Phoenix Rising Re-Entry

Major provisions of SSDI work incentives include:

Can I work and continue my benefits?

Yes, you can start work right away and begin a Trial Work Period.

1. Trial Work Period (TWP):

(TWP earnings level is set at $1,050/month in 2023, but varies for previous years.)

Have you ever worked while receiving SSDI?
No You can work for up to nine months, earn any amount and still receive your full monthly benefit check.		Yes How many months over the past 60 months did you earn over the TWP earnings level? Subtract this from the nine months to calculate how many you still have.

What happens after the nine-month Trial Work Period?

There is a 36-month period, after the TWP, during which cash benefits will continue for any month that you earn under what SSA considers to be substantial gainful activity (SGA).

2. Extended Period of Eligibility (EPE):

(SGA for 2023 is $1,470)

If you earn less than the SGA a month:		If you earn more than the SGA a month:
Your full benefit check will continue for at least 36 months Medicare coverage continues If you are still disabled after the EPE, your benefit check and Medicare will continue		You will receive checks for three months, and then they will stop Medicare continues for an additional 93 months (seven years and nine months after TWP) You don’t pay for Medicare Part A You do pay for Medicare Part B

3. What if I get sick again or lose my job?

Provided you are unable to work because of your medical condition, you would be able to request reinstatement of benefits within 60 months from the month of their termination.

(NOTE: The dollar amount for the SGA and TWP is adjusted each year based on the national average wage.)

NOTE: For SSDI, Social Security only counts earned income for TWP and SGA calculations, NOT unearned income. Earned Income is wages, net earnings from self–employment, certain royalties, honoraria, etc. Unearned Income is all income that is not earned such as Social Security benefits, pensions, State disability payments, unemployment benefits, interest income, dividends and cash from friends and relatives, some real estate incomes, etc.

A More Detailed Description of SSDI Benefits and Work

The First Step - The Trial Work Period

Have you worked in the past five years and earned over the TWP earnings level while receiving SSDI?
(TWP earnings level is set at $1,050/month in 2023, but varies for previous years.)
If NO
You can work for nine months within a 60 month period, earn any amount of money, and continue to receive your monthly check from SSDI! Any month in which you earn less than the TWP earnings level is not counted. TWP months do not have to be consecutive.

If YES
How many months did you earn more than the TWP earnings level? If you worked less than nine months, subtract the number of months you worked from nine. The result will be the remaining Trial Work months that you are still eligible to use.


NOTE:
During the TWP, Impairment Related Work Expenses (IRWE) (SEE BELOW) and subsidies CANNOT be deducted from gross earnings. After TWP, IRWE are deducted to determine SGA. For those who are self-employed and earn under $1,050/month, the number of hours worked in the business is used as one of the ways to determine if a month counts as a TWP month.

The Second Step - Extended Period of Eligibility (EPE)

After the Trial Work Period you will enter the Extended Period of Eligibility (EPE). For at least 36 months, Medicare coverage continues and your monthly earnings level will determine whether you receive a benefit check. Social Security considers earning $1,470 a month as substantial gainful activity (SGA).

Substantial Gainful Activity (SGA)

• Is the performance of significant physical or mental activities in work for pay or profit
• SGA amounts are adjusted each year based on the national average wage
• For 2023, SGA level is set at $1,470/month

If you earn less than $1,470 a month:

• You will receive your full SSDI check
• Your Medicare coverage remains in effect
• If you are still disabled after the EPE, and continue to earn under $1,470 a month, your benefit check and Medicare coverage will continue

If you earn more than $1,470 a month:

• You will receive three more monthly checks, then your checks will stop
• Medicare continues for an additional 93 months after the TWP, as long as your disabling condition still meets SSA rules
• You don’t have to pay for Medicare Part A
• You do have to pay for Medicare Part B
• You can deduct disability related work expenses that might bring earnings below the $1,470 SGA.

Impairment Related Work Expenses
Impairment Related Work Expenses (IRWEs) are items or services that are essential to you being able to work. These can be deducted from monthly earnings and if they reduce your income below $1,470, or SGA, you will continue to receive monthly SSDI cash benefits. IRWEs can be deducted only if you pay for the item or service yourself and you are not reimbursed by an agency. Some examples of deductible expenses are prescription drugs, deductibles and co payments not covered by Medicare, a wheelchair, etc. Check with your SSA representative for a complete list of IRWEs. See www.ssa.gov/redbook/eng/ssdi-and-ssi-employments-supports.htm for more details.
IRWEs can lower your countable income:

Gross Monthly Earned Income	$1,400
Deduction for IRWE	- 250
Adjusted Amount of Earned or Countable Income	= $1,150

$1,150 is under the SGA of $1,470, so you would receive your check!

What If I Get Sick Again or Lose My Job? Expedited Reinstatement of Benefits.

If you are unable to work because of your medical condition, you would be able to request reinstatement of benefits. You must file the request for reinstatement with Social Security within 60 months from the month of their termination. While Social Security is making a new determination, you may receive up to six months of provisional benefits, including Medicare and Medicaid, as appropriate. If Social Security decides that the medical condition no longer prevents you from working, the provisional benefits would not be considered an overpayment.

Continuing Eligibility Review

Social Security reviews cases of people who receive SSDI to determine if they are still medically disabled or if they can perform SGA. It is important to keep accurate and up to date documentation of your disability, because if SSA determines you are no longer disabled, your SSDI benefits will stop. Benefits do not cease if you are in a vocational rehabilitation program or can prove that you are entitled to continue receiving SSDI.

You can request a Benefits Planning Query (BPQY), form number SSA-2459, from your local SSA office. The BPQY gives your continuing eligibility review status or how many years SSA expects for you to be disabled.

Vocational Rehabilitation: The Ticket to Work and Work Incentives Act of 1999

This law establishes the Ticket to Work and Self sufficiency program. Social Security beneficiaries will receive a “Ticket” to obtain vocational rehabilitation (VR) or other support services from an approved provider. Those services are designed to provide you with training or other assistance you need to update your job skills, start a new line of work, or go to work for the first time. SSA does not provide those services but will pay for them when certain conditions are met. If you enter a vocational rehabilitation program, your monthly benefit check would continue until the end of the program. The Ticket program is voluntary. Once you begin using the Ticket, Social Security cannot initiate a continuing disability medical review.

Important Points about SSDI and Work:

• For people who are self employed, Social Security looks at how many hours you've worked not just your earned income. Usually 80 hours/month of work is considered to be substantial gainful activity. This can also apply to volunteer time. Contact your Social Security representative to discuss your work plan.
• If you are attending school or a training program, any grants or scholarships that you use for tuition, books and supplies do not count toward your SGA level.

Further resources:

Social Security Administration
Phone: (800) 772 1213
www.ssa.gov

Putting It All Together: A Case Example*

Pamela Watson, aged 34, was receiving benefits of $1,100 a month due to an AIDS diagnosis seven years ago. She wanted to work but was afraid of losing her SSDI check and Medicare. She talked with her case manager and a Social Security representative and learned that through work incentives she could receive Medicare and cash benefits while she was working. For the first nine months her benefits would not be affected no matter how much money she earned, so Pamela started working part time in a local business and earned $1,550/month:

Gross Earnings	$ 1,550
SSDI	+ $ 1,100
Total Income	= $ 2,650

At the end of 9 months (the Trial Work Period), Social Security evaluated Pamela's case. Since she was earning more than $1,470 (Substantial Gainful Activity level) per month, her benefit continued for 3 months and then stopped. Because she was still disabled her benefits could be reinstated at anytime during the next 36 months (the Extended Period of Eligibility) if her earnings dropped below the SGA.
During the first year after her Trial Work period, Pamela's employer moved outside the city, where there was no bus service. Pamela hired a neighbor to drive her to work in the morning and paid a coworker to bring her home. The cost of these transportation services was $170 each month. She also purchased a special piece of medical equipment for $120 a month that made it possible for her to do her job. Those were counted as Impairment Related Work Expenses (IRWE) and Pamela's countable income dropped to below the SGA of $1,470 per month:

Gross Earnings $1,550 IRWE transportation -$ 170 IRWE equipment -$ 120 Countable Earnings =$ 1,260

Countable Earnings $ 1,260 Social Security check + $ 1,100 Total Income = $2,360

After a year, Pamela paid off the medical equipment and at the same time her earnings increased to $1,700 per month, increasing her countable earnings to $1,530 per month:

Her countable earnings were greater than the SGA level and so her SSDI checks stopped.

Gross Earnings	$1,700
IRWE transportation	-$ 170
Countable earnings	=$1,530

This example shows how a person can move in and out of the Social Security system while working. Work incentives create a safety net of continued benefits so that you can try to build your confidence at work and about your health before your benefits are reduced or stopped.

* Based on an example from the "Handbook on Working While Disabled" published by the SSA.

SSDI Earnings - Tracking Record

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2015
2016
2017
2018
2019											$1,550 TWP	$1,550 TWP
2020	$1,550 TWP	$1,550 TWP	$1,550 TWP	$1,550 TWP	$1,550 TWP	$1,550 TWP	$1,550 TWP	$1,550 CESS	$1,550 GRCE	$1,550 GRCE	$1,550 NoCK	$1,550 NoCK
2021	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK	$1,260 +CHK
2022	$1,260 +CHK	$1,530 +NoCK	$1,530 +NoCK	$1,530 +NoCK
2023

SSDI Earnings - Worksheet

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Checklist – Working While On SSDI

If you are working or you want to go to work, knowing what your current benefits are and understanding SSDI work incentives will help you make informed decisions about your benefits. Review the following checklist to ensure you have a full understanding.

Do you understand?
Yes | No
___ | ___Trial Work Period (TWP)
___ | ___Extended Period of Eligibility (EPE)
___ | ___Substantial Gainful Activity (SGA)
___ | ___Grace Period
___ | ___Continued Medicare Coverage
___ | ___Impairment Related Work Expenses (IRWE)
___ | ___Continuing Eligibility Review
___ | ___What happens if you get sick or lose your job?
___ | ___What options are available to you when SSDI ends?

What questions do you need to have answered?