Gerald G. Lutkenhaus Social Security Disability Law Blog on Lawyers.com

      Many people who are collecting disability benefits under Social Security Disability Insurance (SSDI) would like to attempt to do some work. For many people, they can work part time but not full time. Many people, however, are hesitant to try any type of employment out of fear that it may jeopardize their Social Security benefits. SSDI does encourage people to go back to work but you do have to be careful. Mistakes and misunderstandings can result in overpayments that must be paid back to Social Security as well as the possible loss of benefits. These are some suggestions:

1. Work as a Volunteer: Due to the possible loss of benefits, you may want to work as a volunteer for a few weeks just to see if you can do it. After you work as a volunteer for two or three weeks, you can get some idea if you can return to the work force.

2. Keep Records: If you do return to work keep careful records. This means keeping yourwage stubs and hours worked. If you work for someone else, your income will ultimately be reported to Social Security. Social Security receives only show gross pay and what tax year they were paid in. Plus, Social Security is approximately two years behind in posting them to your Social Security account.

3. Work Expenses: Keep receipts and records of any additional expenses you incur due to working and your disability. Social Security allows you to subtract from your earnings any expenses you incur that are necessary for you to work. This can include the cost of special transportation to and from work, prostheses and assistive devices, even medical expenses such as acupuncture, massage therapy or chiropractic treatments.

4. Notification to Social Security: Tell Social Security in writing by certified letter (and keep a copy) of your plans to work. Or, deliver a written letter to Social Security and obtain a receipt of your plan to work. Unless you are going to be earning very small amounts, you should notify Social Security of your plans to attempt to do some work.

5. Triggering a Review: Some people are afraid to tell Social Security about working because they fear that it will trigger a review of their disabled status. While that may seem like a rational concern, it does not work out to be the case. The time for the next Continuing Disability Review is set at the time one is completed. Social Security is much too overloaded with work to track and compare people trying to work with their Disability Review date.

6. The Maximum Monthly Rate: You need to know the maximum monthly gross amount you can earn for 2009 is $980.00 per month. If your wages are just below the maximum limits on a consistent basis month after month (for example $900.00 a month), then sooner or later, Social Security will become "curious" to determine if your limited work is really due to your medical condition or if you are intentionally keeping your income low to qualify for benefits.

7. The Trial Work Period: Social Security Disability Insurance (SSDI) does allow you tocollect your full SSDI benefits and earn all you are able to earn for nine months. These nine months are called the Trial Work Period. That means that you can earn $5,000 per month or more for nine months and still receive your full SSDI benefits for each month. The Trial Work Months do not have to be consecutive. It also means that if you earn less that $980 (amount for 2009) in a month, then it does not count as a Trial Work Month. If you earn less than $980 per month every month, you will continue to receive your full SSDI benefits without any particular time limit.
Once you have used all nine months of the Trial Work Period, you will still receive your full SSDI benefits as long as your income does not exceed what Social Security calls Substantial Gainful Activity. In 2009, Substantial Gainful Activity is Countable Income that exceeds $980 per month.

8. SGA for Self Employed: Note to Self-Employed persons: For a self-employed person, Social Security considers any month that you work over 80 hours in the month as exceeding Substantial Gainful Activity, regardless of your Countable Income. Also, regular business expenses are subtracted from earnings to arrive at Countable Income.

     As you can see, the rules for working while collecting disability are fairly complicated and the repercussions for not following them can be expensive. If you feel well enough to attempt some type of employment, it can help you financially and, more importantly, emotionally. However, it is important that you understand the process well before attempting to return to work. The biggest mistake people make is not knowing how much they can make without triggering a disqualification. The second biggest mistake is getting the wrong advice from Social Security because you give Social Security incomplete information about your wages. The third mistake if you decide to work is not contacting a Virginia Social Security Disability attorney first to check for the pitfalls.

This may be considered AN ADVERTISEMENT or Advertising Material under the Rules of Professional Conduct governing lawyers in Virginia. This note is designed for general information only. The information presented in this note should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Jerry Lutkenhaus has been a practitioner of Social Security Disability law in the Richmond, VA for over 35 years. He was given an "AV" rating by Martindale-Hubbell in 2003. Richmond Magazine has listed Mr. Lutkenhaus as one of the best lawyers in central Virginia. There is more information at www.virginiadisabilitylawyer.com or www.geraldlutkenhaus.com.