If you receive Supplemental Security Income and you're thinking about working — even part-time — you're probably asking one big question: how much money can I actually make before it affects my SSI check? The good news is that SSI doesn't disappear the moment you earn a paycheck. But the rules around earnings and SSI can feel confusing, so let's break it all down with the current 2026 numbers.
In this article, we'll cover:
- How SSI treats earned income differently from unearned income
- The 2026 income exclusions that let you keep more of your earnings
- How SSA calculates your SSI payment when you're working
- Special rules for students, people using PASS plans, and the Trial Work Period
- What happens to your Medicaid if you earn too much for SSI
- How to report your income correctly so you don't trigger an overpayment
SSI Doesn't Have a Hard "Income Limit" — It Has a Formula
One of the biggest misconceptions about SSI is that there's some magic number you can't go above. In reality, SSI uses a formula to reduce your payment gradually as your income increases. The more you earn, the less SSI you receive — but you don't lose everything overnight. This is important because it means working almost always leaves you better off financially than not working.
The key number to understand is the federal benefit rate, which is the maximum SSI payment. In 2026, that's $994 per month for an individual and $1,491 for a couple. Your actual SSI payment is this maximum minus your "countable income." So the question isn't really "how much can I earn" — it's "how does earning money change my SSI check?"
How SSA Counts Your Earned Income
Social Security doesn't count every dollar you earn against your SSI. They apply a series of exclusions first, which means a significant chunk of your paycheck doesn't reduce your benefit at all.
Here's how it works. SSA first ignores $20 per month of any income you receive — this is the general income exclusion and it applies to earned or unearned income. Then, for wages specifically, they exclude an additional $65 per month. After those two exclusions, SSA only counts half of your remaining earnings against your SSI.
Let's say you earn $1,000 per month from a part-time job. SSA subtracts the $20 general exclusion, leaving $980. Then they subtract the $65 earned income exclusion, leaving $915. They divide that in half, giving you $457.50 in countable income. Your SSI check would be reduced by $457.50 — so instead of $994, you'd receive about $536.50. Combined with your $1,000 paycheck, you'd have $1,536.50 total, which is significantly more than SSI alone.
The Breakeven Point: When Does SSI Reach Zero?
Working through the math, your SSI payment reaches $0 when your gross monthly earnings hit approximately $2,073. At that point, your countable income equals the full $994 federal benefit rate. But here's the important part — even when your SSI payment drops to zero, you don't necessarily lose your eligibility. You may remain eligible for Medicaid, and if your earnings drop later, your SSI can restart without a brand new application (this is called expedited reinstatement).
Keep in mind that if your state adds a supplemental payment on top of the federal SSI rate, your breakeven point may be a little higher.
Special Rules That Let You Keep Even More
Several programs exist specifically to help SSI recipients work without penalty. The Student Earned Income Exclusion allows students under 22 to exclude up to $2,450 per month (up to $9,840 per year in 2026) from their countable income. That means a student working a summer job could earn a significant amount without any SSI reduction at all.
The Plan to Achieve Self-Support (PASS) lets you set aside income and resources toward a specific work goal — like education, job training, or starting a business — without it counting against your SSI. If you're serious about building toward employment, a PASS plan can be one of the most powerful tools available.
There's also Impairment-Related Work Expenses (IRWE), which lets you deduct the cost of disability-related expenses you need in order to work — things like specialized transportation, assistive technology, or attendant care services. These costs come off your earned income before SSA applies the formula.
Don't Forget the Resource Limit
While we're talking about earning money, it's worth remembering that SSI also has a resource limit of $2,000 for individuals and $3,000 for couples. If your paychecks start building up in your bank account, you could end up over the resource limit even if your income is within range. This is where planning matters — you may want to consider spending down, contributing to an ABLE account (which lets you save up to $20,000 per year without affecting SSI eligibility), or using a PASS plan to shelter funds.
Reporting Your Income Is Non-Negotiable
If you start working while on SSI, you must report your earnings to Social Security. You should report within 10 days after the end of the month in which you received the income. You can report by calling SSA, visiting your local office, or using your my Social Security account online.
Failing to report income — or reporting late — is one of the most common reasons people end up with SSI overpayments, which SSA will eventually ask you to pay back. Getting an overpayment notice is stressful and can take months to resolve, so it's much better to stay on top of reporting from the start.
What About Medicaid?
One of the biggest fears about working on SSI is losing Medicaid coverage. The good news is that even if you earn too much for SSI cash benefits, you may be able to keep Medicaid through a provision called Section 1619(b). This applies if you were eligible for SSI for at least one month, you still meet the disability criteria, you still meet all non-income SSI requirements, you need Medicaid to continue working, and your income falls below your state's threshold. In most states, the 1619(b) threshold is well above the SSI breakeven point, so many people can keep Medicaid even after their SSI check drops to zero.
The Bottom Line: Working on SSI Is Almost Always Worth It
The SSI earnings formula is designed so that working leaves you financially better off. Between the income exclusions, PASS plans, student exclusions, and Medicaid protections, Social Security actually provides a meaningful safety net for people who want to try working. The key is understanding the rules, reporting your income on time, and keeping your resources below the limit.
Thinking about working while on SSI? Purple can help you track your resources and stay compliant with SSI rules — so you can focus on building the life you want.