Many people receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) worry that earning income will automatically cause them to lose their benefits. The good news? The Social Security Administration (SSA) provides work incentives that allow you to earn money while keeping some or all of your benefits—at least for a period of time.
This guide will help you understand how working affects your SSI or SSDI benefits, what income limits apply, and how to report earnings properly to avoid overpayments.
Working While Receiving SSI
SSI is a needs-based program, meaning your benefit amount is reduced as your income increases. However, not all of your earnings count when determining how much SSI you receive.
How SSI Calculates Countable Income
The first $20 of income per month (earned or unearned) is not counted.
The first $65 of earned income per month is also excluded.
After that, only half of your remaining earnings count toward reducing your SSI payment.
Example Calculation
If you earn $885 per month from a job, here’s how SSA determines your countable income:
Subtract the $20 general income exclusion → $885 - $20 = $865
Subtract the $65 earned income exclusion → $865 - $65 = $800
Divide by 2 → $800 ÷ 2 = $400 (countable income)
Since the maximum SSI benefit for 2025 is $967, SSA subtracts the $400 countable income, leaving an adjusted SSI payment of $567 per month ($967 - $400 = $567).
SSI Work Incentives
Student Earned Income Exclusion (SEIE): If you're under age 22 and regularly attending school, you can earn up to $2,290 per month (up to $9,230 per year) without it affecting your SSI.
Plan to Achieve Self-Support (PASS): Allows you to set aside income for work-related expenses without affecting SSI.
Impairment-Related Work Expenses (IRWE): Work expenses related to your disability (e.g., specialized transportation, medical devices) can be deducted from your countable income.
Working While Receiving SSDI
SSDI is not needs-based, so your benefit amount does not change based on income. However, SSA does limit how much you can earn while still receiving benefits.
SSDI Work Limits for 2025
Substantial Gainful Activity (SGA) Limit: If you earn more than $1,620 per month ($2,700 if blind), SSA considers you engaged in substantial work, which could lead to benefit termination.
Trial Work Period (TWP): You can test working for 9 months (not necessarily consecutive) while still receiving full SSDI benefits, as long as you report your income. In 2025, any month in which you earn $1,160 or more counts as a TWP month.
Extended Period of Eligibility (EPE): After the TWP, you have 36 months where you can receive benefits in any month where earnings stay below SGA.
Expedited Reinstatement: If benefits stop due to work, but you become unable to continue working within 5 years, you can request benefits to restart without filing a new application.
Example: SSDI Work Incentives in Action
Lisa receives SSDI and decides to work part-time, earning $1,400 per month.
Since this is below the SGA limit of $1,620, she can continue receiving full SSDI benefits.
If Lisa’s earnings increase to $1,700 per month, SSA starts tracking her Trial Work Period months.
After 9 TWP months, if her earnings remain above $1,620, her SSDI benefits may stop.
What Happens to Your Health Coverage?
Medicaid (for SSI Recipients): Even if earnings reduce or eliminate your SSI, you may qualify for Medicaid through the 1619(b) program, which allows Medicaid eligibility up to a higher income threshold.
Medicare (for SSDI Recipients): If SSDI payments stop due to work, you can keep Medicare coverage for at least 93 months (7 years, 9 months) after your Trial Work Period ends.
How to Report Your Income to SSA
To avoid overpayments and benefit interruptions, always report your earnings to SSA:
For SSI: Report wages monthly using the mySSA portal, SSA mobile app, by phone, or at a local office.
For SSDI: Report income changes immediately to ensure proper benefit adjustments.
Can You Work and Keep Disability Benefits? Yes—With Careful Planning!
Many SSI and SSDI recipients successfully work while keeping some or all of their benefits. SSA's work incentives allow for gradual transitions into employment while protecting access to healthcare and financial assistance.
How Purple Can Help
Managing your income while receiving disability benefits can be tricky, but Purple makes it easier by tracking your earnings, keeping you informed about work limits, and helping prevent benefit overpayments.
Get started with Purple today and take control of your finances while working!