Injury Lawyers offer free initial consultations for eligible matters to discuss how part-time work could impact Social Security Disability benefits.
Balancing Medical Bills and Work Expenses
Some of the most difficult issues you will encounter when working part-time with SSDI will come in the form of juggling medical costs (bills) and work-related expenses. The healthcare provider may assert a lien against a recipient’s personal injury settlement for the amount owed for qualifying services rendered (if the lien is valid under applicable law) and thus that amount may have to be paid before the remainder of the settlement can be distributed to the recipient, in accordance with applicable Illinois lien laws and statutory limitations. Outstanding medical liens or review of government reimbursement claims sometimes may delay settlement proceeds.
The good news is, however, these barriers do exist, but they also have solutions. Recipients of disability benefits who choose to continue employment at a part-time level should consider using work-related deductions, which may allow them to earn additional money per week without adversely impacting their ability to receive benefits.
Financial Planning with a Disability Insurance Payout
Receiving your disability insurance benefit through an insurance provider requires good financial planning. Depending upon the terms of the personal injury settlement contract that has been finalized with both parties, as well as the length of time it takes for the insurance company to process the settlement, as well as any outstanding obligations for which you are responsible, the amount of time prior to receiving your settlement check can be variable. However, the exact time frame to receive your settlement check may depend upon how quickly required documentation is completed, settlement conditions are successfully met, and outstanding liens are addressed.
Once you have deposited the settlement check in your account, the bank may put a temporary hold on those funds under applicable banking rules, based on account circumstances. If a temporary hold applies, the bank is required to give you a funds availability disclosure and may need to provide some additional notices.
However, there may be several legally authorized or contractually agreed deductions made to your settlement check. Those deductions may include: agreed attorney’s fees, legal expenses, valid attorney or medical lien(s), and legally enforceable government or insurer reimbursement claims, subject to the agreement you made and applicable law. Valid and applicable deductions may reduce the overall value of the proceeds being paid to the beneficiary.
Safeguarding Medicare Coverage and Other Benefits
You can keep working for a living while receiving disability benefits, and your Medicare or Medicaid may remain active under applicable work-incentive rules, even if you are no longer eligible for cash disability payments. Some key items that you should be aware of include:
- For people who receive SSDI, Medicare may cover them for at least 93 months after the end of their trial work period, even if their SSDI payments stop because of work.
- Once an individual’s SSDI payments are discontinued because of earning income, he/she/they may still get Medicare Part A without having to pay premiums during the extended Medicare coverage period.
- Medicare Part B generally requires an individual to pay a monthly premium, regardless of whether they are receiving SSDI benefits. However, assistance may be available for certain eligible individuals who may need help paying this premium.
For individuals who are eligible for SSI, he/she/they may still qualify for Medicaid when his/her/their SSI is terminated for work activity, depending upon how much he/she/they earn and the specific Medicaid policy of each state. Under Section 1619 (b) of the Social Security Act, SSI recipients in Illinois who are eligible for Medicaid may continue to receive their Medicaid coverage while working at an amount that is over their monthly limit on earnings, if they do not meet the State’s 2026 standard earnings threshold of $47,756 or have an individually established amount.
Frequently Asked Questions
How long will it take for settlement money to hit the bank account after signing release?
Settlement funds may arrive in your bank account within several weeks after the release agreement has been signed and processed, and the timing depends on the specifics of the agreed settlement and any outstanding liens or payment requirements. Some settlements, including those of high dollar amounts, may result in periodic disbursements of funds as opposed to one lump sum when the parties agree to a structured settlement arrangement.
Will my SSDI be reduced if I work?
If your countable income is at or above the 2026 SGA limit ($1,690/month) or if you are legally blind and have a monthly income of at least $2,830, then your SSDI benefits may either be terminated or suspended based upon your work-incentive status.
How can I work without losing my SSDI?
You can continue to work while continuing to receive SSDI through the use of the Trial Work Period (TWP), which was developed by the U.S. Social Security Administration (SSA). The TWP allows you to test your ability to work for nine qualifying months within a rolling sixty-month period with no restrictions on how much you earn during those trial months. The purpose of this is so you can try to see if you can keep working without losing your SSDI benefit.
How much can I earn without affecting my SSDI?
The monthly SGA limits in 2026 are $2,830 for people who are statutorily blind, and $1,690 for non-blind people; however, qualifying SSDI work incentives may allow higher income without immediate loss of benefits.
It’s also important to remember that these figures do not include the potential for a Trial Work Period (TWP).
What is the most hours you can work on disability?
There is no specific number of hours that a self-employed individual may work in a month to continue receiving SSDI benefits; SSA will evaluate all aspects of your employment, including appropriate income, hours worked, and self-employment activities.
