Many people on disability want to earn extra money but worry about losing their benefits. The good news is that SSI has built-in work incentives that let you keep more of your earnings than you might think. Here's how to earn money while protecting your benefits.
In this article, we'll cover:
- How SSI income rules work
- Work incentives that help you keep benefits
- Side hustle ideas for people on disability
- How to report income correctly
1. Understanding SSI and Earned Income
The basic rule:
- SSI reduces your benefit when you earn money
- BUT it doesn't reduce dollar-for-dollar
- You can keep more than half of what you earn
- Work incentives let you keep even more
How earned income affects SSI:
- First $65 of earnings is excluded
- Then SSI subtracts $1 for every $2 earned
- This means you keep $1.50 for every $1 earned (after $65)
Example:
- You earn $500/month from a side hustle
- Minus $65 exclusion = $435
- Divided by 2 = $217.50 reduction to SSI
- You still keep $282.50 of your earnings PLUS reduced SSI
- Net gain: You have more money than before working
2. Work Incentives That Help
Student Earned Income Exclusion (SEIE)
If you're under 22 and in school:
- Exclude up to $2,350/month in 2025
- Up to $9,460 per year
- Huge benefit for young people on SSI
Impairment-Related Work Expenses (IRWE)
Deduct disability-related work costs:
- Medications that let you work
- Transportation to work (if disability-related)
- Attendant care services
- Medical equipment for work
- Service animal expenses
Example:
- You earn $800/month
- Pay $200/month for medications to work
- IRWE deduction reduces countable income
- Less impact on your SSI
Plan to Achieve Self-Support (PASS)
Save earnings for a work goal:
- Set aside money for education, training, or starting a business
- Money in PASS doesn't count as income or resource
- Must have approved plan
- Can help you build toward self-sufficiency
Blind Work Expenses (BWE)
If you're legally blind:
- Deduct any expense related to earning income
- Doesn't have to be disability-related
- Very broad deduction
- Significantly reduces countable income
3. Side Hustle Ideas
Low Physical Demand Options
Online work:
- Freelance writing or editing
- Virtual assistant work
- Data entry
- Online tutoring
- Social media management
- Transcription
- Customer service (remote)
Creative work:
- Graphic design
- Photography (sell stock photos)
- Crafts (Etsy, craft fairs)
- Art and illustration
- Music or voice-over work
Tech-based:
- Website testing
- App testing
- Online surveys (small income)
- Reselling items online
Flexible Schedule Options
Gig work (manage your hours):
- DoorDash, Uber Eats (if you can drive)
- Instacart shopping
- TaskRabbit errands
- Pet sitting (Rover)
- Babysitting
Local services:
- Lawn care (if able)
- House sitting
- Tutoring
- Music lessons
- Consulting in your expertise
Work-From-Home Options
Best for limited mobility:
- Phone-based customer service
- Medical coding/billing (with training)
- Bookkeeping
- Virtual call center work
- Chat-based support
Passive income ideas:
- Rent a room (careful with SSI rules)
- Rent parking space
- Rent storage space
- Royalties from creative work
4. What About SSDI?
SSDI is different from SSI:
- No income exclusions like SSI has
- BUT you have the Trial Work Period
- Can earn any amount for 9 months (doesn't have to be consecutive)
- In 2025, a trial work month = earning over $1,110
After Trial Work Period:
- Extended period of eligibility (36 months)
- Benefits paid for months under SGA ($1,620/month in 2025)
- Expedited reinstatement if you lose benefits due to work
Best approach for SSDI:
- Use Trial Work Period strategically
- Test your ability to work
- Keep detailed records
- Know the SGA limits
5. Reporting Your Income
You MUST report earnings:
- Within 10 days of receiving income
- Or by the 10th of the month following
- Report gross earnings (before taxes)
- Report self-employment income
How to report:
- Call 1-800-772-1213
- Visit local SSA office
- Use my Social Security online (some situations)
- SSI telephone wage reporting
What to track:
- Pay stubs or payment records
- Business income and expenses
- IRWE expenses with receipts
- Hours worked
Don't hide income:
- SSA will find out (tax records, employer reports)
- Unreported income causes overpayments
- Overpayments must be paid back
- Could face penalties
6. Self-Employment Considerations
Benefits of self-employment:
- Flexible schedule
- Work from home
- Control your hours
- Deduct business expenses
How SSI counts self-employment:
- Net earnings (after business expenses) count
- Different calculation than regular wages
- Can reduce countable income significantly
Business expenses to deduct:
- Supplies and materials
- Equipment
- Website and software costs
- Advertising
- Home office (portion of rent/utilities)
Keep good records:
- Separate business bank account
- Save all receipts
- Track income and expenses monthly
- Consider using accounting software
7. Tips for Success
Start small:
- Test your ability to work
- Build up gradually
- See how it affects your benefits
- Adjust as needed
Know your limits:
- Physical limitations
- Time/energy constraints
- Benefit thresholds
- What you can realistically do
Protect your benefits:
- Report income on time
- Keep documentation
- Use work incentives
- Consider PASS if building toward bigger goal
Get help:
- Contact a Work Incentive Planning and Assistance (WIPA) program
- Free help understanding work incentives
- Find one at choosework.ssa.gov
- Can help you plan strategically
8. Common Mistakes to Avoid
Don't:
- Fail to report income
- Forget about the resource limit (SSI)
- Ignore work incentives you qualify for
- Work "under the table"
- Assume any work will end your benefits
Do:
- Report all earnings
- Track your resources (SSI)
- Claim IRWE deductions
- Keep good records
- Ask about PASS plans
How Purple Helps
Purple supports your financial goals:
- Track income from side hustles
- See how earnings affect your balance
- Get early access to your benefits
- Manage your resources easily
- No fees eating into your earnings
With Purple, you can grow your income while staying on top of your benefits.