One of the most common questions from SSI recipients is whether they can work at all — and if so, how much. The short answer is that working while receiving SSI is allowed and even encouraged by the program, but your earnings affect the amount you receive. SSI uses a formula to calculate how earned income affects your monthly benefit. The first $65 of monthly earned income is excluded entirely, as is an additional $20 general income exclusion if it hasn’t already been applied.
After those exclusions, SSI reduces your benefit by $1 for every $2 of remaining earned income. This means you don’t lose your full benefit the moment you start earning — the reduction is gradual. For example, if your monthly SSI benefit is $967 and you earn $300 in a month, the calculation would work as follows: subtract $85 in exclusions ($20 + $65), leaving $215 in countable earned income.
Half of that — $107.50 — is deducted from your benefit, leaving you with approximately $859 in SSI that month. Combined with your earnings, your total income is higher than SSI alone. The SSA has specific programs to support SSI recipients who want to work, including the Plan to Achieve Self-Support (PASS), which allows recipients to set aside income or resources to pursue employment goals without it counting against their benefits.
If your earnings consistently push your total income above SSI’s thresholds, your benefits may eventually be reduced to zero — but you may be able to have benefits reinstated quickly if your earnings drop again, through a program called expedited reinstatement. Reporting your earnings to the SSA promptly and accurately is required. Failure to report can result in overpayment issues.
Our team at Grech Law Firm Attorney & Counselor can help Michigan SSI recipients understand how work affects their benefits. Contact us for guidance.
