How Much Can You Make If You’re on Disability?

Understanding how earned income impacts disability benefits is crucial for individuals exploring work opportunities. Different types of disability benefits have distinct rules governing how earned income is treated. This article clarifies these rules, helping individuals make informed decisions about their financial future.

Understanding Disability Benefits and Earnings Thresholds

The Social Security Administration (SSA) manages two primary disability benefit programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). SSDI benefits are for individuals who have worked and paid Social Security taxes, based on work history. SSI is a needs-based program providing financial assistance to individuals with limited income and resources, regardless of work history.

For SSDI recipients, “Substantial Gainful Activity” (SGA) is the level of earnings the SSA considers significant work. Exceeding this threshold suggests an individual is no longer disabled under SSDI rules. For SSI, “countable income” determines the monthly benefit payment.

SSI’s countable income calculation excludes portions of earned and unearned income before determining benefit reduction. Unlike SSDI’s SGA eligibility, SSI reduces benefits based on a specific formula related to a beneficiary’s total countable income. Both programs aim to provide support, but their approaches to earned income differ significantly due to their underlying eligibility criteria.

Working While Receiving Social Security Disability Insurance (SSDI)

Substantial Gainful Activity (SGA) is central to ongoing SSDI eligibility. In 2025, the monthly SGA limit for non-blind individuals is $1,620, and for statutorily blind individuals, it is $2,700. Exceeding these amounts may lead the SSA to determine a beneficiary is no longer disabled for benefit purposes.

The SSA offers a Trial Work Period (TWP) for SSDI beneficiaries to test work ability without immediate benefit loss. During this period, beneficiaries can earn any amount for up to nine months and still receive their full SSDI payment. A month counts if gross earnings exceed $1,160 in 2025, or if self-employment exceeds 80 hours. These nine months do not need to be consecutive and are counted within a rolling 60-month period.

After the TWP, beneficiaries enter a 36-month Extended Period of Eligibility (EPE). During the EPE, SSDI benefits continue for any month where earnings fall below the SGA limit. If earnings exceed SGA during the EPE, cash benefits cease for that month but can resume if earnings drop below SGA in subsequent months.

Impairment-Related Work Expenses (IRWE) can affect SSDI calculations. These are costs for specialized equipment, transportation, or medical expenses necessary for work due to a disability. The SSA may deduct these from gross earnings when determining if earnings are above the SGA limit, helping beneficiaries remain eligible. To qualify, expenses must be paid by the beneficiary, directly related to their impairment, and reasonable.

Working While Receiving Supplemental Security Income (SSI)

For SSI recipients, earned income directly impacts monthly benefits via a “countable income” calculation. Unlike SSDI’s strict SGA limit, SSI benefits reduce as income increases. The SSA applies specific exclusions to gross income to arrive at the countable amount.

The first $20 of most unearned income and $65 of earned income are excluded monthly. After these initial exclusions, the SSA counts only half of the remaining earned income. For example, if an SSI recipient earns $500, after the $65 earned income exclusion, $435 remains, and half ($217.50) is counted against their benefit.

The maximum federal SSI payment for an individual in 2025 is $967 per month, and for a couple, it is $1,450. Countable income is subtracted dollar-for-dollar from this maximum. As earned income increases, the SSI benefit decreases, eventually reaching a “break-even point” where earnings are too high for any SSI payment.

SSI also considers other income and resources. Unearned income, like Social Security benefits, pensions, or gifts, is counted dollar-for-dollar after the initial $20 exclusion. SSI has a resource limit of $2,000 for an individual and $3,000 for a couple in 2025; assets above this disqualify a person. Special exclusions exist, such as the Student Earned Income Exclusion, allowing blind or disabled students in 2025 to exclude up to $2,350 monthly (not exceeding $9,460 annually) from countable income.

Work Incentive Programs

The SSA offers work incentive programs to support beneficiaries returning to work without immediately losing disability benefits or healthcare. The Ticket to Work Program is a free, voluntary initiative for SSDI and SSI beneficiaries aged 18-64 who wish to work. It connects individuals with employment networks and vocational rehabilitation agencies for career counseling, job search assistance, and other support. The goal is to help beneficiaries achieve financial independence through employment.

The Plan to Achieve Self-Support (PASS) is another incentive. This written plan allows eligible individuals to set aside income or resources for a specific work goal, like education, training, or starting a business. Money set aside in an approved PASS plan does not count against SSI income or resource limits, helping individuals become eligible for SSI or receive a higher payment while pursuing their goal. The plan must outline the work goal, the steps needed to achieve it, and the expenses involved.

Continued Medicare and Medicaid eligibility offers healthcare security for beneficiaries returning to work. SSDI beneficiaries can continue Medicare for at least 93 months after their TWP ends, even if cash benefits stop due to work. For SSI recipients, Section 1619(b) of the Social Security Act allows continued Medicaid coverage even if earnings become too high for a monthly SSI payment. To qualify, individuals must continue to meet disability requirements and need Medicaid to work, among other criteria.

Expedited Reinstatement (EXR) provides a safety net for individuals whose disability benefits ended due to work. If a work attempt fails within five years of benefits ending, they can request reinstatement without a new application. During EXR review, provisional cash benefits and Medicare/Medicaid coverage may be provided for up to six months. This helps reduce the risk of attempting to work and encourages re-entry into the workforce.

Reporting Earnings and Benefit Adjustments

Timely and accurate earnings reporting is a responsibility for all Social Security disability beneficiaries who work. The SSA requires individuals to report changes in work activity, including starting or stopping work, or significant earnings changes. This ensures correct benefit calculation and prevents overpayments, which beneficiaries would repay.

Several methods are available for reporting earnings to the SSA. Beneficiaries can report online through their “my Social Security” account, by phone to their local SSA office, or by mail. SSI recipients may also use dedicated mobile applications or telephone wage reporting systems for monthly reporting.

For SSI recipients, monthly wages should be reported by the sixth day of the following month. While SSDI beneficiaries lack a strict monthly deadline, reporting changes or fluctuations promptly is advisable. Keeping thorough records, like pay stubs and IRWE receipts, is essential for verification and accurate benefit adjustments.

Once earnings are reported, the SSA reviews the information to determine benefit adjustments. For SSI, reported income directly affects the monthly payment, often reducing the benefit. For SSDI, reported earnings are assessed against SGA limits and work incentives like the TWP and EPE. The SSA communicates any changes in benefit status or payment amounts after reviewing the reported information.