Tips on Working While Collecting SSI or SSDI
 

Many people who are collecting disability benefits under either Social Security Disability Insurance (SSDI) or
Supplemental Security Income (SSI) would like to attempt to do some work.

 

For people with a variety of disabilities, there are days when some work is possible even though it may not be
eight hours, five days a week. Many people, however, are hesitant to try any type of employment out of fear
that it may jeopardize their Social Security benefits.
Both SSDI and SSI have programs that permit some work to be done without losing benefits. However, it is
important before starting to earn any wages that you thoroughly understand Social Security’s rules about
work. Mistakes and misunderstandings can result in overpayments that must be paid back to Social Security
as well as the possible loss of benefits.
 

The limits that Social Security puts on work are totally different between SSDI and SSI. If you are receiving
both SSDI and SSI, both sets of rules apply which can really complicate the process.
Before going into the rules of the two plans, there are some important points to be aware of that apply to
both plans:
 

Consider a “Dry Run.” Before attempting to do any type of regular work for wages, make sure you
can physically and emotionally handle a regular schedule. A person who has not had to maintain a
regular schedule in some time may find that the stress and physical demands can quickly overwhelm a
fragile health status. Start with a volunteer project, doing anything as long as it involves some regular
hours and no wages. It may be at a child care center, stuffing envelopes for a candidate, or whatever
you may feel capable of doing for one to four hours a day. The important issue is the schedule, not the
work. See how you react to having to get up every morning and go somewhere for a few hours, five
days a week. Two or three weeks of this will give you a good idea of how well you might handle some
employment.

 

Keep careful records of income and hours worked. Once you start working for wages, keep all
paycheck stubs. Also, maintain records of your work hours. Make sure that the records show not only
gross pay, but also net pay, hours worked, and time period when the wages were earned.
While you may think that Social Security will have all it needs with the records of payroll taxes being
paid, keep in mind that the records that Social Security receives only show gross pay and what tax
year they were paid in. Plus, Social Security is approximately two years behind in posting them to your
Social Security account.

 

Keep receipts and records of any additional expenses you incur due to working and your
disability. Social Security allows you to subtract from your earnings any expenses you incur that are
necessary for you to work. This can include the cost of special transportation to and from work,
prostheses and assistive devices, even medical expenses such as acupuncture, massage therapy or
chiropractic treatments.

 

Tell Social Security of your plans to work. Unless you are going to be earning very small amounts,
you should notify Social Security of your plans to attempt to do some work. To preserve a record of
your notification, either mail them a certified letter, keeping a copy, or personally deliver a letter
outlining your plans to your local office and get a signed receipt for it.

 

How your wages impact your disability benefits depends on whether you are collecting SSDI or SSI
benefits. Both look at what is called “Countable Income.” That is the gross amount of your earnings after
any expenses necessary to keep you working and less any subsidized earnings provided by your employer.
See www.ssa.gov for more on Countable Income or Earnings.