If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), the idea of returning to work can feel risky. Will a part-time job trigger a benefits cut? What happens to Medicaid or Medicare? The Social Security Administration (SSA) has created work incentives specifically to address these concerns—and to encourage beneficiaries to test their ability to work without losing the safety net. Understanding these incentives is essential for anyone considering employment.
This article covers the main work incentives for both SSI and SSDI, plus the Ticket to Work program that connects you with free employment services. SSA dollar amounts (like Substantial Gainful Activity thresholds) are adjusted annually; figures below reflect 2024 levels and should be verified at ssa.gov for the current year.
SSI vs. SSDI: A Quick Primer
SSI (Supplemental Security Income) is a needs-based program for people with limited income and resources who are disabled, blind, or age 65 or older. Eligibility does not depend on work history. Payments are designed to provide a minimum level of income and are reduced as earnings increase.
SSDI (Social Security Disability Insurance) is an insurance program for people who have worked long enough and paid Social Security taxes. Benefits are based on your earnings record and continue as long as you meet the medical definition of disability. Work incentives for SSDI focus on allowing a gradual return to work without immediate termination of benefits.
SSI Work Incentives
Earned Income Exclusion
The most important work incentive for SSI is the earned income exclusion. When SSA calculates your SSI payment, it excludes the first $65 of earned income plus half of the remaining earnings. That means you keep more of what you earn than many people assume.
Example: If you earn $700 per month, SSA excludes $65 + half of $635 ($317.50) = $382.50. Only $317.50 counts as “income” when determining your SSI payment. The rest reduces your benefit dollar-for-dollar, but the exclusion softens the impact of working.
Student Earned Income Exclusion (SEIE)
If you’re under 22 and regularly attending school, the Student Earned Income Exclusion lets you earn up to a much higher amount (approximately $2,220 per month in 2024) without it affecting your SSI. This is designed to support young people who work while in high school, college, or vocational training.
SSA requires you to report your earnings. Failing to report or underreporting can lead to overpayments that you’ll have to repay. Report wages as soon as you receive them (or know what they will be). If you’re working with a job coach or vocational counselor through ACCES-VR, they can help you track earnings and communicate with SSA.
Plan to Achieve Self-Support (PASS)
A PASS allows you to set aside income or resources toward a specific work goal (education, training, starting a business, buying equipment) without that money counting toward SSI limits. If SSA approves your PASS, the set-aside amount is excluded when determining your eligibility and payment. This can protect both your SSI check and your ability to save for a future career.
Section 1619(b): Keeping Medicaid While Earning
One of the biggest fears about working is losing Medicaid. Section 1619(b) allows you to keep Medicaid even when your earnings exceed the Substantial Gainful Activity (SGA) level, as long as your earnings stay below a state-specific threshold and you continue to meet the disability definition. For many people, this means you can work more and still maintain critical healthcare coverage.
Impairment-Related Work Expenses (IRWE)
If you need disability-related items or services to work—such as assistive technology, medications, or attendant care—those costs can be deducted when SSA calculates whether your earnings count as SGA. An IRWE reduces your countable earnings, which can help you stay under SGA and avoid a benefits cutoff.
In 2024, Substantial Gainful Activity (SGA) for non-blind individuals is $1,550 per month ($2,590 for those who are blind). Earnings below SGA generally do not trigger a finding that you’re no longer disabled. The Trial Work Period threshold for SSDI is $1,110 per month—any month you earn above that counts as a trial work month. These amounts are adjusted annually.
SSDI Work Incentives
Trial Work Period (TWP)
The Trial Work Period is one of the most valuable SSDI work incentives. You get 9 trial work months (not necessarily consecutive) within a rolling 60-month window. During those months, you can earn any amount—including above SGA—and your SSDI benefits continue with no reduction. In 2024, a month counts as a trial work month if you earn more than $1,110.
The purpose is simple: to let you test your ability to work without financial penalty. Many people discover they can work part-time or in a modified role. Others find they need more time or different accommodations. The TWP gives you space to find out.
Extended Period of Eligibility (EPE)
After you use your 9 trial work months, you enter the Extended Period of Eligibility (EPE)—36 months during which benefits continue for any month your earnings fall below SGA. If you earn above SGA in a given month, you don’t receive a benefit that month; but if you earn below SGA the next month (for example, if you reduce hours or leave a job), benefits can resume without a new application. The EPE acts as a buffer while you stabilize in the workforce.
Expedited Reinstatement
If your benefits stop because of work and your condition later prevents you from continuing, you can request expedited reinstatement within 5 years. You don’t need to file a new disability application—SSA will decide whether your medical condition still meets the disability rules. If approved, benefits can resume, and you may receive provisional benefits while SSA makes its determination.
Keep records of your pay stubs, work schedule, and any disability-related expenses. If SSA ever questions your earnings or your need for work incentives like IRWE, clear documentation makes the process smoother. Knowing your rights under the ADA and other disability employment laws also helps you advocate for accommodations that support sustainable work.
Ticket to Work: Free Employment Support
The Ticket to Work program is a voluntary, no-cost program for SSI and SSDI beneficiaries ages 18–64. It gives you access to Employment Networks (ENs) and State Vocational Rehabilitation (VR) agencies—including ACCES-VR in New York—that provide job search assistance, training, and ongoing support. While you’re using a Ticket and making progress toward work goals, SSA typically suspends medical continuing disability reviews (CDRs). That can provide peace of mind while you explore employment.
There is no cost to you. ENs and VR agencies are paid by SSA based on outcomes when you achieve certain earnings milestones. You can choose which provider you work with, and you can switch if a partnership isn’t a good fit.
Ticket to Work is available to all SSI and SSDI beneficiaries ages 18–64. There is no fee, no obligation to find work, and no penalty for deciding work isn’t right for you. The program exists to give you options, not to push you into employment before you’re ready.
Putting It Together: A Practical Approach
Work incentives are most effective when you use them deliberately. Here are steps many people find helpful:
- Contact SSA or a Work Incentives Planning and Assistance (WIPA) provider to understand how your specific earnings would affect your benefits. WIPA services are free and can create a personalized benefits summary.
- Enroll in Ticket to Work if you want structured support. An Employment Network or VR agency can connect you with training, job placement, and follow-along services.
- Start gradually. Part-time work or a supported job often lets you test your capacity without immediately hitting SGA. Track your earnings and report them on time.
- Consider a PASS if you have a clear work goal and want to protect income or resources while saving for it.
- Know your healthcare options. 1619(b) for SSI and Medicare continuation rules for SSDI can help you keep coverage during the transition.
We work with individuals receiving SSI or SSDI who want to explore employment. Our job coaches understand work incentives and can help you plan for earnings, report to SSA, and find roles that fit your abilities and goals. We also partner with ACCES-VR and other Ticket to Work providers. If you’re in Western New York and considering work, we’re here to help you navigate the process.
Working while receiving SSI or SSDI doesn’t have to mean losing your benefits or healthcare overnight. Earned income exclusions, Trial Work Periods, Extended Periods of Eligibility, Ticket to Work, 1619(b), and other incentives are designed to support a gradual, informed return to work. The key is understanding the rules, reporting accurately, and using the free resources available—including employment services like Innovative Placements—to make the transition as smooth as possible.