If you receive Supplemental Security Income (SSI) and want to work, you might worry about losing your benefits. The good news is that SSI is designed to encourage work—and you can earn money while still receiving benefits. The key is understanding how SSA calculates your income and what exclusions apply.
In this article, we'll cover:
- How earned income affects your SSI payment
- The income exclusions that work in your favor
- How to calculate your SSI benefit with earnings
- Special programs that help you work
- The resource limit you need to watch
1. How Earned Income Affects Your SSI
When you work, SSA counts your wages as earned income. But here's the important part: SSA doesn't reduce your SSI dollar-for-dollar. Instead, they use a formula that excludes part of your earnings.
The basic rule: For every $2 you earn from work, SSI reduces your benefit by $1 (after exclusions). This means working always puts more money in your pocket than not working.
Important: Earned income is treated more favorably than unearned income (like gifts or other benefits). SSA wants to encourage you to work, so the formula is designed to let you keep more of what you earn.
2. The Income Exclusions That Work in Your Favor
Before SSA calculates how your earnings affect SSI, they subtract these exclusions:
General income exclusion: The first $20 of any income each month is excluded. This typically applies to unearned income first, but can apply to earned income if you have no other income.
Earned income exclusion: The first $65 of earned income each month is excluded.
50% exclusion: After the $65 exclusion, SSA only counts half of your remaining earnings.
Example calculation:
- You earn $500/month from a part-time job
- Subtract $65 earned income exclusion = $435
- Divide by 2 (50% exclusion) = $217.50
- SSA counts $217.50 as your countable earned income
This means if you earn $500, only $217.50 counts against your SSI—and your benefit is reduced by that amount, not the full $500.
3. How to Calculate Your SSI Benefit With Earnings
Let's walk through a complete example:
Starting point:
- Federal SSI rate: $967/month (2025)
- Your gross earnings: $800/month
- No other income
Calculation:
- Start with gross earnings: $800
- Subtract $65 earned income exclusion: $800 - $65 = $735
- Divide by 2: $735 ÷ 2 = $367.50
- This is your countable earned income
Your SSI payment:
- $967 - $367.50 = $599.50/month in SSI
Your total monthly income:
- $800 (wages) + $599.50 (SSI) = $1,399.50
Without working, you'd receive $967. By earning $800, your total income is $1,399.50—that's $432.50 more per month.
Important: If you also have unearned income (like VA benefits or SSDI), the calculation gets more complex. The $20 general exclusion applies to unearned income first.
4. Special Programs That Help You Work
SSA offers several programs to help SSI recipients work without immediately losing benefits:
Student Earned Income Exclusion (SEIE): If you're under 22 and regularly attending school, you can exclude up to $2,350/month in earnings (up to $9,460/year for 2025). This is in addition to the regular exclusions.
Plan to Achieve Self-Support (PASS): A PASS lets you set aside income and resources for a work goal—like education, training, or starting a business. Money in an approved PASS doesn't count as income or resources.
Impairment-Related Work Expenses (IRWE): If you have expenses related to your disability that allow you to work—like special transportation, medication, or equipment—these costs can be deducted from your earnings before SSA calculates your benefit.
Expedited Reinstatement: If you lose SSI because of earnings but later can't work due to your disability, you can request expedited reinstatement within 5 years without filing a new application.
5. The Resource Limit You Need to Watch
While you can earn income and keep SSI, you must also stay under the resource limit:
- $2,000 for individuals
- $3,000 for couples
Resources include cash, bank account balances, stocks, and other countable assets. If your earnings push your savings above this limit, you could lose SSI eligibility.
What doesn't count as resources:
- Your home
- One vehicle
- Household goods and personal items
- ABLE account balances (up to $100,000)
Important: If you're earning money from work, be careful about how much you save. Consider opening an ABLE account to save above the $2,000 limit without losing benefits.
6. What Happens If You Earn Too Much?
If your earnings are high enough, your SSI payment could be reduced to zero. In 2025, this generally happens when countable earned income reaches around $1,900-$2,000/month (depending on your state supplement and other factors).
But losing your SSI cash payment doesn't necessarily mean losing everything:
- Medicaid may continue under Section 1619(b) if you meet certain conditions
- You can return to SSI if your earnings decrease
- Expedited reinstatement is available if your disability prevents you from working within 5 years
How Purple Helps You Manage Work and Benefits
Balancing work income with SSI benefits requires careful tracking. Purple makes it easier:
Track All Your Income See your wages and SSI deposits in one place. Purple labels your income sources so you can track exactly what's coming in.
Monitor Your Resources
Early Direct Deposit Get your SSI payment up to 4 days early—helpful when you're budgeting around both work income and benefits.
No Fees Purple has no monthly fees or minimum balance requirements, so you keep more of your earnings.
Purple Companion Support Ask Purple Companion questions like:
- "How do I report my earnings to SSA?"
- "What's the SSI resource limit?"
- "How much can I save without losing SSI?"
Work and Keep Your Benefits
SSI is designed to help you transition to work while maintaining a safety net. Understanding the income rules helps you earn more without unexpected benefit cuts.