Starting work doesn't mean losing all your benefits. Work incentives protect you during the transition. Here's exactly what happens when you begin working.
In this article, we'll cover:
- Immediate effects on benefits
- SSI work rules
- SSDI work rules
- Keeping healthcare coverage
1. Immediate Effects on Benefits
Don't panic:
- Benefits don't stop immediately
- Gradual transitions built in
- Safety nets exist
- Support during adjustment
Report right away:
- Tell SSA when you start
- Don't wait for first paycheck
- Avoid overpayments
- Protect yourself
What happens next:
- SSA calculates impact
- Benefits may adjust
- Work incentives apply
- Healthcare often continues
Timeline:
- First paycheck to SSA
- Adjustment takes time
- May see changes 2-3 months later
- Keep records of everything
Important: The system is designed to make work pay. You will have more money working than not working, even with benefit reductions.
2. SSI Work Rules
How earnings affect SSI:
- First $65 not counted
- Plus $20 general exclusion
- Remaining halved
- That amount reduces SSI
2026 example:
- Full SSI: $967
- You earn $800/month
- Minus $85 = $715
- Divided by 2 = $357.50 reduction
- New SSI: $609.50
- Total income: $1,409.50
When SSI stops:
- Earnings push countable income high
- But 1619(b) protects Medicaid
- Can return if income drops
- Easy reinstatement
Special exclusions:
- Student Earned Income Exclusion
- IRWE (work expenses)
- PASS programs
- Blind Work Expenses
3. SSDI Work Rules
Trial Work Period:
- 9 months total
- Don't need to be consecutive
- Within 60-month window
- Keep full SSDI
2026 TWP trigger:
- $1,160 per month
- If you earn this much
- Counts as TWP month
- Full benefits continue
After Trial Work Period:
- Extended Period of Eligibility (EPE)
- 36 months
- SGA limit: $1,620 (2026)
- Benefits stop if over SGA
Grace period:
- First month over SGA in EPE
- Get full check
- Transition cushion
- Time to adjust
Expedited reinstatement:
- Can restart benefits
- If work doesn't work out
- Within 5 years
- Quick process
4. Keeping Healthcare Coverage
SSI and Medicaid:
- 1619(b) provision
- Keep Medicaid while working
- Even if SSI cash stops
- As long as you need it
Requirements:
- Still have disability
- Need Medicaid to work
- Meet state threshold
- Can't have enough to replace benefits
SSDI and Medicare:
- Continues during TWP
- Continues during EPE
- Extended Medicare (93 months)
- Premium may apply later
Medicare Buy-In:
- Available in most states
- Keep Medicare
- Small premium
- Coverage continues
Making the Transition
Before starting:
- Talk to WIPA counselor (free)
- Understand your benefits
- Know the rules
- Plan ahead
First months:
- Report earnings immediately
- Keep all pay stubs
- Track hours worked
- Document everything
Ongoing:
- Continue reporting
- Monitor benefit changes
- Use work incentives
- Build savings (ABLE)
If job ends:
- Report immediately
- Benefits can restart
- Safety net available
- Don't fear trying
How Purple Helps
Purple supports your work transition:
- Track earnings and benefits
- See total income picture
- Monitor changes
- Easy record keeping
- Manage finances confidently