The Social Security disability process typically consists of two different programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). The SSDI program provides disabled worker’s benefits based on a worker’s earnings while they were working. The monthly amount is similar to what the worker’s full retirement Social Security benefit would be. Anyone who continues to work and is earning $1,130 or more in gross monthly income is ineligible to receive SSDI benefits no matter what conditions they suffer from. This is a pretty straightforward rule, but work income related to potential SSI benefits is a bit more complicated.
The SSI program is a needs based program, meaning that a disabled person must show a financial need for SSI. Anyone earning $1,130 in gross monthly income from work-related duties is also ineligible for SSI and someone could be disqualified for SSI based on overall income whether it is earned or unearned, but different calculations apply once someone qualifies for SSI.
Related to SSI payments, there is something called the Earned Income Exclusion. If you have earned income Social Security excludes the first $65. This means that Social Security does not count the first $65 earned against your eligible SSI amount. Social Security then counts half of your income to determine SSI eligibility. For example, someone who earns $1,065 from work per month in gross income would have a total of $500 counted as earned income for SSI calculations. Because the maximum monthly SSI payment, as of 2016, was $733, countable income cannot be over this amount to receive SSI benefits. A person earning $1,065 per month from work would have countable income of $500, which would be deducted from the maximum $733 SSI amount to equal eligibility for $233 per month in SSI benefits. To learn more click here.
