Social Security Disability Insurance (SSDI) is intended for people whose medical condition prevents them from going to work, which is why it’s important to disclose any employment details with the Social Security Administration (SSA). But what happens if you get caught working while receiving SSDI benefits?
If you did not previously disclose your complete employment details, the consequences of getting caught working while on SSDI may vary widely. From the termination of benefits or repayment to penalties that may or may not involve jail time, this is a situation you do not want to be caught in.
Keep reading below to get more information on unintentional fraud and how you can avoid it.
How Much Can I Earn While on SSDI?
As an SSDI beneficiary, you may work, however, your earnings must be below what is considered substantial gainful activity, or SGA, by the Social Security Administration. SGA is the salary level at which the Social Security Administration considers you to be working full-time and it will vary year to year.
In 2023, if your monthly income is over $1,470 (or $2,460 if you are blind), you will be regarded as being above the SGA threshold and therefore, ineligible to receive SSDI benefits.
Should You Report Employment Details to the SSA?
The Social Security Administration requires that anyone receiving either Supplemental Security Income (SSI) or SSDI must report employment details and any changes. It may constitute as fraud if a claimant fails to provide such information to the SSA.
This information must include the following:
- The date you started and stopped working
- Any adjustments made to your responsibilities, salary, or hours
- Any costs you incur as a result of your inability to perform your job
It is your responsibility to inform the SSA of your monthly total income (if any). You can report your income to the SSA in a variety of ways, including over the phone, in person, online, or with a mobile app.
Wage reports made over the phone must be made no later than the sixth day of the month following the month you receive payment.
You will have until the 10th of the following month to submit your paperwork either by mail or in person at your neighborhood Social Security field office. You can learn more about the required information when filing your tax return by visiting the Social Security website.
What Happens If You Get Caught Working While on SSDI?
Not disclosing your employment and earnings to the SSA could be considered fraudulent and may result in the termination of your benefits along with the repayment of your previous benefits.
Depending on the case, the SSA might also impose a penalty. Different states will have different rules and consequences for breaking those rules. However, imprisonment and fines are the usual consequences.
In addition to possible criminal and felony charges, each instance of false or withheld information may also result in a civil monetary penalty of up to $5,000 from the Social Security Administration. They also have the power to demand repayment of twice the value of any benefits that were obtained dishonestly. The Bipartisan Budget Act of 2015 included more severe punishments for “fraud enablers”. Some examples of “fraud enablers” include doctors, former Social Security Administration employees, and others in similar positions of trust.
The previous maximum sentence for a felony was 5 years; however, the new statute raised it to 10 years. The maximum monetary punishment for making a misleading statement or representation has increased from $5,000 to $7,500.
How Can I Work While on SSDI?
The SSA does offer you many opportunities and incentives for returning to work through their programs. These are:
Trial Work Period (TWP)
You can work for up to nine months within a five-year period if you’re receiving Social Security Disability Insurance thanks to the trial work period (TWP).
During the nine-month TWP, there will be no impact on your benefits while working, however, once the nine-month TWP ends, any income over the SSA’s SGA threshold will result in a loss of benefits for that month.
If you are self-employed and put in over eighty hours of work during a given month, that month will be counted against your nine-month TWP.
Gross earnings are used by the Social Security Administration to assess eligibility, although reasonable monthly expenses linked to the disability that enable you to work, such as employment training, can be excluded. Annual adjustments are made to the monthly income threshold.
If you get SSDI benefits and have income from other sources, the Social Security Administration needs to know about it. Failure to do so will result in unfavorable consequences, such as an overpayment or a loss of benefits. If the Social Security Administration overpays your benefits, you will have to reimburse the money. This may make it difficult to make ends meet.
If you need assistance returning to work during the trial work period while keeping your monthly Social Security Disability payments, consulting an experienced disability attorney can help.
Extended Period of Eligibility (EPE)
The EPE starts as soon as the initial TWP of nine months ends. Benefits under SSDI will be maintained during the EPE term of 36 months if the following conditions are met:
- You were found to be disabled.
- Your salary falls short of the Social Security Administration’s substantial gainful activity threshold, which rises and falls with inflation.
If you earn more than from engaging in SGA in any EPE month, the Social Security Administration will no longer consider you disabled and will terminate your benefits for the month in question. After that point, your SSDI benefits will continue for another two months.
Notify the Social Security Administration as soon as possible if you quit working or your income drops below the SGA threshold after your SSDI payments have been terminated but before the end of your remaining EPE period. No new application is required, and payments will resume automatically.
Unless you are medically disabled and your income is below the SGA, your benefits will expire at the conclusion of the 36-month period. It is possible to get your SSDI payments quickly reinstated if you become disabled from working due to your medical condition again within five years following the termination of your benefits.
Conclusion
To conclude, it is essential that every SSDI beneficiary try to be as transparent as possible. This also entails letting SSA know about any changes to your employment status, as failure to do so can result in serious consequences.
