Yes, you can work on SSI, but your earnings will reduce your monthly payment
Supplemental Security Income (SSI) does not prohibit work. The Social Security Administration allows you to earn money while receiving SSI, but they count most of your earnings against your payment. How much you can earn before your SSI payment shrinks depends on which work incentives you use and how much you report to Social Security.
The key rule is this: Social Security subtracts your earnings from your SSI payment, but not dollar-for-dollar. They use a formula that lets you keep some money without losing benefits. If you earn more than the monthly limit, your SSI payment decreases or stops, but you may still have access to Medicaid even when your cash payment ends.
Key Takeaways
- You can work and receive SSI at the same time, but Social Security counts your wages against your monthly payment using a formula that excludes the first $65 plus half of remaining earnings.
- The monthly SSI payment amount varies by state, and your earnings reduce it based on how much you make above the exclusion amount.
- Work incentives like Plan to Achieve Self-Support (PASS) and Impairment Related Work Expenses (IRWE) can shield some of your earnings from being counted, letting you keep more of your SSI payment.
- You must report all work income to Social Security within 10 days of receiving your first payment from a new job, or you may face overpayment penalties.
- Medicaid coverage often continues even after your SSI cash payment stops due to work earnings, depending on your state's rules.
How Social Security counts your work earnings
When you work, Social Security uses a specific formula to determine how much of your SSI payment you keep. They exclude the first $65 of your monthly earnings, then exclude half of everything you earn above that amount. The remaining amount is subtracted from your SSI payment.
For example, if you earn $200 in a month, Social Security counts it this way: $200 minus $65 equals $135. Half of $135 is $67.50. That $67.50 is subtracted from your SSI payment. If your SSI payment would normally be $943 (the federal rate for 2024, though your state may add more), you would receive $943 minus $67.50, or $875.50 that month.
This formula applies to wages from a job. Other types of income—such as gifts, inheritance, or support from family members—are counted differently and may affect your SSI faster. Report all income to Social Security to avoid overpayment.
Work incentives that protect part of your earnings
Plan to Achieve Self-Support (PASS) is a work incentive that lets you set aside income and resources for a specific work goal without losing SSI. You write a plan describing what you want to achieve—such as getting a degree, starting a business, or buying equipment for a job—and Social Security excludes the money you set aside for that goal from your SSI calculation. PASS can shield hundreds of dollars per month in earnings.
Impairment Related Work Expenses (IRWE) lets you deduct the cost of items or services you need because of your disability in order to work. Examples include prescription medications, medical equipment, transportation to work, or personal care information. You subtract these costs from your gross earnings before Social Security applies the $65 exclusion and half-earnings rule. If your IRWE costs are high, this can significantly reduce the amount of earnings counted against your SSI.
Both PASS and IRWE require you to document your plan or expenses and submit them to Social Security. Your local Social Security office or a work incentives planning and information (WIPA) project can help you set these up at no cost.
Reporting your work income to Social Security
You must report work income to Social Security within 10 days of receiving your first payment from a new job. You can report by phone, mail, or in person at your local Social Security office. If you do not report, Social Security may overpay you, and you will be required to repay the difference.
Each month, you should also report your earnings if they change. Social Security uses your reported income to recalculate your SSI payment for the following month. Some people use a wage reporting phone line or online account to report monthly earnings, which can speed up the process.
Keep pay stubs and records of your work hours and pay rate. If Social Security questions your earnings later, you will need proof of what you actually earned.
When your SSI payment stops due to work earnings
If your earnings are high enough, your SSI cash payment will eventually reach zero. This does not mean you lose all benefits. In most states, you remain SSI-related, which means you keep Medicaid coverage even though you receive no monthly cash payment. This is called "Medicaid continuation" or "Medicaid while working."
The income level at which your SSI payment stops varies by state because some states add money to the federal SSI rate. In 2024, the federal SSI payment is $943 per month, but your state may provide additional funds. Your earnings must exceed your state's total SSI rate before your payment stops completely.
Once your SSI payment stops, you can still work and keep Medicaid. If your earnings drop below the SSI rate in a future month, your cash payment may restart. This makes it possible to test work without permanently losing coverage.
Student earned income exclusion
If you are under age 22 and a full-time student, Social Security excludes up to $8,230 of your monthly earned income (the amount changes each year). This means you can earn that much without it being counted against your SSI payment at all. The exclusion applies only to income from work, not from other sources.
To use the student exclusion, you must be enrolled full-time in an accredited school, college, or university. You must report your student status to Social Security and provide proof of enrollment if asked. Once you turn 22 or stop attending school full-time, the exclusion ends and the standard earnings formula applies.
Work incentives planning resources
Social Security funds free work incentives planning and information (WIPA) projects in every state. WIPA counselors help you understand how work will affect your SSI and Medicaid, set up PASS or IRWE, and plan your return to work. You can find your local WIPA project through the Social Security website or by calling 1-866-968-7842.
Your state's vocational rehabilitation agency may also offer work incentives counseling and can help you find job training or employment services. These services are free and do not affect your SSI may be able to access.
Frequently Asked Questions
Can I work part-time and still get my full SSI payment?
Not if your earnings exceed the monthly exclusion amount. After you earn more than $65 per month, half of your additional earnings reduce your SSI payment. However, if you are a student under 22, you can earn up to $8,230 per month without any reduction. For non-students, a PASS plan can shield additional earnings if you are saving for a specific work goal.
What happens if I don't report my work income?
Social Security will overpay you, and you will owe the money back. The agency discovers unreported income through tax records, employer reports, or tips from others. Repayment can be taken from your future SSI payments or pursued through other collection methods. Always report income within 10 days of your first payment from a job.
Does working affect my Medicaid coverage?
Working may reduce your SSI cash payment, but in most states your Medicaid continues even after your SSI payment stops. This is called SSI-related Medicaid. Some states have different rules, so contact your state Medicaid office to confirm your coverage will continue if your earnings increase.
Can I use a PASS plan to go back to school while working?
Yes. A PASS plan can set aside income and resources for education, job training, or starting a business. You describe your goal and how much money you need to reach it, and Social Security excludes that amount from your SSI calculation. WIPA counselors can help you write a PASS plan at no cost.
What if my earnings go down after I stop receiving SSI?
If your earnings drop below your state's SSI payment rate, your cash payment will restart in the month your earnings fall below that threshold. You do not need to reapply; Social Security will recalculate your payment based on your new earnings. Medicaid coverage continues throughout.