If you receive Disability Benefits you may wonder how working will affect your benefits. Social Security allows disabled individuals to work and receive their benefits; however there are rules in place you will need to follow. Here is what you need to know about working on disability to avoid a nasty overpayment.

If you are receiving Social Security Disability benefits and not SSI (the rules are different for SSI), Social Security limits the amount you can earn in a given month. This limit is based on your gross or pre-tax earnings for that month. In 2006 this limit is $860 per month. As long as you do not earn over this $860 per month you can continue working and keep your disability benefits.

Problems arise for individuals that earn over this $860 limit. Social Security gives you a trial work period of 9 months where you can work and earn over the $860 limit. At the end of this 9 month trial work period Social Security will evaluate you ability to work and could stop your payments. You are allowed 9 trial months in a five year period. Once you have used up your trial work months if you continue earning over the limit Social Security will grant you an extended period of eligibility where they continue your payments. If you earn over the limit during this extended period of eligibility Social Security can terminate your disability benefits based on your ability to work.

This termination of disability benefits rarely happens quickly. Many individuals that have had this happen find themselves with large overpayments in the neighborhood of $30,000 or more. To ensure this does not happen to you keep your pre-tax earnings below Social Security’s limits. To learn more about disability benefits and how to protect yourself from overpayments and having your benefits terminated, visit the website “Social Security Laid Bare” using the links below.