Purple Heart Freedom to Work Act

This bill amends the Social Security Act to provide work incentives for Purple Heart recipients receiving disability benefits. It removes the standard earnings penalty that would reduce benefits when veterans earn above the "substantial gainful activity" (SGA) threshold, instead allowing benefits to continue with a reduced rate ($1 reduction for every $4 earned above the threshold, but not below $0). It also specifically applies a higher SGA earnings limit to Purple Heart recipients under Social Security disability rules. The changes affect veterans who received a Purple Heart for a service-connected injury and are currently receiving Social Security disability benefits. The bill takes effect six months after enactment.