SSI & SSDI Work Incentives: How to Work Without Losing Benefits

Why Work Incentives Exist

Social Security recognizes that disability isn't always black and white. Many people with disabilities can work some of the time, or in certain conditions, or want to try returning to work after their condition improves. Work incentives create a safety net for testing employment without the "cliff effect" of immediately losing all benefits.

The rules differ significantly between SSDI and SSI, so it's important to understand which program you're on (or if you receive both).

SSDI Work Incentives

Trial Work Period (TWP)

The Trial Work Period is SSDI's most valuable work incentive. For 9 months (not necessarily consecutive), you can earn any amount and still receive your full SSDI payment. This lets you test whether you can work without any risk to your benefits.

In 2026, a month counts as a TWP month if you earn more than $1,190 or work more than 80 hours in self-employment. Once you've used all 9 TWP months within a rolling 60-month window, your trial period ends.

Extended Period of Eligibility (EPE)

After your TWP ends, you enter a 36-month Extended Period of Eligibility. During this time, you'll receive SSDI for any month your earnings fall below the Substantial Gainful Activity (SGA) level—$1,660 in 2026 (or $2,770 if you're blind).

If your earnings exceed SGA, your SSDI payment stops for that month. But if your earnings drop below SGA again during the 36 months, your payment resumes automatically. This creates a safety net for people whose earnings fluctuate or whose health varies.

Expedited Reinstatement (EXR)

What if your benefits stop because of work, but you can't continue working due to your disability? Within 5 years of your benefits ending, you can request Expedited Reinstatement without filing a new application or going through the full approval process again.

While SSA reviews your request, you can receive up to 6 months of provisional benefits. EXR is a crucial safety net that lets you try working with the confidence that you can get back on benefits if it doesn't work out.

Impairment-Related Work Expenses (IRWE)

Disability often comes with extra costs that non-disabled workers don't have—specialized transportation, medical equipment, attendant care, medications. IRWEs let you deduct these costs from your earnings when SSA determines if you're performing SGA.

For example, if you earn $2,000 per month but spend $500 on disability-related work expenses, your countable earnings for SGA purposes would be $1,500—below the 2026 SGA limit.

Subsidy and Special Conditions

If your employer provides extra support, additional supervision, or you produce less than other workers in similar positions, SSA may determine you're receiving a "subsidy." The value of the subsidy is deducted from your earnings when calculating SGA.

SSI Work Incentives

SSI work incentives operate differently because SSI is needs-based. Instead of a trial period followed by a cliff, SSI uses a gradual reduction formula that lets you keep more money as you work.

Earned Income Exclusions

SSI doesn't count all your wages against your benefits. The calculation works like this:

1. Subtract the first $65 of earned income
2. Subtract the $20 general income exclusion (if not used on unearned income)
3. Divide the remaining amount in half
4. What's left reduces your SSI dollar-for-dollar

Example: If you earn $500 in wages, SSA subtracts $65 and $20 ($415), then divides by 2 ($207.50). Your SSI is reduced by $207.50—meaning you keep $292.50 of your wages plus a reduced SSI payment. You're always better off financially by working under SSI.

Student Earned Income Exclusion (SEIE)

If you're under 22 and regularly attending school, you can exclude up to $2,410 per month (up to $9,720 per year in 2026) of your earnings before SSA starts counting them. This is on top of the regular earned income exclusions, making it possible for students to work significantly without losing SSI.

Plan to Achieve Self-Support (PASS)

A PASS lets you set aside income and resources for a specific work goal without affecting your SSI eligibility. The money you save under an approved PASS—for education, starting a business, buying work equipment—doesn't count toward SSI's income or resource limits.

PASS plans must be approved by SSA and have a clear work goal, timeline, and budget. Contact a Benefits Counselor through Ticket to Work for help creating a PASS.

Section 1619(a) and (b)

These provisions are crucial for SSI recipients who work:

• 1619(a): You can earn above SGA and still receive SSI (though reduced) as long as you still meet SSI's disability and resource requirements
• 1619(b): Even if your earnings are too high for an SSI payment, you can keep your Medicaid coverage if you need it to work and can't afford equivalent coverage

Section 1619(b) is especially important because Medicaid coverage often means more to SSI recipients than the cash payment itself.

Blind Work Expenses (BWE)

SSI recipients who are blind can deduct a broader range of work-related expenses than other recipients—including taxes, meals at work, union dues, and transportation costs, not just disability-related expenses.

Ticket to Work Program

Ticket to Work is a free, voluntary program that connects disability beneficiaries with employment services. Here's what it offers:

• Employment Networks (ENs): Organizations that provide career counseling, job training, and placement assistance at no cost to you
• Benefits Counseling: Free advice on how work affects your specific benefits situation
• Protection from Medical Reviews: While you're "using your ticket" and making timely progress, SSA won't conduct continuing disability reviews

Ticket to Work is available to most SSI and SSDI beneficiaries ages 18-64. Call 1-866-968-7842 to get started.

Reporting Your Earnings

Timely, accurate reporting is crucial. Failure to report wages can result in overpayments you'll have to repay—sometimes years later, with significant financial hardship.

How to Report

• SSI recipients: Report wages monthly using the SSI Mobile Wage Reporting app, by calling 1-800-772-1213, or at your local Social Security office
• SSDI recipients: Report through your my Social Security account or by calling SSA

When to Report

Report your wages within 10 days after the end of the month in which you received them. Keep copies of all pay stubs and your reports to SSA.

Also report when you start or stop working, if your hours or pay rate changes significantly, or if you have any work-related expenses that might qualify as IRWEs.

Getting Help

Work incentives are complicated, and your specific situation matters. Before making decisions about work, consider getting free benefits counseling:

• Work Incentives Planning and Assistance (WIPA): Free benefits counseling through community organizations. Find one at choosework.ssa.gov/findhelp
• Ticket to Work Helpline: 1-866-968-7842 (voice) or 1-866-833-2967 (TTY)
• Protection & Advocacy organizations: Free legal help with disability rights, including benefits issues

Frequently Asked Questions

Official Resources

• SSA Red Book – Guide to Work Incentives
• Ticket to Work Program
• Report Wages to Social Security
• Find a Benefits Counselor (WIPA)