Part 4 - Going Back To Work

If you're like most people, you would rather work than try to live on disability benefits. There are a number of special rules that provide cash benefits and Medicare while you attempt to work. The Social Security Administration calls these rules work incentives. You should be familiar with these disability work incentives so you can use them to your advantage.
If you are receiving Social Security disability benefits, the following work incentives apply:

Benefits While You Work

• Trial Work Period
  For nine months (not necessarily consecutive), you may earn as much as you can without affecting your benefits. (The nine months of work must fall within a five-year period before your trial work period can end.) A trial work month is any month in which you earn more than $200. After your trial work period ends, your work is evaluated to see if it is "substantial." If your earnings do not average more than $500 a month, benefits will generally continue. If earnings do average more than $500 a month, benefits will continue for a three-month grace period before they stop.
  
• Extended Period of Eligibility
  For 36 months after a successful trial work period, if you are still disabled, you will be eligible to receive a monthly benefit without a new application for any month your earnings drop below $500.
  
• Deductions for Impairment
  Related Expenses--Work expenses related to your disability will be discounted in figuring whether your earnings constitute substantial work.
  
• Medicare Continuation
  Your Medicare coverage will continue for 39 months beyond the trial work period. If your Medicare coverage stops because of your work, you may purchase it for a monthly premium.

Different rules apply to SSI recipients who work.