Avoid Overpayments, Penalties, and Benefit Loss
Introduction: Why Reporting Changes to SSA Is Important
If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you’re required to report any income changes or life updates to the Social Security Administration (SSA).
Failing to report changes could lead to:
⚠️ Overpayments – You might owe money back to SSA.
⚠️ Benefit Reductions or Loss – Your payments could decrease or stop.
⚠️ Penalties or Delays – SSA might fine you or delay future payments.
To avoid these issues, you need to report income and changes on time. In this guide, we’ll cover:
✅ What income must be reported for SSI & SSDI
✅ Other changes you must report to SSA
✅ How to report income (online, phone, mail, or in person)
✅ What happens if you don’t report changes
✅ How Purple helps track your income & benefits
Let’s break it down!
What Income Must Be Reported to SSA?
The type of income you must report depends on whether you receive SSI or SSDI.
SSI Income Reporting Rules
Since SSI is a needs-based program, ALL income must be reported, including:
✔ Wages from a job (even if under the earnings limit)
✔ Self-employment income (freelance, gig work, side jobs)
✔ Spouse’s or roommate’s income (if they contribute to household expenses)
✔ Cash gifts, inheritances, or settlements
✔ Unemployment or workers’ compensation benefits
✔ Food & housing assistance from family/friends
💡 Important: If you receive SSI, you must stay under the $2,000 resource limit ($3,000 for couples) to remain eligible.
SSDI Income Reporting Rules
Since SSDI is based on your work history (not financial need), you only need to report earned income from a job or self-employment.
✔ SSA only counts work earnings—unemployment benefits, inheritances, or gifts do NOT affect SSDI.
✔ You must stay under the Substantial Gainful Activity (SGA) limit, which is $1,550/month in 2025 ($2,590 for blind recipients).
💡 Tip: If you return to work, SSA offers a Trial Work Period (TWP) where you can test working without losing SSDI benefits.
Other Changes You Must Report to SSA
In addition to income, you must also report any major life changes that could affect your SSI or SSDI benefits.
Changes That Must Be Reported for SSI & SSDI
✔ Moving to a new address (especially if changing states)
✔ Marriage or divorce (may affect SSI benefits)
✔ Bank account changes (for direct deposit)
✔ Disability improvement (if your condition gets better)
✔ Returning to work or changing jobs✔ Incarceration or institutionalization (prison, jail, or long-term hospital stays)
💡 Tip: If you receive SSI, moving in with family or getting free housing could reduce your benefits.
How to Report Income & Changes to SSA
You must report any income or life changes within 10 days of the month after the change.
4 Ways to Report Changes to Social Security
📲 1. Online (Best for SSDI)
Go to SSA.gov
Sign in to your my Social Security account
Navigate to "Report Wages" or "Update Personal Information"
📞 2. By Phone
Call SSA at 1-800-772-1213 (TTY: 1-800-325-0778)
Provide details about your income or life changes
📬 3. By Mail
Write a letter explaining your change & include documentation
Mail to your local SSA office
🏢 4. In Person
Visit your nearest Social Security office
Bring proof of income (paystubs, tax forms, etc.)
💡 Tip: If reporting income for SSI, you can also use the SSI Mobile Wage Reporting App available on the App Store & Google Play.
What Happens If You Don’t Report Changes?
Failing to report changes can lead to serious consequences, including:
1. Overpayments (SSA Asks for Money Back)
If SSA overpays you due to unreported income, you must repay the extra money.
If you can’t afford repayment, you can request a waiver or payment plan.
2. Benefit Reductions or Termination
For SSI: Unreported income could reduce or stop benefits.
For SSDI: Earning too much over the limit could end your benefits after the Trial Work Period.
3. Fines & Penalties
SSA can fine you up to $100 per failure to report income.
Repeated offenses could result in criminal charges.
💡 Tip: If SSA says you owe money, you can appeal the decision or request a hardship waiver.
How to Avoid SSI & SSDI Overpayments
To prevent overpayments and keep your benefits safe:
✔ Report income as soon as you earn it—don’t wait until the last minute!
✔ Use SSA’s online wage reporting tools for fast updates.
✔ Track your earnings & benefit limits to stay compliant.
✔ Set calendar reminders to report changes monthly.
💡 Purple helps track earnings so you never exceed SSI or SSDI limits!
How Purple Helps Track Your Income & Benefits
Managing SSI, SSDI, and work income can be overwhelming—Purple makes it easier!
💜 Track Your Disability Deposits – Know when your SSI & SSDI payments arrive.
💜 Monitor Work Earnings – Stay under SSA’s income limits to keep benefits.
💜 Set Income Reporting Alerts – Get reminders to report wages on time.
💜 EBT & Medicaid Tracking – See all your disability & assistance benefits in one place.
💡 With Purple, you can stay on top of your income and avoid SSI or SSDI overpayments!
FAQs About Reporting Income & Changes to SSA
How Often Do I Need to Report Income to SSA?
SSI recipients must report income every month.
SSDI recipients only report if they return to work or earn above the limit.
What Happens If I Earn Too Much While on SSI?
SSA will reduce your SSI payment based on a formula—but if earnings are too high, you could lose eligibility.
Does SSA Monitor My Bank Account?
For SSI, yes—SSA checks your bank balance to ensure you stay under the $2,000 asset limit. SSDI recipients do not have an asset limit.
Can I Lose SSDI If I Start Working?
Not immediately. SSDI has a Trial Work Period where you can test working without losing benefits.
Conclusion: Report Income & Life Changes to Keep Your SSI & SSDI Benefits Safe
✅ SSI recipients must report all income, including wages, gifts, and assistance.
✅ SSDI recipients only report work earnings if they exceed the income limit.
✅ Changes like moving, marriage, or bank account updates must also be reported.
✅ Failing to report changes could lead to overpayments, fines, or benefit loss.
✅ Use Purple to track earnings & report changes on time!
💜 Sign Up for Purple to Manage Your SSI & SSDI Benefits Easily!