Unlocking Financial Freedom- How to Make Money While Receiving Social Security Disability Benefits
Can I earn money while on social security disability? This is a common question among individuals who rely on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits. The answer is both yes and no, depending on the specific circumstances and the amount of income earned. In this article, we will explore the rules and regulations surrounding earning money while receiving social security disability benefits.
Social Security disability benefits are designed to provide financial assistance to individuals who are unable to work due to a medical condition that is expected to last at least one year or result in death. However, the Social Security Administration (SSA) has specific rules in place regarding how much income can be earned while still receiving these benefits.
Firstly, it’s important to understand the difference between SSDI and SSI. SSDI is available to individuals who have worked and paid into the Social Security system through payroll taxes. SSI, on the other hand, is a needs-based program for individuals with limited income and resources.
For SSDI recipients, the SSA has a limit on the amount of income they can earn each month while still receiving benefits. This limit is known as the Substantial Gainful Activity (SGA) limit. As of 2021, the SGA limit for disabled individuals is $1,310 per month. If an SSDI recipient earns more than this amount, their benefits may be reduced or suspended.
However, there are exceptions to the SGA limit. For example, if an SSDI recipient earns less than $880 per month, their benefits will not be affected. Additionally, if the individual’s work is considered “subsidized,” meaning they receive support from a third party, such as a vocational rehabilitation agency, their benefits may not be affected either.
SSI recipients face stricter income limits. Their total income, including earned and unearned income, must be below a certain threshold to qualify for benefits. In 2021, the income limit for an individual is $794 per month, and $1,191 per month for a couple. If an SSI recipient earns more than these amounts, their benefits may be reduced or suspended.
It’s important to note that the SSA also considers certain types of income when determining eligibility for disability benefits. This includes wages, self-employment income, rental income, and any other form of monetary compensation. However, certain types of income, such as worker’s compensation, veterans’ benefits, and unemployment benefits, may not be counted against the income limits.
When considering earning money while on social security disability, it’s crucial to consult with a disability attorney or a representative from the SSA. They can provide guidance on the specific rules and regulations that apply to your situation. Additionally, there are resources available to help individuals with disabilities find suitable employment opportunities, such as vocational rehabilitation services and job training programs.
In conclusion, while it is possible to earn money while on social security disability, there are specific rules and limitations in place. Understanding these rules and seeking professional advice can help individuals navigate the complexities of earning income while receiving disability benefits.
