Will I lose my disability if I work part-time in 2023? This is a common question among individuals receiving disability benefits who are considering returning to work. The answer depends on various factors, including the type of disability, the amount of income earned, and the specific regulations of the disability program in question. In this article, we will explore the potential impact of working part-time on disability benefits in 2023.
Disability benefits are designed to provide financial support to individuals who are unable to work due to a medical condition or disability. In many countries, these benefits are administered by government agencies, and the rules governing them can be complex. One of the most critical considerations for individuals receiving disability benefits is whether they can work part-time without losing their benefits.
Understanding the Basics of Disability Benefits
Disability benefits can come from various sources, such as Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), or private insurance policies. Each program has its own set of rules regarding work and income limits.
For SSDI, the primary concern is the amount of income earned from work. In 2023, the Social Security Administration (SSA) uses the “substantial gainful activity” (SGA) threshold to determine whether a person is engaging in SGA. If a disabled individual earns more than the SGA limit ($1,350 per month for most people in 2023), they may lose their SSDI benefits.
Impact of Part-Time Work on SSDI Benefits
Working part-time can have a significant impact on SSDI benefits. If a disabled individual’s earnings exceed the SGA limit, their SSDI benefits may be suspended. However, this does not necessarily mean they will lose their benefits permanently.
The SSA allows for a nine-month trial work period, during which individuals can earn any amount without affecting their SSDI benefits. After the trial work period, if a disabled individual continues to work and earn above the SGA limit, their SSDI benefits may be suspended for up to 36 months. During this time, the individual must remain disabled and not engage in SGA to have their benefits reinstated.
SSI and Part-Time Work
SSI has different rules regarding work and income. To receive SSI, an individual must have limited income and resources. In 2023, the income limit for SSI is $1,350 per month for an individual and $2,250 per month for a couple.
If an individual receiving SSI works part-time and earns above the income limit, their SSI benefits may be reduced or suspended. However, the SSA provides a $20 “ignorance of the law” deduction, which means that the first $20 of earned income is not counted towards the income limit. Additionally, the SSA allows for a nine-month trial work period, similar to SSDI, during which individuals can earn any amount without affecting their SSI benefits.
Seeking Professional Advice
Navigating the complexities of disability benefits and part-time work can be challenging. It is essential for individuals considering returning to work to seek professional advice from a disability attorney or a financial advisor. These professionals can help determine the best course of action and ensure that the individual’s benefits are not adversely affected.
In conclusion, whether an individual will lose their disability benefits if they work part-time in 2023 depends on the type of benefits they receive and the amount of income earned. Understanding the rules and regulations of the specific disability program is crucial for making informed decisions. Seeking professional advice can help individuals navigate these challenges and maintain their financial stability while working part-time.
