EARNINGS LIMIT FOR SSDI TO BE $830 PER MONTH IN 2005

December 13, 2004

Social Security Disability Insurance (SSDI) beneficiaries now can work and earn up to $830 a month without forfeiting their monthly checks. Effective January 1, 2005, if earnings exceed this amount the Social Security Administration (SSA) considers the earnings to show "substantial gainful activity" or "SGA". (A higher amount - $1,380 a month - applies to blind individuals.) For details see the SSA Fact Sheet: 2005 Social Security Changes.

If a beneficiary earns more than the SGA amount for a sustained period, this could  trigger a continuing disability review and could cause SSA to stop benefits. Or if one is applying for SSDI benefits and earning more than $830 a month, this could lead SSA to deny the benefit application. For more information see the SSA publication, How Work Affects Your Benefits, SSA Publication Number 05-10069. In 2004 the SGA amount was $810 a month  ($1,350 for blind individuals).

Annual increases in the SGA amount result from a more liberal SSA earnings policy guidelines announced in the Federal Register on December 29, 2000, page 82905. The announcement said that SSA will recalculate the permissible earnings level annually, and increase it anytime there is an increase in the national average wage index. It will not decrease.

The new regulation also redefined a trial work month to mean any month in which earnings  exceed $590. The former amount was $580.

Why is SSA adjusting the SGA and trial work month amounts annually? To encourage SSDI beneficiaries to try working, says the agency. They explained in the Federal Register dated December 29, 2000 (page 82905):

"We are revising these rules as part of our efforts to encourage individuals with disabilities to test their ability to work and keep working. We expect that these changes will provide greater incentives for many beneficiaries to attempt to work or, if already working, to continue to work or increase their work effort."

Prior to the new regulation, many advocates would advise clients who received SSDI checks that their benefits were at risk if they earned any amount of money. And people who were working and earning any significant sum were considered poor prospects for winning SSDI benefits. These risks have been much reduced since the new SSA policy was announced at the end of 2000.

Nonetheless, if SSA believes that a person may be deferring or suppressing earnings to make it seem that he or she cannot work regularly, the agency reserves the right to investigate and estimate the individual’s actual earnings potential.

© Douglas M. Smith 2002, 2003, 2004, 2005