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EQUITY Responds: WID Answers Your Questions
Q: I have been on SSDI for over nine years and have not worked during that period. However, starting December 3, I am going back to work part-time and expect my starting pay to be about $2,000 per month. A friend told me I could still receive my SSDI benefit through the trial work period and extended period of eligibility. Is that true? How does it work?
A: First, congratulations, welcome back to the work force. Second, yes it is true; you may receive full SSDI benefits during your trial work period and extended period of eligibility. Of course, it is complicated but here is how it would work in your specific situation:
The trial work period (TWP) is defined as the nine trial work months occurring within a five-year window where an individual can work and continue receiving full Social Security Disability Insurance (SSDI) benefits. These work months can occur one right after the other (consecutively) or one at a time (non-consecutively).
A trial work period (TWP) month is any month in which you gross $640 (for 2007); this figure will be raised to $670 in 2008.
Thus, for your specific situation, as you have not previously worked in the last five years, your first of the 9 trial work period months will be December 2007, because your earnings would exceed the 2007 TWP amount of $640. Assuming your income continues above the TWP amount of $670 per month for 2008, your nine month trial work period will be exhausted in August 2008. During this nine month period from December 2007 to August 2008, you will still receive your full SSDI amount each month.
Once you exhaust your TWP, you will enter the extended period of eligibility (EPE). The EPE is the 36 consecutive months that start at the end of the trial work period. During this extended period of eligibility, any month in which gross earnings are $900 or more (in 2007; this will be raised to $940 for 2008) an individual’s wages are considered substantial gainful activity (SGA). When an individual’s earnings first reach SGA, a three month grace period begins, allowing the beneficiary to continue receiving Social Security Disability Insurance (SSDI) payments, regardless of wages. After the three month grace period, an individual will not receive SSDI income benefits for the months when wages are at or above SGA. If wages fall below SGA, SSDI payments will resume. Beneficiaries who continue to earn SGA income after the EPE will no longer be eligible for SSDI payments.
Thus, in your situation, assuming your income remains at $2,000 per month, you will be earning SGA, more than $940 per month. You will receive your full SSDI check for the three month grace period, after which your SSDI benefit will stop.
As a practical note, it is important to notify the Social Security Administration that you have returned to work and are earning SGA wages. This will help to avoid an over payment of SSDI. Should you receive an overpayment, do not spend the money, be assured, in-time Social Security will want that overpayment returned.
It is also worth noting that the SGA amount differs for people who are blind. For 2008, the blind SGA amount is $1,570 per month.
Because of the complexities of these systems, we strongly suggest contacting a qualified benefits counselor. To find a qualified benefits counselor try contacting your local independent living center (www.ilru.org).
Thanks to Bryon McDonald and Andy Bradshaw from the World Institute on Disability for their technical assistance with these matters. Also check out www.db101.org for more information.
A: First, congratulations, welcome back to the work force. Second, yes it is true; you may receive full SSDI benefits during your trial work period and extended period of eligibility. Of course, it is complicated but here is how it would work in your specific situation:
The trial work period (TWP) is defined as the nine trial work months occurring within a five-year window where an individual can work and continue receiving full Social Security Disability Insurance (SSDI) benefits. These work months can occur one right after the other (consecutively) or one at a time (non-consecutively).
A trial work period (TWP) month is any month in which you gross $640 (for 2007); this figure will be raised to $670 in 2008.
Thus, for your specific situation, as you have not previously worked in the last five years, your first of the 9 trial work period months will be December 2007, because your earnings would exceed the 2007 TWP amount of $640. Assuming your income continues above the TWP amount of $670 per month for 2008, your nine month trial work period will be exhausted in August 2008. During this nine month period from December 2007 to August 2008, you will still receive your full SSDI amount each month.
Once you exhaust your TWP, you will enter the extended period of eligibility (EPE). The EPE is the 36 consecutive months that start at the end of the trial work period. During this extended period of eligibility, any month in which gross earnings are $900 or more (in 2007; this will be raised to $940 for 2008) an individual’s wages are considered substantial gainful activity (SGA). When an individual’s earnings first reach SGA, a three month grace period begins, allowing the beneficiary to continue receiving Social Security Disability Insurance (SSDI) payments, regardless of wages. After the three month grace period, an individual will not receive SSDI income benefits for the months when wages are at or above SGA. If wages fall below SGA, SSDI payments will resume. Beneficiaries who continue to earn SGA income after the EPE will no longer be eligible for SSDI payments.
Thus, in your situation, assuming your income remains at $2,000 per month, you will be earning SGA, more than $940 per month. You will receive your full SSDI check for the three month grace period, after which your SSDI benefit will stop.
As a practical note, it is important to notify the Social Security Administration that you have returned to work and are earning SGA wages. This will help to avoid an over payment of SSDI. Should you receive an overpayment, do not spend the money, be assured, in-time Social Security will want that overpayment returned.
It is also worth noting that the SGA amount differs for people who are blind. For 2008, the blind SGA amount is $1,570 per month.
Because of the complexities of these systems, we strongly suggest contacting a qualified benefits counselor. To find a qualified benefits counselor try contacting your local independent living center (www.ilru.org).
Thanks to Bryon McDonald and Andy Bradshaw from the World Institute on Disability for their technical assistance with these matters. Also check out www.db101.org for more information.