What Can Cause You to Lose Your Social Security Disability Benefits?
Jackson Law Firm: Serving the Greater Chattanooga Area
Introduction to Disability Programs
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are both programs that provide disability benefits to eligible individuals. These programs are administered by the Social Security Administration (SSA) which determines eligibility for disability benefits.
Eligibility for Disability Benefits
Establishing your medical condition.
Applicants for disability benefits must provide medical records and other documentation to establish their disability claims. The disability must be determined to prevent the applicant from being able to work, or otherwise engage in substantial gainful activity, and to last for one year or longer or result in death.
Work history
SSDI benefits are generally available to individuals who have worked and paid Social Security taxes. The applicant must be able to provide work or business records if needed.
Asset and Income Limits
SSI benefits are needs-based, therefore applicants must have limited income and resources, and be able to demonstrate this to the SSA by disclosing all income received and all assets in their possession. SSDI recipients are not subject to asset limits or any limits on non-employment income such as retirement accounts and pensions.
Losing Benefits Eligibility
Continuing Disability Reviews and Medical Improvement
The SSA periodically conducts Continuing Disability Reviews (CDRs) to see if a recipient’s medical condition has improved. If the SSA makes a determination that the recipient's condition has improved, benefits could be terminated. Recipients are expected to provide updated medical records and cooperate with the SSA during the review process. If a recipient fails to respond to SSA requests for medical records or required evidence which would support a continuation of benefits, their benefits may be terminated.
Doctors Visits
Regular doctors visits are important to treating your condition but also for maintaining your medical records, which are subject to review by the SSA. Ongoing doctors visits can provide continued evidence that your condition still prevents you from working. Failing to keep your doctors appointments, or provide medical records when requested, could lead the SSA to believe that your condition has improved or that you don't take medical treatment for your condition seriously. As a result, the SSA could terminate your benefits.
Working While Receiving Benefits
SGA Limit
Working while receiving SSDI benefits can affect eligibility. SSDI recipients can work while receiving benefits but not in excess of what is considered, substantial gainful activity (SGA). The SGA monthly limit is $1690 or $2830 for blind persons as of 2026. Earning over this amount can result in benefit termination.
Trial Work Period for SSDI
The SSA does allow for a trial work period for individuals receiving SSDI benefits who want to attempt to return to work. During this period, recipients can work and still receive full benefits and related healthcare benefits to test their ability to work. The trial work period is nine months. During this time recipients can work without affecting their benefits. After this trial work period, recipients earning above the SGA limit can have their benefits terminated if they are able to continue working at this level.
Working on SSI
SSI recipients can work and still receive benefits, but their income cannot exceed $2073 per month and $3067 per month for a married couple. In the case of SSI recipients who work over this amount, their SSI payments are reduced by $1 for every $2 earned over the amount of $65.
Expedited Reinstatement of Benefits
There is also a 5-year reinstatement window which allows SSDI and SSI recipients that return to work. These recipients could have their benefits reinstated if they can demonstrate that their initial medical condition again prevents them from continuing to work above the SGA limit during this period. The reinstatement process is expedited so that the recipient doesn't have to completely reapply for benefits while the SSA reviews and makes a determination on their request.
It is important for recipients to understand the rules of the trial work period and report any changes in income or work activity to the SSA.
Reaching Full Retirement Age
When an SSDI recipient reaches full retirement age, which is 66-67 years of age depending on date of birth, their benefits automatically convert to Social Security retirement benefits. The benefit amount will remain the same.
Changes in Income and Assets
For SSDI and SSI recipients, exceeding the income limit can result in a loss of benefits. It is important to keep the SSA informed on any changes in your income, especially if it will exceed, or come close to exceeding the income limit.
SSI recipients also need to be careful with accepting anything that would constitute an increase in assets, including cash, property, or goods. SSI recipients are allowed to possess one car and one primary residence, neither of which would be counted towards the asset limit. A Social Security attorney can offer guidance on what assets will or will not be counted towards the limit.
Disabled Children and Benefits
Disabled children can receive SSI benefits if they meet certain eligibility requirements. These include the severity of the disability, citizen or residency status, income and assets, and income of parents or guardians in the same household. Children’s benefits can also be affected by changes in their medical condition. If there are any changes in these factors, recipients must report them to the SSA in order to maintain benefits.
Incarceration and Benefits
Both SSDI and SSI benefits can be suspended, or in some cases terminated if a recipient is incarcerated. Depending on the length of the incarceration, SSI recipients may need to reapply for benefits. The SSA will require documentation of the incarceration and release.
Fraud and Benefits
If fraud is detected regarding a recipient's benefits, the recipient can lose their benefits or even face prosecution.
Persons seeking to receive disability benefits are expected to provide accurate information when applying for benefits or during a disability review. Even incorrect or outdated information can cause benefits to be lost, result in a recoupment of benefits, or cause future payments to be reduced. However, a finding of fraud, which can include submitting false medical information or filing multiple claims in different states, could result in the SSA seeking to recoup payments made under false pretenses or in some cases, criminal prosecution.
Appealing a Decision to Stop Benefits
If SSDI or SSI benefits are terminated, recipients can appeal the decision. There is a 60-day deadline from the date of termination to initiate an appeal. If you had your benefits terminated and you wish to attempt to receive your benefits during the appeals process you must file a request for a continuation of benefits within 10 days of receiving your notice of termination. You will need to gather any evidence that would support your continuation of benefits such as medical records
The appeals process for the termination of benefits is similar to the appeals process of an initial application. If you a receive notice of termination, you will first have the opportunity to appeal your benefits at the Reconsideration stage. If you are denied at that level, you can go before the Administrative Law Judge (ALJ), followed by a review by the Appeals Council, and ultimately a Federal Court Review. Working with a disability lawyer to navigate the appeal process can increase a recipient's chances of successfully retaining your benefits.
How a Disability Lawyer Can Help
If your disability benefits have been terminated, the disability lawyer at Jackson Law Firm can help you appeal the termination. Forrest Jackson is familiar with the disability process and has seen why qualified individuals have their benefits denied or terminated. Keep in mind, that if you receive notice that your disability benefits are terminated, you have 60 days to appeal and only 10 days to request a continuation of benefits during the appeals process.