Widows facing the dual challenges of disability and loss of a spouse can find themselves in a position of significant financial vulnerability. You might be thinking about returning to work to pay for immediate expenses like funeral costs or avoid debt. However, it is crucial to consider how employment can affect your eligibility for disability benefits.
Disabled widow’s and widower’s benefits (DWB) are a specialized form of Social Security benefits designed to provide financial support to individuals who have lost their spouse and are unable to work due to a disability. If you earn a substantial income, the Social Security Administration (SSA) may determine that you’re not disabled according to their definition.
If you decide that receiving income is necessary for your financial stability, some programs and protections can enable you to pursue this goal while retaining your DWB status.
Factors that can affect your benefits
Several factors can guide your decision, including:
- Trial work period: SSA allows a 9-month trial work period where you can check your ability to work without losing benefits. These months don’t have to be consecutive.
- Substantial gainful activity limit: You might exceed the eligibility limit if you earn more than $1,470 monthly. You should also check for earning thresholds that reduce benefits.
- Extended eligibility period: There’s a 36-month period where SSA can reinstate benefits if your earnings fall below the substantial gainful activity limit.
- Reporting requirements: You must report any changes in work activity to SSA. Failure to report could result in overpayments that you’d need to repay.
- Medicare continuation: Even if your cash benefits stop due to work, your Medicare coverage can continue for at least 93 months after the trial work period. Health coverage can be crucial as you transition back to work.
- Effect on future benefits: Working can potentially increase your future Social Security retirement benefits by adding to your earnings record, which could be beneficial in the long run.
- SSA or state-specific programs: SSA’s Ticket to Work program provides career development services to beneficiaries aged 18-64 while maintaining benefits initially. The Opportunities for Ohioans with Disabilities agency also offers various services to help you return to work while managing your benefits.
Approach your decision to work with caution and informed consideration. The rules and programs outlined above offer some flexibility. However, they also require careful management and reporting to avoid unintended consequences.
Your unique circumstances will determine the best choice for you. Consulting a Social Security Disability lawyer is advisable to help you understand the full implications of working while receiving benefits and managing your DWB status.