Reasons Your SSD Benefits Might Be Reduced

Here are some common reasons why your Social Security Disability benefits may be reduced:

You Are Earning Above the Substantial Gainful Activity (SGA) Limit

The SSA defines Substantial Gainful Activity (SGA) as the income level above which an individual is considered capable of working and is not eligible for disability benefits. If you are working while receiving Social Security Disability benefits and your earnings exceed the SGA limit, the SSA may reduce or stop your benefits.

• SGA Limit for 2025: The monthly income limit for non-blind individuals is $1,470. For blind individuals, the SGA limit is $2,460.

If you exceed these income limits, your SSD benefits may be reduced, and eventually, you may lose eligibility for benefits altogether.

You Are Receiving Workers’ Compensation or Other Disability Benefits

If you are receiving workers’ compensation or other disability benefits from a private insurance policy, the SSA may reduce your SSD benefits to ensure that your combined income (from all sources) doesn’t exceed a certain amount.

• Offset Rule: The SSA applies an offset to your disability benefits when you are also receiving other disability payments. This means your SSD benefits may be reduced to reflect the combined total of your workers’ compensation benefits and SSD benefits, ensuring that your total benefits don’t exceed a certain threshold.

Changes in Your Medical Condition

The SSA reviews your case periodically to determine whether you still meet the criteria for Social Security Disability. If your condition improves and you are no longer considered disabled, your benefits may be reduced or terminated.

• Medical Reviews: The SSA may conduct Continuing Disability Reviews (CDRs) to assess whether your condition has improved enough for you to return to work. If the SSA finds that your disability is no longer severe enough to prevent you from working, they may reduce or stop your benefits.

Your Family or Household Income Has Increased

If your family income increases significantly, this could impact Supplemental Security Income (SSI) recipients, who are subject to income-based eligibility. While SSDI benefits are not typically affected by household income, an increase in your spouse's or family's earnings could impact other benefits or assistance programs.

You Were Approved for SSDI Before Reaching Full Retirement Age

Once you reach Full Retirement Age (FRA), your SSDI benefits will automatically convert to Social Security Retirement Benefits. At that point, the amount you receive will typically remain the same, but if you were approved for SSDI before FRA, your benefits could be reduced based on how much you are entitled to receive at FRA.

• FRA varies depending on your birth year, typically ranging from 66 to 67 years old.

What Can You Do if Your Benefits Are Reduced?

If you find that your Social Security Disability benefits have been reduced, you may have options to address the situation:

Review Your Benefits Statement

The first step is to carefully review the notice or statement from the SSA that explains the reason for the reduction. The SSA should provide an explanation of why your benefits were reduced, including the specific reasons such as income limits, workers’ compensation offsets, or medical reviews.

• If the reduction is due to workers' compensation or another disability benefit, you can review the offset formula used by the SSA to determine the reduction.

Appeal the Decision

If you believe that the reduction was made in error or that the SSA did not fully consider your circumstances, you have the right to appeal the decision. There are several steps in the appeals process:

• Request a Reconsideration: This is the first step in the appeal process where the SSA reviews your case again based on the information you provide.
• Request a Hearing: If reconsideration is denied, you can request a hearing before an Administrative Law Judge (ALJ), where you can present your case in person.
• Appeal to the Appeals Council: If the ALJ rules against you, you can ask the Appeals Council to review the decision.
• Federal Court Appeal: As a final step, you may appeal to federal court if all previous appeals have been exhausted.

Report Any Changes in Your Health or Income

If your condition worsens or if you experience any changes in your income or medical situation, report this to the SSA immediately. It’s important to keep the SSA updated on your situation to avoid further issues with your benefits.

Consult a Disability Attorney

If your benefits have been reduced and you are unsure how to proceed, consulting a disability attorney or advocate may be a good option. They can help you understand your options, review the SSA’s decision, and guide you through the appeals process.