Free Guide to Returning to Work While Receiving SSDI

Understanding Work Incentives Under SSDI

Social Security Disability Insurance (SSDI) includes built-in work incentives designed to help people test their ability to work without losing benefits immediately. These programs exist because the Social Security Administration recognizes that some people on SSDI want to return to work but worry about what happens to their benefits if they try.

The most important work incentive is called Impairment Related Work Expenses (IRWE). This allows you to deduct certain costs related to your disability from your earnings when Social Security calculates whether you're working above the substantial gainful activity (SGA) level. For example, if you need to pay for a personal care attendant, transportation to work, or medical equipment needed specifically for work, these costs may reduce your countable earnings. In 2024, the SGA level is $1,550 per month for non-blind individuals.

Another key program is Plans to Achieve Self-Support (PASS). A PASS plan lets you set aside income and resources to reach a specific work goal. Say you want to become a medical assistant. You could use a PASS plan to set aside money for tuition and training costs while continuing to receive SSDI benefits, even if your income would normally make you ineligible. You must have a written plan describing your goal, how long it will take, and how you'll use the set-aside money.

There's also the Trial Work Period (TWP), which gives you nine months (not necessarily consecutive) to test your ability to work while keeping your full SSDI payment. During this period, you can earn any amount without affecting your benefits. After the TWP ends, Social Security enters the Extended Eligibility Period (EEP), lasting 36 months, during which you can continue working and receiving reduced benefits if your earnings fall below SGA.

Practical takeaway: Before you return to work, contact your local Social Security office or a work incentives planning project (WIPP) to discuss which incentives match your situation. These programs vary significantly based on your circumstances, so understanding which ones apply to you matters.

The Trial Work Period: Your Nine-Month Test

The Trial Work Period (TWP) is one of the most generous SSDI work incentives because it allows you to test working without any financial risk to your benefits. During the TWP, you can earn any amount of money and still receive your full monthly SSDI payment. This period lasts nine months, but they don't have to be consecutive—you can spread them across a longer calendar timeframe.

Here's how the nine months count: A month counts as a work month if you earn more than $240 (in 2024). This threshold adjusts annually but remains intentionally low. The key detail is that these don't need to be calendar months or consecutive. If you work in January, take a month off, then work again in March, both January and March count toward your nine months. You could theoretically complete your nine-month TWP over a two-year period if you take breaks between work months.

During the TWP, you must continue to report your work activity and earnings to Social Security each month. This isn't optional—failing to report could jeopardize your benefits and any incentives you're using. Social Security provides a form called the Work Activity Report (SSA-821) that you use to document your earnings. Some people report online through my Social Security, while others mail in forms or call a representative.

When your ninth work month ends, you enter a three-month grace period called the Extended Eligibility Period (EEP). During the EEP, you continue receiving your full SSDI benefit even if your earnings are high. After those three months finish, if you're still working and earning over the SGA level, your benefits will pause (not terminate). You can then use other work incentives like IRWE or PASS to potentially continue receiving benefits, or you can simply return to work without benefits.

Many people find that the TWP gives them valuable information about whether they can actually sustain work. The financial safety net removes the risk, which often makes it psychologically easier to try. Some discover that their condition makes steady work difficult and they value their SSDI security. Others find they can work and transition off benefits gradually. Both outcomes are valid.

Practical takeaway: Track your work months carefully. Keep records of when you earn over $240 so you can count toward your nine months accurately. If you're unsure whether a month counts, contact Social Security to verify rather than relying on your own calculation.

Using Impairment Related Work Expenses to Keep Working

Impairment Related Work Expenses (IRWE) allow you to subtract specific disability-related costs from your gross earnings when Social Security determines if you've exceeded the SGA limit. This is important because it can mean the difference between losing benefits and continuing to receive them while you work.

IRWE items must meet two tests: they must be necessary for you to work because of your disability, and you must actually pay for them. The expenses don't need to be paid from your SSDI benefit—they can come from any source, including your wages, family members, nonprofits, or other programs. Common IRWE expenses include special transportation to work (if you can't use public transit due to your disability), a personal care attendant or job coach, medical equipment needed at work, medications and therapeutic treatments required to maintain your ability to work, and specialized clothing or equipment.

For example, consider Marcus, who has bipolar disorder and works as a data entry clerk. His employer provides a regular desk, but he needs a standing desk because his medication causes extreme fatigue when sitting. He also sees a therapist weekly to manage symptoms that could otherwise make working impossible. Both the standing desk and therapy could count as IRWE if they're documented as necessary for his work capacity. If his gross earnings are $1,700 but his monthly IRWE expenses total $250, his countable earnings become $1,450—under the 2024 SGA limit of $1,550.

To claim IRWE, you must work with Social Security to document each expense. You'll need to explain the connection between your disability and the expense, showing it isn't something the general population needs. You may also need to provide evidence like receipts, doctor's statements, or therapy bills. Social Security doesn't cover IRWE expenses—they simply reduce your countable earnings for benefit calculation purposes.

One limitation: IRWE expenses must be current and ongoing. If you paid for job training in the past but aren't paying now, it doesn't count. Additionally, if you stop incurring an expense, you should report this change to Social Security because your countable earnings will increase.

Practical takeaway: Gather documentation of all disability-related work expenses before contacting Social Security. Include receipts, medical records, or provider statements showing necessity. Work with a Social Security representative to ensure expenses are properly categorized as IRWE rather than general living costs.

Plans to Achieve Self-Support: Setting Aside Income for Goals

A Plan to Achieve Self-Support (PASS) is a written agreement between you and Social Security that allows you to set aside income and resources toward a specific work-related goal while continuing to receive SSDI and SSI benefits. PASS programs enable people to pursue education, training, or business ownership that might otherwise make them ineligible for benefits.

To create a PASS, you must have a clear, measurable vocational goal. Examples include: completing a degree in nursing, obtaining a commercial driver's license, launching a freelance consulting business, or earning a certification in heating and air conditioning repair. The goal must be something that could potentially lead to self-supporting work. You can't use PASS to pursue an education with no connection to employment.

Here's how PASS works in practice: Sarah receives $900 monthly in SSDI. She wants to become a dental hygienist, which requires a two-year program costing about $8,000 total. Her part-time job pays her $700 monthly. Without a PASS plan, her total income ($900 plus $700) would disqualify her from SSDI. With an approved PASS plan, she sets aside $500 of her monthly earnings toward tuition and equipment costs. Social Security counts only $200 of her earnings ($700 minus $500) plus her SSDI benefit. This way, she continues receiving SSDI while accumulating the money she needs for school.

PASS plans must include specific elements: a detailed statement of your