Many people assume that receiving SSI means you can't work at all—but that's not true. Social Security actually has several programs designed to help SSI recipients try working without immediately losing all their benefits. The rules are complicated, and earning income will affect your payment, but working while on SSI is absolutely possible and can even improve your overall financial situation. Understanding how the system works is the first step.
In this article, we'll cover:
- How earnings affect your SSI payment
- Income exclusions that let you keep more of what you earn
- Special programs like PASS and student earned income exclusion
- How work affects your Medicaid coverage
- What happens if you earn "too much"
- Resources for SSI recipients exploring employment
How Earnings Affect SSI
When you work while receiving SSI, your earnings are considered earned income, which reduces your SSI payment—but not dollar for dollar.
The formula:
- SSA excludes the first $65 of monthly earnings (plus any unused portion of the $20 general income exclusion)
- They count only half of your remaining earnings
Example:
- You earn $500 in a month
- $500 minus $65 = $435
- $435 divided by 2 = $217.50
- Your SSI is reduced by about $218 (not the full $500)
The result:
- Working increases your total income even though SSI payment goes down
- If receiving maximum SSI ($967) and earned $500, SSI drops to about $749
- Total monthly income: approximately $1,249 ($749 SSI + $500 earnings)
- That's significantly more than $967 without working
Income Exclusions That Help You Keep More
Impairment-Related Work Expenses (IRWE)
Deduct the cost of items or services you need because of your disability that enable you to work:
- Specialized transportation
- Attendant care services
- Medications
- Medical equipment
- Service animals
Student Earned Income Exclusion (SEIE)
If you're under 22 and regularly attending school:
- Exclude up to $2,290 per month (2025)
- Up to $9,230 per year
- In addition to other exclusions
- Students can earn quite a bit before SSI is affected
Plan to Achieve Self-Support (PASS)
Set aside income and resources to save for a work goal:
- Money in an approved PASS plan doesn't count as income or resources
- Can save for job training, education, starting a business, or work-related equipment
- Maintain benefits while working toward employment goals
Continuing Medicaid Coverage Under 1619(b)
One of the biggest fears about working is losing Medicaid coverage. Section 1619(b) protects your Medicaid even if earnings eliminate your SSI cash payment.
You can keep Medicaid if:
- You still meet the disability criteria
- Your earnings aren't enough to replace SSI cash benefit and Medicaid combined
- You still meet all other SSI eligibility requirements except for earnings
- You would be seriously harmed by losing Medicaid coverage
State thresholds:
- Each state has a threshold amount for 1619(b)
- Often $40,000 or more annually
- Can earn up to that amount and keep Medicaid even with no SSI payment
This removes one of the biggest disincentives to work for SSI recipients.
The Substantial Gainful Activity Question
You might wonder: if I can work, does that mean I'm no longer disabled?
For SSI:
- No specific SGA limit that automatically ends eligibility
- Can earn above the SGA amount ($1,620/month in 2025 for non-blind individuals) and still receive SSI
- Your payment would be reduced, but you don't lose eligibility just because you're working
Important note:
- Working at a high level might trigger a medical review
- But many people with significant disabilities can work with accommodations
- Social Security recognizes this
When Earnings Get Too High
If you earn enough that your SSI payment would be reduced to zero, you enter 1619(a) status:
- Still technically eligible for SSI
- Just don't receive a cash payment that month
- Likely keep Medicaid under 1619(b)
- If earnings drop later, SSI payment resumes
- No need to reapply as long as you remained eligible under 1619(a)
Watch your resources:
- Earnings you don't spend become resources
- If total resources exceed $2,000 on the first of the month, you could lose eligibility
- Working more means managing money more carefully
- Consider contributing excess to an ABLE account
Getting Help with Your Work Decision
Navigating work and benefits is genuinely complicated. Before starting work or changing your work situation:
Benefits Counselors and WIPA Programs:
- Work Incentives Planning and Assistance programs
- Often free for SSI and SSDI recipients
- Help you understand exactly how work affects your benefits
- Develop a plan that maximizes income while protecting benefits
- Help you take advantage of PASS and other exclusions
Vocational Rehabilitation:
- Help with job training and job search
- Workplace accommodations
- Designed to help people with disabilities achieve employment goals
How Purple Helps
Working while on SSI is possible, but tracking your earnings and resources is essential. Purple helps you:
- Monitor your finances in real time
- See how work income affects your SSI situation
- Stay compliant with Social Security rules
- Get benefits up to 4 days early
- Manage the balance between working and protecting benefits