
Andre
*This scenario was not updated with the 2021 POD threshold and offset amount.
Andre, who is not blind, is self-employed as an IT professional. He has no impairment-related work expenses. Explore how Andre’s income will change under the new POD rules.
Net profit for the year | $18,000 |
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Average net monthly earnings | $1,500 |
SSDI benefit | $1,100/month |
Andre’s IT consulting business did well last year. He reported a net profit of $18,000 on last year’s tax returns. With this profit level, Andre’s average monthly earnings are $1,500, which is higher than the Substantial Gainful Activity level ($1,180 for 2018). Andre’s monthly SSDI benefit is $1,100. The table below shows Andre’s income under current SSA rules and the new POD rules.
- Current SSA rules: Andre’s monthly income will change depending on whether he has completed his Trial Work Period (TWP). If Andre earns $1,500, his monthly income in the TWP will be $2,600. After the TWP, his income will be $1,500.
- POD rules: Andre’s monthly income will be $2,275 if he earns $1,500.
Andre should consider his TWP status and future earnings before enrolling in POD. Andre will benefit from the POD new rules if he expects to regularly earn more than $1,180 per month (or $14,040 in net profit per year).
Current SSA rules (in the TWP) |
Current SSA rules (TWP complete) |
New POD rules (always the same rules) |
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Average net monthly earnings |
$1,500 |
|
$1,500 |
|
$1,500 |
|
Monthly SSDI benefit (earnings adjusted) | +$1,100 | If Andre is still in his nine-month TWP, he will receive his full SSDI benefit amount this month. | +$0 | If Andre has completed his TWP, he will not receive his SSDI benefit this month because he earns more than the monthly non-blind Substantial Gainful Activity amount of $1,180. | +$775 | Andre earns more than the monthly POD threshold amount of $850. Under the new POD rules, his SSDI benefit will be reduced by $1 for every $2 he earns over $850.
calculate POD offset=
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Monthly income | =$2,600 | =$1,500 | =$2,275 |