Social Security Disability Insurance is a program for people who can no longer work full time due to their health, but who have paid into the system through previous work history. On average, the monthly benefit is $1000, but can go as high as $2300.

The big question most people have is "Can I try to go back to work without losing my benefits?". The answer is yes.....but you must follow certain guidelines. Social Security actually wants you to try and work, and they will pay you (literally) to do it. The key is to report your employment status and earnings on a regular basis.

The first incentive is called a Trial Work Period. This means pretty much what it says. You can work and earn as much as you can command for 9 months. The 9 months is counted over a rolling 5-year period. So, if you get a job, or start a business, and earn over $700 in a given month, that month counts toward the 9 month cumulative figure. Once you have "started the clock", so to speak, Social Security will examine your work efforts for the next 5 years.

As soon as you have accumulated 9 months within that 5-year period, you enter what's termed an Extended Period of Eligibility. Social Security will pay you benefits for an additional 3 months. Then, in any month in which you earn over $1000 gross, you are ineligible for benefits.

You are entitled to benefits for any month in which you earn under $1000. So, obviously, the idea is to work part-time, unless you feel you can work full time and are offered that type of employment. This Extended Period of Eligibility lasts for 36 months.

Once your Extended Period of Eligibility has expired, and if you are working above the income threshold, you enter an Expedited Reinstatement period. This lasts 5 years. During this time, if your health suddenly prevents you from working, you simply contact Social Security and tell them about your status. They will extend 6 months of benefits to you while they determine if you are once again disabled. You are not required to repay these benefits if they deem you not disabled.

So, here it is in summary form:

Once approved for disability.......

1st 9 months of work above $700 in earnings (within a 5-year rolling period) - Full SSDI benefits

Beginning in Month 10 and over $700 in earnings - Benefits in Months 10, 11, and 12

Beginning in Month 13, Extended Period of Eligibility - Full SSDI in any month where earnings are below the income threshold ($1010 monthly in 2012). This lasts for 36 months.

Beginning in Month 48, Expedited Reinstatement Period - 6 months of SSDI extended to you if you stop working above the income threshold due to your health. No repayment required if you are found not disabled. This period lasts 60 months.

In summary, then, your SSDI benefits are protected for almost 10 years while you test your ability to work. Not a bad deal, is it?

Til next time,

Scott