How Long Will Social Security Continue While I Work?

Generally, you’ll receive your full monthly Social Security benefit for a year after you return to work. If you continue to work beyond that while still disabled, your eligibility for monthly cash benefits will continue for at least another 36 months. Here’s how it works:

You usually can have a trial work period of nine months (not necessarily consecutive) during which your benefits will not be affected by your earnings regardless of how much you earn. A trial work month is any month in which your total earnings are more than $530 or, if you are self-employed, you earn more than $530 (after expenses) or spend more than 80 hours in your own business. When nine trial work months are successfully completed within 60 months, we review your work to see if your earnings are "substantial." (Generally, more than $740 per month is considered "substantial" earnings.) If they are, your benefits would continue for a three-month grace period and then stop.

However, if you are still medically disabled and continue to work in spite of your disability, your benefits can be reinstated anytime during the next 36 months. During this time, you will receive your full Social Security benefit for any month your earnings fall below $740. Benefits would continue as long as you remain disabled and your earnings do not exceed $740 a month.

How Much Can I Earn Before I Start Losing Benefits?

Usually, earnings of more than $740 a month are considered substantial. If your earnings average less than $740 a month, your benefits generally would continue indefinitely.

If your earnings average more than $740 a month, this is considered an indication of your ability to work.

During the trial work period, there are no limits on your earnings. During the 36-month extended period of eligibility, the $740 level is the cutoff point. But, under another work incentive rule explained in the next answer, the work expenses you have as a result of your disability are deducted when we count your earnings to see if they affect your benefits. This means your earnings could be substantially higher than $740 before they affect your benefits.

What Kind Of Help With My Work Expenses Can I Expect?

We deduct work expenses related to your disability from your earnings before we determine your continued eligibility for benefits. These expenses may include the cost of any item or service you need to work, even if the item or service also is useful to you in your daily living. Examples include a seeing eye dog, prescription drugs, transportation to and from work (under certain conditions), a personal attendant or job coach, a wheelchair or any specialized work equipment.

What Happens If I Lose My Job?

If you lose your job during a trial work period, your benefits are not affected. If you lose your job during the 36-month, call us and your benefits will be reinstated as long as you are still disabled. You do not have to reapply for benefits or undergo any "waiting period" as you did when you first applied for disability benefits.

If you become unable to work due to your disability within 60 months after you complete the extended period of eligibility, your benefits could be reinstated immediately without a new application or waiting period.

How Long Would Medicare Continue Once I Start Working?

Your Medicare coverage will continue through the trial work period and may continue for at least 93 months after the trial work period if you are still disabled. During this period, your hospital insurance coverage is free. When your Medicare coverage runs out after this period and you are still disabled, you may purchase the same coverage for a monthly premium.

What About Help With Rehabilitation, Training Or Education?

If you are likely to benefit from rehabilitation, you are referred to a state rehabilitation agency or private organization for rehabilitation services. Social Security pays for the services if you are successfully rehabilitated. If you recover from your disability while in an approved rehabilitation or training program that is likely to result in your becoming self-supporting, benefits will continue until the program is over.

For example, if you were in a nurse’s aide training program and your condition improved so that you were no longer disabled, benefits ordinarily would stop. But if you have contacted Social Security and we are aware of your participation in the program and have approved it, then your benefits would continue until the program is over. For more information on Social Security and vocational rehabilitation, ask for the special leaflet, How Social Security Can Help with Vocational Rehabilitation (Publication No. 05-10050).

How Do I Find Out If I Can Work Again?

Just notify any Social Security office that you want to start working on a trial basis. If a periodic review of your condition was scheduled, we will put it off until your trial work period is over.

Are There Special Rules For Blind Workers?

If you are a blind person who works while receiving Social Security benefits, special rules apply to you.

Example Of What Happens When You Work Under Social Security While Disabled

Pamela Watson, age 24, was receiving disability benefits of $557 a month based on a childhood condition that made it difficult for her to walk. She wanted to work but was afraid of losing her benefits and Medicare. When she discussed this with a Social Security representative, she was told about disability work incentives under which she could work and still get cash benefits and Medicare. She found out that for the first nine months of work, her benefits would not be affected no matter how much she earned. Pamela started working in a local laundry part time and earned $850 a month. Here’s how her income changed:

At the end of the nine months of work, Social Security evaluated Pamela’s work to see if it was substantial. Since she was earning more than $740, her work was considered substantial. Her benefits continued for three more months and then stopped. However, because she still was disabled, her benefits could be reinstated anytime during the next 36 months if her earnings dropped below $740. During the first year after her trial work period, her company relocated outside the city, where there were no bus lines. She hired a neighbor to drive her to work and paid a co-worker to take her home. Her transportation expenses totaled $120 a month.

In addition, she purchased a special motorized wheelchair so she could get around the new suburban plant. This cost $75 a month. Let’s figure Pamela’s "countable" earnings after deducting her impairment-related work expenses:

Because her countable earnings are less than $740, Pam’s Social Security checks were reinstated. Her total net income now is:

After a year, she paid off the motorized chair and she received a $340 raise. Her earnings increased to $990 a month. Her countable earnings now are:

Because her countable earnings now exceed the "substantial" level ($740), her Social Security benefits will stop. As you can see, at each point in her working life, Pamela’s income was greater than it would have been if she had not worked. In addition, her Medicare coverage continued for 93 months following the trial work period.

Source: Social Security Administration, 2001.

This publication is for general informational purposes only and it is not intended to provide any reader with specific authority, advice or recommendations. Where you deem necessary, we suggest that you seek advice regarding your particular situation from the appropriate professional.

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