How Much Money Can You Make While On Disability?

Living with a disability can be challenging, especially when it comes to financial stability. Many people wonder how much money they can make while on disability and what options are available to them. In this article, we will explore the…

Living with a disability can be challenging, especially when it comes to financial stability. Many people wonder how much money they can make while on disability and what options are available to them. In this article, we will explore the different types of disability benefits and the income limits associated with them, as well as additional ways to earn income while on disability.

Whether you are currently receiving disability benefits or are considering applying, it is important to understand your options for earning additional income. By learning about the different programs and strategies available, you can create a financial plan that works for your unique situation and helps you achieve greater financial independence.

How Much Money Can You Make While on Disability?

How Much Money Can You Make While on Disability?

If you are disabled and unable to work, you may be eligible for disability benefits from the government. These benefits are intended to help you cover your living expenses while you are unable to earn a living. However, many people wonder how much money they can make while on disability. In this article, we will explore this question in depth.

Understanding Disability Benefits

Before we dive into the specifics of how much money you can make while on disability, it’s important to understand what disability benefits are and how they work. Disability benefits are provided by the Social Security Administration (SSA) to people who are unable to work due to a disability. To be eligible for disability benefits, you must have a medical condition that is expected to last at least one year or result in death. Additionally, you must have worked for a certain number of years and paid Social Security taxes.

Once you are approved for disability benefits, you will receive a monthly payment from the SSA. The amount of your payment will depend on your average lifetime earnings before you became disabled. The maximum monthly payment for disability benefits in 2021 is $3,148 for those who are eligible for Social Security Disability Insurance (SSDI). For those who are eligible for Supplemental Security Income (SSI), the maximum monthly payment is $794.

Working While on Disability

Many people who are on disability wonder if they are allowed to work and earn additional income. The short answer is yes, but there are rules and limitations that you need to be aware of. The SSA has a program called Ticket to Work that allows people who are on disability to work and still receive their disability benefits.

Under the Ticket to Work program, you can work and earn as much money as you want for a trial period of nine months. During this trial period, you will still receive your full disability benefits regardless of how much money you earn. After the trial period is over, you will enter what is known as the extended period of eligibility. During this period, you can continue to work and receive your disability benefits as long as you don’t earn more than a certain amount.

In 2021, the monthly income limit for the extended period of eligibility is $1,310 for non-blind individuals and $2,190 for blind individuals. If you earn more than these amounts, your disability benefits will be reduced. For every $2 you earn above the income limit, your disability benefits will be reduced by $1.

Benefits of Working While on Disability

Working while on disability can have many benefits. First and foremost, it can help you increase your income and improve your financial situation. It can also give you a sense of purpose and fulfillment that you may be missing if you are unable to work.

In addition, working while on disability can help you gain new skills and experiences that can be valuable if you are ever able to return to work full-time. It can also help you stay connected to the workforce and maintain your professional network.

Disadvantages of Working While on Disability

While there are many benefits to working while on disability, there are also some disadvantages that you should be aware of. One of the biggest disadvantages is the risk of losing your disability benefits if you earn too much money. If you earn more than the income limit, your disability benefits will be reduced or even eliminated.

In addition, working while on disability can be challenging. Depending on your disability, you may need to find a job that accommodates your needs and limitations. This can be difficult, especially if you have physical or cognitive limitations that make certain types of work impossible.

SSDI vs. SSI

It’s also important to understand the difference between SSDI and SSI when it comes to working while on disability. SSDI is based on your work history and the amount of Social Security taxes you have paid. If you are eligible for SSDI, you can work and earn as much money as you want during the trial period and the extended period of eligibility.

SSI, on the other hand, is a needs-based program that is designed to help people who have limited income and resources. If you are eligible for SSI, any income you earn will be taken into account when calculating your benefits. This means that if you earn too much money, your SSI benefits could be reduced or eliminated.

Conclusion

In conclusion, if you are on disability and wondering how much money you can make while still receiving benefits, the answer is that it depends on your specific situation. Under the Ticket to Work program, you can work and earn as much money as you want during the trial period and the extended period of eligibility, as long as you don’t earn more than the income limit. However, it’s important to weigh the benefits and disadvantages of working while on disability before making a decision.

Frequently Asked Questions

Here are some commonly asked questions about disability benefits and how much money you can make while receiving them.

1. What is the maximum amount of money I can make while on disability?

The Social Security Administration (SSA) has specific rules regarding how much money you can earn while receiving disability benefits. In 2021, the maximum amount you can earn is $1,310 per month, or $2,190 if you are blind. If you earn more than this amount, your benefits may be reduced or stopped altogether.

It’s important to note that the SSA considers any income you receive from work, including wages, self-employment income, and other compensation. If you are receiving disability benefits and want to work, it’s a good idea to talk to an expert to understand how your earnings will affect your benefits.

2. Can I work part-time and still receive disability benefits?

Yes, you can work part-time and still receive disability benefits. However, your earnings cannot exceed the maximum amount set by the SSA. If you earn more than this amount, your benefits may be reduced or stopped altogether.

It’s important to report any income you earn while on disability to the SSA. Failure to report your earnings could result in overpayments, which you may have to pay back.

3. Are there any programs that allow me to work while on disability?

Yes, there are programs that allow you to work while on disability. The Ticket to Work program, for example, is a free program that helps people with disabilities find employment. The program provides job training, career counseling, and vocational rehabilitation services.

Another program is the Plan to Achieve Self-Support (PASS) program, which allows you to set aside money for expenses related to achieving a work goal. This program can help you become more self-sufficient and reduce your reliance on disability benefits.

4. Can I start my own business while on disability?

Yes, you can start your own business while on disability. However, your earnings from the business will be considered income and may affect your disability benefits. You should report any income you earn from your business to the SSA.

If you are interested in starting your own business, you may be eligible for the Self-Employment Assistance Program (SEAP). This program provides training, counseling, and financial assistance to help people with disabilities start their own businesses.

5. What happens if I earn more than the maximum amount while on disability?

If you earn more than the maximum amount while on disability, your benefits may be reduced or stopped altogether. The SSA has specific rules regarding how much money you can earn while receiving disability benefits, and if you exceed this amount, your benefits may be affected.

If your benefits are reduced or stopped due to your earnings, you may be able to have them reinstated if you become unable to work again due to your disability. It’s important to report any changes in your income to the SSA so that they can adjust your benefits accordingly.

How To Legally Earn Money And Keep Your Disability Benefits In 2022


In conclusion, the amount of money you can make while on disability depends on several factors, including the type of disability benefits you receive and your current work situation. It’s important to note that working while on disability can affect your benefits, so it’s crucial to stay informed about the rules and regulations.

However, don’t let this discourage you from exploring work opportunities if you’re able to manage it. There are programs and resources available to help you find employment that accommodates your disability and allows you to earn a steady income. Plus, having a job can provide a sense of purpose and fulfillment that can positively impact your overall wellbeing.

Ultimately, the decision to work while on disability is a personal one that requires careful consideration and planning. By consulting with a disability benefits specialist and researching your options, you can make an informed decision about how to best manage your finances and pursue your career goals.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *