How Much Can I Make on Social Security Disability?
Navigating the world of Social Security Disability (SSD) can be a complex and confusing process. One of the most common questions individuals ask is, “How much can I make on Social Security Disability?” Understanding the income limits and how they affect your benefits is crucial for making informed decisions about your financial future.
Understanding SSD Benefits
Social Security Disability benefits are designed to provide financial support 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. To qualify for SSD benefits, you must have worked and paid Social Security taxes for a certain number of years, depending on your age.
Income Limits for SSD Beneficiaries
The income limits for SSD beneficiaries are set by the Social Security Administration (SSA) and are subject to change each year. As of 2021, the following income limits apply:
– Earnings Limit: If you are under full retirement age, you can earn up to $18,920 a year (or $1,590 a month) in 2021 without affecting your SSD benefits. If you earn more than this amount, your benefits will be reduced by $1 for every $2 you earn over the limit.
– Trial Work Period: If you are disabled and have returned to work, you may be eligible for a trial work period, during which you can earn more than the earnings limit without losing your SSD benefits. The trial work period lasts for nine months, and you are not required to report your earnings during this time.
– Substantial Gainful Activity (SGA): Once you reach full retirement age, there is no earnings limit for SSD benefits. However, if you engage in substantial gainful activity (SGA), which is defined as earning more than a certain amount per month, your SSD benefits may be affected. In 2021, the SGA limit is $1,910 per month.
Calculating Your SSD Benefits
To determine how much you can make on SSD benefits, you first need to calculate your primary insurance amount (PIA), which is based on your earnings history. The SSA will then apply the income limits and your PIA to determine your monthly benefit amount.
Seeking Professional Advice
Understanding the intricacies of SSD benefits can be challenging. It is advisable to seek professional advice from a Social Security disability attorney or a financial advisor to ensure that you are maximizing your benefits and understanding the income limits that apply to your situation.
In conclusion, the amount you can make on Social Security Disability depends on various factors, including your age, earnings history, and the income limits set by the SSA. By understanding these factors and seeking professional advice, you can make informed decisions about your financial future and ensure that you are receiving the benefits you deserve.
