Social Security Disability Insurance (SSDI) Work Incentives

SSDI work incentives encourage you to work by providing the security of continued benefits over a period of time. Understanding how those incentives operate will help you make good decisions about work.

SSDI work incentives include:

Trial Work Period (TWP)
Extended Period of Eligibility (EPE)
Consideration of Impairment Related Work Expenses (IRWE)
Continuation of Medicare coverage
Continued payment under a vocational rehabilitation program

Planning Ahead

Returning to work can be an important step toward financial independence, personal growth, and long-term stability. Understanding how employment may affect your benefits allows you to make informed decisions and explore opportunities with confidence.

Working with a benefits counselor or case manager can help you understand available work incentives and create a plan that supports both your career goals and your access to healthcare and other essential supports.

Can I Work and Continue My Benefits?

Yes. You can start work right away and begin a Trial Work Period.

1. Trial Work Period (TWP)

The TWP earnings level is set at $1,210/month in 2026 (this amount varies for previous years).

If you have never worked while receiving SSDI, you can work for up to nine months (within a 60-month period), earn any amount, and still receive your full monthly benefit check.

If you have worked while receiving SSDI before, subtract the number of months you previously earned over the TWP level from nine to calculate how many Trial Work months you have remaining.

Note: During the TWP, Impairment Related Work Expenses (IRWE) and subsidies cannot be deducted from overall earnings. For self-employed individuals earning under $1,210/month, the number of hours worked may be used to determine if a month counts as a TWP month.

What Happens After the Nine-Month Trial Work Period?

There is a 36-month period — the Extended Period of Eligibility (EPE) — after the TWP, during which cash benefits will continue for any month that you earn less money than SSA considers “substantial gainful activity” (SGA).

2. Extended Period of Eligibility (EPE)

The SGA level for 2026 is $1,690/month.

After your Trial Work Period ends, you enter the EPE. During the first 36 months (the “re-entitlement period”), Social Security can pay you for any month your countable earnings are below SGA. If you work above SGA for the first time after the TWP, SSA pays benefits for that month and the following two months (the grace period). After that, cash benefits are payable for months you are below SGA during the re-entitlement period.

Medicare: Most people who work can keep Medicare coverage for at least 93 months after the end of the TWP, as long as they remain disabled under SSA rules.

Substantial Gainful Activity (SGA)

SGA refers to the level of work activity and earnings that Social Security uses to determine continued eligibility for disability benefits. SGA amounts are adjusted each year based on the national average wage. For 2026, SGA is set at $1,690/month.

If you earn less than $1,690 a month:

You will receive your full SSDI check
Your Medicare coverage remains in effect
If you are still disabled after the EPE, your benefit check and Medicare coverage will continue

If you earn more than $1,690 a month:

You will receive three more monthly checks, then your checks will stop
Medicare continues for an additional 93 months after the TWP, if your disabling condition still meets SSA rules
You don’t have to pay for Medicare Part A
You do have to pay for Medicare Part B
You can deduct disability-related work expenses that might bring earnings below the $1,690 SGA

Impairment Related Work Expenses (IRWE)

Impairment Related Work Expenses (IRWEs) are items or services that are essential to you being able to work. When SSDI considers your income to see if you can still get benefits, these expenses are subtracted from the amount you earned. If they reduce your income below $1,690 (SGA), you will continue to receive monthly SSDI cash benefits.

IRWEs can be deducted only if you pay for the item or service yourself and are not reimbursed by an agency. Examples include prescription drugs, Medicare deductibles and co-payments, a wheelchair, and other disability-related costs.

Example: If your gross monthly earned income is $1,700 and you have $250 in IRWE deductions, your adjusted countable income is $1,450 — below the SGA of $1,690 — so you would continue to receive your check.

For more details:

www.ssa.gov/redbook/eng/ssdi-and-ssi-employments-supports.htm

3. What If I Get Sick or Lose My Job? Expedited Reinstatement

If you start work but are then unable to work because of your medical condition, you would be able to request reinstatement of benefits — meaning you want to return to getting these benefits. This must happen within 60 months from the month that benefits were terminated (stopped).

While Social Security is deciding about your request, you may receive up to six months of provisional benefits, including Medicare and Medicaid, as appropriate. If Social Security decides that the medical condition no longer prevents you from working, the provisional benefits would not be considered an overpayment. This means you don’t need to pay them back.

Note: The dollar amounts for SGA and TWP are adjusted each year based on the national average wage. For SSDI, Social Security only counts earned income for TWP and SGA calculations, NOT unearned income.

Earned Income: Wages, net earnings from self-employment, certain royalties, honoraria, etc.

Unearned Income: All income that is not earned, such as Social Security benefits, pensions, state disability payments, unemployment benefits, interest income, dividends, cash from friends and relatives, some real estate income, etc.

Continuing Eligibility Review

Social Security reviews cases of people who receive SSDI to determine if they are still medically disabled. It is important to keep accurate and current documentation of your disability, because if SSA determines you are no longer disabled, your SSDI benefits will stop.

You can request a Benefits Planning Query (BPQY), form number SSA-2459, from your local SSA office. The BPQY gives your continuing eligibility review status and estimates how many years SSA expects you to remain disabled.

Vocational Rehabilitation: The Ticket to Work Program

The Ticket to Work program, administered by the Social Security Administration, provides access to employment services for people receiving disability benefits. Through this voluntary program, participants may receive:

Career counseling
Job training and education programs
Job placement services
Ongoing employment support

These services are provided through approved employment networks or vocational rehabilitation agencies.

While your Ticket is actively being used and you are making progress toward employment goals, Social Security typically will not initiate a medical disability review. This means you will not be at risk of losing your benefits during the time you are using Ticket to Work.

Note: This doesn’t stop work/earnings reviews.

Important points about SSDI and work:

For self-employment, SSA evaluates work activity using special rules. A month counts as a TWP “service month” if you earn at or above $1,210 (2026), or if you work more than 80 hours in self-employment.
If you are attending school or a training program, grants or scholarships used for tuition, books, and supplies do not count toward your SGA level.

Further resources:

Social Security Administration: Phone (800) 772-1213

www.ssa.gov

Ticket to Work Help Line: 1-866-968-7842 (TTY: 1-866-833-2967)

www.ssa.gov/work/

A Case Example: SSDI and Work (Pamela)

Pamela Watson, aged 34, was receiving SSDI benefits of $1,200 a month. She wanted to work but was afraid of losing her SSDI check and Medicare. After speaking with her case manager and a Social Security representative, she learned she could receive Medicare and cash benefits while working.

For the first nine months (the Trial Work Period), her benefits were not affected regardless of her earnings. She started working part time earning $1,750/month, giving her a total income of $2,950.

At the end of the TWP, because she was earning above SGA ($1,690), her benefits continued for three months (the grace period) and then stopped. Because she was still disabled, her benefits could be reinstated any time during the next 36 months (EPE) if her earnings dropped below SGA.

Later, Pamela had transportation costs of $200/month and medical equipment costs of $175/month — both counted as IRWE. Her countable income dropped to $1,375 (below SGA), so her SSDI check resumed. This example shows how work incentives create a safety net so you can build confidence at work before benefits are reduced or stopped.

Supplemental Security Income (SSI) Work Incentives

Many people receiving Supplemental Security Income (SSI) are interested in working. But they may worry about how employment could affect their monthly payments or health coverage.

SSI includes work incentives designed to support people who want to work while keeping important benefits such as income support and Medicaid coverage. These programs allow individuals to gradually increase their earnings and test their ability to work.

In some situations, if your earnings increase and your SSI payment stops, you may still qualify for continued Medicaid coverage. If your job ends or your earnings decrease, your SSI benefits may restart without needing to submit a new application, depending on your circumstances.

SSI work incentives include:

General and Earned Income Exclusion
Impairment Related Work Expenses (IRWE)
Plan for Achieving Self Support (PASS)
Continued payment under a vocational rehabilitation program

Key Questions About Working While Receiving SSI

1. Can I Work and Still Receive SSI?

Yes. Many people receiving SSI can work while continuing to receive partial SSI payments. As earnings increase, SSI payments may gradually decrease rather than stopping immediately.

2. How Does Earning Income Affect SSI Payments?

When calculating SSI benefits, Social Security applies several exclusions to earned income:

The first $20 of most income (earned or unearned) is not counted.
The first $65 of earned income is not counted.
After these exclusions, about half of remaining earned income is counted when calculating your SSI payment.

Because of these rules, individuals often keep part of their SSI benefit while working.

3. How Much Can I Earn Before SSI Payments Stop?

SSI does not have one single earnings limit for everyone. The amount depends on other sources of income, living arrangements, state SSI supplements, and approved work-incentive deductions.

For someone receiving the 2026 federal SSI payment of $994 per month, a common estimate is that SSI payments may reduce to zero when gross wages reach about $2,073 per month. This is called the “break-even point.” Actual eligibility may vary.

4. What If I Earn Over the SSI Income Limit?

Your checks will stop. However, if your income drops below the break-even amount during the first 60 months in which you are working, your benefit check will start again without a new application.

5. Will I Lose Medicaid If I Work?

Medicaid will continue if you earn less than the SSI limit, or if — when you earn over the SSI limits — you’re still disabled, cannot afford similar medical care, and depend on Medicaid to work. This provision is called Section 1619(b). Inform SSA that you want to be a “Section 1619(b)” case.

6. What Happens If I Get Sick or Lose My Job?

If your SSI payment stops because of earnings, Social Security may place your case in a temporary suspension status. During this suspension, you will not receive benefits, but you will not lose your right to them.

If your earnings later decrease, your SSI payments may restart without requiring a new application. If SSI benefits ended due to work and you need them again later, you may qualify for Expedited Reinstatement (EXR) — a process that allows benefits to be reinstated without a completely new application, within five years (60 months) after benefits ended.

While Social Security reviews an EXR request, you may receive temporary benefits for up to six months.

7. How Can I Reduce My Monthly Countable Income?

SSI work incentives include deductions for Impairment Related Work Expenses (IRWE) and money invested in a Plan for Achieving Self Support (PASS). Both can reduce your countable income and may help maintain SSI eligibility.

Understanding Countable Income

When you receive SSI, the amount of “countable income” you have determines how much you receive in monthly benefits. Generally, the more countable income you have, the lower your SSI payment. However, Social Security applies income exclusions and deductions that reduce the amount counted.

Common SSI income exclusions:

General income exclusion: The first $20 of most income is not counted.
Earned income exclusion: The first $65 of earnings from work is not counted.
Impairment-Related Work Expenses (IRWE): Certain work-related expenses connected to a health condition may be deducted.
Plan to Achieve Self-Support (PASS): Money set aside for education, job training, or starting a business may not count as income.

After these exclusions, Social Security typically counts about half of remaining earned income when calculating your SSI payment.

For SSI, Social Security counts BOTH earned and unearned income. Earned income includes wages, net earnings from self-employment, and certain royalties. Unearned income includes Social Security benefits, pensions, state disability payments, unemployment benefits, interest income, dividends, cash from friends and relatives, and some real estate income.

www.ssa.gov/ssi/text-income-ussi.htm

Impairment Related Work Expenses (IRWE) — SSI

Expenses related to your disability that make it possible for you to work can be deducted from your countable income. Examples include prescription medications, medical equipment or assistive devices, transportation needed because of a health condition, and medical copayments or deductibles.

These deductions can lower your countable income, which may help maintain eligibility for SSI benefits. Speak with your SSA representative for a complete list of allowable expenses.

Plan for Achieving Self Support (PASS)

A PASS allows individuals receiving SSI to set aside income or resources for a specific employment goal. Money set aside in an approved PASS plan does not count toward SSI income limits.

PASS funds can be used for education or vocational training, starting a business, purchasing tools or work equipment, or transportation needed for employment.

To establish a PASS, you must submit a written plan (form SSA-545) to Social Security describing your employment goal, the timeline for reaching it, and how funds will be used. The plan must be approved and is reviewed periodically.

Money put into a PASS plan is not considered countable income and can reduce countable income below the break-even point, thereby establishing or maintaining SSI and Medicaid eligibility.

Continued Medicaid Coverage: Section 1619(b)

Even if your SSI cash payments stop due to earnings, you may still qualify for continued Medicaid coverage if: you still meet Social Security’s disability criteria; you need Medicaid in order to work; you cannot afford comparable health insurance; and your earnings remain below your state’s Medicaid threshold.

Section 1619(b) helps ensure that individuals can work without losing essential healthcare coverage. For more information, contact your State Medicaid office or visit:

www.ssa.gov/disabilityresearch/wi/1619b.htm

Vocational Rehabilitation: Ticket to Work (SSI)

People receiving SSI may also be eligible for employment services through the Ticket to Work program. This voluntary program connects participants with employment providers that offer career counseling, job training, education, employment placement support, and ongoing job support services.

While actively participating and making progress toward employment goals, Social Security typically will not begin a medical eligibility review.

Continuing Eligibility Reviews — SSI

Social Security periodically reviews SSI cases to confirm that individuals remain eligible for benefits (Continuing Disability Reviews or CDRs). If you are participating in an approved employment support program such as Ticket to Work or vocational rehabilitation, Social Security generally postpones medical eligibility reviews during that period.

You may request a Benefits Planning Query (BPQY), form SSA-2459, from your local SSA office. The BPQY provides detailed information about your current benefits, work incentive eligibility, and scheduled medical reviews.

A Case Example: SSI and Work (Dennis)

Dennis Hunt has AIDS. He receives Medicaid and his only income is a monthly SSI payment of $994. He began working part time at a local restaurant, earning $275/month.

After applying income exclusions ($20 general + $65 earned = $85 total), his adjusted earned income was $190. Divided by 2 = $95 countable income. His new SSI payment: $994 − $95 = $899. Total monthly income: $275 + $899 = $1,174.

After a raise to $367/month plus $52 IRWE, his countable income was $115, SSI payment $879, total income $1,246.

After adding a PASS of $70/month toward a graphic design degree, his countable income dropped to $80, SSI payment rose to $914, total income $1,281.

This example shows how SSI work incentives allow gradual income increases while maintaining partial benefits. SSI payments decrease gradually, income exclusions reduce counted wages, and Medicaid may continue while working.

Further resources:

Social Security Administration: (800) 772-1213

www.ssa.gov

Ticket to Work Help Line: 1-866-968-7842 (TTY: 1-866-833-2967)

www.ssa.gov/work/