Working while on disability is possible, and Social Security even encourages it—but failing to report your income correctly can lead to overpayments, benefit suspensions, and serious financial headaches. Here's how to stay compliant.
In this article, we'll cover:
- Why income reporting matters for SSI and SSDI
- What types of income you must report
- How and when to report income to Social Security
- The consequences of not reporting income
- Work incentive programs that can help you transition
Why Reporting Income Matters
Both SSI and SSDI have rules about how much you can earn while receiving benefits, but the programs work very differently.
For SSDI, earning above "substantial gainful activity" (SGA) limits—$1,620 per month in 2025 for non-blind individuals—can eventually end your benefits after a trial work period. But SSA needs to know about your earnings to properly administer these rules.
For SSI, any income affects your benefits dollar-for-dollar after certain exclusions. Unreported income means SSA can't calculate your correct payment, leading to overpayments you'll have to repay later.
What Income Must You Report?
For SSDI: Report all earned income from work, including wages, self-employment income, and cash payments. You should also report when you start or stop working, and any changes in work activity.
For SSI: Report all income, including wages and self-employment, cash gifts or support from family or friends, in-kind support (food or shelter provided by others), any other money you receive, and changes in living arrangements that affect your expenses.
SSI recipients must also report changes in resources, such as receiving an inheritance, opening a new bank account, or any change that affects your total countable assets.
How to Report Income
Phone: Call Social Security at 1-800-772-1213. Have your pay stubs or income documentation ready.
Online: SSI recipients can report wages through their my Social Security account. SSDI recipients have more limited online reporting options.
In person: Visit your local Social Security office with documentation of your income.
SSI Telephone Wage Reporting: SSI recipients can report wages by calling 1-800-772-1213 and using the automated system.
Mobile Wage Reporting App: SSI recipients can download the SSI Mobile Wage Reporting app to report monthly wages directly from their phone.
When to Report
SSI recipients should report income within 10 days after the end of the month in which you received it. Report wages for January by February 10, for example. Prompt reporting prevents overpayments from accumulating.
SSDI recipients should report when you start working, when your earnings change significantly, and when you stop working. There's no specific monthly deadline like SSI, but reporting promptly helps avoid problems.
Consequences of Not Reporting
Failure to report income can result in overpayments, which SSA will recover by reducing your future benefits or demanding repayment. Large overpayments can take years to repay.
In serious cases—particularly intentional failure to report—you could face fraud charges, benefit termination, or penalties. Even innocent mistakes can create financial hardship when overpayments must be repaid.
Work Incentive Programs
Both programs have rules designed to help you test your ability to work without immediately losing benefits:
SSDI Trial Work Period: You can work for up to 9 months (not necessarily consecutive) within a 60-month period while receiving full benefits, regardless of earnings.
SSI Earned Income Exclusions: SSI excludes the first $65 of earned income plus half of the remainder, so you keep more of your benefits while working.
Plan to Achieve Self-Support (PASS): Allows you to set aside income for work-related goals without it counting against SSI.
Understanding these programs can help you work without fear of losing everything.
Staying compliant with SSA rules is easier with the right tools. Purple helps disability recipients track income and resources with accounts designed for your needs.