For individuals receiving disability benefits in the United States, understanding how much you can earn without losing your benefits is crucial. The Social Security Administration (SSA) provides two primary types of disability benefits: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Each program has its own rules and limits on how much you can earn while still receiving benefits, and these rules can be confusing for many recipients.
Whether you’re currently receiving disability benefits or considering applying, this comprehensive guide will help you understand how much money you can make on SSDI or SSI without affecting your benefits, how the SSA evaluates earnings, and how work incentives can help you transition back into the workforce.
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1. Understanding Social Security Disability Insurance (SSDI)
Social Security Disability Insurance (SSDI) is a program that provides monthly payments to individuals who are disabled and have a sufficient work history. Unlike SSI, which is need-based, SSDI is available to people who have paid into the Social Security system through payroll taxes during their working years. If you’ve accumulated enough work credits and are unable to engage in substantial gainful activity (SGA) due to a disability, you may be eligible for SSDI benefits.
How Much Can You Earn on SSDI?
When you’re receiving SSDI benefits, the SSA sets specific income limits that determine whether you’re still considered “disabled” under the law. This limit is based on a concept called Substantial Gainful Activity (SGA). SGA refers to the level of income that SSA considers “substantial” enough to demonstrate that you are capable of working.
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As of 2024, the SGA limits are as follows:
- For non-blind individuals: You can earn up to $1,470 per month without exceeding the SGA limit.
- For blind individuals: You can earn up to $2,660 per month.
If your monthly earnings exceed these amounts, the SSA may conclude that you are no longer disabled, and your SSDI benefits may be suspended or terminated.
Earnings Below SGA
If your monthly earnings are below the SGA limit, you can continue receiving your SSDI benefits without any reduction. It’s important to note that income limits are based on gross earnings (the total before taxes and deductions), not take-home pay. Additionally, certain expenses, such as Impairment-Related Work Expenses (IRWE), may be deducted from your earnings to help you stay below the SGA threshold (more on IRWE later).
The Trial Work Period (TWP)
SSDI beneficiaries are allowed to test their ability to work through a Trial Work Period (TWP). The trial work period gives you nine months (within a rolling 60-month period) during which you can earn any amount of money without affecting your SSDI benefits.
During the TWP:
- Any month in which you earn more than $1,050 counts as a trial work month (in 2024).
- You can work for up to nine months and still receive your full SSDI benefits, regardless of how much you earn during those months.
- Once you’ve completed nine trial work months, your earnings will be evaluated to determine if they exceed the SGA limit.
The Extended Period of Eligibility (EPE)
Once your trial work period ends, you enter a 36-month Extended Period of Eligibility (EPE). During this time:
- If your earnings exceed the SGA limit ($1,470 for non-blind individuals, $2,660 for blind individuals), your benefits may be suspended but not permanently terminated.
- If your earnings fall below the SGA limit in any of the 36 months, your SSDI benefits can be reinstated without a new application.
- If your earnings exceed SGA after the EPE, your benefits may be terminated.
The EPE provides flexibility for those who are transitioning back into the workforce and experiencing fluctuations in their income.
Impact of Work on SSDI Benefits
In summary, if your earnings are:
- Below the SGA limit: You can continue receiving SSDI benefits in full.
- Above the SGA limit after TWP: Your benefits may be suspended or terminated.
It’s important to track your income carefully, as exceeding the SGA limit could result in the loss of benefits after the trial work and extended eligibility periods.
2. Understanding Supplemental Security Income (SSI)
Supplemental Security Income (SSI) is a need-based program that provides monthly benefits to disabled individuals with limited income and financial resources. SSI is distinct from SSDI in that it is available to people regardless of their work history, as long as they meet certain income and asset limits.
How Much Can You Earn on SSI?
SSI has strict rules about how much earned and unearned income you can receive without reducing your monthly benefits. In 2024, the federal benefit rate for SSI is $914 per month for individuals and $1,371 per month for couples. Some states also provide additional supplemental payments.
Earned Income Exclusion
The SSA allows individuals receiving SSI to earn some income without it reducing their benefits immediately. This is called the earned income exclusion.
Here’s how it works:
- The SSA disregards the first $65 of earned income each month.
- After the first $65, half of your remaining earnings are deducted from your SSI benefits.
For example, if you earn $500 in a month:
- Subtract $65 from your earnings, leaving $435.
- Divide $435 by 2, which results in $217.50.
- Your SSI benefit would be reduced by $217.50 that month.
Unearned Income and SSI
If you receive unearned income (such as pensions, interest, or gifts), every dollar of unearned income reduces your SSI benefits by one dollar. Unearned income has a more direct impact on your benefits compared to earned income.
Impact of Work on SSI Benefits
While working will reduce your SSI benefits, you can continue to receive some SSI as long as your total income (earned and unearned) doesn’t exceed the federal benefit rate (or the combined federal and state supplement if applicable). If your income exceeds this amount, your SSI benefits may be suspended or discontinued.
3. Work Incentives and Special Programs
Both SSDI and SSI provide several work incentives to encourage beneficiaries to test their ability to work without losing all their benefits immediately. These programs provide flexibility and support for those who want to re-enter the workforce or increase their earnings without worrying about the immediate loss of benefits.
The Ticket to Work Program
The Ticket to Work Program is a voluntary program designed to help SSDI and SSI recipients return to work by providing free employment support services. These services include vocational training, job placement, career counseling, and other support.
If you participate in the Ticket to Work Program:
- You can work without worrying about losing your benefits.
- You can continue to receive your health benefits (Medicare or Medicaid) while working.
- If you stop working during the program, your disability benefits can be reinstated without needing to reapply.
Impairment-Related Work Expenses (IRWE)
Impairment-Related Work Expenses (IRWE) are work-related costs that are necessary due to your disability. The SSA allows you to deduct these expenses from your gross earnings when calculating your SGA or SSI benefit reduction.