How Much Can You Make Working While on Disability?

Understanding Disability Benefit Types

Navigating the landscape of disability benefits while considering work opportunities requires understanding the primary programs available. The Social Security Administration (SSA) manages two distinct federal disability benefit programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). While both provide financial assistance to individuals unable to work due to a medical condition, their eligibility criteria and funding mechanisms differ significantly.

Social Security Disability Insurance (SSDI) is for individuals who have worked and paid Social Security taxes for a sufficient period. Eligibility is based on past earnings, similar to retirement benefits. This program is funded through payroll taxes.

Supplemental Security Income (SSI) is a needs-based program for individuals who are disabled, blind, or age 65 or older with limited income and resources. Unlike SSDI, SSI eligibility does not depend on past work history or Social Security tax contributions. SSI benefits are funded by general tax revenues. These different criteria lead to distinct rules regarding how working impacts benefit payments.

Working with Social Security Disability Insurance (SSDI)

Working while receiving Social Security Disability Insurance (SSDI) benefits involves specific rules and thresholds designed to support a return to work. A concept is “Substantial Gainful Activity” (SGA), which refers to performing significant physical or mental activities for pay or profit. For 2025, the monthly SGA amount is $1,550 for non-blind individuals and $2,590 for blind individuals. If earnings exceed these amounts, the work is considered SGA.

The Social Security Administration offers a “Trial Work Period” (TWP) allowing beneficiaries to test their ability to work for at least nine months within a 60-month period. During the TWP, beneficiaries can earn any amount without their SSDI benefits being affected, provided work activity is reported. A month counts as a TWP month if gross earnings exceed $1,110 in 2025. The nine TWP months do not need to be consecutive.

Once the nine TWP months are completed, an “Extended Period of Eligibility” (EPE) begins, lasting for 36 consecutive months. During the EPE, beneficiaries continue to receive full SSDI benefits for any month their earnings fall below the SGA level. If earnings exceed the SGA level in any month during the EPE, benefits will be suspended for that month. Benefits can be reinstated without a new application if earnings fall below SGA again within the EPE.

Certain work-related expenses can be deducted from gross earnings when determining if work is SGA. These are Impairment-Related Work Expenses (IRWEs) and Blind Work Expenses (BWEs). IRWEs are costs for items or services necessary for an individual to work due to their disabling condition, such as specialized transportation or medications. BWEs are specific work expenses incurred by blind individuals. These deductions effectively reduce the “countable” earnings.

After the 36-month EPE concludes, if a beneficiary continues to perform SGA, their SSDI benefits will terminate. However, if their earnings subsequently fall below SGA due to their disability, benefits may be reinstated through Expedited Reinstatement without a new application.

Working with Supplemental Security Income (SSI)

Working while receiving Supplemental Security Income (SSI) benefits involves distinct rules on how earned income affects the monthly payment. Unlike SSDI, SSI benefits are reduced by a portion of countable income. The Social Security Administration (SSA) applies specific income exclusions, known as “disregards,” before determining countable income.

The first $20 of most income is not counted. After this, $65 of earned income is excluded, and then half of the remaining earned income is disregarded. The resulting countable income is then deducted from the maximum federal SSI benefit amount.

The 1619(a) provision allows SSI cash benefits to continue for individuals whose earned income reduces their SSI payment to zero but remains below a specific threshold. This provision ensures that individuals are not penalized for working and retain their eligibility for Medicaid. As long as gross income remains below a “break-even” point, which varies by state, they can maintain SSI recipient status.

The 1619(b) provision helps SSI beneficiaries whose earnings cause their cash benefits to stop but who still need Medicaid. This provision allows continued Medicaid eligibility if the individual would still be eligible for SSI except for their earnings, needs Medicaid to work, and their medical condition still meets SSA disability rules. The annual earnings threshold for 1619(b) varies by state, reflecting average Medicaid expenditures.

Impairment-Related Work Expenses (IRWEs) and Blind Work Expenses (BWEs) can also be deducted from gross earnings for SSI purposes. Another exclusion for SSI recipients is the Student Earned Income Exclusion (SEIE), which allows students under age 22 regularly attending school to exclude a certain amount of earned income per month, up to an annual maximum. For 2025, the monthly exclusion is $2,290, with an annual maximum of $9,230.

The Plan to Achieve Self-Support (PASS) program is another tool for SSI recipients. A PASS allows an individual to set aside income and resources for a specified period to achieve a work goal, such as education or vocational training. Money set aside for a PASS is not counted when determining SSI eligibility or payment amount.

Reporting Your Work and Earnings

Accurate and timely reporting of work activities and earnings is important for individuals receiving Social Security disability benefits. Failure to report promptly can lead to overpayments, which the Social Security Administration (SSA) will require to be repaid, or underpayments, which can cause financial hardship. Beneficiaries must inform the SSA about any changes in their work status, including starting a new job, changes in hours worked, or modifications to their gross monthly earnings.

When reporting, beneficiaries should provide specific information such as gross monthly earnings before deductions, hours worked per week, and employment start and stop dates. Any changes in work status, like a promotion or job termination, also need to be reported. If an individual incurs Impairment-Related Work Expenses (IRWEs) or Blind Work Expenses (BWEs), these should be reported with supporting documentation.

The Social Security Administration offers several methods for reporting work and earnings. Beneficiaries can report online through their My Social Security account, by phone to the SSA’s toll-free number, via mail, or in person at a local office. Beneficiaries should keep detailed records of all reported information, including dates of contact, names of SSA representatives, and any confirmation numbers received.

Maintaining organized records of pay stubs, employment contracts, and correspondence with the SSA is also important. These records serve as documentation of reported earnings and can be useful in resolving any discrepancies or questions that may arise regarding benefit payments. Proactive and consistent reporting helps ensure that benefits are calculated correctly and avoids potential issues with benefit eligibility.

Work Support Programs

Several programs exist to support individuals receiving disability benefits who wish to explore or maintain employment. These initiatives aim to reduce barriers to work and provide resources that facilitate a successful return to the workforce.

The Ticket to Work program is voluntary and provides Social Security disability beneficiaries with access to free employment support services. Services are provided by approved Employment Networks (ENs) or State Vocational Rehabilitation (VR) agencies. The program allows beneficiaries to receive vocational rehabilitation, training, and job placement assistance without a medical review of their disability while participating and making timely progress toward work goals.

Work Incentives Planning and Assistance (WIPA) projects are another resource. These organizations provide free benefits counseling to Social Security disability beneficiaries. WIPA counselors, known as Community Work Incentives Coordinators (CWICs), help individuals understand how working will affect their specific benefits, including SSDI, SSI, Medicaid, and Medicare. They provide personalized advice on work incentives and reporting requirements.

Expedited Reinstatement (EXR) allows individuals whose Social Security disability benefits ended due to work and earnings to have their benefits quickly reinstated without filing a new application. If an individual stops performing Substantial Gainful Activity (SGA) within five years of their benefits ending, they can request EXR. This provision offers a safety net, enabling beneficiaries to test their ability to work with the assurance that they can regain their benefits if their work attempt is unsuccessful due to their medical condition.

Citations

https://www.ssa.gov/redbook/eng/redbook.pdf