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Social Security: Working While Disabled...How We Can Help
Part 2: What You Should Know About Social
Part 3: What You Should Know About SSI
Part 4: What And How You Should Report To
Part 1 — Why We Want To Help You
If you are receiving Social Security Disability Insurance or Supplemental Security Income (SSI) disability benefits but still want to work, this booklet provides information to help you treat your disability as a “bridge,” not the end of the road.
If you're like most people, you would rather work than stay home. But working is a big step for a person with a disability, and you probably have many fears and questions about what could happen to your monthly benefits. “How will my benefits be affected?” “Will I lose my Medicare or Medicaid?” “What about the extra cost of working because of my disability?” Social Security and SSI have special rules called “work incentives” to help you overcome some of these fears and problems. These work incentives include:
Help with any extra work expenses you may have
as a result of your disability;
Help with education, training, and rehabilitation to
start a new line of work.
Part 2 — What You Should Know About
Following is a brief description of the rules that will help you work while you get Social Security disability benefits. Each is explained in more detail in the pages that follow.
Trial Work Period—If you return to work for nine months (not necessarily consecutive), your earnings will not affect your Social Security benefit. If the nine months of trial work do not fall within a 60--month period, you may have even longer to test your ability to work.
Extended Period Of Eligibility—For at least 36 months after a successful trial work period, if you continue to work while disabled, you may receive a benefit for any month your earnings fall below the “substantial gainful activity” level (in 1997, $500 a month for people with disabilities, $1,000 a month for people who are blind).
Continuation Of Medicare—If your Social Security disability insurance benefits stop because your earnings are at the substantial gainful activity level but you are still disabled, Medicare can continue for at least 39 months after the trial work period ends. After that, you can buy Medicare coverage by paying a monthly premium.
Impairment--Related Work Expenses—Certain expenses for things you need because of your impairment in order to work may be deducted when counting earnings to determine if you are performing substantial work.
Recovery During Vocational Rehabilitation—If you medically recover while participating in a vocational rehabilitation program that is likely to lead to becoming self--supporting, benefits may continue until the program ends.
Special Rules For Blind Persons—If you are blind, several special rules will help you work.
Help For Low--Income Medicare Beneficiaries—If you get Medicare and have low income and few resources, your state may pay your Medicare premiums and, in some cases, other “out--of--pocket” Medicare expenses such as deductibles and coinsurance. Only your state can decide if you qualify. To find out if you do, contact your state or local welfare office or Medicaid agency. For more general information about the program, contact Social Security and ask for a copy of the leaflet Medicare Savings for Qualified Beneficiaries (HCFA Publication No. 02184).
Generally, you'll receive your full monthly Social Security benefit for a year after you return to work. If you continue to work beyond that while still disabled, your eligibility for monthly cash benefits will continue for at least another 36 months. Here's how it works:
You can usually have a trial work period of nine months (not necessarily consecutive) during which your benefits will not be affected by your earnings regardless of how much you earn. A trial work month is any month in which your total earnings are more than $200 or, if you are self--employed, you earn more than $200 (after expenses) or spend more than 40 hours in your own business. When nine trial work months are successfully completed within 60 months, we review your work to see if your earnings are “substantial.” (Generally, $500 per month is considered “substantial” earnings.) If they are, your benefits would continue for three more months and then stop.
However, if you are still medically disabled and continue to work in spite of your disability, your benefits can be reinstated anytime during the next 36 months. During this time, you will receive your full Social Security benefit for any month your earnings fall below $500. Benefits would continue as long as you remain disabled and your earnings do not exceed $500 a month.
Usually, earnings of more than $500 a month are considered substantial. If your earnings average less than $500 a month, your benefits generally would continue indefinitely.
If your earnings average more than $500 a month, this is considered an indication of your ability to work.
During the trial work period, there are no limits on your earnings. During the 36--month extended period of eligibility, the $500 level is the cutoff point. But, under another work incentive rule explained in the next answer, the work expenses you have as a result of your disability are deducted when we count your earnings to see if they affect your benefits. This means your earnings could be substantially higher than $500 before they affect your benefits.
What Kind Of Help With My Work
We deduct work expenses related to your disability from your earnings before we determine your continued eligibility for benefits. These expenses may include the cost that you pay for any item or service you need to work, even if the item or service is also useful to you in your daily living. Examples include a seeing eye dog, prescription drugs, transportation to and from work (under certain conditions), a personal attendant or job coach, a wheelchair, or any specialized work equipment.
If you also receive SSI payments, there is a special rule called a plan for achieving self--support” (PASS) that permits you to set aside funds and resources for a specific work goal. For more information see sections on "What About Training and Rehabilitation Help?" and "How Do I Get Started On A PASS?"
If you lose your job during a trial work period, your benefits are not affected. If you lose your job during the 36--month “extended period of eligibility” (see section on "Answers To Most Commonly Asked Questions"), call us and your benefits will be reinstated as long as you are still disabled. You do not have to reapply for benefits or undergo any “waiting period” as you did when you first applied for disability benefits.
How Long Would Medicare Continue Once
I Start Working?
What About Help With Rehabilitation,
If you are likely to benefit from rehabilitation, you are referred to a state rehabilitation agency or private organization for rehabilitation services. Social Security pays for the services if you are successfully rehabilitated. If you recover from your disability while in an approved rehabilitation or training program that is likely to result in your becoming self--supporting, benefits will continue until the program is over.
For example, if you were in a nurse's aide training program and your condition improved so that you were no longer disabled, benefits would ordinarily stop. But if you have contacted Social Security and we are aware of your participation in the program and have approved it, then your benefits would continue until the program is over. For more information on Social Security and vocational rehabilitation, ask for the special leaflet How Security Security Can Help With Vocational Rehabilitation (SSA Publication No. 05--10050).
You can earn up to $1,000 a month in 1997 before your earnings affect your benefits.
If your earnings are too high to receive disability benefits, you are still eligible for a disability “freeze.” This means that those years in which you had low or no earnings because of your disability will not be counted in figuring your future benefits, which are based on your average earnings over your worklife.
If you are 55 to 65, a more lenient rule is used to determine your inability to work. It says that you can receive disability benefits if you cannot do the same or similar work you did before you reached 55 or became blind, whichever is later. (The regular rule requires that a disabled person be unable to do any type of work in the general economy.) For more information on special rules for blind persons, ask Social Security for the publication If You Are Blind– How We Can Help (Publication No. 05--10052).
Example Of What Happens When You Work
Under Social Security While Disabled
Pamela Watson, 24, was receiving disability benefits of $557 a month based on a childhood condition that made it difficult for her to walk. She wanted to work but was afraid of losing her benefits and Medicare. When she discussed this with a Social Security representative, she was told about disability work incentives under which she could work and still get cash benefits and Medicare. She found out that for the first nine months of work, her benefits would not be affected no matter how much she earned. Pamela started working in a local laundry part time and earned $650 a month. Here's how her income changed.
Gross Earnings $650
Social Security check +557
Total Income $1,207
At the end of the nine months of work, Social Security evaluated Pamela's work to see if it was substantial. Since she was earning more than $500, her work was considered substantial. Her benefits continued for three more months and then stopped. However, because she was still disabled, her benefits could be reinstated anytime during the next 36 months if her earnings drop below $500. During the first year after her trial work period, her company relocated outside the city, where there were no bus lines. She hired a neighbor to drive her to work and paid a coworker to bring her home. Her transportation expenses totaled $120 a month.
In addition, she purchased a special motorized wheelchair so she could get around the new suburban plant. This cost $75 a month. Let's figure Pamela's “countable” earnings after deducting her work expenses.
Gross earnings $ 650
Subtract work expenses -195
Countable earnings $455
Because her countable earnings are less than $500, Pam's Social Security checks were reinstated. Her total income now is:
Total Income $1,012
After a year, she paid off the motorized chair and her earnings increased to $890 a month. Her countable earnings now are:
Gross earnings $890
Subtract work expenses -120
Total Income $770
Because her countable earnings now exceed the “substantial” level ($500), her Social Security benefits will stop. As you can see, at each point in her working life, Pamela's income was greater than it would have been if she had not worked. In addition, her Medicare coverage continued for 39 months following the trial work period.
Part 3 — What You Should Know About
Following is a brief description of the rules that will help you work while you get SSI benefits. Each is explained in more detail in the pages that follow.
Continuation Of SSI—If you work, you may continue to receive payments until the income we count exceeds the SSI limits.
Continuation Of Medicaid Eligibility—Your Medicaid will usually continue even if you earn over the SSI limits if you cannot afford similar medical care and depend on Medicaid in order to work.
Plans For Achieving Self--Support— You may set aside income and resources toward an approved plan for achieving self--support (PASS). For more information see sections on "What About Training and Rehabilitation Help?" and "How Do I Get Started On A PASS?"
Work Expenses Related To Your Disability—Certain work expenses you have because of your impairment may be subtracted from your earnings when we determine your eligibility and payment amount. If you are blind, the work expenses need not be related to the impairment.
Recovery During Vocational Rehabilitation—If you recover while participating in a vocational rehabilitation program that is likely to lead to becoming self--supporting, benefits may continue until the program ends.
Sheltered Workshop Payments—If you work in a sheltered workshop, special rules allow us to exclude some of your earnings when we figure your SSI payment.
Disabled Students—Most scholarships or grants used to pay for tuition, books, and other expenses directly related to getting an education may not be counted as income if you go to school or are in a training program. You may also exclude up to $400 of earnings a month (up to a maximum of $1,620 a year).
How Long Will My SSI Payments Continue
After I Go Back To Work?
It depends on how much you earn. The amount of your SSI check is based on how much other income you have. When your other income goes up, your SSI check usually goes down. So when your earnings push your income over the SSI limits, your checks will stop for that month. (We discuss these limits in the answers to the next two questions.) But, they will start up again without a new application for any month your income drops below the SSI limits. If you're off both SSI and Medicaid for 12 months or more, you may need to apply again.
If your only income besides SSI is the money you make from your job, then we don't count the first $85 in earnings you get each month. One--half of what you earn over $85 is deducted from your SSI check.
If you have other income besides earnings (such as a Social Security check), then we don't count the first $65 in earnings you get each month. One--half of what you make over $65is deducted from your SSI payments. But, $20 of your other income, such as your Social Security check, is not counted either.
If you have no other income besides earnings, you may earn up to $1,053 a month in 1997 before losing your entire federal SSI payment. But if you live in a state that adds money to your federal SSI payment, you may earn more. If you have other income, such as Social Security benefits, the amount you can earn before losing any payment may be lower. However, when you apply for SSI disability payments, we consider earnings of $500 or more an indication that you are able to do “substantial work” and you would not qualify for SSI on the basis of disability.
How Long Will Medicaid Continue While I'm Working?
Be unable to afford similar health
insurance coverage without SSI;
Under SSI, there's a special rule called a “plan for achieving self--support,” or PASS. A PASS permits you to put aside money and assets toward a plan designed to help you support yourself. The money set aside won't reduce your SSI payment. The goal of your plan may be to start a business or get a job.
In addition, as under Social Security, if you recover from your disability while you are in an approved vocational rehabilitation program, your SSI payments will continue until you have completed the program. For more information on vocational rehabilitation opportunities, ask for the special leaflet How Social Security Can Help With Vocational Rehabilitation (Publication No. 05--10050).
The PASS must state a clear and realistic work goal.
The PASS must state the amount and sources of income or resources that will be set aside.
The PASS must state how you will spend the money.
You must be able to achieve the goal of the PASS within a specified period of time.
For more information about setting up a PASS, ask for the booklet Working While Disabled–A Guide To Plans For Achieving Self–Support (Publication No. 05--11017).
If you are blind, most work expenses you have (not just those related to your disability) may be deducted from your income when we decide if you are eligible for SSI. For example, special clothes needed on the job or special equipment needed to work can be deducted. For more information on special rules for blind persons, ask Social Security for the publication If You Are Blind How–We Can Help (Publication No. 05--10052).
What About Special Rules For Students With Disabilities?
Most scholarships or grants used to pay for tuition, books, and other expenses related to getting an education may be deducted from your income if you go to school or are in a training program.
Are There Special Rules For Sheltered Workshops?
If you work in a sheltered workshop, special rules allow us to exclude some of your earnings when we figure your SSI payment.
Denni Hunt receives an SSI payment of $484 each month and has Medicaid coverage. This is her only income. She was offered a job in a local fast food restaurant and contacted Social Security to see how this would affect her SSI payment. She was told that Social Security would not count the first $85 of earnings if she had no other income.
Gross monthly earnings $215
Subtract the $85
earnings deduction -85
earnings we count ÷2
Subtract earnings $484
SSI payment -65
New SSI payment $419
Add monthly earnings +215
Total income $634
Note that before she started working, Denni's total income was her SSI check of $484. Now that she's working, she has that extra income in addition to her SSI check ($419), so her total income is $634, even though her SSI payment is slightly reduced.
Denni's pay increased to $367 a month after 18 months. She purchased an electric wheelchair, which costs $52 a month, to help her move around better at work. Here's how the work expense deduction helps her:
Gross earnings $367
work expenses -52
SSI payment -115
New SSI payment $369
Add monthly earnings +367
Total income $736
So, even though her earnings went up by $152 (from $215 to $367), her SSI payment was reduced by only $50 (from $419 to $369) because of the work expense deduction. And her total income now is $736, substantially more than the $484 she had before she started working.
Denni decided that she wanted to get a college degree. Her sister helped her write a PASS which described her plans to work and save money for school. Under the plan, she wanted to save $75 each month for school. Here's how the PASS helps her:
Subtract PASS -75
SSI payment -40
New SSI payment $444
Total income $811
(SSI payment plus earnings)
So even though her earnings continue as high as they were in the previous example, her SSI checks are increased because we don't have to count the income she is setting aside to go to school. Her total income now is $811 monthly ($367 in earnings plus $444 in SSI).
Part 4 — What And How You Should Report
Whether you're receiving Social Security or SSI disability payments, it's important that you stay in touch with Social Security while you're working. The people there will be able to help you plan your work effort and to show you how you can use other work incentives to achieve your work goals. You should immediately notify Social Security to report the following:
Change in savings or investments, including selling your home, real estate, car, or personal property;
Starting or ending a job;
Leaving the United States for any period of time;
Developing or changing your PASS;
Entering or leaving a hospital or other institution;
If you start receiving worker's compensation (including Black Lung) or a public disability benefit or if the amount of these benefits changes.
For more information about working while disabled, you should call the Social Security office to speak to somebody about work incentives. You can call our toll--free number 1--800--772--1213 between 7 a.m. and 7 p.m. on business days. Recorded information is available 24 hours a day, including weekends and holidays. Our lines are busiest early in the week and early in the month, so if your business can wait, it's best to call at other times. Whenever you call, have your Social Security number handy.
People who are deaf or hard of hearing may call our toll--free “TTY” number, 1--800--325--0778.
You also can reach us on the Internet. Type http://www.ssa.gov to access Social Security information.
The Social Security Administration treats all calls confidentially—whether they're made to our toll--free numbers or to one of our local offices. We also want to ensure that you receive accurate and courteous service. That is why we have a second Social Security representative monitor some incoming and outgoing telephone calls.
SSA Publication No. 05--10095
January 1997 (Recycle prior editions)
ICN 468625