SSI and Work

How much you get in Supplemental Security Income (SSI) benefits each month depends on your countable income. The more countable income you have, the less you get in SSI.

However, SSI has many programs and rules that can help you if you work, so that when your earned income goes up, your overall situation improves:

• Some mean your SSI benefits don’t go down as much when your earned income goes up.
• Some mean you can go over SSI’s resource limit, but keep getting SSI benefits.
• The Ticket to Work program can help you with job-training and finding work.
• Some mean that if you stop getting SSI benefits due to work, you’ll have a safety net that can help you get back on SSI more easily if you need it and can also get affordable health coverage.

Rules That Mean Your SSI Benefits Won’t Go Down as Much as Your Earned Income Goes Up

In general, your SSI benefits will go down 50 cents for every dollar your earned income goes up. That means you’ll always end up with more total income when you work. However, some rules mean that your SSI benefits go down even less or not at all.

Some Work Expenses Are Not Countable Income

When you go to work, you have extra expenses. Social Security calls some of these Impairment Related Work Expenses (IRWEs) and won’t count them when looking at your income. If you are blind, Social Security calls them Blind Work Expenses (BWEs) and won’t count them.

Because Social Security won’t count the money you spend on IRWEs and BWEs, your total countable income for SSI will be lower and your SSI benefits will stay higher than they otherwise would.

You need to report your IRWEs or BWEs to Social Security when you report your income, including receipts or cancelled checks for your expenses.

Impairment Related Work Expenses (IRWEs)

For Social Security to count something as an IRWE, all of the following have to be true:

• You bought an item or service that you need to work.
• You need it because of a disability.
• You paid for it yourself and nobody reimbursed you for the cost.
• You paid a reasonable price for it.
• You were working during the month you paid the expense.
• You can fully document the expense with receipts or cancelled checks.

IRWEs are approved at the local Social Security office on a case-by-case basis. If you have any questions about IRWEs or about how to tell Social Security about them, talk with a Work Incentive Consultant.

Blind Work Expenses (BWEs)

Blind Work Expenses can be any expense you have that lets you work. Unlike an IRWE, a BWE does not have to be related to your blindness or other medical condition or disability. Examples include:

Unlike IRWEs, BWEs are subtracted after dividing by two, rather than before.

The Student Earned Income Exclusion (SEIE) for Students Under 22

The Student Earned Income Exclusion (SEIE) lets students on SSI earn up to $2,290 per month without having those wages be part of their countable income. That means they can work and keep getting their SSI benefits. The SEIE has a $9,230 annual cap, so if you earn more than that in a year, your earnings will be counted by SSI and your benefits will go down.

The SEIE can help you if you get SSI and are both:

• Under 22 years old, and
• Regularly attending school.
  • This usually means you have to go to school more than:
    • 8 hours per week for college students
    • 12 hours per week for grades 7 to 12
    • 12 to 15 hours per week for job training
  • If there are reasons beyond your control that prevent you from going to school this much, Social Security may make an exception to these rules.

Tip: The SEIE’s monthly and annual caps let you can have a higher paying job during the summer months and then a part-time job during the school year without going over the annual cap.

Programs That Let You Earn More, Save More, and Keep Getting SSI

A couple of programs let you save more than SSI’s $2,000 resource limit ($3,000 for couples) and keep getting SSI. At the same time, the money you save up with these programs won’t be considered countable income by the SSI program, so you’ll also get more in SSI benefits.

ABLE Accounts

If your disability began before you turned 26, you can open an ABLE account where over time you can save up to $100,000 in resources and not have them counted by SSI. ABLE accounts mean that if you get a job, you can start saving some money without losing your benefits. Additionally, the money in an ABLE account gets tax advantages similar to the way retirement accounts work.

However, ABLE accounts have restrictions:

• They can only be opened through specific programs or institutions.
• You can only open one ABLE account.
  • Arizona's ABLE account program is AZ ABLE, which is only open to Arizona residents.
  • You can choose to open an account in another state’s ABLE program.
• You and the other people making contributions on your behalf have a limit on how much you can deposit each year. Combined, you cannot deposit more than $18,000 in 2024.
• You can only use money in an ABLE account for specific things, such as:
  • Education
  • Housing
  • Transportation
  • Help getting and keeping work
  • Health care
  • Assistive technology, and
  • Other approved expenses.
• A person can only have one ABLE account.

Learn more about ABLE accounts.

Plans to Achieve Self-Support (PASS)

The Plan to Achieve Self-Support (PASS) program lets people who get SSI benefits earn more money and save up that money in a special account. It can also help people who do not qualify for SSI become eligible.

The money that you save up must be used for a work-related goal. It can help pay for:

• School or training
• Starting a business, or
• Equipment, support services, and other expenses related to your goal.

The PASS program has two basic benefits:

• You can save up resources without losing your SSI benefits.
• If you have income, you can put it into the PASS and it won’t be counted as income by SSI, which means your benefits amount won’t go down as much.

To set up a PASS, you must:

• Get SSI benefits or become eligible for SSI benefits due to an approved PASS application.
• Have income other than SSI (for example, SSDI benefits or wages from a job) or have resources over $2,000 that you can use to fund your PASS.
• Have a work goal that will help you earn enough money to lower your SSI benefits or get off SSDI benefits altogether.
• Be able to write a plan that shows how saving a certain amount of money will let you reach your work goal. You can get help writing your plan from a PASS specialist.
• Be under age 65. If you are 65 or older, you may be able to set up a PASS if you were getting SSI benefits based on disability or blindness in the month before your 65^th birthday.

Learn more in DB101’s PASS article.

Individual Development Accounts (IDAs)

If you are on SSI, Individual Development Accounts (IDAs) can help you earn more and save your earnings in a special account that will be matched with money supplied by the program’s sponsor or financial institution.

The match may be anywhere from one to four times the amount of the deposit you make. For example, if you’re enrolled in an IDA program with a 2:1 match and you deposit $50 into your account, the program will add an additional $100 towards your savings goal, so that your total savings for that month will be $150!

You must make sure your IDA is funded by the federal government. If it is:

• The earnings you put into the IDA don’t count as earned income when SSI figures out your benefits
• The matching money the IDA adds to your contribution doesn’t count as income for SSI, and
• The money in the IDA doesn’t count against SSI’s resource limit.

To open an IDA:

• Your annual income must be at or below 200% of the Federal Poverty Guidelines ($30,120 per year for individuals)
• You must have some earned income from a job or your own business
• You have to take financial literacy classes about things like money, debt reduction, developing a savings plan, credit, and investing; and
• Depending on the program, you may need to be a U.S. citizen or permanent resident.

You also have to choose an approved goal and use the IDA to save money for that goal. Most IDA programs let you save money for:

• Buying a first home
• Paying for education or training costs, or
• Funding a small business.

Learn more in DB101’s IDA article.

Note: There aren't as many IDA programs as there used to be. Some are still active, but it can take a bit of effort to find one that is accepting applications.

The Ticket to Work Program: Job Training and Help Finding Work

The Ticket to Work program helps adults with disabilities prepare for, find, and keep work. To qualify, you must:

• Be 18 – 64 years old
• Get SSI or SSDI benefits

When you are ready to think about work, you can get started with the Ticket program by contacting an Employment Network (EN). ENs are organizations that can give you the various free employment services that Ticket to Work provides, including:

• Vocational rehabilitation
• Training
• Referrals
• Job coaching
• Job counseling, and
• Placement services.

While you are in the Ticket program, Social Security will not make you do medical Continuing Disability Reviews (CDRs) as long as you make timely progress in meeting your employment goals. That means you won’t lose your eligibility for SSI or SSDI for medical reasons.

Learn more in DB101's Ticket to Work article.

Rules That Help if You Stop Getting SSI Benefits Due to Work

While there are many rules that can help you keep getting monthly SSI benefits, if you earn enough, you will eventually stop getting those benefits. Even so, there are SSI rules and other programs that will keep helping you.

If You Need SSI Again

If you stop getting SSI because your income goes up, but then your income goes down again, you may not have to reapply for SSI benefits.

If it has been less than 12 months since your last SSI payment or if you qualify for SSI 1619(b), you can get your SSI benefits started up again by reporting to your local Social Security office that you are no longer working.

If it has been more than 12 months, you can ask for Expedited Reinstatement (EXR) if:

• Your SSI benefits amount went to zero because of your income
• You can’t work at the Substantial Gainful Activity (SGA) level because of your disability
• Your current medical impairment is the same as the one that originally made you eligible for SSI, and
• You stopped getting SSI benefits less than five years ago.

If you qualify for EXR, you can get up to six months of temporary SSI benefits while Social Security makes sure you still qualify.

Health Coverage Rules

Many people who get SSI worry that if they work, they’ll lose the AHCCCS health coverage that comes with SSI benefits automatically. Fortunately, you can usually keep AHCCCS coverage even if your SSI benefits amount goes to zero because of earnings. And, if you can't keep your AHCCCS, there will be other coverage options.

AHCCCS through SSI’s 1619(b) Rule

If you’re on SSI and AHCCCS and your SSI benefits amount goes to zero because you go back to work, SSI’s 1619(b) rule means you can keep your AHCCCS coverage.

To keep your automatic AHCCCS coverage under 1619(b), you must:

• Have been eligible for SSI benefits for at least one month
• Need AHCCCS coverage to keep working
• Still have resources below the SSI limit of $2,000 ($3,000 for a couple)
• Have less than $53,159 in gross earnings, and
• Still meet all other SSI rules.

Learn more in DB101’s AHCCCS for People with Disabilities article.

AHCCCS Freedom to Work

If your income goes over the 1619(b) limit or your resources go over SSI’s limit, you should look into AHCCCS Freedom to Work, which has a much higher income limit and doesn't have a resource limit.

To qualify for AHCCCS Freedom to Work, you must:

• Be 16 – 64 years old
• Live in Arizona
• Be a U.S. citizen or a qualified immigrant
• Be working
• Have a disability that meets Social Security’s medical standards.
  • Note: For AHCCCS Freedom to Work, SSA’s disability rules related to income do not apply.
• Have countable earned income at or below $37,650 per year.
  • Not all of your earned income is counted. You could actually earn up to $76,320 per year and still qualify for AHCCCS Freedom to Work.
  • For eligibility, only your earned income is counted, not the income of other household members.

If you get AHCCCS Freedom to Work, you may need to pay a monthly premium. The amount you pay is based on your countable earned income. The higher your income is, the higher your premium will be. The maximum premium is $35.

Learn more in DB101’s AHCCCS Freedom to Work article.

Other Health Coverage Options

If you lose AHCCCS coverage, there should be another health coverage you can get, such as employer-sponsored coverage or private individual coverage. And, if you can’t afford the individual coverage, the government may help you pay for it through tax credits.

Learn more about individual coverage in DB101’s Buying Coverage on HealthCare.gov article.