Yes, you can work and receive SSI, but your benefits will be reduced or stop depending on how much you earn
The Social Security Administration allows SSI recipients to work, but treats work income differently than other types of income. The key is understanding how much you can earn before SSI payments decrease or end. SSI uses a calculation called the Plan to Achieve Self-Support (PASS) and standard income exclusions to determine whether your work income affects your monthly payment.
If you earn money from a job, SSI counts part of it as income. For 2024, SSI excludes the first $65 of monthly earnings plus half of what you earn above that amount. This means you can earn some money without losing your entire benefit — but the exact amount your payment drops depends on your total monthly income and other factors.
Key Takeaways
- SSI counts work income after excluding the first $65 per month plus half of earnings above that, so you can earn money without losing all your benefits.
- Your SSI payment reduces dollar-for-dollar once your total monthly income (including work earnings) exceeds the federal benefit rate, which is $943 per month in 2024.
- A PASS plan lets you set aside income and resources for work-related goals without affecting SSI, but you must file it with Social Security before you start earning.
- You must report all work income to Social Security within 10 days of the month it was earned, or you risk overpayment and having to repay benefits.
- Some work expenses — like transportation to your job or equipment you need to work — can reduce your countable income.
How SSI counts work income and reduces your payment
SSI uses a specific formula to calculate how much of your work income counts toward your benefit. In 2024, the first $65 you earn in a month is not counted. After that, SSI counts half of your remaining earnings. For example, if you earn $200 in a month, SSI excludes the first $65, leaving $135. Half of $135 is $67.50, which is what counts as income.
Once your total countable income reaches the federal benefit rate — $943 per month in 2024 — your SSI payment drops by one dollar for every dollar you earn above that threshold. This means if you earn enough that your countable income reaches $943, your SSI payment becomes zero. The exact point where this happens depends on your other income sources and whether you receive SSI as an individual or as part of a couple.
SSI also counts other types of income: Social Security benefits, pensions, unemployment, child support, and money from family members living in your household. Work income is just one piece of the calculation. If you already receive other income close to the federal benefit rate, even small work earnings can reduce or eliminate your SSI payment.
Using a PASS plan to protect income and resources
A PASS (Plan to Achieve Self-Support) is a written agreement you file with Social Security that sets aside income and resources for a specific work goal. While a PASS is active, Social Security does not count the money you set aside toward your SSI limit. This is the main tool available to people who want to work and save without losing benefits.
A PASS must have a clear goal — usually starting a business, getting job training, or saving for work-related equipment. You decide how much income to set aside each month and what you will use it for. Social Security approves the plan, and as long as you follow it, that money does not count as income or resources for SSI purposes.
The catch is timing: you must file your PASS before you start earning the income you want to set aside. If you are already working and earning, you cannot retroactively create a PASS to protect income you have already received. You also must report how you spent the set-aside money each month. A PASS typically lasts one to two years, though Social Security can extend it if your goal requires more time.
Work expenses that reduce your countable income
SSI allows you to deduct certain work-related expenses from your earnings before calculating how much counts as income. These deductions happen before the $65 exclusion and the 50% calculation, so they can significantly reduce the income SSI counts.
Common deductible expenses include transportation to and from work, equipment or tools you need to do your job, and work-related attendant care or support services. If you are blind, SSI also deducts the cost of items that help you work — like a white cane or screen reader software. If you use a representative payee (someone who manages your benefits), you can deduct fees they charge.
You must have documentation for these expenses: receipts, invoices, or statements showing what you paid and when. Social Security will not deduct an expense without proof. If your work expenses are high — for example, if you pay for a personal assistant to help you work — these deductions can allow you to earn significantly more before your SSI payment is affected.
Reporting work income to Social Security
You are required to report all work income to Social Security within 10 days of the end of the month in which you earned it. This is not optional. If you fail to report, Social Security may overpay you, and you will have to repay the difference later. The agency can recover overpayments by reducing your future benefits or, in some cases, by referring the debt to a collection agency.
You can report work income by phone, mail, or online through your Social Security account. When you report, have your pay stubs or a record of what you earned ready. Social Security will use this information to recalculate your benefit for the following month. If your income changes from month to month — for example, if you work part-time with variable hours — you need to report each month's actual earnings, not an average.
Some people worry that reporting work income will cause them to lose benefits entirely. In reality, reporting is how Social Security adjusts your payment correctly. If you do not report and the agency discovers unreported income later, the consequences are worse: you will owe back a larger overpayment, and Social Security may investigate whether you committed fraud.
When work income causes SSI to stop
Your SSI payment stops when your countable income exceeds the federal benefit rate for your state. In most states, this is the federal rate of $943 per month (2024). A few states add a small supplement, so the limit is slightly higher. Once your payment stops, you remain on the SSI rolls for nine months. During this time, if your income drops back below the limit, your benefits restart without a new application.
After nine months of zero payment, you are removed from the SSI rolls. If you want to receive SSI again after that, you must reapply. This is important to know if you are considering a job that might push your income above the limit temporarily — you have a nine-month window to reduce your income or adjust your situation before you lose your place in the program.
Some people intentionally let their SSI stop because they are earning enough to support themselves. Others work part-time and keep their income low enough to maintain some SSI payment. There is no penalty for letting SSI stop if you are working and earning more than the limit. The nine-month grace period exists to protect people whose work income is unpredictable or seasonal.
Medicare and Medicaid continue after SSI stops
One major reason to understand SSI work rules is that your health coverage does not automatically end when your SSI payment does. If you lose SSI because of work income, you may still be able to keep Medicaid under a work incentive called Medicaid continuation or 1619(b). The rules vary by state, but many states allow people who lose SSI due to earnings to keep Medicaid for a period of time.
If you receive Medicare (usually because you have been on disability for two years), your Medicare continues regardless of work income. This is a significant advantage: you can work, earn above the SSI limit, lose your SSI payment, and still have health coverage through Medicare.
Before you take a job that might cause your SSI to stop, contact your local Social Security office or a work incentives planning specialist to understand what health coverage you will have. Losing Medicaid unexpectedly can be more costly than losing the SSI payment itself.
Frequently Asked Questions
How much can I earn before my SSI stops completely?
Your SSI payment becomes zero when your countable income reaches the federal benefit rate, which is $943 per month in 2024. Because of the $65 exclusion and 50% calculation, you can earn more than $943 gross and still have some SSI payment. For example, if you earn $1,200 in a month with no other income, your countable income is $65 + (($1,200 − $65) × 0.5) = $632.50, so you would still receive some SSI. The exact threshold depends on your other income sources.
Do I have to report my work income every month?
Yes. You must report all work income within 10 days of the end of the month you earned it. If your income varies month to month, you report the actual amount you earned that month, not an average. Failure to report can result in an overpayment that you will have to repay.
Can I use a PASS if I am already working?
No. A PASS must be filed before you earn the income you want to set aside. If you are already working, you cannot retroactively create a PASS to protect income you have already received. However, you can file a PASS going forward to protect future income set aside for a work goal.
What happens to my Medicaid if my SSI stops because I am working?
This depends on your state. Many states allow you to keep Medicaid under a work incentive program even after your SSI payment stops. Contact your state Medicaid office or a work incentives planning specialist to find out what applies where you live. Do not assume your Medicaid will end just because your SSI does.
Can I deduct childcare costs from my work income?
SSI does not deduct childcare costs from work income. You can deduct transportation to work, work equipment, and work-related support services, but childcare is not included. However, childcare costs may reduce your countable income in other ways depending on your situation — ask Social Security directly about your specific circumstances.