One of the most common fears among people receiving disability benefits is that earning any income will cause them to lose everything. The reality is more flexible than most people think — both SSI and SSDI have rules that allow you to work part-time and keep at least some of your benefits. But the rules are different for each program, and understanding the details is critical to avoiding surprises.
In this article, we'll cover:
- How part-time work affects SSDI benefits in 2026
- How part-time work affects SSI payments
- The Substantial Gainful Activity (SGA) limit and what it means
- Special work incentive programs like the Trial Work Period and Ticket to Work
- How to report your earnings and avoid overpayments
Working Part-Time on SSDI
If you receive SSDI, the key number to know is the Substantial Gainful Activity (SGA) limit. In 2026, the SGA limit is $1,690 per month for non-blind individuals and $2,830 per month for people who are legally blind. As long as your gross monthly earnings stay below the SGA limit, your SSDI benefits generally continue unchanged.
But SSDI also offers a generous Trial Work Period (TWP) that gives you even more flexibility. During a TWP, you can earn any amount — even well above SGA — and still receive your full SSDI benefit. The TWP lasts for 9 months within a rolling 60-month window, and in 2026, any month where you earn more than $1,210 counts as a trial work month.
This means you could theoretically earn $3,000 per month for nine months while still collecting your full SSDI check. The purpose of the TWP is to let you test whether you're able to sustain employment without immediately risking your benefits. After your nine trial work months are used up, the SSA will evaluate whether your earnings exceed SGA to determine if your benefits should continue.
Working Part-Time on SSI
SSI works differently because it's a needs-based program with income limits. When you earn money from work, SSI reduces your monthly payment — but not dollar for dollar. The Social Security Administration uses a formula that disregards the first $65 of earned income per month, plus the first $20 of any income (if you don't have unearned income using that exclusion). After those exclusions, SSI is reduced by $1 for every $2 you earn.
So if you earn $500 per month from a part-time job, the calculation works like this: $500 minus $85 in exclusions equals $415 in countable income. Divide that by 2, and your SSI is reduced by $207.50. On a base SSI payment of $994, you'd receive $786.50 from SSI plus your $500 in earnings, totaling $1,286.50 — significantly more than SSI alone.
For younger recipients, there's an even better deal: the Student Earned Income Exclusion (SEIE) allows students under age 22 who are regularly attending school to exclude up to $2,450 per month (and up to $9,840 per year) from their earned income calculation. This means a student on SSI could earn a substantial part-time income with minimal impact on their benefits.
Will Working Cause Me to Lose Medicaid?
This is one of the biggest concerns, and the answer is usually no — at least not right away. Most states have Medicaid Buy-In programs (often called "Working Disabled" programs) that allow people with disabilities to keep Medicaid coverage even when their earnings would otherwise make them ineligible. Some programs require a small monthly premium based on income, but the coverage is far more affordable than private insurance.
Additionally, under Section 1619(b) of the Social Security Act, people who lose SSI cash benefits due to earnings can continue to receive Medicaid as long as they still meet the disability criteria and need Medicaid to work. This protection is specifically designed to prevent the "benefits cliff" that discourages people from trying to work.
If you receive SSDI and have Medicare, your Medicare coverage continues for at least 93 months after your Trial Work Period ends, even if your SSDI benefits stop due to earnings. This extended coverage gives you a substantial runway to establish yourself in the workforce without losing health insurance.
Reporting Your Earnings
Both SSI and SSDI require you to report your earnings to the Social Security Administration. For SSI recipients, you should report wages by the 10th of the month following the month you worked. SSDI recipients are also required to report any work activity.
Failing to report earnings can lead to overpayments — situations where SSA determines you received more benefits than you were entitled to and demands the money back. Overpayments can be financially devastating, so reporting promptly and accurately is essential. You can report earnings online through your my Social Security account, by calling SSA at 1-800-772-1213, or through the SSI Telephone Wage Reporting system.
Keep detailed records of your pay stubs and hours worked. If you're self-employed or have irregular income, tracking becomes even more important. The more organized you are, the less likely you are to face an unexpected overpayment notice.
Ticket to Work and Other Work Incentive Programs
The Ticket to Work program is a free, voluntary program that provides SSDI and SSI recipients with access to employment services, career counseling, and job placement assistance. Participants work with Employment Networks (ENs) or state vocational rehabilitation agencies to develop a plan for returning to work.
One significant benefit of Ticket to Work is that while you're actively participating and making progress, your disability benefits are protected from medical continuing disability reviews (CDRs). This gives you breathing room to focus on building your career without worrying about an unexpected review of your disability status.
Thinking about working part-time shouldn't mean worrying about your benefits. Purple's checking account helps SSI and SSDI recipients track their income, monitor resource limits, and stay compliant — so you can explore work with confidence.