by Alan Harder

From time to time on the PHCentral or PHA discussion boards, someone poses a question concerning work and how it impacts Social Security Disability and/or SSI. Invariably, the initial post draws comments from PH'ers who have encountered that issue.  Sometimes, however, those who respond try to conclude too much from too little; something that applied in one circumstance to one person might not apply for another. Below are some very general guidelines on working while receiving Social Security or SSI Disability.

Please note: This article can't replace a direct conversation with your Social Security office. If you have returned to work, or are thinking about returning, it's VERY important to get in touch with your local SSA office.  I want you to be comfortable making that contact without worrying that something terrible will happen; nothing can replace the tailored advice you'll receive from SSA while they are looking at your own record.

First, some myths:

One popular myth is: "You can't work at all while drawing disability."

That's absolutely false, both for Social Security Disability (SSDI) and Supplemental Security Income (SSI.) It's the "can't work at all" part that makes it so wrong. Going back to work doesn't automatically stop benefits under either program.

Another myth is: "My employer turns in my wages, so SSA will let me know if anything is wrong."

This is actually kind of true, but you may not like the outcome. Social Security does look at employer reports as part of their fraud prevention efforts. But ordinarily SSA won't know you've taken a job until your employer sends in a W-2 report. That's not until the next year, and SSA's computer match may be months after that. There are limitations on what you can earn and keep when you're also collecting social security so by the time they realize you're working, you may have been overpaid and have to return money to SSA. (As a part of your application, you have agreed - even if you do not recall it -- to tell SSA if you return to work. Failing to do that can bring a heap of problems so you will want to give SSA a heads up before you start working again.)

An Overview of Working While Disabled

Social Security has many incentives built into their programs to encourage you to return to work. Before your benefits are affected at all by work activity, they look at:

• The date you returned;
• The amount of your earnings;
• Whether your employer makes special considerations for you;
• Whether you have a "Ticket to Work";
• Whether you have unusual out-of-pocket expenses in order to be able to work; and
• If you've stopped working, how long you tried and why you stopped.

After all those things are considered, they'll decide what to do. Social Security and SSI are treated a little differently, so I'll list the main incentives separately:

If you receive SSDI:

Your cash benefits can usually be continued during a "trial work period" for a year or more regardless of the amount you earn;

Medicare coverage can continue, even if cash benefits stop;

Benefits can resume without a new application if your earnings drop within 3 years after your trial work period ends;

Your benefits can be reinstated without a new medical evaluation if your work stops within 5 years after your entitlement ended and you are still disabled by the same medical condition.

You can get training and assistance to help return to work.

If you receive SSI:

Only parts of your wages are subtracted from your benefits;

If your Medicaid coverage was based on SSI, it may continue even after SSI cash benefits stop; and

Your benefits can be reinstated without a new medical evaluation if your work stops within 5 years after your last check and you are still disabled by the same medical condition.

You can get training and assistance to help return to work.

You may be able to exclude some income and resources if you need them to support a PASS-a Plan For Achieving Self-Support.

A More Complete Story:

Frankly, I can't tell the longer story better than Social Security does in their excellent online pamphlet:  Working While Disabled-How We Can Help

My advice is to look there for additional detail. If you have more questions, I'll be glad to address them via the Action Desk link, but the pamphlet should answer many of your questions.

A Few Extra Observations:

1. The work incentive provisions above only apply AFTER your SSDI/SSI benefits start.

If you return to work for substantial wages ($1000/month in 2010) while your claim is in process, your claim may be denied before your disability has been confirmed through medical evaluation. The reason: It's hard to conclude you are so disabled that you can't earn a substantial wage at the same time you're actually doing just that. Alternately, if you'd already been off more than a year, Social Security might find that you were entitled to a "closed period of disability."  In that case they would send you back pay, but no continuing monthly checks.

2. Social Security conducts periodic medical reviews to see if your condition has improved. Those reviews are largely independent of your work attempts. Most PH'ers are reviewed every 3 to 7 years. An exception is a transplant patient. If you had a lung transplant before your disability claim was approved, your claim will likely be reviewed about a year later to see how you are doing.

3. A medical review will not be conducted if you activated a
"Ticket to Work" before SSA selected your case for review and you continue to follow the ticket. (If they selected your case for review before you activated a "Ticket" the review will still be conducted.)

4. Don't try to conceal your earnings. It occurs to some folks to try that by asking an employer to pay them "under the table" or report their earnings under someone else's Social Security number. While Social Security is very supportive and helpful of attempts to work when you tell them up front, efforts to conceal work can bring many unpleasant results. "How would they know?" Shakespeare's admonition about the "tangled web we weave when first we practice to deceive" has an uncanny way of tripping people up. My advice—just play it straight.

If you and your Dr. think it's OK to give work a try, go for it! Just remember to include Social Security in your planning; you'll find them a strong ally.

Read Alan Harder's other articles:
Social Security Claims—Making Your Efforts Count
Social Security Claims—What's in YOUR File?
Alphabet Soup Spelled Out—(Where Your Disability Claim Goes After it's Filed.)

Have a Question?  Ask the PHC Action Desk
If you're looking for information about Social Security/Disability, we may be able to help. Alan Harder is here to answer your questions.
Submit a Social Security/Disability Question to Alan Harder

Ed. Note:
Alan Harder worked for Social Security for many years. To learn more about the author, visit his bio on the PHC Staff Page.