Living with a disability often means facing both medical and financial challenges. For many Californians, Social Security Disability benefits provide a much-needed safety net. These benefits come through either Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). The federal government runs these programs, but they play by different rules.
California’s high cost of living often pushes people to look for extra income, even while on disability benefits. If you can work, you can do so and continue to receive your benefits. The extent to which you can work while receiving disability benefits depends on your benefits and income.
Whether you are using special programs that encourage people with disabilities to try working can also affect your work. You can make informed choices that protect your income and health with proper legal support.
Social Security Benefits in California
Social Security disability benefits are monthly payments for people who cannot work because of a serious medical condition. These benefits come from two main federal programs. They include the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
Social Security Disability Insurance, or SSDI, is a federal program. It provides monthly payments to people who cannot work because of a severe disability. To qualify, you must have worked and paid Social Security taxes in the past. SSDI is not based on your income or resources. Instead, it is based on your work history.
The more years you worked, the stronger your record. If you meet the medical and work requirements, you can receive benefits. SSDI gives people financial stability when health problems prevent them from keeping a job.
The program also comes with health benefits. After two years on SSDI, most people qualify for Medicare. This benefit is essential for individuals who need ongoing medical care. SSDI is different from Supplemental Security Income (SSI).
SSI is a need-based program. It is designed for people with minimal income and resources. You do not need a work history to qualify. Instead, the program looks at your financial situation and provides a modest monthly benefit to cover basic needs like food and housing.
Working While Receiving Social Security Disability Insurance
Many Californians who receive SSDI benefits still want to stay active in the workforce. Some hope to work part-time for extra income, while others want to test their ability to return to a regular job. Fortunately, Social Security allows you to work under certain conditions without losing your benefits. The rules include:
Substantial Gainful Activity (SGA)
Substantial gainful activity is the foundation of SSDI work rules. Social Security considers this level of work significant enough to show that you are not disabled. If you earn less than that threshold, you are usually safe. If you earn more, Social Security may say you are performing substantial work and may no longer be eligible for SSDI.
The SGA limit is not the same for everyone. People who are legally blind receive a higher limit. Additionally, the amount changes each year to account for inflation. This rule distinguishes between part-time or limited work and complete work that might end your eligibility. Many SSDI recipients in California choose flexible or part-time jobs. This allows them to earn extra income and stay below the SGA level.
Trial Work Period (TWP)
Social Security recognizes that individuals may wish to explore new opportunities. For this reason, they created the Trial Work Period (TWP). During the TWP, you can work and earn as much as you want while still receiving your full SSDI benefits. It lets you see whether you can handle a job without fearing losing your social security disability check.
The TWP lasts for up to nine months. These months do not have to be in a row. Any month your earnings pass a set level counts as one of your nine trial months. After using up all your nine months, your trial work period ends. This safety net encourages people to try working, even in higher-paying roles.
Extended Period of Eligibility (EPE)
After you finish the trial work period, you can move into the Extended Period of Eligibility. This lasts for 36 months, or three years. During the extended eligibility period, Social Security looks at your monthly income. You continue to receive benefits if your earnings remain below the SGA limit. Your benefits will end for the month if your earnings surpass the cap.
The social security system is flexible. If you take seasonal work during the holidays and exceed the SGA limit, you will not receive disability benefits for that month. However, you can continue to receive the benefits if your earnings drop in the coming months. The back-and-forth approach helps individuals who have fluctuating work hours.
Expedited Reinstatement
Sometimes people can work for a while, but then find their disability makes it impossible to keep up. Social Security allows expedited reinstatement under these circumstances. If you lost your SSDI benefits because you earned too much, but your disability forces you to stop working again, you can ask Social Security to restart your benefits. You do not have to go through the lengthy application process again.
The expedited reinstatement can offer relief for someone whose health changes suddenly. For example, if you return to full-time work, you could lose your social security disability benefits. However, your health could deteriorate after a while, which causes you to work and earn less. In this case, you could get your benefits back faster without undergoing the lengthy application process.
Working While Receiving SSI
SSI has a different set of rules. Since it is a needs-based program, almost any income you receive can affect the amount of your monthly check. However, not all incomes are counted in the same way.
Income Rules
If you work while receiving SSI, Social Security reduces your monthly payment. The reduction is not dollar-for-dollar. The program ignores a small part of your earnings first. The program then reduces your SSI check by a portion of the remaining earnings.
It means you can still work while receiving these benefits. For example, if you earn a small paycheck, your SSI will go down. However, you will often have more money than if you did not work. The rule encourages people to take part-time jobs. It also allows you to increase their income without instantly losing all their SSI support.
Resource Limits
SSI also has strict resource rules. To qualify, you must not have more than a set amount in assets. This category includes money in the bank or valuable property. Your home and one car do not count. However, extra savings or property might. You need to track your earnings and what you own while receiving SSI. If you go above the resource limit, you may lose SSI.
Work Incentives for SSDI
In addition to the main rules, special work incentives make it easier to try working. They include:
- Impairment-Related Work Expenses (IRWEs). If you spend money on things you need to work because of your disability, Social Security may deduct those costs from your earnings when deciding if you are above the SGA limit. These include special transportation, medical devices, or personal assistance.
- Unsuccessful work attempts. If you try working but cannot continue because of your disability, Social Security may not count that period of work against you. This happens when you begin a job that you cannot push through with because of eth disability.
- Continuation of Medicare coverage. Even if your SSDI checks stop because of work, you may keep Medicare coverage for several years. The continuation ensures you do not lose health insurance.
- Ticket to Work. The Ticket to Work program helps people on SSDI or SSI return to work. It is free and voluntary. The program connects you with approved employment networks and vocational rehabilitation services. These groups provide job training, career counseling, and placement support.
Tips for Working While on Disability
Working while receiving disability benefits can feel overwhelming. The rules on how much you can work are detailed. But, depending on the direction, you can protect your benefits and enjoy additional work income. Here are tips to keep organized and avoid common problems:
Know the Program You are On
The first step is to determine whether you receive SSDI or SSI. Each program has different rules. SSDI focuses on substantial gainful activity and trial work periods. SSI focuses on income and resource limits. If you do not know which program you are in, you can call Social Security or check your award letter.
Report Your Earnings
If you are trying to work while receiving social security disability benefits, you must always report your earnings. You should immediately inform Social Security when you start a job and send your pay stubs regularly. Failure to do these tasks could result in overpayments. Reporting on time will prevent surprises.
Track Your Hours and Income
If you have a social security disability, you should keep your work history. In addition to the hours you work, you can write down the monthly wages. This is important for SSDI because trial work months and SGA levels matter. Having your notes helps if there is a question about your earnings.
Use Work Incentives
You should learn about work incentives if you want to work while receiving social security disability benefits. These include impairment-related work expenses, student income exclusions, and other deductions. They allow you to keep more of your benefits while working. A benefits counselor can explain the ones that apply to you.
Seek Legal Guidance
You should not be afraid to ask for help while dealing with social security issues. Disability lawyers, local nonprofits, and Social Security offices in California can guide you. They understand the rules and can explain how work will affect your specific benefits. Professional advice can give you peace of mind about your financial future.
Rules for Self-Employed SSDI Recipients
Not everyone works as an employee. Many people in California are self-employed. They may run small businesses, freelance, or work in the gig economy. If you are self-employed and receive SSDI, the rules differ slightly from those for regular employees.
Social Security considers whether you are doing substantial gainful activity (SGA). They also consider your work type and hours, not just your income. Self-employed people can sometimes control how they report income and expenses.
Social Security uses three tests to decide if your self-employment shows you can work at the SGA level. They include:
- Significant services and a substantial income test. Social Security may decide you are engaging in SGA if you provide significant services to your business.
- Comparability test. If your work is similar in quality and amount to what non-disabled people in your community do for their businesses, Social Security may consider it SGA.
- Worth of the work test. If your work is worth more than the SGA limit, Social Security may also count it as SGA.
Your work hours in self-employment could affect your eligibility for Social Security disability. Social Security may see this as significant if you consistently work more than 45 hours monthly in your business. If you are a self-employed SSDI recipient, you should keep detailed records. Honest reporting protects your benefits and ensures you stay within the rules.
Find Expert Legal Insight Near Me
In California, you can still work while receiving Social Security disability benefits. While you can earn some income, too much work or high income may disqualify you from the benefits. The rules for working while receiving disability benefits are different for SSDI and SSI.
SSDI focuses on whether your work counts as substantial gainful activity. Furthermore, trial work periods and safety nets to help you test your ability to return to work apply. For SSI, the focus is on income and resources, with your monthly check reduced as your earnings rise.
Following the rules and keeping Social Security informed can let you work without losing your benefits. If you are thinking of working while receiving your disability benefits, you should consult a reliable benefits attorney. At Leeland Law, we offer expert legal insight for clients seeking guidance on different state benefits. Call us at 866-449-6476 to discuss your situation.
