Yes, you can work and receive SSI, but your earnings will reduce your monthly payment
The Social Security Administration allows SSI recipients to work. However, SSI is a needs-based program, which means your payment decreases as your earned income increases. The amount you can earn before your SSI payment is affected depends on how much you make and which work incentives you use.
Most people don't lose all their SSI immediately when they start working. Instead, the program uses a formula to count part of your earnings against your payment. Understanding how this formula works and what work incentives exist can help you keep more of what you earn.
Key Takeaways
- SSI recipients can work, but earnings reduce the monthly payment using a specific formula that counts only part of your income.
- The first $65 per month you earn is not counted, and then only half of earnings above that amount reduce your SSI payment.
- Plan to Work and Impairment Related Work Expenses (IRWE) are work incentives that can let you earn more while keeping more of your SSI payment.
- You must report all work and earnings to Social Security within 10 days of the month you earn the money, or you risk overpayment and having to repay SSI.
- Self-employment income is counted differently than wages, and the rules are more complex if you run your own business.
How earnings reduce your SSI payment
SSI uses a straightforward formula to determine how much of your earnings count against your payment. In 2024, the first $65 of monthly earnings you receive is not counted at all. After that, only half of your remaining earnings reduce your SSI payment by that amount.
For example, if you earn $200 in a month, Social Security counts it this way: subtract the $65 exclusion, leaving $135. Half of $135 is $67.50, which is the amount your SSI payment decreases that month. You keep the full $200 you earned, but your SSI payment drops by $67.50.
This formula applies to wages from a job. The $65 exclusion amount does not change year to year, but it is set by law and Congress can modify it. Check with Social Security if you want to confirm the current exclusion amount, since it occasionally changes.
Work incentives that protect more of your earnings
Plan to Work is a work incentive that lets you tell Social Security you are planning to work toward self-support. Once you notify Social Security in writing that you have a Plan to Work, you can exclude certain work-related expenses from your earnings calculation for up to 78 months. These expenses might include vocational training costs, transportation to work, or assistive technology you need to do your job.
Impairment Related Work Expenses (IRWE) is another incentive that excludes costs directly related to your disability from your earnings. If you need a personal assistant at work, special equipment, medication, or therapy to be able to work, these costs can be subtracted from your earnings before the SSI formula is applied. This can significantly reduce how much your payment decreases.
Both of these incentives require you to document your expenses and report them to Social Security. The process is not automatic — you have to request these work incentives and provide proof of what you spent. Social Security has forms and worksheets to help you track and report these expenses correctly.
What you must report and when
You are required to report all work and earnings to Social Security within 10 days of the end of the month in which you earned the money. This means if you work in January, you must report it by February 10. Failing to report earnings on time can result in an overpayment — money Social Security paid you that you were not supposed to receive — and you will have to repay it.
You can report earnings by phone, mail, or online through your Social Security account. When you report, have your pay stubs or records ready so you can give Social Security the exact amount you earned. If you are self-employed, you will need to report your net profit (income minus business expenses), not your gross income.
Social Security also receives wage reports directly from your employer through the Social Security Administration's wage reporting system. This means Social Security will know about your job even if you forget to report it yourself — but reporting on time prevents confusion and overpayments.
Self-employment and SSI
If you are self-employed, the rules are more complicated than for regular wages. Social Security counts your net profit (what you make after business expenses) as your earnings. However, the agency also looks at whether your work is "substantial gainful activity" — essentially, whether you are working at a level that suggests you are no longer disabled.
In 2024, substantial gainful activity for non-blind individuals is generally considered to be earning over $1,550 per month. If your net self-employment income exceeds this amount, Social Security may determine that you are working at a level that means you are not disabled, which could end your SSI entirely. This threshold changes yearly, so check the current amount with Social Security.
Self-employed SSI recipients should work closely with a Social Security representative or a benefits counselor before starting a business. The calculation of net profit, the timing of when income is counted, and the risk of exceeding substantial gainful activity all require careful planning.
How to report work without losing track of your payment
Keep detailed records of everything you earn and all work-related expenses. Save your pay stubs, receipts for IRWE expenses, and any documentation of costs related to your Plan to Work. These records protect you if Social Security questions your earnings or expenses later.
Contact your local Social Security office or call 1-800-772-1213 before you start working if possible. A Social Security representative can walk you through the earnings formula, help you understand which work incentives might help you, and explain what you need to report. Many offices also have work incentive specialists who focus specifically on helping people balance work and benefits.
If you are unsure whether something counts as an expense you can exclude, ask Social Security in writing and keep a copy of your question and their response. This creates a record that protects you if there is a disagreement later about what you should have reported.
What happens if you earn too much
If your earnings are high enough that your SSI payment reaches zero, you stop receiving a monthly check. However, you remain in "SSI status," which means you keep your Medicaid coverage in most states. This is important: you can lose SSI but keep Medicaid, which covers medical care and prescriptions.
The exact point at which your SSI payment becomes zero depends on your state's SSI payment amount and your earnings. In states with higher SSI payments, you can earn more before your payment reaches zero. Social Security can calculate this for you if you tell them how much you expect to earn.
If you stop working or your earnings drop, you can restart SSI. There is no penalty for earning money and then losing SSI — you can reapply or have your benefits restored if your circumstances change.
Frequently Asked Questions
Do I lose all my SSI as soon as I start working?
No. Your SSI payment decreases gradually based on how much you earn, using the $65 exclusion and 50% formula. You would have to earn a substantial amount before your SSI payment reaches zero. Most people who start part-time work keep at least some of their SSI payment.
What if my employer does not want to hire me because I receive SSI?
Employers cannot legally refuse to hire you because you receive SSI or any other benefit. If you believe you were discriminated against, you can file a complaint with the Equal Employment Opportunity Commission (EEOC). Social Security also has work incentive programs and employment support services that can help you find work.
Can I use Plan to Work and IRWE at the same time?
Yes. You can exclude IRWE expenses from your earnings, and then use Plan to Work to exclude additional work-related expenses. This combination can allow you to earn significantly more while keeping more of your SSI payment. Social Security can help you set up both incentives together.
What if I earn money but do not report it to Social Security?
Social Security will likely find out through wage reports from your employer or through other records. If you do not report earnings and Social Security paid you more than you should have received, you will owe that money back. This is called an overpayment, and Social Security can recover it by reducing future payments or taking other action.
Does working affect my Medicare or Medicaid?
Working does not end your Medicaid in most states, even if your SSI payment reaches zero. Medicare may be able to access is separate and depends on your age and disability status, not your earnings. Check with your state's Medicaid office about how your specific work situation affects your coverage.