Should you work while you have a disability or will you be heading off to the workforce?  It could mean sacrificing all (or a part of) your disability benefits. For disabled veterans, as well as those receiving Social Security benefits, employment may be a way to supplement your income. But beware, everything has a price and sometimes earning a little might lead to giving up a lot.

Compensation Versus Pension for Disabled Veterans
A disabled veteran is someone who has applied for disability benefits from the U.S. Department of Veterans Affairs (VA) and had their application approved. A veteran can have obvious disabilities, be receiving VA healthcare for those disabilities, and still not be a “Disabled Veteran” unless they go through the steps necessary to have their conditions officially recognized by the VA.

The U.S. Department of Veterans Affairs has two disability programs. Disability Compensation is for veterans who have conditions that were caused or aggravated by their service in the military. These conditions cover the full range of human physical and emotional experience including spinal cord injury (SCI), amputation and traumatic brain injury (TBI). Pension is for low income veterans who are disabled because of conditions that came about after their military service. It is only for veterans with severe disabilities, and veterans must have served during a federally recognized period of war to receive it.
Most veterans receiving Disability Compensation continue to work, as they have no prohibitions on obtaining and/or maintaining employment. Only those who receive a higher rating because they are considered “Unemployable” would run into problems by working. This category includes some severely injured servicemen.

Veterans receiving Non-Service Connected Pension can also work part-time so long as their income does not exceed the income cap for the program.  If they are capable of working full-time, they would not meet the 100% disabled requirement for this benefit.

Most veterans who have their applications approved receive additional monthly income. For Disability Compensation, this income is tax free and the benefits typically continue for life. Wartime service is not required for either disability compensation and payments are not taxable. For those receiving non-service connected pensions, wartime service is required and payments are taxable.

If compensation or pension isn’t right for you, you should consider the disability programs offered by the Social Security Administration. They include Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).

When Social Security is the Answer
Special rules make it possible for those receiving Social Security disability payments or Supplemental Security Income (SSI) to work and still receive payments. Social Security Disability Insurance (SSDI) is a monthly benefit for people who have worked in the past and paid Social Security taxes. SSDI benefits are paid to people who are unable to work for a year or more because of their disability.

Once you begin a job, the trial work period allows you to test your ability to work for at least nine months. During this period, you will receive your full Social Security benefits regardless of how much you earn as long as you report your work activity and continue to have a disabling impairment. In 2009, a trial work month is any month in which your total earnings are at least $700 or, if you are self-employed, you earn more than $700 after expenses or spend more than 80 hours in your own business.

If you find that you can manage your disability with a workload and want to continue, you may have an extended period of eligibility. After your trial work period ends, you have 36 months during which you can work and still receive benefits for any month your earnings are not considered “substantial” (i.e., less than $980 per month or $1640 per month if you are blind). If you have extra work expenses, your earnings could be substantially higher than $980 before they affect your benefits. Extra work expenses might include costs associated with special transportation to and from the workplace or special costs associated with your disability.

If you cannot continue to work because of your medical condition, your Social Security benefits may start again. And in some cases, in the years following a disabling injury and a record of employment, a disabled veteran may then become eligible to receive benefits from both the VA and Social Security.

What is right for you? The rules and regulations related to working while disabled can be complicated and confusing. In many cases, disabled veterans shy away from the idea of even working part time because they are afraid of losing their benefits. For more information, please contact your VA Regional Office and speak to a Veteran Service Officer (VSO) or contact your local Social Security Office.