Frequently Asked Questions: Wages and Social Security Disability Insurance

Disability Benefits 101: working with a disability in California

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1) What happens when I work while receiving benefits from the Social Security Disability Insurance (SSDI) program?

2) How does the Trial Work Period (TWP) and the Extended Period of Eligibility (EPE) work?

3) I have extra expenses when employed due to my disability. What are Impairment Related Work Expenses (IRWEs)?

4) If I have to stop working after I used all of Social Security's work incentives, can I re-apply for benefits without submitting a new application?

5) Are there any Social Security programs that can help fund my preparation for the workforce?

6) Can I be eligible for more than one Trial Work Period or Extended Period of Eligibility?

1) What happens when I work while receiving benefits from the Social Security Disability Insurance (SSDI) program?

Social Security's work incentives, as well as the new Ticket to Work program, may support your efforts to re-enter the workforce. There are two time periods Social Security uses when you start earning income while remaining disabled according to Social Security rules. These are time periods that will allow you to earn income and stay connected to your benefit eligibility. They are called the Trial Work Period and the Extended Period of Eligibility.

As you consider working, keep these definitions in mind:

The Social Security Administration (SSA) defines disability as an inability to work due to a disabling condition that will continue for at least one year. Therefore, your disability will very likely be questioned if you work during your first year of disability benefits.
SSA defines working as any activity that generates earned income.
SSA defines earned income as the gross (before taxes) amount of income you receive.

2) How does the Trial Work Period (TWP) and the Extended Period of Eligibility (EPE) work?

The Trial Work Period is the nine trial work months occurring within a five-year window when you receive full Social Security Disability Insurance (SSDI) monthly benefits and work. These work months can be one right after the other (consecutive) or occur one at a time (non-consecutive.) The trial work months add up to what Social Security calls a Trial Work Period only if they all occur within five years (60 months) of each other. Social Security calls this the Five-Year Window. The Extended Period of Eligibility (EPE) is the 36 consecutive months which start at the end of the Trail Work Period. Different rules apply during this period.

In the Extended Period of Eligibility, any month in which gross earnings (income before taxes) at least $900 (for 2007), your wages are at what Social Security calls Substantial Gainful Activity (SGA). The SGA earnings for blind beneficiaries is different, in 2007, SGA for the blind $1,500.

The first time you have wages at the Substantial Gainful Activity (SGA) level (or higher) during the Extended Period of Eligibility or after this period, you receive a 3-monthgrace period in which you will continue to receive the full SSDI benefit regardless of wage amounts.

During the 36 consecutive months of the Extended Period of Eligibility when your gross earnings are $900 or more (SGA), you are not entitled to a benefit check for that month. If gross earnings fall below SGA or you stop working, you are again entitled to a full monthly benefit payment. There are no new application or waiting period when earnings fall below Substantial Gainful Activity levels. At the end of the 36-month Extended Period of Eligibility, if you continue or begin to earn Substantial Gainful Activity (or more) per month, your SSDI claim will end.

For the five years after this Extended Period of Eligibility, if your earnings fall below Substantial Gainful Activity due to your disabling condition, you may request to be re-instated without a new application. The provision is called Expedited Re-Instatement to Social Security benefits.

See this explanation of the SSDI work rules for further details.

3) I have extra expenses when employed due to my disability. What are Impairment Related Work Expenses (IRWEs)?

Impairment Related Work Expenses are documented expenses for services or items related to one's impairment that you pay for in order to support work activities. Wheelchair repairs, out of pocket payments for prescription medication or medical services, or a computer screen reader are examples of IRWEs.

IRWEs must be verified with original receipts or canceled checks.
IRWEs are approved at the local Social Security field office on a case-by-case basis.
There is no fixed list of approved IRWEs.

4) If I have to stop working after I used all of Social Security's work incentives, can I re-apply for benefits without submitting a new application?

Yes. Social Security has an easy to use Expedited Reinstatement of Benefits form. If your benefits ended due to employment, benefits can be reinstated immediately if you received Supplemental Security Income or Social Security Disability Insurance. You can receive these benefits for six months while Social Security decides if you are disabled and meet all of the conditions:

Supplemental Security Income and Social Security Disability Insurance benefit payments were stopped because of earnings from work;
You are unable to work or perform Substantial Gainful Activity, earnings of $900 per month in 2007, because of impairment(s) that are the same as or related to those of the original disability; and
The request for reinstatement is submitted within 5 years of the month the benefits ended and for the original disability.

5) Are there any Social Security programs that can help fund my preparation for the workforce?

Yes. One of them is the Plan for Achieving Self Support Program (PASS). The PASS program allows certain people with disabilities to set aside earned or unearned income. Social Security will exempt this income when it is placed into an approved PASS plan and used towards a vocational goal, such as college or a training school. PASS is a Supplemental Security Income (SSI) program. You must meet SSI financial rules to use the program. A detailed application is required. PASS can be a valuable tool for competitive employment.

6) Can I be eligible for more than one Trial Work Period or Extended Period of Eligibility?
Yes. You can be eligible for a new 9 month Trial Work Period, 36 month Extended Period of Eligibility and 3 month Grace Period. To qualify: You leave the workforce due to disability; You become eligible again for Social Security Disability Insurance; and, You are eligible for Social Security Disability Insurance for 24 months or more.

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