Section 1619a of the Social Security Act:

Supplemental Security Income (SSI) recipients can continue to be eligible to receive SSI checks when they are working if they still have a disability, and meet other requirements (such as income and resource limits). If an individual earns above Substantial Gainful Activity (SGA), which is $1010 dollars in gross earnings in 2012, they may still receive a reduced SSI payment up to a certain level called the Break-Even Point.

How it Helps You:

If you are working, continue to have a disability, have resources under $2,000 and are receiving SSI, the Social Security Administration (SSA) will allow you to continue to be eligible for SSI , even when your earned income is above Substantial Gainful Activity (in 2012, the SGA level is $1010 in gross earnings). If you are eligible for SSI and are employed, 1619b allows you to work and to keep Medicaid coverage without a Medicaid spend-down. You can continue to be eligible for Medicaid coverage until your gross annual income reaches a certain amount (this amount is $32,930 in 2010) if you are living in Indiana.

The amount of your SSI check will depend on your total countable income (which includes earned and unearned income). Deductions (such as the General Income Exclusion and Earned Income Exclusion) are applied to your total gross income to figure countable income. With 1619a protection, whenever your earnings decrease, your SSI payment will increase as long as you report changes to your earnings to the Social Security Administration.

How it Works:

The Social Security Administration (SSA) will reduce your SSI check as your earnings from work increase. This is done by applying some deductions (the General Income Exclusion and Earned Income Exclusion) to your income and earnings.

SSA will first deduct a $20 General Income Exclusion, and then deduct a $65 Earned Income Exclusion from your earnings. After applying these exclusions, they will then count half of the remainder of your earnings in calculating your new SSI payment. In addition, there are other work incentives that may be applied to your individual situation and deducted from your earnings in calculating your new SSI payment.

Eventually, with increased earnings, your total countable income may reach a point called the Break-Even Point. This amount is figured when your total countable income will reduce your SSI payment to zero, but, even then you will probably remain on the SSI roles.

When SSI recipients with disabilities work, they usually find that they have more money available, because of the countable income formula. An Indiana Works Community Work Incentives Coordinator  and the Social Security Administration can help you understand how total countable income is applied and explore any additional work incentives that may be applicable to your individual situation. They can also show you will reach the Break Even Point inform you of other factors involved with this work incentive.