How Much Can You Make With Disability?

Working while receiving federal disability benefits is a common concern. Understanding how earned income impacts these benefits is crucial to avoid unintended consequences. Rules governing employment vary significantly based on the specific disability program. This guide clarifies these regulations, providing information on how to pursue employment without jeopardizing support.

Understanding Federal Disability Programs and Work Rules

The United States operates two primary federal disability programs, each with distinct eligibility requirements and different rules concerning earned income and work activity. Social Security Disability Insurance (SSDI) provides benefits to individuals who have worked and paid Social Security taxes for a sufficient period, typically based on their own work history or that of a parent or spouse. Supplemental Security Income (SSI), conversely, is a needs-based program providing financial assistance to individuals who are aged, blind, or disabled and have limited income and resources.

The fundamental difference between these programs dictates how work affects benefits. Consequently, the impact of working on benefit amounts and continued eligibility is evaluated through separate sets of criteria for each program.

Working While Receiving Social Security Disability Insurance (SSDI)

The Social Security Administration (SSA) has established work incentives for SSDI recipients returning to employment. A central concept in SSDI is Substantial Gainful Activity (SGA), which represents an earnings threshold indicating an individual’s ability to perform significant work. In 2025, the monthly SGA limit is $1,620 for non-blind individuals and $2,700 for those who are statutorily blind. If monthly earnings exceed these amounts, the SSA generally considers an individual to be engaged in SGA, which can affect benefit eligibility.

The Trial Work Period (TWP) allows SSDI beneficiaries to test their ability to work for at least nine months without immediately losing their benefits, regardless of how much they earn. A month counts towards the TWP if gross earnings exceed a specific threshold, which is $1,160 per month in 2025. These nine TWP months do not need to be consecutive but must occur within a 60-month (five-year) period. During this period, beneficiaries continue to receive their full SSDI payments.

Following the completion of the Trial Work Period, beneficiaries enter the Extended Period of Eligibility (EPE), which lasts for 36 consecutive months. During the EPE, the SSA evaluates monthly earnings to determine if they are above or below the SGA limit. If earnings fall below SGA in any given month, the individual remains eligible for their SSDI benefit for that month. However, if earnings exceed the SGA limit during the EPE, benefit payments are suspended for that month.

The first time earnings exceed SGA after the TWP, the SSA may determine that the disability has “ceased,” leading to a cessation month. Benefits are typically paid for this cessation month and for the two subsequent months, known as a grace period. If earnings continue above SGA after the EPE concludes, benefits will eventually terminate.

If earnings fall below SGA due to a disabling condition after benefits cease, Expedited Reinstatement (EXR) allows quick benefit restart. This allows beneficiaries to request reinstatement without a new application, if requested within 60 months (five years) of the prior benefit termination. Individuals can receive up to six months of provisional benefits while the SSA reviews their case.

Impairment-Related Work Expenses (IRWE) are another work incentive for SSDI recipients. These are out-of-pocket costs incurred by individuals with disabilities that are necessary to enable them to work. The SSA may deduct these expenses from gross earnings when calculating SGA, effectively allowing an individual to earn more without exceeding the SGA limit. Examples of common IRWEs include specialized equipment, certain transportation costs related to the disability, attendant care services, or specific medical expenses.

Working While Receiving Supplemental Security Income (SSI)

Supplemental Security Income (SSI) is a needs-based program, and its rules for working are structured to ensure that individuals with limited income and resources can still receive support. Unlike SSDI, SSI benefits are reduced as other income increases, but not all earned income is counted against the benefit amount. The SSA uses a specific calculation to determine “countable income,” which then reduces the SSI payment.

When calculating countable income, the SSA applies several exclusions. A general income exclusion allows for the first $20 of most types of income received in a month to be disregarded. This means the initial $20 of unearned income, or the first $20 of earned income if there is no unearned income, does not reduce the SSI benefit. Following this, an earned income exclusion allows the SSA to disregard the first $65 of monthly earned income, plus one-half of the remaining earned income. For example, if an individual earns $300, $107.50 would be counted as income after the $20 general and $65 earned income exclusions, reducing the SSI payment.

A specific provision for students is the Student Earned Income Exclusion (SEIE). This allows individuals under age 22 who are regularly attending school to exclude a portion of their earned income. For 2025, up to $2,350 of monthly earned income can be excluded, with a maximum annual exclusion of $9,460. This exclusion significantly reduces countable income for eligible students, allowing them to pursue education and work simultaneously.

Another valuable work incentive for SSI recipients is a Plan to Achieve Self-Support (PASS). A PASS allows individuals to set aside income or resources for a specific work goal, such as education, vocational training, or starting a business. Funds approved within a PASS are not counted as income or resources when determining SSI eligibility and payment amounts. This means an individual can save money for expenses like tuition, books, transportation to work, or equipment needed for a job, without those savings reducing their SSI benefit.

For an individual, the resource limit is typically $2,000, and for a couple, it is $3,000. Exceeding these limits can affect eligibility for SSI benefits, as they are designed to assist those with minimal financial assets.

Navigating Work and Disability Benefits

Working while receiving disability benefits requires diligent attention to administrative requirements and understanding potential impacts on other forms of support. Reporting income to the Social Security Administration (SSA) must be done accurately and promptly. For SSI recipients, monthly reporting of earned income is generally required, often by the tenth day of the following month. SSDI recipients must also report any changes in work status, earnings, or hours worked without delay.

The SSA offers several methods for reporting income, including through automated phone lines, the My Social Security online portal, by mail, or in person at a local SSA office. Failing to report income or providing inaccurate information can lead to overpayments, which the SSA may require beneficiaries to repay. Maintaining open communication with the SSA and providing requested documentation is essential to avoid issues.

Increased earned income can also affect eligibility for other benefits beyond direct disability payments. For SSDI recipients, Medicare coverage generally continues during the Extended Period of Eligibility and for an extended period thereafter, providing continuity of health insurance. For SSI recipients, Medicaid eligibility is often tied directly to their SSI cash payment, so changes in countable income that reduce or eliminate SSI can impact Medicaid access. Additionally, earned income may influence eligibility for other state or local assistance programs, such as housing subsidies or food assistance.

Individuals should maintain comprehensive records of their earnings, work expenses, and all communications with the SSA. This documentation includes pay stubs, receipts for impairment-related work expenses, and dates and details of any calls or visits to the SSA. Keeping organized records provides a clear work history and can be invaluable if questions or discrepancies arise.

Given the intricate nature of disability benefit rules and their interaction with earned income, seeking professional guidance is prudent. Benefit counselors, often through programs like the Work Incentives Planning and Assistance (WIPA) initiative, specialize in explaining these rules and helping individuals create personalized work plans. Financial advisors with expertise in disability benefits can also offer valuable insights into managing earnings and navigating the financial landscape while receiving support. These professionals can assist in maximizing work incentives and ensuring reporting compliance.