In order to obtain federal disability benefits, individuals must demonstrate that medical conditions can prevent them from working. However, some disability beneficiaries do work, and those who earn more than Social Security allowance are not entitled to monthly benefits. These job beneficiaries may unconsciously take the risk of high salaries.
Overpayment has to be paid back, which can cause difficulties for a group of people who are already struggling financially.
According to researchers at Mathematica, the risk of being a work-based beneficiary is high. Although only 4% of the people in this study had incomes above the monthly limit, the Social Security Bureau overpaid 82% over the decade tracked by researchers.
Overpay usually lasts for several months, totaling around $9,300. Some people can never repay such a huge amount.
Despite the amount of income allowance, Social Security wants people to get disability benefits to return to work where possible and give them room to test the job market without worrying about losing benefits. During the agency’s trial period, they were allowed to earn more than $1,620 (2025 earnings allowance) for nine months, but still receive monthly benefits checks. Nine months do not have to be continuous.
After the probation period, workers risk limiting income restrictions before the grace period with very short grace periods, which may trigger overpaid payments. The largest share of those who are well paid (68%) ends up losing disability benefits. Despite the excess returns resulting in overpayment, the smaller share (32%) continues to qualify.
The Social Security Bureau or people who receive benefits may be responsible for these circumstances. The purpose of this study was to document the generality of overpayments and to determine the method to minimize them.
The agency is currently working to improve its access to earnings data from payroll companies so that current information can be accessed faster. The researchers also said that Social Security could send more reminders to beneficiaries to provide timely profit updates.
The goal, they said, is to “design policies that minimize overpayment, or, if it happens, can help beneficiaries stay connected to employment.”
Read this study Denise Hoffman, Monica Farid, Serge Lukashanets, Michael T. Anderson and John Jones (John T.
The research reported in this article was conducted based on grants from the U.S. Social Security Agency (SSA) funded by a part of the Retirement and Disability Research Alliance. The opinions and conclusions expressed are merely the opinions of the author and do not represent the opinions or policies of the SSA or any agency of the federal government. Neither the U.S. Government nor any of its agencies, nor any of its employees, has any legal liability or liability for the accuracy, completeness or usefulness of the contents of this report. References herein to any particular commercial product, process or service, by trademark, trademark, manufacturer or otherwise, do not necessarily constitute or imply the endorsement, advice or preference of the U.S. Government or any of its institutions.
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