How Much Money Am I Allowed to Make on Disability?
Navigating the financial aspects of receiving disability benefits can be a complex and confusing process. One of the most common questions individuals on disability benefits ask is, “How much money am I allowed to make on disability?” Understanding the income limits set by the Social Security Administration (SSA) is crucial for maintaining eligibility for these benefits.
Understanding the Income Limits
The SSA has specific rules regarding how much income you can earn while receiving disability benefits. The primary factor in determining your allowable income is whether you are engaged in “substantial gainful activity” (SGA). SGA is defined as engaging in work that earns more than a certain amount per month, which is adjusted periodically.
As of 2021, the monthly SGA limit for disabled individuals is $1,310. If your earnings exceed this amount, you may be considered to be engaging in SGA, which could result in a reduction or suspension of your disability benefits. However, there are exceptions and allowances that can affect your allowable income.
Exemptions and Allowances
The SSA recognizes that some individuals may have medical expenses or other financial obligations that require them to earn a certain amount of money. Therefore, they have established several exemptions and allowances to help ensure that individuals on disability benefits can still meet their financial needs.
1. Substantial Work Expenses: If you incur substantial expenses related to your disability while working, you may be able to deduct these costs from your earnings. This can help you stay below the SGA limit and maintain your eligibility for benefits.
2. Unreimbursed Medical Expenses: If you have unreimbursed medical expenses that exceed 7.5% of your adjusted gross income, you may be eligible for a deduction. This can also help you stay under the SGA limit.
3. Impairment-Related Work Expenses: If you have expenses related to your disability that are necessary for you to work, such as assistive devices or transportation, you may be able to deduct these costs.
4. Plan to Return to Work: If you have a plan to return to work and are receiving vocational rehabilitation services, you may be eligible for a trial work period, during which you can earn more than the SGA limit without affecting your benefits.
Seeking Professional Advice
Understanding the intricacies of disability benefits and income limits can be challenging. It is advisable to seek professional advice from a disability attorney or a financial advisor who specializes in this area. They can help you navigate the rules and regulations, ensuring that you maximize your benefits while meeting your financial needs.
In conclusion, the amount of money you are allowed to make on disability depends on various factors, including your earnings, medical expenses, and other financial obligations. By understanding the rules and seeking professional advice, you can ensure that you maintain your eligibility for these vital benefits.
