Understanding Work and Disability Benefits: Reporting Obligations and Impact on Benefits

The short answer is YES! Social Security offers several options for people receiving Social Security disability benefits as well as Supplemental Security Income (SSI) to receive their monthly payments while also working.

These incentives include:
– A time period where your cash and Medicare or Medicaid benefits continue while you try out working
– Training, rehabilitation and education on new lines of work

Many also worry about having to redo the application process if they cannot continue working. Social Security may even allow you to stop working and continue your benefits without a new application if the new position does not work out.

Of course SSI and disability have different rules. We hope to clarify them in this article. If you are receiving benefits it is always important to report to the Social Security Administration any changes in employment.

The Social Security Ticket to Work program is a free and voluntary program that helps people with disabilities who receive Social Security disability benefits (SSDI or SSI) return to work or start working for the first time. It provides them with the resources and support they need to succeed in the workforce.

Here are some key things to know about the Ticket to Work program:

–Eligibility: You must be between the ages of 18 and 64 and receive SSDI or SSI benefits due to a disability or blindness to be eligible for the Ticket to Work program.

–Services: The program provides a variety of free employment services, such as career counseling, job placement assistance, vocational training, and support services. These services can help you with everything from developing a resume and cover letter to finding a job that is a good fit for your skills and interests.

–Service providers: You can choose to work with one of two types of service providers: Employment Networks (ENs) or State Vocational Rehabilitation (VR) agencies. ENs are private organizations that have been certified by the Social Security Administration to provide Ticket to Work services. VR agencies are state-run agencies that provide vocational rehabilitation services to people with disabilities.

–Benefits: There are many benefits to participating in the Ticket to Work program. 
Some of the benefits include:
Increased earning potential
Greater independence and self-sufficiency
Improved job skills and qualifications
A sense of accomplishment and purpose

www.ssa.gov

If you are interested in learning more about the Ticket to Work program, you can visit the Social Security Administration’s website or call their Ticket to Work Help Line at 1-866-968-7842.

As long as you report your employment to the administration and you continue to have a disability you may test your ability to work for at least 9 months. During this period you can collect your regular monthly benefits regardless of what you are earning. In 2024, a month counts toward your trial work period if your gross earnings exceed $1,110 before taxes.

Here are some resources for further information:
Social Security Administration’s website: https://www.ssa.gov/myaccount/
Ticket to Work Program website: https://choosework.ssa.gov/
SOAR Works! page on SSDI work incentives: https://www.samhsa.gov/homelessness-programs-resources/soar

Lets say you are self employed but also collecting disability and your trial period is over. Unfortunately, what you do is seasonal and you end up making less than substantial earnings ($1,550 per month for non-blind individuals). Social Security actually allows you to still receive your benefits for any month your sales are low for 36 months after the trial work period. During this period no new application is required either.

If you exceed the 36 months Social Security offers expedited reinstatement you have 5 years to restart your benefits if you cannot keep working because of your disability/condition. No new application or wait for reinstatement.

If you receive Medicare Part A coverage it will continue for at least 93 months after the trial work period. After it is done you can continue coverage by paying a monthly premium. For Part B coverage simply continue to pay your premium.

To understand how your benefits may be affected it is important to understand the limits of the Substantial Gainful Activity (SGA).

This refers to an amount of earnings that indicate someone is unlikely to be disabled to the extent that they cannot work. In 2024, the SGA limit for blind individuals is $2,590 per month and $1,550 per month for non-blind individuals. Exceeding this limit for more than 9 months within a rolling 60-month period can affect your Social Security Disability Insurance (SSDI) benefits.

To understand how your benefits may be affected it is important to understand the limits of the Substantial Gainful Activity (SGA).

This refers to an amount of earnings that indicate someone is unlikely to be disabled to the extent that they cannot work. In 2024, the SGA limit for blind individuals is $2,590 per month and $1,550 per month for non-blind individuals. Exceeding this limit for more than 9 months within a rolling 60-month period can affect your Social Security Disability Insurance (SSDI) benefits.

An important thing to note here is Social Security will deduct any work expenses from this if reported correctly. Here at Drenen Financial Services we can help you ensure you are reporting the correct information about your work. Work expenses may include special transportation, medical equipment like a wheel chair and prescriptions, job coaching and more.

Navigating finances with a disability can be complex, particularly with tax reporting and regulations. But fear not, 2024 brings some changes that you should be aware of, and Drenen Financial Services is here to help you avoid any unpleasant surprises come tax season.

Here’s what you need to report in 2024:
Income earned: Report all your income from employment, self-employment, investments, and benefits received, including:
Wages and salaries: Report your income as usual using your W-2 forms.
Social Security Disability Insurance (SSDI): You don’t pay taxes on SSDI benefits, but they might affect your tax bracket if combined with other income.
Supplemental Security Income (SSI): SSI is not taxable income.
Work Incentives: Earned income during your Trial Work Period or Extended Period of Eligibility may affect your benefits, but it’s generally taxable.
Disability-related expenses: Certain disability-related expenses like medical equipment, assistive technology, and transportation costs are often deductible if they exceed 7.5% of your Adjusted Gross Income (AGI).


Tax credits and deductions: Take advantage of available tax credits and deductions for people with disabilities, such as:
Disabled Dependent Care Credit: Claim a credit for expenses paid for dependent care, including care for a disabled spouse or child.
Credit for the Elderly or the Disabled: This non-refundable credit can reduce your tax liability if you meet the age or disability requirements.
Medical and Dental Expenses: You may deduct qualified medical and dental expenses that exceed 7.5% of your AGI.

Drenen Financial Services can help you:
Understand the complex tax rules for people with disabilities. We can explain how your disability affects your tax filings and ensure you claim all available credits and deductions.
Maximize your tax savings. We’ll help you optimize your deductions and minimize your tax liability, ensuring you keep more of your hard-earned money.
Prepare accurate tax returns. Avoid costly mistakes and penalties by letting us handle your tax preparation professionally. We’ll ensure your return is accurate and maximizes your refund.
Offer ongoing support and guidance. We’re here to answer your tax questions and concerns throughout the year, providing peace of mind knowing you have a team of experts on your side.

Remember: Working with a disability requires extra attention to your finances, and tax implications can be intricate. Don’t hesitate to seek professional help from Drenen Financial Services. We’ll help you navigate the complexities of tax reporting with confidence and ensure you receive all the benefits you deserve.
Contact Drenen Financial Services today for a free consultation and let us help you achieve financial success! 413-569-0015