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You keep your benefits for 9 months after starting substantial gainful activity (earning more than $1,170 / month). And yes that means for 9 months you do get t

by zaroth 10y ago

You keep your benefits for 9 months after starting substantial gainful activity (earning more than $1,170 / month). And yes that means for 9 months you do get to double dip. There are also trial work periods which you can "fail" out of and not lose your benefits. It's hard to walk away from a guaranteed monthly payment for life (when SSDI stops regular social security kicks in). But just looking at the monthly check misses the forest for the trees. Keep in mind that the act of working a job is actually very expensive. Having those 50+ hours back and not having to be out of the house performing labor for some 3rd party is generally worth much more than the actual monthly payments. To put it another way, if you can stay home and live anywhere you want (no commute) your cost of living can easily drop below $15k / year. Whereas working full time your cost of living may be double, triple, or more. Once you get on SSDI, even a job paying $60k/yr or more might not be economically superior. Oh, then throw in that you're paying almost no taxes, you qualify for all kinds of other subsidies and rebates... then there's the bit about free healthcare. Add it up and even a $70k-$80k job might be economically inferior.

gregshap 10y ago
I agree in principle, but 70-80k is quite a stretch.
- zaroth 10y ago
  First, it matters a lot how you define "an $80k / year job". If you are talking about the gross payroll, taxes and benefits (PT&B) cost to the employer, it's a lot different than $80k "net take-home". I mean the former. Call that $50k take-home. Second, it matters if you are an adult disabled with a family being paid children benefits. Children and spousal benefits can boost total SSDI income up to 80%. Third, it matters how sick you are. Employee health plans will often have large deductibles and even higher annual out-of-pocket maximums. Medicaid has neither. The poor man insurance could save you over $20k per year. Fourth, it matters how handy you are and therefore how much you can make of that extra 50 hours per week you get by being on SSDI. If you can repair your house, repair your car, cook all your own meals, and never have to hire a contractor for anything, that can save a LOT of money. Maybe on SSDI you don't need a car at all. Maybe on SSDI you never have to call the car mechanic, the plumber, the handyman, or the housecleaner, etc. Most particularly, maybe on SSDI you don't have to pay for childcare. The direct, indirect, and opportunity costs of working could easily exceed $20k. In review, let's say your $50k take home job results in $10k increase in healthcare costs, and also a $10k increase in other total household expenses; increased auto expense, food cost, restaurant bills, mechanics, handymen, and most of all, childcare. So you are working your ass off for $30k of income, where-as staying at home with SSDI would have paid you and your children $30k per year.

by zaroth 10y ago

gregshap 10y ago

I agree in principle, but 70-80k is quite a stretch.

zaroth 10y ago
First, it matters a lot how you define "an $80k / year job". If you are talking about the gross payroll, taxes and benefits (PT&B) cost to the employer, it's a lot different than $80k "net take-home". I mean the former. Call that $50k take-home. Second, it matters if you are an adult disabled with a family being paid children benefits. Children and spousal benefits can boost total SSDI income up to 80%. Third, it matters how sick you are. Employee health plans will often have large deductibles and even higher annual out-of-pocket maximums. Medicaid has neither. The poor man insurance could save you over $20k per year. Fourth, it matters how handy you are and therefore how much you can make of that extra 50 hours per week you get by being on SSDI. If you can repair your house, repair your car, cook all your own meals, and never have to hire a contractor for anything, that can save a LOT of money. Maybe on SSDI you don't need a car at all. Maybe on SSDI you never have to call the car mechanic, the plumber, the handyman, or the housecleaner, etc. Most particularly, maybe on SSDI you don't have to pay for childcare. The direct, indirect, and opportunity costs of working could easily exceed $20k. In review, let's say your $50k take home job results in $10k increase in healthcare costs, and also a $10k increase in other total household expenses; increased auto expense, food cost, restaurant bills, mechanics, handymen, and most of all, childcare. So you are working your ass off for $30k of income, where-as staying at home with SSDI would have paid you and your children $30k per year.