– MATT SAUERWALD, PRESIDENT, DISABILITY HELP GROUP
Matt Sauerwald is a leading advocate for the disabled. For more than 10 years, he’s worked on behalf of people who are disabled and can no longer work. Matt has represented thousands of people seeking disability benefits and knows how confusing and stressful the process can be.
Here, Matt sets the record straight on earning money while on Social Security disability.
Earnings on SSDI v. Qualifying for SSDI
One significant point of confusion regarding income limits for Social Security disability is the difference between income limits for initial eligibility for social security disability benefits and how income is treated for SSDI recipients. The income limit for the initial determination is simple: in 2023, the cut-off is $1,470/month in gross income (before taxes are withheld). That number is increased to $2,460/month for legally blind applicants.
This number, known as the substantial gainful activity (SGA) amount, is updated annually. Note, however, that only income earned from work or self-employment counts.
The income limits while receiving social security disability are a bit more complicated.
Income While on Social Security Disability
Continued eligibility for social security disability is not determined by a single month’s income, nor by an average of monthly income. Instead, the Social Security Administration (SSA) allows disability recipients up to nine “trial work periods” within a five-year period. In 2023, any month in which the SSDI recipient earns more than $1,050 through work counts as a trial month. In trial months, it doesn’t matter how much the recipient earns. Whether it’s $1,051 or $6,000, it counts as one trial month. In other words, there is no hard limit on income in trial work months, and the SSDI recipient continues to receive full benefits.
When they complete nine trial work periods in five years, the recipient enters a transitional period. This period is known as the extended period of eligibility (EPE). During this period, the recipient will still receive monthly benefits, as long as their income doesn’t rise to the level of SGA. If earnings from work hit that limit at any time during the EPE, the recipient will no longer be considered disabled. However, they will receive benefits for the subsequent two months. And, if income drops below the SGA threshold before the 36-month EPE has expired, benefits can be reinstated without a new application.
Applying for and Maintaining SSDI Can Be Complicated
The differing income limits, trial periods, and transitional requirements above can be complex, and they represent just one area of possible confusion in a complicated process. Matt and his team understand how overwhelming it can be, and how important it is that you have knowledgeable guidance, and they’re here to help. Call Disability Help Group today at 800-800-3332 or contact our team here.
Matthew Sauerwald has been a dedicated advocate for the disabled since 2010. He has represented thousands of claimants applying for or appealing denial of Social Security disability or VA disability benefits. Currently, Matt leads Disability Help Group, one of the most successful disability advocacy organizations in the United States.
Social Security disability (SSDI) offers an important safety net for those who are unable to continue working due to injury, illness, or a chronic medical condition. But, the SSDI program is for disabled workers. Those with no work history or insufficient work history generally won’t qualify.
Work Credits Required for SSDI
The number of work credits required to qualify for Social Security disability depends on how old you are when you become disabled. The normal threshold for either SSDI or retirement benefits is 40 work credits. But, the Social Security Administration (SSA) recognizes that someone who becomes disabled early in adulthood won’t have had the opportunity to accrue that many credits. So, younger workers have a lower threshold.
How Are Work Credits Accumulated?
You can earn up to four Social Security work credits per year, but it’s not based on quarters worked. Instead, a certain amount of earnings (which changes from year to year) constitutes one credit. In 2023, $1,640 earns you one credit. When you reach $6,560, you’re done earning credits for the year. The good news for those with patchy work histories is that it doesn’t matter when you earned that money. If you work a single month in 2023 and earn $7,000, you’ll get all four work credits for the year.
Disability Benefits with No Work Credits
Work credits are a set-in-stone technical requirement to qualify for SSDI. If you have no work credits or insufficient work credits, you cannot qualify for Social Security disability benefits. The SSA has no authority to make exceptions. However, children and adults who become disabled before the age of 22 may be entitled to receive benefits on a parent’s record. However, there is one option for disabled adults with no work history or insufficient work history.
Supplemental Security Income (SSI)
SSI is a completely separate program administered by the SSA. SSI is a need-based benefit that is available to senior citizens, the blind, and disabled people with very low income and resources.
In 2023, the income cut-off for an individual is $1,913/month in gross wages or self-employment income, or $934/month in income from non-work sources. For a couple, those amounts are increased to $2,827 and $1,391. There is also a limit on assets, which is $2,000 for an individual and $3,000 for a couple.
Need Help with Disability Benefits?
If you’re unsure whether you qualify for SSDI, you believe there is a problem with your Social Security work record and you aren’t getting enough credit for the work you did, or you need help applying for or appealing a denial of SSDI or SSI benefits, Disability Help Group is here for you. We’ll put our extensive knowledge and experience to work to help you secure the benefits you deserve.
SSDI, or Social Security disability insurance, provides income for U.S. workers who have become disabled and are no longer able to engage in substantial gainful activity. SSDI is different from private disability insurance because it is available to anyone who has sufficient work history and is otherwise eligible. And, it’s different from many other types of public benefits because it is not need-based. While too much income from work can disqualify you from receiving SSDI, other types of income are not considered. For instance, you can be the beneficiary of a trust or receive investment income or have significant assets and still be eligible.
There is a five-month waiting period after you become disabled. For most applicants, that period has expired by the time benefits are approved, so monthly payments start soon after approval. You may even receive a lump sum payment for back benefits or retroactive benefits.
Eligibility for Social Security Disability Benefits
To qualify for SSDI, you must have sufficient work credits. The general requirement is 40 work credits–the same number required for Social Security retirement benefits. You can only earn up to four work credits per year, so reaching this threshold requires that you’ve worked in at least 10 different years. However, younger workers won’t need as many work credits.
If you qualify based on work credits, you must also show that you:
Can’t engage in substantial gainful activity (SGA) because of your medical condition, and
Your condition has lasted or is expected to last for at least 1 year or to result in death
In determining whether you are able to engage in substantial gainful activity, the Social Security Administration (SSA) will consider both your ability to do the work you did previously and your ability to adapt to another type of work.
Additional Benefits Associated with SSDI
Once you’ve been receiving Social Security disability benefits for two years, you will be eligible for Medicare, regardless of your age. This can be a significant benefit for someone who has ongoing medical needs and no longer has employer-sponsored insurance.
Depending on your circumstances, other members of your family may also qualify for benefits. Spousal benefits are limited to spouses (and some divorced spouses) who are at least 62 years old and don’t have access to a larger amount of benefits based on their own record. But, your minor children may qualify for additional benefits when you receive SSDI.
Get Help with Your SSDI Claim
To secure Social Security disability benefits, you will have to provide substantial proof of your medical condition and the associated limitations. Most initial SSDI applications are denied, and the appeals process can be long and complex. The earlier in the process, you get help from a knowledgeable disability benefits advocate, the better.
To learn more about how Disability Help Group can assist you in putting together the strongest application or appeal possible, call 800-800-3332 or contact us here.
Can I Receive Unemployment While Collecting Long-Term Disability?
The short answer is “probably not.” While there may be exceptions, long-term disability (LTD) and unemployment insurance are usually mutually exclusive. That’s because LTD benefits are intended for people who are disabled–that is, unable to work. The same is true for Social Security Disability. But, state unemployment insurance programs typically require that recipients be willing, able, and available to work. In other words, it’s usually impossible to fulfill the requirements for both LTD and unemployment insurance.
In fact, applying for both could be risky legally. The two applications might require you to attest to conflicting claims. If you believe you may be qualified for both long-term disability benefits and unemployment, it’s in your best interest to talk to an experienced disability benefits advocate right away, before you file an application for either benefit.
Unemployment Insurance v Long-Term Disability Benefits
How Does Unemployment Insurance Work?
In nearly all U.S. states, employers are required to pay unemployment insurance premiums or pay into a state unemployment program. Employees earn access to these benefits by having sufficient recent earnings from employment. To be eligible, the employee must also have been terminated from employment or quit for one of a small number of acceptable reasons. In most states, an employee terminated for cause will not be eligible.
How Does Long-Term Disability Work?
Long-term disability is a type of insurance, which may be purchased directly or provided by your employer. A long-term disability policy typically pays a percentage of your regular income if you become disabled–usually 50-67%. To qualify, you must meet the policy definition of disabled. LTD policies often include offset provisions, meaning that if you receive SSDI or certain other benefits, your LTD payout may be reduced.
Who May Be Eligible for Both LTD and Unemployment?
The narrow exception that might allow a small percentage of disabled workers to receive both LTD and unemployment hinges on the policy definition of “disabled.” Usually, it will mean that the insured is unable to engage in gainful employment. However, some policies may have more specific definitions, such as being unable to perform your current job duties or being unable to work in a particular industry.
In that case, the disabled worker may technically qualify for both LTD and unemployment insurance. But, it’s important to carefully review the criteria and any set-off provisions or exclusions. For example, a long-term disability policy may include a provision that allows the insurer to reduce benefits if you are receiving certain other types of compensation.
Contact Disability Help Group
To avoid any missteps, consider working with an experienced disability benefits advocate from the beginning.
Disability Help Group was founded by experienced disability experts who have been representing people with disabilities for over 15 years. Our team understands how to work with the Social Security Administration (SSA) in the best interest of the disabled person.
Social Security Disability claims require patience from the claimant, which can be tough when a person’s finances are in question. We understand, and we are here to help.
We have representatives across the country to ensure that your rights are being protected and the disability process is being properly followed.
To learn more, be sure to call one of our Disability Advocates now at (800) 800-3332, or fill out the contact form on this site.
What Does SSDI Consider Substantial Gainful Activity?
If you’re applying for Social Security disability (SSDI), “substantial gainful activity” (SGA) is a very important concept. Part of the standard for being eligible for SSDI is that you are unable to engage in substantial gainful activity. Here’s how the Social Security Administration (SSA) defines substantial gainful activity:
Work activity is “substantial” if it involves significant mental or physical activities (or a combination of the two)
Activity is “gainful” if it:
Is performed for pay or profit,
Is of a type typically performed for pay or profit, or
Is intended for profit, whether or not a profit is actually realized
The clearest and simplest test for SGA is to look at the applicant’s earnings. Someone who is earning more than the SGA cut-off is not eligible for SSDI benefits. That number changes from year to year. In 2025, the cut-off is $1,620/month, or $2,700/month if the applicant is blind.
However, it’s important to note that while having earnings above the threshold is sufficient to disqualify an applicant, having earnings below the threshold doesn’t always mean the applicant is unable to engage in substantial gainful activity. For example:
The SSA may conclude that although the applicant is not currently earning above the threshold, they are capable of doing more work than they currently engage in
The SSA may conclude that the applicant is engaged in SSA if they are working a significant number of hours, even if they are not earning above the threshold
Working While on Social Security Disability
The discussion above is focused on an applicant for SSDI. But, what happens when someone who is already receiving disability benefits engages in work? An SSDI recipient can earn some money from work without jeopardizing benefits. However, the ceiling is lower than it is in the SGA assessment.
In 2025, earnings of $1,160/month will trigger a trial work period. The recipient can continue on SSDI and receive all regular benefits until they have nine successful trial months in a 5-year period. Then, they’ll enter a transitional period intended to phase the recipient off of SSDI benefits and back into the workforce. The trial work period system provides a safety net for recipients who want to test out returning to work without jeopardizing benefits. But, it can have unintended consequences for someone who is very occasionally able to engage in work. So, it’s important for anyone receiving benefits to understand their reporting requirements and how trial work periods work.
Talk to An Experienced Disability Benefits Advocate
If your SSDI application has been denied because the SSA says you are able to engage in substantial gainful activity, that isn’t necessarily the end of the road. Call Disability Help Group at (800) 800-3332 or contact us here today to learn more about your rights and options.
