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

Writer: PurplePurple

Updated: Mar 10

The rise of gig economy jobs—such as freelancing, ridesharing, and online contract work—has created new opportunities for people to earn flexible income. But if you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), working in the gig economy can have a significant impact on your benefits.


This guide explains how gig work affects SSI and SSDI, reporting requirements, and how to earn money without losing your benefits.


1. How Gig Economy Jobs Affect SSI Benefits


Supplemental Security Income (SSI) is a needs-based program, meaning your eligibility and payment amount depend on your income and assets. If you take on gig work, the Social Security Administration (SSA) counts your earnings and may reduce or eliminate your SSI payments.


A. Income Limits and SSI Benefit Reductions

  • The maximum SSI payment in 2025 is $967 per month for individuals.

  • SSI counts earned income differently than unearned income:

    • The first $20 of any income is not counted.

    • The first $65 of earned income is excluded.

    • After that, SSA reduces your SSI payment by 50 cents for every $1 you earn.


📌 Example: If you earn $400 from gig work in a month:

  • SSA ignores the first $85 ($20 + $65 exclusion).

  • The remaining $315 is divided by two, meaning $157.50 counts as income.

  • Your SSI payment would be reduced by $157.50 for that month.


B. Resource Limits for SSI Recipients

  • You cannot have more than $2,000 in countable resources ($3,000 for couples).

  • Money saved from gig work could push you over this limit, affecting your eligibility.

  • Using an ABLE account can help protect your savings while maintaining SSI.


2. How Gig Economy Jobs Affect SSDI Benefits


Social Security Disability Insurance (SSDI) is different from SSI because it is based on work history, not financial need. However, SSA has strict limits on how much you can earn while still receiving benefits.


A. Substantial Gainful Activity (SGA) Limit

  • In 2025, the SGA limit is $1,620 per month for non-blind individuals.

  • If you earn more than the SGA limit, SSA may consider you able to work and terminate your SSDI benefits.


B. Trial Work Period (TWP) and Extended Period of Eligibility (EPE)

  • SSDI recipients can test working without losing benefits through a Trial Work Period (TWP).

  • In 2025, any month you earn more than $1,160 counts as a Trial Work Month.

  • You get 9 Trial Work Months (within a 5-year period) where you can earn any amount and still receive full SSDI benefits.

  • After the TWP, the Extended Period of Eligibility (EPE) allows you to receive SSDI for any month you earn below the SGA limit for up to 36 months.


📌 Example: You start driving for Uber and earn $1,500 per month. Since this is above the TWP threshold but below SGA, you use Trial Work Months. After 9 months, SSA reviews your earnings and determines if you can continue receiving SSDI.


3. Reporting Gig Work Income to SSA


If you take on any gig economy work, you must report your income to SSA to avoid penalties or overpayments.


A. How to Report Income

  • SSI recipients: Report wages every month to SSA using:

    • The SSI Wage Reporting app

    • My Social Security online account (ssa.gov)

    • Visiting or calling your local SSA office

  • SSDI recipients: Report changes in work status immediately, including:

    • Start and stop dates of work

    • Monthly earnings

    • Any expenses related to work accommodations


B. What Happens If You Don’t Report Income?

  • SSA may overpay benefits and require repayment.

  • You could face temporary suspension or loss of benefits.

  • Not reporting income can trigger fraud investigations.


4. Ways to Earn Gig Income Without Losing Benefits


If you want to work in the gig economy while keeping benefits, consider these strategies:

  • Track earnings carefully to stay below the SGA limit (SSDI) or minimize SSI reductions.

  • Use an ABLE account to save earnings without exceeding SSI resource limits.

  • Deduct Impairment-Related Work Expenses (IRWEs) if you have disability-related costs for working (e.g., special transportation, assistive devices, therapy).

  • Use the Trial Work Period (SSDI) if you want to test working without losing benefits immediately.


5. Manage Your Gig Work Income with Purple


Earning money through the gig economy while on disability benefits requires careful planning and income tracking. Purple helps you monitor your earnings, avoid overpayments, and protect your SSI or SSDI benefits.


Get started with Purple today and take control of your financial future.

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