How Working Can Legally Affect SSI Benefits
People who receive Supplemental Security Income may wonder whether they can still perform some work without losing their benefits. The short answer is yes, but an SSI recipient may have their benefits reduced based on the income that they earn. A recipient needs to report their gross income before taxes to the SSA so that it can properly calculate their benefits. Failing to report income accurately will create a situation in which the SSA needs to collect an overpayment by withholding future benefits. Sometimes an SSI recipient could face criminal charges based on defrauding the government if they fail to report their income, although these are not commonly pursued.
Calculating SSI Benefits for Working Recipients
The SSA applies a formula to calculate whether and how much SSI benefits should be reduced based on a recipient’s earned income. The first $65 that they earn each month ($85 if they have no unearned income) and half of the remaining amount will be excluded from their countable income. For example, a person who earns $55 per month will receive the full amount of their SSI benefits. In another example, a person who earns $185 and does not receive any unearned income will have their benefits reduced by $50 because this is half of the difference between $185 and $85 ($100). Therefore, someone who has a part-time job or does other relatively low-paying work might be able to get more money by working than they would otherwise.
Moreover, when calculating countable income for SSI purposes, the SSA excludes work expenses related to a recipient’s disability. These involve costs incurred for products or services that they need to do their job, such as medications, a wheelchair, or a personal attendant. Standard medical or dental care is not an impairment-related work expense. (For someone who is blind, all work-related expenses are excluded, including those unrelated to blindness.)
The SSA also excludes subsidies when calculating the countable income of an SSI recipient. A subsidy is an amount that an employer pays to an employee because they have a disability, which exceeds the reasonable value of their work.
Under the Plan to Achieve Self-Support (PASS) Program, an SSI recipient with a plan approved by the SSA can set aside income to pay expenses to reach a work goal. These expenses might include tuition and supplies for school or training, job coaching, assistive technology, equipment, supplies to start a business, or transportation to and from work, among other costs. The SSA will not count income set aside under the PASS when deciding the amount of SSI payments.
Expedited Reinstatement of SSI Benefits
If an SSI recipient earns more income than the program limit, their benefits will end. Sometimes a person who stopped getting SSI benefits due to earning too much income finds that their disability worsens, preventing them from continuing to work at the same job. They may be able to get their benefits reinstated without pursuing a new claim if they meet certain requirements. They must not be performing substantial gainful activity in the month when they ask for expedited reinstatement, and their disability must prevent them from performing substantial gainful activity. (The SSA usually defines substantial gainful activity in terms of the claimant's monthly earnings.) In addition, their disability must be the same as the original disability for which they received SSI benefits, or related to it. Expedited reinstatement is available for five years after benefits were terminated.
An applicant for expedited reinstatement may receive provisional benefits for up to six months while the SSA determines whether their benefits should be reinstated. If the SSA eventually determines that they are not eligible for reinstatement, the applicant usually does not need to repay the provisional benefits.
