How to Calculate your Maximum Earnings for Disability

If you are currently receiving SSDI (Social Security Disability Insurance) benefits and would like to try to return to work you need to understand how to calculate your maximum earnings for disability benefits to continue, or at what point you can lose your benefits because you are earning too much money.

The first important thing to know is that if you have any change in your employment status you are obligated to let Social Security know about the status change. There are several different programs available to you that can transition you back to work and provide support and continued benefit payments while you are doing so.

If you receive SSDI benefits and want to see if you are able to go back to work, there is a Trial Work Period that can last for 9 months. As long as you continue to be disabled during this Trial Work Period there is no limit to the amount you can earn and still receive your full benefits. The nine months don't have to be continuous but can take place any time during a 60 month period of time. A month becomes part of your Trial Work Period if you earned more than $720 dollars that month or, in the case of self employment, you earned that amount after your expenses were deducted or if you worked more than 80 hours that month in your own business.

Knowing how to calculate your maximum earnings for disability includes deducting work related expenses that you may have to pay for that other non-disabled employees might not have to pay for. As an example, Social Security may allow you to deduct the cost of a taxi from your monthly earnings if you must take a taxi to get to and from work because of your disability.

Beyond the Trial Work Period, Social Security allows a 36 month extended period of eligibility during which you are allowed to work and receive benefits for months where you earned money, but not so much money as to be considered substantial. Social Security defines substantial monthly income earnings in 2010 to be earnings of $1,000 or more. If you're blind, then the monthly amount is $1,640. So to state this a different way - if you are not blind, and your earnings remain under $1,000 monthly then you should be able to  continue to receive your benefits.

Contact the Social Security Administration or an attorney to answer your specific questions.