Question: can you work while receiving Social Security disability benefits?
Answer: yes, but there are important rules that must be followed.
First, it’s important to know which benefit you receive.
There are two major Social Security disability programs.
Social Security Disability Insurance (SSDI) is based on disability and work history.
Supplemental Security Insurance (SSI) is for low-income people with disabilities.
This article will cover work while on SSI.
Working While on SSI
Supplemental Security Income (SSI) is disability program run by the Social Security Administration but it is not Social Security.
The maximum monthly SSI benefit for an individual in New Jersey is $872.25 in 2022.
If you work some of what you make will be taken out of your SSI every month.
Social Security decides how much to reduce your benefit by looking at what you made each month.
The gross (before tax) amount you make is reduced by $65 and then divided in half.
What’s left is your countable income.
So, if your gross income in a month was $865, $65 will be taken off, leaving $800.
Then the $800 will be divided in half, leaving $400 in countable income.
Your SSI that month will be reduced by $400.
If you were receiving the max $872.25, you would get $472.25.
Remember:
- What you make each month is determined by gross pay (before taxes). Total earnings for a month are counted when you are paid, not when they were earned.
- Your SSI benefit amount for any month is based on your income from two months before. So your November benefit amount is calculated by using your income from September.
- Your SSI benefit eligibility for any month is determined by your monthly countable income in that month compared with the Federal Benefit Rate for 2022 of $841. If your countable income for any month is $841 or more you are not eligible for any payment in that month.
- If you are not eligible for a payment in any month, your eligibility will resume once your countable earnings are below the federal benefit rate;
- If you are ineligible for benefits for 12 months in a row, you’ll be terminated from the program. Your benefits will not restart unless you file a new application and prove that you meet the requirements for disability benefits.
- If the amount you make changes a lot from month to month, be sure to report to Social Security regularly to avoid issues. If they don’t have good information about what you make, they could pay you too much or too little. If at any point they decide they’ve paid you too much, you will have to pay the amounts back.
- These are the basic rules for working while on SSI. There are other factors related to work activity that are not included in this article.
Central Jersey Legal Services is here to help! If you have questions about working while on disability or got a notice from Social Security about your benefits, call us or apply online.
For more information or for further assistance, please contact Central Jersey Legal Services.
Mercer County: (609) 695-6249
Middlesex County: (732) 249-7600
Union County: (908) 354-4340
