I previously wrote a post about Social Security’s trial work period program but that was back in 2007 so its time for an update.

One of my YouTube viewers wrote me the following which I decided to answer here.

I was recently contacted by SSDI to verify income they have had reported to them since my onset of 2017. I am currently approved as of 2019 and receive benefits for myself and 2 minor children (auxiliary beneficiaries). All of the income for the first 18 months was from an LTD carrier so I think I can easily explain that.

Here’s my question if you have any time to add a thought. I was able to start very part-time and flexible work Dec 2019-March 2020 and then March 2021-June 2022. The amount per month never exceeded $1500/month. Which I know is over the current SSDI limit. I never enrolled in Ticket to Work and now don’t know how to explain it was very flexible, varied week to week based on appointments and that I had to pay for help to get things done to even work.

Obviously I can write all that back, but wondered your thoughts on how that process normally goes. I couldn’t find anything online about responding. Their letter seemed to give a total per calendar year and didn’t break it down monthly.

Secondarily, the amount of $1470/month is low for some jobs. That is really only 12 hours/week for me given my previous jobs. While that could be full time pay for some. The limit is not always a good indicator of how many hours an advanced desk job could be for very few hours.

I don’t want to do anything wrong and be in a situation where I’m paying back incorrect benefits, but I really only worked very part-time while still struggling with my autoimmune disease.

I love your videos and would love any thoughts/help. Thank you for always putting out such great information.

Here are my thoughts:

When you are approved for Social Security disability benefits, you become eligible for and are encouraged to attempt to go back to work. SSA has a “work incentive” program called the “Trial Work Period” or TWP.

You reference “Ticket to Work” but that is something different – perhaps you meant Trial Work Period.

In any case, under the TWP program you can work and earn an unlimited amount in a calendar month. The catch is that you are eligible for no more than nine (9) TWP months in any 5 year period of time.

This means, for example that you could earn $1 million per month for 9 consecutive (or non-consecutive) months and still receive your SSD benefits. However if you earn $1 over the TWP limit after that you go into likely review status and SSA will move to terminate benefits and come after you for payment received after that.

The TWP limits change every year. Here are the recent numbers:

2019: $880
2020 – $910
2021 – $940
2022 – $970
2023 – $1,050

I note that you reference $1,470. That is not the relevant number. $1,470 represents what SSA considers “substantial gainful activity.” This is the figure SSA uses to disqualify you from SSD because you are still working. If your earnings exceed SGA consistently you cannot qualify for SSD because you don’t fit within SSA’s definition of disability.

In contrast to TWP, the SGA limits are as follows:

2019 – $1,220
2020 – $1,260
2021 – $1,310
2022 – $1350
2023 – $1,470

As you can see there is a significant gap between limits each year.

What I advise my client to do is create a spreadsheet and create a row for every month starting with the month in which they were found disabled. What was your gross income received for that month? If there were any expenses than can reduce that gross income?

Allowable expenses might be business expenses for a self employed person or necessary medical devices that allow the person to work. In my viewer’s case she stated that she had to pay for help (I am assuming a person) to get things done to even work. These expenses reduce gross income received.

What Happens if you Use Up all Nine of Your Trial Work Period Months?

If the “adjusted” gross income exceeds the TWP limit for a particular month, then you have used up a TWP month. And remember, you get 9 TWP months in any rolling 5 year period of time.  Here is more from SSA about the trial work period program.  Here is more –  a fact sheet from SSA about the trial work period.

Why does SSA use different numbers for TWP and SGA? It makes no sense to me. In reading SSA’s TWP explanation it seems like what SSA is saying is that when you exhaust your TWP months SSA will assume that you have SGA capacity even if you are not earning at SGA levels.  In my mind SSA makes the TWP work incentive program unduly confusing by creating a separate table of numbers that are different from SGA.  A recent study authored by professors from Boston College determined that over 80% of those who try to work after being found disabled end up in overpay status.  So it appear that SSA’s work incentives should actually be called work dis-incentives.

In theory you remain eligible for SSD benefits if you are earning less than SGA but there is a good chance that SSA will move to cut you off. Perhaps they are assuming that you are intentionally suppressing your income. If, after exhausting your 9 TWP months, you earn more than the TWP amount but not the SGA amount SSA is likely to move to terminate your benefits.

In theory you should continue to receive your monthly benefit after exhausting your TWP eligibility for every month that your income does not exceed SGA.  If your income in a particular month exceeds SGA you are not eligible for payment, but if your income is less than SGA during a thirty-six month “extended period of disability” you should get your check.

The problem, of course, is that SSA does not have the resources to monitor your income in real time and decide whether to pay you.  So if you exhaust your TWP eligibility and continue working – sometimes exceeding SGA and sometimes not, it is almost certain that you will end up in “overpay” status.  As noted above, over 80% of claimants who try to work under this convoluted and confusing system end up being overpaid.

One more salient point. Whenever SSA moves to terminate benefits you have the right to appeal. You also have the right to request that your SSD benefits continue while you appeal. If you make this election there will be “past due benefits” accruing so you won’t be able to hire a lawyer under a contingency fee.

The reality is that you will likely have trouble finding a lawyer even if you do not elect to have benefits continue. Speaking as an SSD lawyer, it is very difficult to prove that someone is disabled if there is ongoing work, and especially on-going work over the TWP level.

Keep Records of all Work Attempts

So, what should you do. First and foremost you need to keep good records. I recommend using a spreadsheet where you track your income received by calendar month.

Pay particular attention to the TWP table. If you start to get close to the 9 month limit, you need to think long and hard about what you want to do. If you can work, you should – you will be happier, more financially secure and more personally fulfilled.

But you don’t want to find yourself cut off from needed disability benefits and no real access to legal help to fight back because you tried to work and barely exceeded the earnings limit or, worse, because you did not understand the rules.