January 2025 Spotlight on
Social Security Newsletter

Department of Rehabilitation (DOR) Spotlight on Social Security Newsletter brings exciting news, work incentive information, success stories, and other valuable information for beneficiaries receiving Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), their families, and the professionals that serve them.

In this issue:

Upcoming Spotlight on Social Security Webinar

DOR offers webinars, provided by industry experts who share valuable information and resources for beneficiaries of SSI and/or SSDI.

Don’t miss out! Go to our Webinar Calendar to register for future webinars!

This month's webinar:

Title: Social Security Disability Insurance and Employment: What You Need to Know!
Date: Thursday, January 16, 2025
Time: 10:00 A.M. - 11:30 A.M. PST
Location: Zoom
Event Information: Navigating work while receiving SSDI can be challenging, but understanding the program rules makes it more manageable. Join us to learn about SSDI work incentives, continued Medicare coverage and how the program supports working while on benefits. Discover how Social Security work incentives can help you transition to work and financial independence.

Register for the January 16th Webinar

New Resource Page, "Empowerment Essentials"

Check out our new disability benefits resource page "Empowerment Essentials", designed to provide helpful information about work and benefits. This month’s topic is "What’s New in 2025".

Featured Spotlight Article – Making Employment Work: SSDI Work Incentives Explained!

Starting a job after living with a disability can feel overwhelming, especially when navigating Social Security rules. The good news is that Social Security Administration’s (SSAs) Ticket-to-Work program and work incentives provide tools to help you return to work while protecting your benefits and healthcare. These work incentives provide a safety net, giving you time and flexibility to transition to work confidently.

Can I Work While on SSDI?

Yes! SSA allows you to work under specific rules. SSDI work incentives give you the opportunity to test your ability to work and maintain your benefits as you work toward financial independence.

What are Work Incentives?

Work incentives are special rules designed to make it easier for anyone receiving SSI or SSDI to transition to work. These rules help you to work by protecting your benefits and Medicare until you achieve self-sufficiency. If your income becomes too high and your benefits stop, but the job doesn’t work out, you can request to have your benefits reinstated without needing to reapply.

Key SSDI Work Incentives

Since SSDI is an insurance program, the rules for returning to work are different for SSDI beneficiaries than they are for SSI recipients. SSDI has three primary work incentives to support a gradual return to work, the Trial Work Period (TWP), the Extended Period of Eligibility (EPE) and the Expedited Reinstatement (EXR) provide over 8 years of protection.

Trial Work Period

The TWP lets you test working while keeping your full SSDI benefits, regardless of how much you earn, for at least nine months. In 2025, a TWP month is counted if your gross earnings exceed $1,160 or you work more than 80 hours a month in self-employment.

The TWP ends after you use nine TWP months within a rolling 60-month (5-year) period. Earnings below $1,160 in a month won’t count as a TWP month or affect your SSDI benefits. For example, earning $1,000 in a month is below the TWP threshold and will not count.

What Happens After the TWP?

After completing the TWP, you enter a 36-month EPE, even if you are not working that month. The EPE safeguards your eligibility for SSDI benefits for this three-year period while SSA continues to evaluate your work and earnings.

  • Substantial Gainful Activity (SGA)

    One of the basic requirements for SSA disability is that your medical condition must prevent you from doing "Substantial Gainful Activity" or SGA level work. Once your 9 TWP months are over, Social Security will continue to look at your countable earnings to see if they are SGA. SSA uses a specific income threshold to decide when earnings are SGA. In 2025, SGA is $1,620 per month ($2,700 for blind individuals).

  • Extended Period of Eligibility

    During the 36-month EPE:
    • Benefits continue for months your earnings are below SGA, as long as you continue to have a disability.
    • Cash benefits are suspended for any moths your earnings are over the SGA level.
    • If earnings fall below the SGA limit during the EPE, benefits can be restarted quickly.

  • Grace Period

    The first time you work above SGA in the EPE, SSA considers your disability "ceased" but still pay benefits for that month and the next two months. However, if your earnings fall below SGA and you are still in the 36-month EPE, Social Security can restart your benefits.

  • Expedited Reinstatement

    EXR serves as a safety net for individuals who successfully return to work and are concerned about losing their benefits permanently. If your benefits end after the EPE due to earnings, EXR lets you restart them without reapplying if you stop working within five years due to your original disability or a related condition.

Additional Work Incentives Can Support Your Success!

  • Impairment Related Work Expenses (IRWE): Are out-of-pocket expenses for disability related expenses needed for work, like specialized transportation, medical devices, counseling services, doctor visits and more. These expenses can be deducted from your earnings when SSA determines if your work is at the SGA level, potentially allowing you to earn more without affecting your benefits. To ensure accurate reporting, submit an itemized list of IRWEs with supporting receipts when you report wages. To learn more, visit Impairment Related Work Expenses.

  • Subsidies and Special Conditions: Support like extra supervision or job coaching may reduce countable earnings for SGA. A subsidy occurs when an employer provides more support, like extra supervision or easier tasks, than the job usually requires. Special conditions refer to assistance from a non-employer source, like a job coach funded by the Department of Rehabilitation. To learn more, visit Subsidy and Special Condition.

  • Unsuccessful Work Attempt (UWA): Occurs when an individual tries to work but is unable to continue due to their medical condition. Work efforts lasting less than six months due to your disability won’t count toward SGA. To learn more, visit Unsuccessful Work Attempt.

  • Unincurred Business Expenses (Self-Employment): A work incentive for self-employed SSDI recipients. They refer to business costs covered by someone else, such as equipment or services paid for by DOR or someone works for your business as unpaid help. SSA doesn’t count these expenses when they calculate your “net earnings from self-employment” when determining SGA. To learn more, visit Unincurred Business Expenses.

If I Go to Work, Can I Keep My Healthcare Benefits?

Yes, for many SSDI recipients, keeping healthcare benefits is a primary concern when considering going to work. The good news is, there are options to keep healthcare benefits while working.

  • Extended Period of Medicare Coverage (EPMC)

    Keep Medicare (all parts) for at least 93 months (7 years and 9 months) after the TWP ends. This means you can work and still maintain your Medicare coverage during this period, even if your cash benefits stop due to earnings. To learn more, visit: EPMC.

  • Medicare for People with Disabilities Who Work

    After the EPMC ends due to work, you can buy continued Medicare coverage to ensure continued healthcare, as long as you continue to have a disability. Apply through SSA.

  • 250% Medi-Cal Working Disabled Program

    Another option to help with healthcare coverage for working individuals with disabilities is the Medi-Cal Working Disabled Program (WDP). Earn up to 250% of the Federal Poverty Level (FPL) and still qualify for free Medi-Cal. In 2025, this means you can earn up to $73,920 per year and access essential healthcare services. More good news, Medi-Cal can pay Medicare premiums. You can apply for this program at your local County Social Services Office or visit, BenefitsCal.

  • Medicare Savings Programs (MSPs) in California

    If you are having trouble paying for Medicare costs, there are ways to save money on Medicare premiums, deductibles and copayments. MSP may help you pay Medicare premiums and other expenses. To learn more, visit Medicare Savings Programs or contact the Health Insurance Counseling and Advocacy Program (HICAP) near you. HICAP phone: 1-800-434-0222.

Helpful Tips

It’s important to carefully track your earnings and stay informed about changes to income limits, TWP and EPE months.

  • Keep detailed records: Document your hours worked, keep pay stubs, and track communication with employers to provide accurate information if requested by the SSA.

  • Report earnings monthly: Keep SSA informed about your work activity.

  • Monitor earnings: Track your earnings and calculate the use of the TWP and EPE. California Disability 101 Benefits and Estimator Tool

  • Respond to SSA requests for information: Don’t ignore notices from Social Security, they often have strict deadlines for responding.

How Can I Learn More About the Different Work Incentives?

You may be wondering how all these work incentives might apply to your situation. The great news is you don’t have to do it alone! DOR has over 30 Work Incentive Planners across California to guide you. You can contact the DOR Ticket to Work helpline by email at ttwinfo@dor.ca.gov or call (866) 449-2730 for more information.

There are also Work Incentive Planning and Assistance (WIPA) projects throughout California that provide free benefits planning services. You can find the WIPA project that serves your area by using the TTW find help tool or call the Ticket-to-Work Helpline at 1-866-968-7842, TTY: 1-866-833-2967.

Resources:

This newsletter is intended to provide general information. There are many factors to consider when calculating how working might affect your benefits. For accurate and personalized guidance, we recommend that you consult with a qualified WIP, CWIC, or directly with Social Security.

Reporting Wages to Social Security

When receiving SSDI, it’s important to report certain information to Social Security to avoid issues with your benefits. You should let them know when you start or stop working, report your wages every month or anytime you have changes. For SSDI, your wages from work should be reported no later than the 10th of every month. For example, wages from January should be reported by February 10th. Please contact your local SSA office to see what options are available to you. You can report:

  • In person, by phone, mail or fax to your local Social Security office.
  • Online using the my Social Security account.
  • Call in your gross earnings to the SSA Call Center, 1-800-772-1213.
  • For deaf or hearing-impaired, call TTY 1-800-325-0778.

Resources:

This Month’s DOR Work Incentive Planning Services (WIP Services) Success Story

Jamie’s Success with SSDI Work Incentives

Jamie had been receiving SSDI benefits for years but felt nervous about returning to work, unsure how it might affect her financial stability and healthcare coverage. With her disability, she had major ups and downs. She was referred to Tricia, a Work Incentive Planner (WIP) at DOR, who explained key SSDI work incentives. Together, they reviewed the TWP, which allowed Jamie to test working without losing benefits, and the EPE for additional financial security. Tricia also explained the protections of the EPMC and the Medi-Cal 250% Working Disabled Program, reassuring Jamie that her healthcare coverage would remain intact.

Encouraged by Tricia’s guidance, Jamie began working part-time starting with a manageable schedule. As Jamie gained experience and adjusted to the demands of working, her confidence grew. She shared that she was nervous about working more hours. With Tricia’s continued support, Jamie learned how to track and report her earnings and came to understand how SSDI work incentives protected her benefits. Overtime, this knowledge empowered her to take on more hours, increasing her monthly income.

This gradual approach allowed Jamie to thrive without feeling overwhelmed. Today, Jamie enjoys a steady income, has maintained healthcare coverage, and feels secure about the future. Jamie’s story demonstrates that with determination and the right support, it’s possible to return to work at your own pace and achieve meaningful employment.

You Too Can Work with a WIP Like Jamie!

  • Interested in learning about your disability benefits?
  • Are you ready to go to work?
  • Meeting with a WIP is a great way to get the facts about how work will affect your Social Security Benefits.

Talk to your DOR counselor to see if you are eligible for DOR WIP Services.

Interested in Receiving DOR Services?

If you are ready to take the first step in an exciting journey with DOR, please click here to get started. You will need to provide additional information about yourself to request services.

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