Social Security Disability Insurance (SSDI) and Work

SSDI benefits are provided to individuals who have a disability and have worked long enough to earn Social Security credits. While you can return to work while receiving SSDI, there are specific guidelines about how much you can earn before your benefits are affected:

• Substantial Gainful Activity (SGA): The SSA defines Substantial Gainful Activity (SGA) as earning a certain amount of income each month from work. For 2025, if you earn more than $1,470 per month (or $2,460 for blind individuals), the SSA may consider you able to work and will likely stop your benefits.
• Trial Work Period (TWP): If you are on SSDI, you can take advantage of the Trial Work Period (TWP), which allows you to test your ability to work without losing your benefits. During the TWP, you can earn any amount of income for up to 9 months without your SSDI being affected, as long as your earnings are reported. For 2025, any month in which you earn over $1,050 counts as a TWP month.
• Extended Period of Eligibility (EPE): After the TWP ends, you enter the Extended Period of Eligibility (EPE). This period lasts for 36 months. During the EPE, you can continue to receive SSDI benefits for any month your earnings are below the SGA threshold. If your earnings exceed the SGA level for 9 consecutive months, your SSDI benefits will stop.

Supplemental Security Income (SSI) and Work

SSI benefits are for individuals who have a disability and meet certain income and resource limits. SSI eligibility is more directly tied to your income and resources, so working can impact your benefits more immediately. Here’s what you should know:

• Earned Income Limits: SSI benefits are reduced if you have earned income. For 2025, the SSA allows a $65/month exclusion from your earned income, meaning the first $65 you earn in a month won’t count against your SSI. After that, the SSA subtracts $1 for every $2 you earn above the $65 threshold.
• Other Exclusions: There are other income exclusions that may apply, such as the $20/month general income exclusion, which applies to all income types (earned or unearned). Additionally, if you are paying for certain expenses like work-related expenses, those may also be excluded from the calculation.
• Resource Limits: In addition to earned income, SSI recipients must also be mindful of resource limits. If your total resources exceed $2,000 for individuals or $3,000 for couples, your SSI benefits may be terminated. Resources include cash, savings, or other assets, and working can increase your resources if you save or invest your earnings.

Social Security Work Incentives

The SSA offers several work incentives that can help you transition back to work while still receiving benefits. Some of these programs include:

• Impairment-Related Work Expenses (IRWE): If you need special equipment, services, or medications because of your disability, you may be able to deduct these expenses from your earnings when calculating your SSI benefits.
• Plan to Achieve Self-Support (PASS): This program allows you to set aside income or resources to pay for work-related expenses, such as education or business start-up costs, and have those excluded from your SSI calculation.
• Medicaid/Medicare: Working may not affect your eligibility for Medicaid or Medicare immediately. In some cases, you can keep these benefits even after you stop receiving SSDI or SSI. This is especially true if you are in a Medicaid Buy-In Program or a Ticket to Work program.

Returning to Work and Reporting Your Earnings

It is crucial to report your earnings to the SSA if you are working while receiving Social Security benefits. The SSA uses this information to determine whether your benefits should be adjusted based on your work activity. Here's how to report:

• Online: You can report your earnings using your SSA online account.
• Phone: You can call the SSA’s toll-free number (1-800-772-1213) to report your income.
• In-Person: You can also report earnings at your local Social Security office.

Failure to report your income accurately could lead to overpayments, which you will need to repay, or underpayments, which could result in a loss of benefits.

Working While Receiving Social Security: Key Considerations

• Trial Work Period (TWP): If you are on SSDI, take full advantage of the Trial Work Period to test your ability to work without losing benefits.
• Income and Resources: If you are on SSI, be mindful of how your earnings and resources can impact your benefits. Make sure to report any changes in income, and consider working with a benefits counselor or financial advisor to understand the best way to manage your income.
• Healthcare: If you’re concerned about losing Medicare or Medicaid because of your work, make sure to check the specific programs available to you, such as the Ticket to Work program or the Medicaid Buy-In program, which may allow you to continue receiving health coverage.