When on Disability, How Much Can I Earn?

Working while receiving disability benefits can be complex, as earning income often impacts financial support. Understanding specific rules for different disability programs is important for those supplementing benefits through employment. Navigating these guidelines helps beneficiaries make informed work decisions.

Earning Limits for Social Security Disability Insurance (SSDI)

Social Security Disability Insurance (SSDI) provides benefits to individuals who have paid Social Security taxes and can no longer work due to a severe medical condition. The Social Security Administration (SSA) uses Substantial Gainful Activity (SGA) to determine if work disqualifies them from SSDI benefits. For 2025, the monthly SGA limit is $1,620 for non-blind individuals and $2,700 for statutorily blind individuals. If earnings exceed these amounts, the SSA may determine an individual is no longer considered disabled.

The SSA offers work incentives, such as the Trial Work Period (TWP), allowing SSDI recipients to work for up to nine months. During the TWP, beneficiaries continue to receive full SSDI benefits regardless of earnings. For 2025, a month counts as a TWP month if gross earnings exceed $1,160.

After the nine-month Trial Work Period, beneficiaries enter a 36-month Extended Period of Eligibility (EPE). During the EPE, benefits can be suspended for months where earnings exceed the SGA limit, but reinstated when earnings fall below SGA. If an individual earns above SGA for the first time during the EPE, the SSA considers the disability “ceased,” but benefits continue for that month and the next two months (grace period).

Earning Limits for Supplemental Security Income (SSI)

Supplemental Security Income (SSI) is a needs-based program providing financial support to aged, blind, or disabled individuals with limited income and resources. Unlike SSDI, SSI benefits are directly reduced by countable income, including earnings. The maximum federal SSI payment for an individual in 2025 is $967 per month, and $1,450 for an eligible couple.

The SSA applies specific exclusions when calculating countable income for SSI. The first $20 of most income received in a month is not counted. For earned income, the first $65 plus one-half of the remainder is excluded.

For example, if an individual earns $300, the first $20 is excluded, leaving $280. The next $65 is excluded, reducing the amount to $215. Half of the remaining $215 ($107.50) is excluded, resulting in $107.50 of countable earned income. This countable income then reduces the SSI benefit dollar-for-dollar.

A “break-even point” is the maximum an individual can earn before their SSI cash benefit is reduced to zero. For a single individual with only earned income, applying the exclusions, they can earn approximately $2,000 per month before their federal SSI benefit is eliminated.

The Student Earned Income Exclusion (SEIE) offers a work incentive for eligible students under age 22. For 2025, up to $2,350 of monthly earned income, with a yearly maximum of $9,460, can be excluded from countable income for SSI. This allows students to work while maintaining SSI eligibility.

Plans to Achieve Self-Support (PASS) assist SSI recipients in working towards an employment goal. Under an approved PASS, individuals can set aside income or resources to pay for items or services needed to achieve their work goal (e.g., education, training, starting a business). Income and resources set aside in a PASS are not counted for SSI eligibility or benefit amounts. Impairment-Related Work Expenses (IRWE) and Blind Work Expenses (BWE) also reduce countable earned income for SSI. IRWE are unreimbursed costs for items or services a disabled individual needs to work, such as medical expenses, specialized transportation, or assistive technology.

Reporting Your Work and Earnings

Reporting work and earnings to the Social Security Administration (SSA) is mandatory for all disability beneficiaries. This ensures accurate benefit payments and avoids overpayments or underpayments. Gross earnings, changes in work hours or duties, and employment start or stop dates must be reported.

Timely reporting is important, by the 6th of the month following receipt of earnings. For SSDI recipients, reporting should occur as soon as work begins or ends, or changes in hours or pay. The SSA offers several reporting methods, including online through the “my Social Security” account, by phone, mail, or in person at a local SSA office. Keeping detailed records of earnings and SSA communications is recommended.

Failure to report earnings accurately and on time can lead to consequences. If the SSA discovers unreported income, it may result in overpayments that must be repaid. Non-reporting can also lead to benefit suspension, monetary penalties, or criminal charges.