Yes, it is possible to make money while receiving disability benefits, but there are important considerations and limitations to keep in mind.
1. Types of Disability Benefits: The two main types of disability benefits in the U.S. are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Each has different rules regarding income.
2. SSDI Work Incentives: If you receive SSDI, you can earn a certain amount of money each month without losing your benefits. This is often referred to as “substantial gainful activity” (SGA). As of 2023, if you earn more than $1,470 per month (or $2,460 for blind individuals), you may lose your benefits. However, there are work incentives like the Trial Work Period that allow you to test your ability to work without jeopardizing your benefits.
3. SSI Income Limits: For SSI recipients, there are strict income limits. In 2023, if you earn over $1,473 per month, your benefits may be reduced or discontinued. However, some income may not count, such as the first $65 you earn each month or half of the remaining earnings.
4. Reporting Requirements: It’s essential to report any earnings to the Social Security Administration (SSA) to ensure compliance with their rules. Failing to report can lead to overpayments and potential penalties.
5. Self-Employment Considerations: Some individuals on disability may choose to start a small business or freelance. This can be more complex when it comes to reporting income and understanding how it affects benefits, so consulting with a financial advisor or the SSA is advisable.
6. State Programs: Some states have additional programs or modified rules for individuals receiving disability benefits. It may be beneficial to explore local resources or state-specific guidelines.
7. Long-Term Planning: If you plan to return to work permanently or increase your earnings significantly, consider how this affects your long-term financial situation, including health insurance, retirement, and other benefits.
In summary, while you can earn money while receiving disability benefits, it is crucial to understand the specific regulations and limits associated with your benefits to avoid any complications.
