Can You Apply for Disability While Still Working?

Many people wonder whether they can start a disability claim before they stop working. The short answer? Yes, you can apply for disability while still working—but there are important rules and limitations you need to understand. The entire premise of Social Security disability benefits is that you are unable to engage in "Substantial Gainful Activity" due to your medical condition. Understanding how work activity is evaluated is especially important if your claim is denied and you are trying to win a Social Security disability reconsideration appeal, where income levels and ongoing employment are closely examined. 

Let's break down what that means and how your income affects your application.

Substantial Gainful Activity (SGA)

The most important concept is Substantial Gainful Activity (SGA). This is the official term the Social Security Administration (SSA) uses to determine if your work is significant enough to disqualify you from benefits.

The SSA mainly focuses on how much money you earn, not the number of hours you work.

• If your monthly gross earnings are ABOVE the SGA limit, the SSA will likely conclude you are not disabled under their rules and will deny your application without reviewing your medical records in detail.

• If your monthly gross earnings are BELOW the SGA limit, the SSA will then proceed to evaluate your medical condition and its impact on your ability to work.

From a practical standpoint, when I am representing clients in a disability claim, I generally prefer that they not be working at all during the application and appeals process. Continuing to work, even at reduced hours or below the SGA limit, often creates unnecessary risk and confusion, as the SSA may view ongoing employment as evidence that a person is more capable than their medical condition truly allows—and in some situations, this can cause the termination of Social Security Disability Insurance benefits. In many cases, stepping away from work allows the focus to remain where it belongs: on the severity of the medical impairments and their impact on the ability to sustain competitive, full-time employment. Once a claim is approved, clients can then explore returning to work within the SSA’s work incentive guidelines, which provide far more flexibility and protection.  

Of course there are many circumstances, where stopping work completely is not an option.

Best Practices for Applying While Working

If you are working but earning below the SGA limit, you must still present a strong, consistent case that your medical condition prevents you from working full-time.

• Strictly Monitor Your Income: One single month of gross earnings above the SGA limit can jeopardize your entire claim. If you are close to the limit, be vigilant.

• Detail Your Work Limitations: Document how and why your disability affects your job performance. Did you have to reduce your hours? Change your duties? Take excessive breaks or absences? This evidence shows the SSA that your condition is limiting your ability to work consistently.

• Provide Doctor Statements: Ensure your treating physician(s) provide detailed statements explaining why your condition prevents you from maintaining full-time competitive employment, and that these records are properly prepared to send records to the Social Security Administration. They should focus on your functional limitations (e.g., inability to sit/stand for long periods, need for unscheduled breaks, difficulty concentrating).

• Document Accommodations: If your employer gives you special help (like a modified schedule, fewer responsibilities, or tolerance for lower productivity), document the value of this work subsidy. This proves you are only able to work because of special allowances, not because you are truly capable of competitive, full-time work.

Work Incentives: The Rules After Approval

Once you are approved for Social Security Disability Insurance (SSDI), the rules around working become much more flexible. The SSA offers special Work Incentives to encourage a return to the workforce without the fear of instantly losing benefits.

Trial Work Period (TWP)

The TWP is a nine-month safety net. During this period, you can work and earn any amount without losing your SSDI benefit payments. The SGA limit is ignored during the TWP, allowing you to test your work abilities risk-free.

Extended Period of Eligibility (EPE)

The EPE is a 36-month period that begins after the TWP ends.

• The Rule: You will receive your full SSDI benefit for any month where your gross earnings are below the SGA limit.

• The Safety Net: If your income exceeds the SGA limit in a given month, your benefits are suspended. However, if your income drops back below the limit within the 36-month period, your benefits can be quickly reinstated without the need to reapply.

Final Thought

Applying for Social Security Disability while you are still trying to hold down a job is an emotionally and legally challenging process. The SSA's focus on the SGA limit means you must treat your application like a two-part case: proving that your income is low enough to qualify and that your medical condition is severe enough to prevent you from doing full-time work.

Schedule Your Free Consultation

If you are currently working and planning to file a claim, reach out to us to talk to our lawyers. We can help you strategically navigate the SGA rules, correctly document your limitations, and build the strongest possible case for your disability claim.