Understanding Disability Income Limits
When you’re on disability, it’s important to know how much money you’re allowed to make. This can vary depending on the type of disability you have, the program you’re receiving benefits from, and your specific circumstances. Let’s delve into the details to help you understand the financial limits you may face.
SSDI and SSI Income Limits
Two of the most common programs that provide disability benefits are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Each has its own set of rules regarding income limits.
SSDI Income Limits:
With SSDI, you can earn a certain amount of money each month without affecting your benefits. This amount is known as the Substantial Gainful Activity (SGA) limit. For 2023, the SGA limit is $1,350 per month for most individuals. If you earn more than this amount, your SSDI benefits may be reduced or suspended.
SSI Income Limits:
SSI has a more stringent income limit. For 2023, the income limit for SSI is $1,350 per month for individuals and $2,040 per month for couples. This limit includes all income, including wages, rental income, and any other forms of money you receive.
Unearned Income and Disability Benefits
In addition to earned income, unearned income can also affect your disability benefits. Unearned income includes things like pensions, interest, dividends, and Social Security benefits from another individual.
SSDI Unearned Income Limit:
For SSDI, there is no specific limit on unearned income. However, if your unearned income combined with your earned income exceeds the SGA limit, your SSDI benefits may be reduced.
SSI Unearned Income Limit:
For SSI, the limit on unearned income is $85 per month for individuals and $170 per month for couples. If your unearned income exceeds this amount, it may reduce your SSI benefits.
Work Incentives and Trial Work Periods
Many disability programs offer work incentives to encourage individuals to return to work. One of these incentives is the Trial Work Period (TWP). During the TWP, you can earn a certain amount of money each month without affecting your benefits.
SSDI Trial Work Period:
For SSDI, the TWP lasts for nine months, not necessarily consecutive. During this period, you can earn up to $1,350 per month and still receive your SSDI benefits. After the TWP, you have a grace period of 36 months during which you can earn up to $21,810 per year without losing your benefits.
SSI Trial Work Period:
For SSI, the TWP lasts for 93 months. During this period, you can earn up to $845 per month and still receive your SSI benefits. After the TWP, you have a grace period of 36 months during which you can earn up to $18,210 per year without losing your benefits.
Medicaid and Disability Benefits
Many individuals on disability also receive Medicaid. The amount of money you can make and still qualify for Medicaid can vary depending on the state you live in.
Medicaid Income Limits:
For Medicaid, the income limit is typically around 138% of the federal poverty level. However, this limit can vary by state. If your income exceeds this limit, you may still qualify for Medicaid if you have certain expenses, such as medical bills.
Conclusion
Understanding the income limits for disability benefits can be complex. It’s important to consult with a disability attorney or a benefits counselor to ensure you’re aware of all the rules and regulations that apply to your specific situation. By knowing your limits, you can make informed decisions about your financial future.