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Purple··3 min read

The Impact of Gig Economy Jobs on Disability Benefits: What You Need to Know

Gig work offers flexibility that can be ideal for people with disabilities. But it also creates unique challenges for benefit compliance. Here's what you need to know.

In this article, we'll cover:

  1. How gig income affects benefits
  2. Reporting gig earnings
  3. Tracking variable income
  4. Strategies for success

1. How Gig Income Affects Benefits

SSI and gig work:

  • Income reduces benefits
  • First $65 + $20 excluded
  • Then $1 for every $2 earned
  • Variable income complicates

SSDI and gig work:

  • SGA limit applies ($1,620/month in 2026)
  • Trial work period available
  • Extended eligibility
  • More straightforward than SSI

Self-employment differences:

  • Net income matters, not gross
  • Business expenses deductible
  • IWE expenses can help
  • More complex reporting

Key considerations:

  • Variable monthly income
  • Quarterly vs monthly reporting
  • Tax implications
  • Record keeping essential

Important: Gig work is self-employment income. SSA has specific rules for how self-employment is counted, which differs from regular wages.

2. Reporting Gig Earnings

What to report:

  • All income received
  • Gross earnings
  • Work expenses
  • Changes in work

When to report:

  • Monthly for SSI
  • Promptly for SSDI
  • Even small amounts
  • Even irregular work

How gig income is calculated:

  • Gross receipts
  • Minus business expenses
  • Net earnings matter
  • Not just what you keep

Documenting expenses:

  • Mileage for delivery/rideshare
  • Phone and data costs
  • Equipment and supplies
  • Platform fees

3. Tracking Variable Income

Challenges of gig work:

  • Income varies week to week
  • Hard to predict monthly totals
  • Multiple platforms common
  • Difficult to report accurately

Keeping records:

  • Track every gig
  • Record all payments
  • Note dates received
  • Calculate expenses

Tools for tracking:

  • Spreadsheets
  • Mileage apps
  • Banking records
  • Platform reports

Monthly summaries:

  • Total gross income
  • Business expenses
  • Net earnings
  • Ready for SSA

4. Strategies for Success

Managing SSI with gig work:

  • Know your break-even point
  • Track in real time
  • Report accurately
  • Use ABLE account for savings

Using work incentives:

  • IRWE reduces countable income
  • PASS can shelter earnings
  • Student exclusion if applicable
  • Blind work expenses

Avoiding overpayments:

  • Track income carefully
  • Report monthly
  • Keep reserves
  • Document everything

Tax considerations:

  • Set aside for taxes
  • Quarterly estimated payments
  • Track deductible expenses
  • Keep all receipts

Common Gig Work and Benefits

Rideshare driving:

  • Flexibility helps
  • Mileage deductible
  • Vehicle expenses
  • Tips count as income

Delivery services:

  • Choose your hours
  • Active vs wait time
  • Mileage and expenses
  • Multiple apps possible

Freelance/creative:

  • Variable projects
  • Invoice timing matters
  • Equipment expenses
  • Portfolio building

Online tasks:

  • Flexible timing
  • Lower physical demands
  • Often small amounts
  • Easy to track

How Purple Helps

Purple supports gig workers on benefits:

  • Track income in real time
  • Categorize earnings
  • Monitor benefit impacts
  • Easy record keeping
  • Early access to benefits

Built by people who manage disability benefits for their families

Join thousands of families who trust Purple to protect their benefits

Purple is a financial technology company, not a bank. Banking services are provided by OMB Bank, Member FDIC.