When a medical or mental health condition prevents you from working, you may need to apply for Social Security Disability Insurance (SSDI) benefits. The Social Security Administration (SSA) takes a keen interest in how much you earn—both during the evaluation period and going forward after you are approved. To get a better idea of what the SSA expects of recipients in terms of income, read on.
Income Counted
The SSA won't approve you for benefits if you are still working at a job—no matter what. They reason that if you are able to earn money, you don't need SSDI benefits. Once you are approved, however, there are a few ways to earn income and stay on the right side of the SSA. The amount you can earn each month can change yearly and you must report all income to the SSA. In most cases, SSDI recipients will be challenged to live on the monthly benefit provided by the SSA and will need to bring in more money. An approved applicant may earn $1,260 (for the year 2020) but not all forms of work are allowed. For example, if the income you are earning comes from performing work that is essentially the same as the job you had to quit due to a condition, your benefits could be cut. That includes part-time work.
Income Not Counted
Not everything is counted towards the $1,230 a month allowed, however. The below forms of income are exempt from SSA allowances:
- Your spouse's income.
- Money given as a gift and money from lottery and gambling wins.
- Inheritances that include cash or the equivalent.
- Rental property income.
- Interest income from investments and savings.
- Money used to pay for certain disability-related needs. For example, if you used $300.00 to pay for a wheelchair repair, that expense can be deducted.
The Trial Work Period
The SSA offers workers who meet the guidelines another way to earn income. The trial work period (TWP) program allows workers to earn an unlimited income for a limited amount of time. TWP rules can be confusing, and it's easy for any applicant to run afoul and have their benefits taken away. Be sure you understand exactly how you can legally earn money and still receive your monthly check.
To help applicants with the appeals process, the SSA has set up a program that provides a way to get affordable legal help. Speak to a Social Security lawyer, like Todd East attorney at law, about how to get your benefits started or re-started again by appealing a ruling.
