Supplemental Security Income (SSI) Work Incentives
Many people who receive SSI would like to work but are afraid that they may lose their monthly benefit check and Medicaid. SSI work incentives encourage people to work by continuing SSI checks and/or Medicaid coverage for a period of time. If you earn over the SSI income limit and lose your benefit check, your eligibility for Medicaid may continue indefinitely. In many cases, if you lose your job or get sick and have to stop work within 12 months, you can receive checks again without filing a new application.
SSI work incentives include:
SSI work incentives include:
- General and Earned Income Exclusion
- Impairment Related Work Expenses (IRWE)
- Plan for Achieving Self Support (PASS)
- Continued payment under a vocational rehabilitation program
On this page
Major provisions of SSI work incentives
1. Can I work and keep my benefits?
You can work and earn up to $1,913/month, the "break even point," before you lose your full check.($1,913 is based on 2023 federal benefit rate (FBR) of $914/month)
2. How does earning money affect my benefits?
The first $85 ($20 general, $65 earned income) is excluded from your Countable Income, after that half of what you earn over that amount is deducted from your SSI check.| 3. How much income can I earn before I lose my monthly check? | 4. What if I earn over the SSI income limit of $1,913? | |
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The SSI income limit is $1,913. |
Your checks will stop. |
5. Will I lose Medicaid coverage if I work?
Medicaid will continue if you earn less than the SSI limit or if, when you earn over the SSI limits, you're still disabled, cannot afford similar medical care, and depend on Medicaid in order to work. (See 1619(b))6. How can I reduce my monthly countable income?
SSI work incentives include deductions for Impairment Related Work Expenses (IRWE) and money invested in a Plan for Achieving Self Support (PASS).7. What if I get sick or lose my job?
If you lose your job within 12 months after your SSI payments have stopped (because your earnings were too high) and you are still disabled, your benefits will start again without an application within 60 months of your last check.A Detailed Description of How Work Affects Your SSI Benefits
Can I work and keep my benefits?YES!
How does earning money affect my benefits?
You will receive SSI checks until the Countable Income you earn exceeds SSI limits, generally the more you earn the less you will receive from SSI. Under SSI guidelines, half of the amount you earn over $85 per month (general and earned exclusions) will be deducted from your SSI check. For example, if you earn $630 per month and receive an SSI benefits of $914:
| Earned and Unearned Gross Income | $ 630 |
| Minus General ($20) and Earned ($65) income exclusions | -$ 85 |
| Adjusted Gross Income | = $ 545 |
| $ 545/2 | = $ 272.50 |
| Federal Benefit Rate (FBR) | $ 914.00 |
| Minus Countable Income | -$ 272.50 |
| = SSI payment | = $ 641.50 |
Your Total Income:
| Gross Monthly Income | $ 630.00 |
| Plus SSI Payment | + $ 641.50 |
| Total Gross Monthly Income | = $1,271.50 |
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What is Countable Income?
How much you receive of your monthly SSI check depends on your level of Countable Income, which is both your earned wages and unearned income (e.g., SSDI, Veterans benefits, pension, cash, etc.) divided by two, minus approved deductions that may include:- general exclusion ($20)
- earned income exclusion ($65)
- Impairment Related Work Expenses
- Money set aside in a PASS to get a job or start your own business
For more information on SSI Earned & Unearned Income see: www.ssa.gov/ssi/text-income-ussi.htm
What are the SSI Income Limits?
If the SSI payment is $914 per month, you can earn up to twice that amount plus $85 (plus other approved deductions such as an IRWE or PASS) before your SSI checks will stop.There are two ways you can calculate the point at which your FBR (Federal Benefit Rate) or SSI Monthly Benefit would be zero, called "the break even point":
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What if my earnings are over the SSI Income Limit?
When you earn more than the break even amount your SSI checks stop. If your income drops below this amount during the first 60 months in which you are working, then your benefit check will start again without a new application.
Can I keep Medicaid coverage if I am working and earn over SSI limits?
You are entitled to Medicaid if you:
- continue to have a disabling condition
- need Medicaid in order to work and are unable to afford similar health insurance
- meet all SSI requirements except that you earn too much
- inform SSA that you want to be a "section 1619(b)" case
Section 1619(b) protects Medicaid benefits when earnings are too high for SSI cash payments. Your eligibility is based on "threshold amounts." The threshold amounts is what SSA calls the measure that it uses to decide whether your earnings are high enough to replace your SSI and Medicaid benefits. For more information contact your State Medicaid office in your area or go to www.ssa.gov/disabilityresearch/wi/1619b.htm
Impairment Related Work Expenses (IRWE)
Expenses that are related to your disability and that make it possible for you to work can be deducted from your Countable Income. Speak with your SSA representative for a complete list of allowable expenses.For more info on IRWE's see: www.ssa.gov/redbook/eng/ssdi-and-ssi-employments-supports.htm
Plan for Achieving Self Support (PASS)
A PASS encourages people to become self supporting by allowing money set aside for a specified time toward a work goal to be deducted from Countable Income. Allowable deductions include money saved for education, vocational training, work related equipment, or starting a business. If you earn more than the SSI limit, a PASS can reduce your countable income so that you receive a portion of your monthly benefit check.To begin a PASS, meet with your case manager and/or a vocational rehabilitation counselor to discuss your work goals and then fill out the application.
Your plan must:
- specify a work goal that you are capable of performing
- specify a time frame for reaching that goal
- show how the money will be used
- be in writing (using the form SSA-545†)
- be approved by Social Security
- be reviewed periodically by Social Security
- is not considered countable income
- can be recovered through a higher adjusted SSI cash benefit
- can reduce countable income below the break even point, thereby establishing or maintaining SSI and Medicaid eligibility
If you are unable to work because of your medical condition, you would be able to request reinstatement of benefits. You must file the request for reinstatement with Social Security within 60 months from the month of their termination. While Social Security is making a new determination, you may receive up to six months of provisional benefits, including Medicare and Medicaid, as appropriate. If Social Security decides that the medical condition no longer prevents you from working, the provisional benefits would not be considered an overpayment.
Vocational Rehabilitation: The Ticket to Work and Work Incentives Act of 1999
This law establishes the Ticket to Work and Self sufficiency program. Social Security beneficiaries will receive a “Ticket” to obtain vocational rehabilitation (VR) or other support services from an approved provider. Those services are designed to provide you with training or other assistance you need to update your job skills, start a new line of work, or go to work for the first time. SSA does not provide those services but will pay for them when certain conditions are met. If you enter a vocational rehabilitation program, your monthly benefit check would continue until the end of the program. The Ticket program is voluntary. Once you begin using the Ticket, Social Security cannot initiate a continuing disability medical review.
Continuing Eligibility Review
SSI usually reviews client's cases each year to determine if they are still disabled and qualify for assistance including Medicaid. SSA will not conduct a review while you are using a "Ticket to Work" or in a vocational rehabilitation program.
If the eligibility review determines that you can move toward self support, you may be referred to a vocational rehabilitation agency to acquire the skills and training that you need in order to get a job. Social Security would pay the cost of these services and you would continue receiving SSI benefits until you had completed the program.
You can request a Benefits Planning Query (BPQY), form number SSA-2459, from your local SSA office. The BPQY gives your continuing eligibility review status or how many years SSA expects for you to be disabled. For more information, contact:
Social Security Administration
Phone: (800) 772 1213
www.ssa.gov
Putting It All Together: A Case Example
The following example shows how you can earn income and deduct allowable expenses to keep and/or increase your SSI payment.
A. Dennis Gets a Job
Dennis Hunt has AIDS. He receives Medicaid and his only income is a monthly SSI payment of $914. He was ready to work part time and was offered a job at a local restaurant where he earned $225 per month. The effect on his monthly benefit and total income was:| Gross Monthly Earnings | $ 225 |
| General Income Exclusion | - $ 20 |
| Earned Income Exclusion | - $ 65 |
| Adjusted Earned Income | = $ 140 |
| Divided by 2 | 140/2= $ 70 |
| Countable Income | = $ 70 |
| Federal Benefit Rate (FBR) | $ 914 |
| Minus Countable Income | - $ 70 |
| New SSI Payment | = $ 844 |
| Plus Gross Monthly Earnings | + $ 225 |
| New Total Monthly Earnings | = $ 1,069 |
B. Dennis Gets a Raise
After 18 months, Dennis got a raise and worked more hours, so his monthly income increased to $367.He also paid $52 per month for medical expenses that counted as an IRWE. The effect on his monthly benefit and total income was:| Gross Monthly Earnings | $ 367 |
| General Income Exclusion | - $ 20 |
| Earned Income Exclusion | - $ 65 |
| Impairment Related Work Expense (IRWE) | - $ 52 |
| Adjusted Earned Income | = $ 230 |
| Divided by 2 | 230/2= $ 115 |
| Countable Income | = $ 115 |
| Federal Benefit Rate (FBR) | $ 914 |
| Minus Countable Income | - $ 115 |
| New SSI Payment | = $ 799 |
| Plus Gross Monthly Earnings | + $ 367 |
| New Total Monthly Earnings | = $ 1,166 |
C. Dennis Goes to School
Dennis then decided that he wanted to get a degree in graphic design. With the help of his case manager, Dennis wrote a PASS that described his work goal and his plans to save $70 each month for tuition. The effect on his monthly benefit and total income was as follows:| Gross Monthly Earnings | $ 367 |
| General Income Exclusion | - $ 20 |
| Earned Income Exclusion | - $ 65 |
| Impairment Related Work Expense (IRWE) | - $ 52 |
| PASS | - $ 70 |
| Adjusted Earned Income | = $ 160 |
| Divided by 2 | 160/2= $ 80 |
| Countable Income | = $ 80 |
| Federal Benefit Rate (FBR) | $ 914 |
| Minus Countable Income | - $ 80 |
| New SSI Payment | = $ 834 |
| Plus Gross Monthly Earnings | + $ 367 |
| New Total Monthly Earnings | = $ 1,201 |
Checklist - Working While on SSI
If you are working or want to work, understanding your current benefits and SSI work incentives will help you make informed decisions about how work will affect your benefits level. Review the following checklist to ensure you have a good understanding of each component.Do you understand?
Yes | No
___ | ___ How earnings affect your total monthly benefit?
___ | ___ What income exclusions you can use?
___ | ___ How to maintain Medicaid coverage?
___ | ___ Impairment Related Work Expenses (IRWE)?
___ | ___ Plan for Achieving Self Support (PASS)?
___ | ___ Continuing Eligibility Review?
___ | ___ What happens if you get sick or lose your job?
___ | ___ What options are available to you when SSI ends?
What questions or concerns do you have about working while on SSI?