Working while on disability would seem to be a conflict of interest. But actually, the government provides incentives to encourage those who want to work back into the workforce. Doing so can propel them to financial independence. Wildomar, California, resident Robbi Salem, 48, worked as a banquet server for more than 30 years. A car accident resulted in ruptured disks in her neck and lower back, weeks of physical therapy and eventually surgery.

Her recovery was long and incomplete. Since Salem has a work history and was contributing to Social Security, she was able to collect Social Security Disability Insurance, or SSDI, after being approved through the lengthy application process.

The work-incentive program enabled her to make ends meet because it allowed her to collect a disability benefit plus the wages she earned over a month transition period.

Eventually, she was promoted to a supervisory position and was able to support herself again. Individuals with disabilities may qualify for one of two types of Social Security benefits: Social Security Disability Insurance, or SSDI; or Supplemental Security Income, or SSI. Some people qualify for both. The rules are different under each plan, but both have one common denominator: They offer people with disabilities the opportunity to work while collecting benefits. Naturally, the details of SSDI and SSI are complex — these are government programs, after all.

Recipients of SSDI must have a qualifying disability that has lasted or is expected to last at least a year, or is expected to result in death. They must have worked a specific period of time and paid Social Security taxes. A trial work period incentive allows workers to test their ability to work while still receiving full Social Security disability benefits for nine months within a month period. All work activity must be reported. This amount is generally adjusted annually for inflation.

Earnings exceeding that amount will result in suspension of the disability benefits. No new application is required and benefits will flow while the medical condition is being evaluated. That program provides resources such as vocational rehabilitation, training and job search services.

What Is Social Security Disability Insurance? An SSDI Primer | The Heritage Foundation

SSI is paid monthly to qualified low-income individuals who are blind, disabled or age 65 and older. For earnings above that amount, 50 cents of every dollar earned is deducted from SSI payments. Earnings limits to maintain SSI benefits vary by state. After years of watching his brother and sisters leave their Gainesville, Georgia, home to go to work, Greg Mikas, 26, wanted to join the fun.

Developmentally disabled and unable to read or write, Mikas faced limited job opportunities. He lived with his parents and received SSI, so money was not an issue.

Social Security Online - The Red Book - A Guide to Work Incentives

He started working part time for a landscaper raking leaves, sweeping cut grass off the pavement and other tasks necessary to complete each job. His SSI payments have been reduced and his self-esteem is soaring.

How does Divorce Affect Social Security Disability Insurance (SSDI)?

Lola McGintee, 58, from Northfield, Minnesota, planned to work past the normal retirement age and into her early 70s. Bladder cancer changed those plans. McGintee secured the proper license and turned her love of sewing into a home-based alteration and seamstress business.

She received SSDI until her self-employment earnings surpassed the amount allowed during the extension, which she had been granted. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website.

This compensation may impact how, where and in what order products appear. You have money questions. Our experts have been helping you master your money for four decades. Mortgages Compare Lenders Mortgage rates Refinance rates Home equity loan rates Compare mortgage rates Mortgage lender reviews.

Use Calculators Mortgage calculator How much house can you afford Mortgage refinance calculator Mortgage payment calculator Amortization calculator Cost of living calculator. Get Advice Veteran Homebuyer Central Reverse Mortgage Loan Central Real estate center Refinance center Home equity center How to buy a home How to refinance your mortgage Understand closing costs Which mortgage is right for you? Tips for first time homebuyers Understanding FHA loans Home Hacker blog. Compare Accounts CD rates Savings rates Money market rates Checking accounts.

Use Calculators Savings calculator CD calculator CD ladder calculator Compound savings calculator. Get Advice Money market account vs. Use Calculators Credit card payoff calculator Debt-to-income ratio calculator Balance transfer calculator Debt consolidation calculator. Get Advice How to get out of debt How to improve credit score Getting a credit card with bad credit Balance transfer pros and cons Card Shark blog.

Reviews Best rewards credit cards Best travel credit cards Best balance transfer credit cards Best cash back credit cards Best businesss credit card Best low interest credit cards.

Compare Lenders Auto loans. Use Calculators Auto loan calculator Early payoff calculator. Get Advice How to lease a car Car loans for bad credit Refinance your car How to get the best auto loan rates.

Compare Lenders Personal loans Personal loans for debt consolidation Personal loans for bad credit Student loans Home improvement loans. Use Calculators Loan calculator Student loan calculator Mortgage payoff calculator Personal loan calculator. Get Advice How to get a personal loan Paying off student loans How to pay for home improvements Managing debt How to pay off student loans How to get a home equity loan Student loans center.

Personal Loan Reviews Lending Club review LendUp review OneMain Financial review Prosper review SoFi review Avant review. Compare Rates CD rates IRA CD rates Online brokers for stock trading. Use Calculators Investment calculator Return on investment calculator Annuity calculator Retirement plan calculator K retirement calculator Roth IRA calculator.

Get Advice Retirement center Saving for your child's college Creating passive income Mutual fund vs. ETF Roth IRA vs. Learn tax brackets State tax rates Tax forms. Use Calculators Earned Income Tax Credit calculator income tax calculator What is your tax bracket?

Get Advice Tracking down your tax refund Tax tips for new homeowners 10 often overlooked tax breaks States with no income tax: Free credit report myBankrate open. Working while on disability not a paradox Sharon Anne Waldrop December 16, in Insurance.

How it works Individuals with disabilities may qualify for one of two types of Social Security benefits: SSDI for beginners Recipients of SSDI must have a qualifying disability that has lasted or is expected to last at least a year, or is expected to result in death. SSI basics SSI is paid monthly to qualified low-income individuals who are blind, disabled or age 65 and older. Stitching her way in business Lola McGintee, 58, from Northfield, Minnesota, planned to work past the normal retirement age and into her early 70s.

Do you need mortgage protection insurance? Can I borrow from life insurance policy? How to track unclaimed life insurance money Insurance. Is dental insurance worth the cost? About Us Press Room Investor Relations Affiliate Center Contact Us Careers. Advertise With Us Latest News Blogs Glossary Compare Rates Sitemap.

How we make money Bankrate. Master Life's Financial Journey.