Living with a disability comes with expenses that most people never think about—and that government benefits were never designed to cover. From specialized equipment to accessible housing to the simple reality that everything costs more when you have fewer options, the financial gap between what benefits provide and what life actually costs can feel impossible to bridge.
In this article, we'll cover:
- The extra costs of disability that don't show up in benefit calculations
- Why SSI and SSDI payment amounts fall short of real expenses
- How the resource limit creates an impossible savings trap
- The employment penalty that keeps people stuck
- Strategies for stretching your benefits further
- How Purple can help you manage your finances without risking your benefits
The Disability Tax Nobody Talks About
Researchers call it the "disability tax" or "crip tax"—the additional money people with disabilities must spend just to live their daily lives. Studies estimate these extra costs range from $12,000 to $30,000 per year, depending on the type and severity of disability.
These hidden costs include things like accessible transportation when public transit isn't an option, home modifications like ramps or grab bars, specialized clothing or adaptive equipment, higher utility bills from medical equipment that runs constantly, and the premium you pay for accessible housing in a market where it's scarce. None of these expenses are factored into how your benefit amount is calculated.
The Math Simply Doesn't Work
Let's look at the numbers honestly. The maximum SSI payment in 2026 is $994 per month for an individual—that's $11,928 per year. The federal poverty line for a single person is roughly $15,060. SSI, by design, keeps recipients below the poverty line.
SSDI payments are higher on average, around $1,630 per month, but they're based on your work history. If your disability began early in your career, your benefit amount reflects those lower-earning years forever.
Meanwhile, the average one-bedroom apartment in the United States costs over $1,400 per month. Even in the most affordable areas, housing alone can consume 70% or more of a monthly benefit check. Add utilities, food, transportation, and disability-related expenses, and the math becomes impossible.
The Savings Trap
Perhaps the cruelest aspect of the current system is the SSI resource limit. If you receive SSI, you cannot have more than $2,000 in countable resources ($3,000 for couples). This limit hasn't been meaningfully updated since 1989—if it had kept pace with inflation, it would be over $5,000 today.
This means you can't save for emergencies, build a security cushion, or plan for the future without risking your benefits. A car repair, a medical bill, an unexpected expense of any kind can become a crisis because the system doesn't allow you to prepare for one.
The resource limit also affects your Medicaid eligibility in most states. Losing Medicaid can be even more catastrophic than losing SSI, given the cost of healthcare and the impossibility of obtaining private insurance with significant pre-existing conditions.
The Employment Penalty
You might think working would help bridge the gap, and the Social Security Administration does have programs designed to encourage employment. But the reality is complicated.
For SSI recipients, after a small earned income exclusion, benefits are reduced by $1 for every $2 you earn. Cross the Substantial Gainful Activity threshold of $1,690 per month (in 2026), and you risk losing SSDI entirely. And any money you earn still counts toward that $2,000 resource limit.
Many people find that working actually leaves them worse off financially once they account for lost benefits, lost Medicaid, and the additional disability-related costs that come with employment—transportation, work clothes, personal care assistance, and the physical toll that work takes.
This isn't laziness. It's rational math. The system creates a cliff where earning more money results in having less.
Strategies That Actually Help
Despite these challenges, there are legitimate ways to improve your financial situation without jeopardizing your benefits.
ABLE accounts allow you to save up to $20,000 per year (and if you're working, potentially an additional $15,650 through ABLE to Work provisions) without those funds counting toward the SSI resource limit. You can use ABLE funds for qualified disability expenses including housing, transportation, education, and healthcare.
Plan to Achieve Self-Support (PASS) lets you set aside income and resources for a work goal without affecting your SSI eligibility. If you have a viable plan to start a business or pursue education for a specific career, PASS can help you get there.
Impairment-Related Work Expenses (IRWE) allow you to deduct disability-related costs from your earnings when Social Security calculates your benefits. Items like medications, specialized transportation, and attendant care can reduce your countable income.
Section 8 and housing assistance can dramatically reduce your largest expense. Waitlists are long, but getting on them is worth the effort.
Managing What You Have
When benefits aren't enough—and they rarely are—managing what you do have becomes even more critical. That means knowing exactly where your money goes, understanding which resources count toward the SSI limit and which don't, and having systems in place to avoid accidentally going over.
This is where many people get tripped up. A well-meaning family member puts money in your account to help. You receive a small inheritance. Your tax refund deposits before you can spend down other resources. Suddenly you're over the limit, and Social Security wants answers.
Purple was built for exactly this situation. Our checking account helps you track your resources in real-time, so you always know where you stand. We understand the rules around countable resources, and we've designed our tools to help you stay compliant while actually using your money to live your life.