Can I get Social Security disability without losing income?
I was recently asked the following question:
I need my job to survive. I can’t quit. I have some vacation days and sick time, but it is not enough to go without pay until they tell me I qualified.
How do I still work and file for SS Disability without loosing any income?
I have previously discussed working while applying for disability benefits. However, this question presents some new issues. Generally, I consider transferring from work to Social Security disability with no loss of income as an unrealistic goal. Here is why:
The processing time on an initial claim is about 4-6 months (in Colorado).
The test of disability under Social Security is an inability to perform work (at a substantial gainful activity level). So, working at SGA, after considering the exceptions) is a problem. Note: if an individual works below SGA level, it would not be a bar to receiving disability benefits. However, any work is still be an issue.
Social Security requires that a disability be expected to last 12 months or longer. This is the “durational requirement.” While Social Security does not require that a person is out of work (or working below the SGA level) for 12 months, Social Security can deny cases if it feels that while a person is currently disabled, but is unlikely to remain disabled for 12 months.
There is also the 5 month waiting period (on SSDI claims), during which SSA withholds the first 5 months of benefits. If the alleged onset date is the last date an individual worked, Social Security would still keep the first 5 months of benefits. So, even if an individual is approved within 30 days of applying, there may still be a waiting period in which no benefits are paid. Note: this only applies in SSDI case (there is no waiting period in SSI cases). However, SSI cases do not pay benefits before the filing date.
If you have read all that and digested the information in the links, you have a pretty good idea of what you are up against.
Social Security Hearings: Competitive and Non-Competitive Work
What does it mean if the Administrative Law Judge or Vocational Expert mentions “non-competitive work” during a Social Security disability hearing?
“Non-competitive” refers to types of work:
Competitive work is, well, just regular work; with no set-asides, no accommodations beyond the norm.
Work that is performed under special circumstances or that is set aside for disabled individuals (for example: work through Goodwill Industries) is typically viewed as “non-competitive.”
SSR 05-02 (a Social Security Ruling) provides guidance about what constitutes “work under special condition.”
Retraining options if you are disabled
Not everyone who applies for Social Security wants to be on disability for the rest of their lives. Many just want temporary help while recovering from an injury and figuring out what they can do next.
There are also some cases that keep getting denied.
Whether by choice or necessity, retraining may be something you eventually consider.
Recently, I was talking with a client about the options if Social Security denies her case. She would like to go back to school but has no idea what to study or how to pay for it. It occurs to me that this is a discussion a lot of people would like to be in on.
Here are the retraining options we discussed:
Report wages to Social Security by telephone
Terry Petterson of DisablogND recently posted about changes in the Social Security rules which now let you report earnings to SSA by telephone:
Beneficiaries, deemors and representative payees reporting a change in wages can report their monthly wages to SSA by telephone. These instructions explain what beneficiaries, deemors, and representative payees need to do in order to use the SSA phone system to report monthly wages.
Beneficiaries, deemors and representative payees who would rather not report wages by telephone can use traditional reporting methods such as mailing or bringing paystubs into their local Social Security office. Monthly telephone reporters who experience technical difficulties …
More information about Impairment Related Work Expenses IRWEs!
As discussed previously, impairment related work expenses (IRWEs for short — pronounced “Eer-whee’s”) are a way of reducing an individual’s earnings below the substantial gainful activity threshold, and thereby preserve eligibility for disability benefits.
Social Security has a great chart showing examples of which IRWEs are deductible (can be used to reduce income) and which are non-deductible (cannot be used to reduce income):
Reviewing your Social Security exhibit file – Part 3 work history
Now that I know the critical dates and the medical history I review the work history. Social Security reviews cases using the 5 step sequential evaluation process. At step 4, if you are still able to do any of the jobs you performed in the last 15 years before you became disabled, you can be denied benefits. There are a couple more wrinkles to this, such as the job has to be a substantial gainful activity, but the general idea is that if you can still do a …
I earn too much for Social Security disability benefits, what can I do?
To qualify for Social Security disability benefits you have to show that your disability prevents you from being able to work. In Social Security’s words, you have to show that you are unable to engage in a substantial gainful activity (SGA). SGA translates into a maximum dollar amount you are allowed to earn and still be potentially eligible for Social Security benefits.
For 2011, the most you can earn is $1,000 per month (before taxes or deductions). If you earn more than this, Social Security …
How much can I earn and keep my SSI?
This is a particularly tough question. I previously wrote about how earning more than the Substantial Gainful Activity amount may cause your benefits to be stopped in Social Security Disability Insurance cases.
In SSI cases, I just learned that you can earn more than the SGA amount and still keep your SSI benefits.
WARNING: I do not pretend to be a understand SSI benefits calculations. I strongly encourage anyone reading this to check this information with Social Security. Also, any Social Security technicians are more than welcome correct any errors I may make here.
To figure out how much you can …
Is sheltered work or subsidized work a substantial gainful activity (SGA)?
To qualify for Social Security disability benefits you have to show that your disabilities prevent you from being able to work. In general, you have to show that you are unable to perform a substantial gainful activity (SGA).
However, there are exceptions to this general rule, including Subsidized Wages or Sheltered Work environments.
Social Security can only consider the money you earn in deciding if your work is a substantial gainful activity. Anything over the “reasonable value” of your work, may be a subsidy. Social Security cannot consider a subsidy, basically a “gift,” as earnings in determining if the work is a substantial gainful activity.
A subsidy is any compensation over the fair value of your work. This often happens if you work for a family member or if you work through an agency like Goodwill.
If you are paid for a 40 hour week but you only work 25 hours, you have a 15 hour subsidy. Another possibility is if the value of your work is $8.00 an hour, but you are paid $10.00 an hour (a $2.00 an hour subsidy).
If you subtract the subsidy, and your gross income is below the SGA amount, you might still be able to keep your Social Security benefits.
What is an Unsuccessful Work Attempt?
I previously wrote about the various exceptions which may allow you to keep your Social Security disability benefits even if you return to work. The most common of these is an Unsuccessful Work Attempt (UWA).
If you work for 6 months or less at a substantial gainful activity (SGA) level, your work may qualify as an Unsuccessful Work Attempt and not affect your application for benefits (or your current Social Security disability benefits if you have already won your case).
Another benefit of the Unsuccessful Work Attempt exception is that it applies for both Social Security Disability Insurance (20 CFR 404.1574) and Supplemental Security Income (SSI) (20 CFR 416.974) cases. This is a major difference between Unsuccessful Work Attempts and Trial Work Periods.
Trial work period and Social Security disability benefits
Social Security encourages you to try to go back to work to see if you can do it. A Trial Work Period (TWP) lets you work and still be considered disabled by Social Security.
A beneficiary receiving Social Security disability benefits may test his or her ability to work and still be considered disabled. We do not consider services performed during the trial work period as showing that the disability has ended until services have been performed in at least 9 months (not necessarily consecutive) in a rolling 60-month period.
To sum up, a Trial Work Period lets you work and still be considered disabled by Social Security. Not only that, but Social Security does not count all the months you work, just the ones where you earn more than a threshold Trial Work Period amount:
2012 - $720 per month.
2011 - $720 per month.
2010 - $720 per month.
2009 - $700 per month.
2008 - $690 per month.
2007 - $630 per month.
Should I work while waiting for my Social Security hearing?
The long wait for a Social Security hearing is a massive financial drain for most people. With no money coming in, or just minimal state aid, a lot of people wonder how to pay for rent, utilities, and groceries.
A number of my clients have asked me if they can try to get a job.
Attorney Jonathan Ginsberg tackles this common question:
What if I am earning more than the Substantial Gainful Activity amount?
A number of people responded to my prior post about “substantial gainful activity” amounts. To briefly review: the general rule is that you cannot earn more than the substantial gainful activity amounts to be found disabled.
What do I do if I am earning more than the substantial gainful activity amount? Does than mean I cannot get Social Security disability benefits?!?
Not necessarily. Earnings above SGA amounts are an important factor. But, there are exceptions (including sheltered work, subsidies, unsuccessful work attempts, impairment related work expenses, and trial work periods) that may allow …
Does Social Security consider all work a Substantial Gainful Activity?
Social Security defines disability as the inability to engage in a “substantial gainful activity” (SGA).
A simplified way of putting this is to say that in order to be found disabled, you have to show that you are unable to work. BUT, this can be misleading. Not all work qualifies as a substantial gainful activity.
So, how do you know if your work is a substantial gainful activity?
The easiest test is earnings.
In 2012, if your gross earnings, that is, before taxes or any other deductions, are $1,010 or more per month as an employee, that is probably a substantial gainful activity. Keep in mind that the …
