Can Earned Income Affect My Disability Insurance Benefits in the USA?

Question from Skiskis, Can Earned Income Affect My Disability Insurance Benefits in the USA?

Answer from AI:

In the United States, earning income while receiving disability insurance benefits can potentially affect your eligibility for those benefits. However, the specifics depend on the type of disability insurance you’re receiving and the rules set by the agency providing those benefits.

Social Security Disability Insurance (SSDI)

If you’re receiving Social Security Disability Insurance (SSDI) from the Social Security Administration (SSA), there are certain income limits you must not exceed to continue receiving benefits. As of 2021, the SSA considers any amount over $1,310 per month as substantial gainful activity (SGA), which could affect your SSDI benefits. However, the SSA does provide work incentives, such as a trial work period, that allow you to test your ability to work while still receiving full benefits.

Private Disability Insurance

If you’re receiving benefits from a private disability insurance policy, the impact of earned income on your benefits will depend on the terms of your policy. Some policies may allow you to earn a certain amount of income without affecting your benefits, while others may reduce your benefits proportionally based on your earned income.

Steps to Take

If you’re considering accepting a contract that will provide you with income, here are some general steps you might take:

1. Review your disability insurance policy or benefits guidelines to understand how earned income may affect your benefits.
2. Consult with a legal professional or a financial advisor who specializes in disability insurance. They can help you understand the potential impact of the contract on your benefits.
3. Contact the agency or company providing your disability benefits to discuss your situation. They can provide information specific to your case.

Please note: This information is intended to provide a general understanding of how earned income might affect disability insurance benefits in the United States. It is not legal advice. Laws and regulations can change, and each individual’s situation is unique. Therefore, it’s important to consult with a legal professional for advice tailored to your specific circumstances.

For more information on how work affects SSDI benefits, you can visit the Social Security Administration’s page on working while disabled. For information on private disability insurance, consider consulting resources like the National Association of Insurance Commissioners.