FAQs about Benefits and Work Incentives

What is the difference between Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI)?
Supplemental Security Income (SSI) is based on need. This program was authorized by Title XVI of the Social Security Act and funds for this program come from the general treasury.

Social Security Disability Insurance (SSDI) is an insurance program authorized by Title II of the Social Security Act. Funding for this program come from the Social Security Trust Fund. Generally, you must work and pay Social Security taxes before becoming eligible for SSDI. If you became disabled before the age of 22, however, and have a parent who is disabled, deceased or retired, you may be able to collect a benefit that works like SSDI based on a parent’s work record. This benefit is known as Childhood Disability Benefit or CDB.

Can I receive both SSI and SSDI?
Yes. It depends on how much you receive in SSDI. If your SSDI payment is low enough, you may receive some SSI to bring you up to a certain minimum income standard. For example, in 2024, a person living in his/her own apartment and receiving an SSDI payment of $800/month would likely receive a federal SSI payment of $163.

What will happen to my SSI benefits if I work?
In some (but not all) cases, your SSI payments will be reduced or stopped if you work, but your total monthly income will increase. This is because Social Security always counts less than $1 of every $2 you earn when calculating your new SSI payment.

I am under the age of 22; are there work incentives for me?
Yes! Qualifying students under the age of 22 can often work with little or no change in their SSI benefits. This is because of a work incentive known as the “Student Earned Income Exclusion” (SEIE). As of 2024, Social Security will not count up to $2,290 per month of your earnings or up to a total of $9,230 for the year. Note that the earning amounts change each year.

What if I have additional expenses due to my disability?
Individuals who are disabled (but not blind) may also receive a higher SSI payment if they have out-of-pocket expenses related to their disability that they must pay in order to be able to work. These are known as “Impairment-Related Work Expenses or IRWEs.  If you have statutory blindness, you also qualify for the Blind Work Expenses (BWIE) work incentives.  To use these work incentives (SEIE, IRWE or BWI) you need to let SSA know you are working and request each work incentive. SSA must approve each one.

Will my Medicaid stop if I work?
Good news! Your Medicaid will continue automatically while you receive at least $1 of SSI. If your SSI payment stops because of your earnings, you can usually keep Medicaid because of a rule called 1619(b). In Rhode Island in 2024, you can earn up to $41,109 (and, in some cases, more) before losing this type of Medicaid. Note that you may still be able to keep Medicaid through a different program if you are working. In Connecticut, the 1619 (b) threshold is $54,293.

Why is my SSI payment different from my friend’s payment?
SSI is based on need, so not everyone receives the same amount. You may receive a smaller SSI payment if you have other income or if you are living in someone else’s household and receiving free food and/or shelter.

Is there a way to save money without losing benefits?
To get SSI, your countable resources must not be worth more than $2,000 for an individual or $3,000 for a couple. But if you were disabled before age 26, you can save much more than this in a special account known as an ABLE account. Visit the ABLE National Resource Center for more information.

What will happen if I lose my job?
If you stop working, simply call your local Social Security office and they will increase your payment. You may be asked to provide a letter from your former employer stating the date that you stopped working.
 

How long must I work before becoming eligible for SSDI?
It depends on your age. The younger you are, the fewer “credits” you need. In 2023, you must earn $1,640 to earn 1 credit, and you can earn a maximum of 4 credits per year. Before age 22, you may qualify for SSDI with only 6 credits (or 1½ years of work), but older adults may need up to 40 credits (usually 10 years of work). In addition, 20 of the credits must have been earned within the previous 10 years.

Can I work if I receive Social Security Disability Insurance (SSDI)?
Yes, those who receive SSDI can work, but keep in mind that this program is very different from SSI. You may either get your full SSDI payment or no payment at all. 

What are the phases of SSDI Work Incentives?

• Phase 1: Trial Work Period – After becoming entitled to benefits, you will get a period known as a “Trial Work Period.” This consists of nine months (not necessarily in a row) when you are entitled to your full SSDI payment regardless of how high your earnings may be. Only months when you earn a certain amount of gross wages will be counted as Trial Work months. For example, in 2024, you must earn $1,110 or more before a month will be counted as one of your nine Trial Work months.
• Phase 2: Extended Period of Eligibility –The month after your Trial Work Period ends, a 36-month period known as your Extended Period of Eligibility (EPE) begins. These are consecutive months.

Will I receive SSDI payments during my Extended Period of Eligibility?
It depends! After your Trial Work Period, Social Security will evaluate your earnings to decide whether or not your work is what they call “Substantial Gainful Activity” (SGA). If they decide that your work is SGA, they will give you an SSDI payment for three more months. The first of these months is known as your “cessation month” and the whole three-month period is known as your “grace period.”

After this, your SSDI payments will be suspended. However, if they decide that your work is not SGA, your SSDI payments will continue until they decide that your work is SGA or that you have medically improved.