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SSDI recipients are also granted a Trial Work Period in which they can work and earn as much as they want for nine months without jeopardizing their benefits.
You always want people to work to their fullest potential, of course. This is America. That’s one of our foundational ideals.
According to the SSA, “disabled” means applicants:
SSI is typically for people who haven’t paid Social Security taxes from past W2 jobs. Once they work enough in the eyes of Social Security, they may be able to transfer to SSDI. But the vast majority of people on SSI don’t and can’t work.
Is It Legal to Work While on Disability?
The benefits for the SSI folks are different because they didn’t pay into the system.
SSI vs SSDI — What’s the Difference?
“The benefits for the SSI folks are different because they didn’t pay into the system,” says Paula Vieillet, CEO of My Employment Options, a national employment network and advising company for people on Social Security assistance.
“What the Ticket program does is it provides protection. It gives people the opportunity to try to go back to work,” Vieillet says. “And if they don’t make it, nothing ventured, nothing lost.”
- Are totally disabled (not partially disabled or disabled in the short-term).
- Can’t do work they previously could before the disability.
- Are unable to adjust to other work because of a medical condition.
- And the disability has lasted (or is expected to last) for at least one year or will result in death.
It’s a difficult, frustrating balancing act, trying to work enough to maintain independence — but not so much that his benefits are cut off. It’s also suffused with fear. James talked to The Penny Hoarder about his experience but asked that his last name not be used out of concern of running afoul of the federal agency.
For starters, federal policy hasn’t kept up with inflation or changes in the labor market, experts say. That’s especially so for Supplemental Security Income, the program James is on.
Supplemental Security Income (SSI)
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Social Security Disability Insurance is for people who qualify as disabled and have paid enough Social Security taxes through past employment (typically five to 10 years worth of work credits) to qualify for additional benefits.
Adam Hardy is a former staff writer for The Penny Hoarder. This story was originally published in July 2019. Income thresholds and other statistics have been updated for 2022.
This program isn’t for low-income people, per se. But there are monthly limits on how much income someone can earn from a job: ,310 a month or ,190for blind workers. Income and assets outside work earnings are unlimited.
Beyond this definition, the programs vary greatly.
They get an exemption from what’s called a Continuing Disability Review. This periodic medical check-in determines if a person meets the strict definition of “disabled.” If an SSI or SSDI recipient has been assigned a Ticket and is making good progress in the program, they don’t need to worry about the medical review or losing their current benefits.
Confused? So are many recipients.
Social Security Disability Insurance (SSDI)
As of January 2021, the maximum federal benefit for an individual is 4 for an individual and ,191 for a couple per month. Several states add to that amount, according to the Social Security Administration. The total fluctuates annually.
Vieillet says the intricacies of each program are confusing, even to the experts. For the average person, it can be downright overwhelming.
“Sometimes even beneficiaries don’t get the distinction between the two,” says Kathleen Romig, a Social Security policy expert at the Center on Budget and Policy Priorities. “And the work rules are totally different.”
SSDI recipients are also allowed to work, and the rules are more lax because they have paid taxes into the system for much longer.
Social Security Work-Incentive Programs and Rules
“You always want people to work to their fullest potential, of course. This is America,” Romig says. “That’s one of our foundational ideals.”
When letters from Social Security start coming in the mail, “they scare the bejesus out of people,” says Teresa Nier, benefits and employment manager with My Employment Options.
Both SSI and SSDI recipients are eligible to join Ticket to Work.
Another issue is the maximum monthly payout of 4. While this number does change annually, Romig notes it’s well below the poverty line.
Here’s a primer on how the system works.
To be eligible for either program, the Social Security Administration first determines if applicants are disabled using a specific definition.
“The first in earnings are disregarded; after that benefits are reduced by for every earned,” says Romig. “The first in unearned income is also disregarded; after that, SSI benefits are reduced dollar-for-dollar.”
Why Do Disabled People Still Lose Out?
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Yes, it’s even encouraged. The Social Security Administration helps disabled people find employment through work-incentive programs. How much a disabled worker is allowed to work and earn depends on several factors, and the two primary forms of assistance — Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) — work very differently.
A 34-year-old with cerebral palsy, he depends on Social Security disability benefits for the majority of his income. The benefits cover his rent and bills each month. But it’s not enough to live on, so he supplements it with side gigs like DoorDash, Instacart and other delivery apps.
For disabled workers, joining a free work-incentive program and employment network can help. Ticket to Work offers benefits protection for recipients who want to test the employment waters. And organizations like My Employment Options have certified benefits counselors on staff to help applicants trudge through the paperwork and fine print — all while finding a job that fits their unique needs.
Supplemental Security Income is a financial-need-based program for elderly and disabled people. The federal government pays a stipend designed to cover basic necessities like food or housing for people who have little-to-no income.
But the difficulty of navigating the programs coupled with the threat of losing benefits as a worker often clashes with that value.
Experts’ Advice: Don’t Go It Alone
Millions of people are in James’ situation, fearful and confused by the labyrinth of rules governing their benefits. Disability benefits experts say discrimination, confusion regarding the rules and fear of benefits being cut at any time are all too common. And that’s despite the official Social Security position that people on disability should work to their fullest potential.
Social Security’s two main work-incentive programs are Plan to Achieve Self-Support (PASS) and Ticket to Work. Both are free and voluntary.
Anytime a letter bearing the seal of the Social Security Administration arrives, James feels afraid to open it.
Only SSI recipients are eligible to join PASS. Folks in this program set work goals, which could include starting a business, attending a college or learning a new skill. Once Social Security approves the plan, all costs related to achieving PASS goals can be deducted from their income, which allows SSI recipients to earn more money and keep their cash benefits.
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SSI recipients may work and continue to receive their benefits until their total income exceeds 4 after a few deductions are taken into account. <!–
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While the program mainly caters to the elderly and children with disabilities, James’s situation highlights several dated provisions. For example, the income deduction was set when the act was signed into law in 1972. It hasn’t budged since. The ,000 cap on liquid assets to qualify for SSI was set in 1989.