Can You Lose Your Disability Benefits?

Yes, you can lose your disability benefits. Despite what others may tell you, these benefits aren’t permanent.

According to the SSA, you can continue to receive disability benefits as long as you have a disability that prevents you from working. Once you’ve recovered or have returned to work, you can lose those benefits. You can also lose them if you’re found to have committed fraud.

However, the SSA will not automatically cancel your benefits. They will conduct a thorough investigation first. Then they will send you a written notification about your benefits being terminated. It will contain why they’re stopping your benefits and what you can do about it.

In this post, we’re listing down the reasons why your benefits are stopped and how you can appeal the SSA’s decision.

What Can Cause You to Lose Your Disability Benefits?

There are a lot of reasons that can prompt the SSA to stop your benefits. This includes:

1. Return to Work

First off, returning to work will not automatically terminate your benefits. You will only lose your benefits if you are engaging in a Substantial Gainful Activity (SGA).

In general, if you’re earning more than the SSA’s prescribed income limit, you’re considered to be engaging in SGA.

The SGA income limit changes each year. For 2023, non-blind individuals are engaging in SGA if they are earning more than $1,470 per month. If you’re legally blind, your SGA income limit is $2,460. Check out the SSA’s website for the latest figures.

The SSA also has a trial work period for its beneficiaries. During this, you can still receive disability benefits even if you’re working.

If you’re going through a trial work period, your benefits will stop after you’ve worked at least 9 months in a rolling 60-month period. But it will only count as a full month of work if you’ve earned at least $1,050.

2. Recovery

This goes without saying. If the SSA determines that you’ve recovered and your condition doesn’t prevent you from working anymore, they can cut off your benefits.

3. Fraudulent Activities

Though most SSA beneficiaries are really disabled, some unscrupulous individuals take advantage of the system. That’s why the SSA is always on the lookout for fraudulent activities.

If they find out that you’re defrauding them, they’ll obviously stop your benefits. You may also have to face legal consequences.

4. Not following your doctor’s orders

For the SSA, not getting treatment or not following your doctor’s orders can signify that you don’t want to get well. This can be interpreted as intentionally prolonging your disorder or letting it get worse to continue collecting benefits.

5. Mistake in an Earlier Disability Determination

If the SSA approved your claim by mistake, they’ll stop your benefits too. In cases like this, the SSA will usually waive the recovery of benefits you’ve already received since you’re not at fault. But if the mistake is due to unintentional misdeclaration on your part, you may have to pay them back the benefits you’ve already received.

6. Not cooperating with the SSA

Just like not following your doctor’s orders, not cooperating with the SSA without any valid reason can mean that you’re hiding something. Besides, if you don’t cooperate with the SSA, they won’t be able to make a proper disability review. So they’ll most likely cut off your benefits.

7. You’ve benefited from a vocational training

Your disability might prevent you from doing the job you were previously doing. But you may still be able to do other types of jobs after vocational training. If your new job allows you to earn more than the SGA amount, you’ll lose your benefits.