The Social Security Administration (SSA) provides financial assistance to people with disabilities as well as older people with limited income and assets. People approved for Social Security Disability Insurance (SSDI) benefits may get their benefits terminated under certain circumstances.
If your health has improved or you have started working again, the Social Security Administration can reconsider your claim and terminate your benefits. They may also terminate your benefits for a variety of other reasons, like in the case of non-cooperation.
This article talks more about how your Social Security benefits may be terminated and how you can protect them.
Reasons Why Social Security Terminates Benefits
The majority of people who receive SSDI benefits may continue to do so indefinitely, but there are also chances of losing your benefits due to changes in life or other events. Your benefits can be terminated for different reasons, such as:
Returning to Work
According to Social Security, the definition of disability is the inability to work due to a medical condition. If you are working and also receiving SSDI benefits, it can raise red flags with Social Security.
Social Security recipients have the option of trying to work for a nine-month period, which is called a trial work period (TWP) while continuing to receive their full monthly benefits payment. Your monthly earnings over $1,050 in 2023 can trigger a trial work period.
The nine months can be extended over a 60-month period, but these months do not need to be consecutive.
Once you have used up your nine-month work trial period, you may not be eligible for Social Security benefits if your monthly income exceeds the standard Substantial Gainful Activity (SGA) threshold, which is $1,470 in 2023. (Before you start working, make sure that you are clear on all the limitations regarding the trial work period.)
You will also lose your Supplemental Security Income (SSI) benefits if your income or assets cross the SSI threshold eligibility limit.
In 2023, the maximum income threshold is $914. Not all income from work is counted while determining your income limit (the Social Security Administration does not count about half of your wages while counting your income).
However, there is some in-kind income that is counted against the limit. Such in-kind income can include free housing and free food. You should also know that some of your spouse’s income and resources can be considered the resources of an SSI beneficiary.
Reaching Full Retirement Age
When you reach full retirement age, you cannot receive both retirement benefits and SSDI from Social Security at the same time.
Social Security will stop paying you SSDI benefits, and your benefits will be changed to regular Social Security benefits when you reach full retirement age. Payments from Social Security Disability Insurance are usually the same as those from retirement age.
Improvement in Condition
The recipients of SSDI benefits continue to do so for an extended period of time because their disability prevents them from working. However, the Social Security Administration may review your case on a regular basis. The SSA will follow up in six to 18 months if the doctor expects the disability to improve.
The SSA will review your case after three years if improvement is not predicted but possible. The Social Security Administration will look into your case after seven years if there is no possibility of improvement.
In the end, it is the responsibility of the Social Security beneficiary to inform the SSA if their condition has improved, or they have returned to work.
Incarceration
Social Security will suspend your benefits if you are in jail or any other similar institution after being convicted of a crime.
You will not get your benefits for the period you are in prison. After 30 days of incarceration, your SSDI benefits will be suspended (unless you are enrolled in a rehabilitation program) and will be reinstated the month after you are released.
Additionally, a felony conviction may also lead to the suspension of your benefits, even if you have not gone to jail. But a misdemeanor conviction will not affect your Social Security Disability Insurance benefits unless you are sentenced to one month or longer in jail.
When Your Income and Assets Go Above Your SSI Limit
If your income and assets go above the SSI eligibility limit while receiving SSI benefits, Social Security will suspend your benefits.
The SSI income limit is $914, and the asset limit is $2,000 (in 2023). It is important to keep these things in mind, but it can be difficult to know if you are over the SSI income because of other factors.
Increase in Income
Your benefits from Social Security can be stopped or reduced if you receive payments from other sources (such as private pensions or alimony payments) that take you above the income limit, which is a part of the eligibility criteria to receive Social Security benefits.
However, Social Security counts incomes in different ways. Different rules apply to earned income (money received from working) and unearned income (money received in the form of unemployment payments) in the Social Security calculation.
Free Lodging and Food
The Social Security Administration considers free food and shelter income (which is called in-kind income by Social Security). If you start receiving free food and shelter from someone else, it will be considered your income, and Social Security will lessen your SSI benefits by one-third. However, if a third party is paying your utilities, Social Security will not cut your SSI benefits.
Income From Your Spouse
In order to assess the SSI eligibility criteria, your spouse’s income is considered to represent a percentage of your own income. If you are getting SSI as a single person, your benefits will be terminated after you marry someone with a regular income that exceeds the threshold limit amount.
The same holds true if your spouse was not working (or they were making a small amount) when you applied for SSI benefits. Your SSI benefits will be stopped if your spouse starts working or earns more money in the future and it puts you both over the income limit threshold.
Your Parents’ Income
Your parents’ income can also pave the way for the suspension of your Social Security benefits. As a child, you may no longer be eligible for SSI benefits if your parents earn too much.
Increase in Assets
Accepting a gift of money or a car can be risky for someone who is receiving Social Security benefits. If you receive a gift from someone and your income and assets cross the $2,000 limit, your Social Security benefits will be terminated.
Again, it is not easy to determine your assets because some resources are exempt from the SSI asset limit. Your first residence and your first car are generally not considered assets.
Turning 18
If you are a child and receiving SSI benefits, your benefits will be reviewed when you turn 18 to find out whether or not you are still eligible for the SSI program.
There are similarities between how Social Security evaluates disability in children and adults, but there are also some important distinctions. Consequently, a child’s SSI benefit may end when he turns 18.
Being Out of Reach
Social Security must be able to reach you if you want to continue receiving Social Security benefits.
You must also comply with them. For instance, your Social Security benefits may be terminated if the Social Security Administration demands more evidence and documentation about your medical condition and you don’t cooperate with them.
Your SSI and SSDI are at risk of being terminated if:
- You cannot be located or reached by Social Security
- Your welfare checks have been returned by the US Post Service
If you provide the Social Security with your current address, you may be able to continue receiving your Social Security benefits.
However, if you fail to cooperate with Social Security (when you are unable to provide them with documents related to your medical condition) and you get your Social Security benefits suspended for 12 consecutive months, you will lose your Supplemental Security Income and Social Security Disability Insurance benefits altogether.
You can also lose your Social Security benefits if the Social Security Administration becomes aware that you knowingly did not provide them with the required documents or misrepresented the facts.
Continuing Disability Reviews: What are They?
The Social Security Administration is required to review your case periodically to verify that you are still disabled and eligible to receive Social Security benefits. These are called continuing disability reviews. When you start receiving benefits for the first time, a diagnosis of expected recovery, potential recovery, and not expected recovery is required.
The frequency of the continuing disability review depends on the severity and longevity of your disability. After you start receiving disability benefits, the following conditions apply to your improvement expectations:
- Expected: the Social Security Administration is obligated to review your claim after 6 to 18 months
- Potential: the Social Security Administration will review your case after 3 years
- Not Expected: Your case will be reviewed by the Social Security Administration no more than once in seven years.
During a Continuing Disability Review, the SSA examines medical records, treatment history, and other relevant information to assess whether the individual’s health condition has improved, stabilized, or worsened. Additionally, the review may consider any changes in the individual’s ability to engage in substantial gainful activity, which refers to the capacity to perform work that generates a certain level of income.
Process of Appeal for Social Security Benefits
If the Social Security Administration terminates your Supplemental Security Income and Social Security Disability Insurance benefits, you can challenge this decision in multiple ways. The appeal may take months or years, but you still have a chance of being successful.
The appeal procedure consists of four different phases. If you are informed by the Social Security Administration that your benefits will be terminated, you may wish to file an appeal. The procedure to file an appeal is given below.
Request for Reconsideration
Reconsideration is the process of looking into your case by an impartial third party after your Social Security benefits are terminated. Reconsideration may be medical if the termination was due to a change in health or absence of impairment or non-medical if there is a change in your financial situation.
When requesting a reconsideration, it’s important to file the right paperwork. In addition, it’s recommended to submit an effective appeals letter along with your paperwork.
This appeals letter can cite in detail the reasons why you think that the SSA wrongly terminated your benefits and why they should be restored.
Hearing With Administrative Law Judge
If you are still unhappy with the reconsideration process and the response received, you have the right to file a second appeal with the judge. Hearings with the judge can take place face-to-face or via video call. Your judge will be hearing your case for the first time and he will not know the previous arguments and decisions.
At this stage, it may be highly recommended to get legal representation for your case if you don’t have it already.
A disability attorney can represent you in court, prepare you to answer the questions of the administrative law judge (ALLJ) and the vocational expert, and make sure that the evidence you submit to the ALJ is compelling enough to overturn the SSA’s decision.
This is the stage of the appeals process where the vast majority of denials and terminations get overturned, so make sure you are well-prepared and can present a compelling case at the hearing.
Review by Appeals Council
You also have the right to appeal the decision of an administrative law judge assigned to your case to the Council of Appeals.
There are two possible outcomes at this stage: either your request is disapproved on the basis of Social Security and the case is sent back to court for additional consideration, or you have another chance to argue for your case to continue receiving your benefits.
Review by Federal Court
If you are still not satisfied with the decision of the Appeals Council or if it declines to examine your case, filing a lawsuit in federal court is the last resort. If you want to file your case at the highest level, you will need a lawyer, as it is the only process that you cannot do online.
Final Thoughts
When you start receiving Social Security benefits, there is a possibility they will be terminated for many different reasons. However, cooperation and communication with the SSA is very important for them to ensure that people receiving disability benefits still meet the necessary criteria for assistance, taking into account any changes in their health or ability to work.
