Managing employment while receiving Supplemental Security Income (SSI) can raise valid concerns. You may wonder whether working will reduce or eliminate your monthly benefits. Fortunately, the SSI program allows recipients to earn income within specific limits without losing eligibility.
How work affects your SSI amount
Earning wages can reduce your SSI payment, but not on a dollar-for-dollar basis. The Social Security Administration (SSA) excludes the first $65 of earned income each month. After this threshold, approximately half of your remaining wages count against your SSI benefits.
For instance, if you earn $165 in a month, the SSA disregards the first $65 and considers only $50 as countable income. This $50 reduces your SSI benefit slightly. Ultimately, you retain most of your earnings while continuing to receive support. However, it is important to know that any work while on disability brings risk. If you work while receiving benefits, Social Security may decide to re-examine your disabled status. Work activity can prompt a Social Security “Continuing Disability Review” and you run the risk of losing benefits completely if they determine you are no longer disabled.
Reporting income is required
Accurate income reporting is mandatory. Failure to report earnings can result in overpayments or benefit suspension. You may report wages through your SSA online account, by mail, or in person at a Social Security office.
Timely reporting ensures your benefits reflect your actual income. Keep all pay stubs and documentation related to your employment. Record the date and method of each income report to prevent discrepancies and support benefit accuracy.
Work incentives can help
Several SSA initiatives support individuals exploring employment. Programs like Ticket to Work provide employment services and training without risking immediate benefit loss. Another option, the Plan to Achieve Self-Support (PASS), enables you to set aside income for employment-related expenses.
These programs encourage greater financial independence while maintaining access to SSI. Before starting a new job or saving for specific goals, explore these incentives to understand how they can benefit you.
Receiving SSI does not prevent you from holding a job. By understanding income limits, taking advantage of work incentives, and consistently reporting earnings, you can balance employment and disability benefits. Stay informed and organized to make the most of your resources.
