Many people do not know that they can work and still receive Supplemental Security Income (SSI). The SSI program has a formula for counting earned income. Under this formula, your earned income will somewhat reduce your SSI check. However, your earned income will not reduce your SSI check dollar for dollar. Instead, a large portion of your wages (almost half) will be "disregarded" or ignored. The other half of your wages will then reduce your SSI check dollar for dollar. This means that you could end up with more monthly income if you are working and getting SSI than if you only get SSI. However, if your wages become too high, you may no longer be financially eligible for SSI.

The Social Security Administration (SSA) will not automatically find that you are no longer medically disabled just because you start to work. However, the SSA always has a right to medically review your case. If the SSA decides to medically review your case, the SSA may look at your work activity as evidence that you are no longer disabled.

Typically, if you have no other income, the most SSI you will receive in New York State is $587.00/month if you live alone. If you live with family or roommates, the most SSI you can receive is $523.00/month if you pay your equal share of the household’s expenses. Household expenses means such things as food, rent or mortgage, property taxes, heating fuel, gas, electric, water, sewage and garbage collection costs. If you pay less than an equal share of the household expenses, the most SSI you can receive is $356.34. These are the SSI levels for 1999 and they increase slightly each year.

Once you start working, the Social Security Administration will count part of your wages and subtract that part from your monthly SSI rate. What is left after that subtraction is your monthly SSI check. Each month that you work, the SSA will subtract[ the following amounts from your gross wages for the month: $20 (if you don’t have any unearned income coming in - if you do, then the $20 will be subtracted from that); $65 and 50% of the remainder (that is half of what is left after subtracting either $65 or $85).

After subtracting these amounts, what is left is your "countable income. " Your countable income is then subtracted from your monthly SSI rate. Here’s an example based on a person whose gross earnings are $385 in a month:

$385 Gross wages $587 Maximum SSI check

- 20 -150 Countable income

300

-150 Additional 50% deducted

$150 Countable income

It is important to remember that although you can work and still receive SSI, it is possible that work activity may lead the SSA to medically review your case and find that you are no longer disabled. This is less likely to happen if you work in a sheltered workshop, as part of a program of vocational rehabilitation or with the help of a job coach .

In addition to the regular "disregards" discussed above, the Social Security Administration (SSA) will not budget any of your earned income that you spend each month on "impairment related work expenses" (affectionately known as "IRWE"s). An IRWE is any expense that you have paid out-of-pocket for items or services (1) that you need because of your disability and (2) that allow you to work. In order to qualify, you must pay for the item or service in a month that you are working.

There are any number of IRWEs. For example, the cost of medications that you need to remain stable enough to work could be an IRWE, even if you took the medication when you were not working. The costs of medical services such as corrective surgery or diagnostic tests (although not routine medical visits) may be IRWEs. Special transportation costs that you pay to get to work because your condition makes you unable to take public transportation are IRWEs. The cost of special equipment that you must purchase in order to do your job is an IRWE, such as telecommunication devices or tools specifically designed to accommodate your condition. Also, the costs of personal care services and modifications to your home may be IRWEs, if they are necessary for you to get to work. The costs of physical therapy, bandages and elastic stockings are other examples of IRWEs. If you can, get a prescription for the items and give a copy to SSA. This makes a stronger case for an IRWE.

If you can be reimbursed for the expense from another source, such as an insurance company, it is not an IRWE. If you are paying your own money for an item or service related to your disability that you need to be able to work, tell SSA about it and ask them to count it as an IRWE. This will reduce the amount of your countable income, thereby increasing your SSI benefits.

Different rules apply for people who work and who are applying for Social Security Disability ("SSD") benefits. You can still be considered "disabled" and eligible for SSD benefits. If you are earning less than $300 per month (gross earnings), the Social Security Administration will probably not deny your application based on your working. However, you will still have to prove that you are disabled by submitting medical reports from your doctors.

If you are earning between $300 and $700 per month (gross earnings), the Social Security Administration will look at what type of work you are doing and how well you are doing it and decide whether your application should be denied based on your work. If the Administration decides that your application should not be denied based upon your work activity, you will still have to prove that you are disabled by submitting medical reports from your doctors.

If you are earning $700 per month (gross earnings) or more, the Administration will deny your application based only on your work activity. They will not even analyze your medical conditions and your ability to work. (These rules do not apply to people who are legally blind. For more information on those rules, you can call the SSA at 1-800-772-1213.)

The Administration will assume that you are not disabled if you are earning $700 per month or more. However, you have the right to show them that you really are disabled, in spite of your earnings. You can do this in two ways: (1) by showing that you receive special help to do the work you do or (2) by subtracting any "subsidies" or "impairment related work expenses" from your monthly wages to bring them down below $700.

"Special help" means any type of special service you receive to help you do your job. This could mean a job coach, extra supervision, extra time to do the work or case management services. If you need these services to continue working, you may be found disabled by the Administration even if you are earning $700 per month or more. Remember, you must give proof of these special circumstances.

You may be receiving a subsidy in your wages if you are receiving extra help on your job, or if you are not producing as much as other workers in your same position. Your employer is the one that can tell the Administration exactly how much of a subsidy you are getting. This subsidy should then be subtracted from your wages. If the remaining wages are below $700 per month, your application for SSD benefits should not be denied based on work activity. If you are receiving any special help at work or if you know your production is below normal, tell the Social Security representative who takes your application to contact your employer. There is a form that the representative can send to your employer asking how much of a subsidy you receive. Impairment related work expenses can also be subtracted from your wages to bring them down below $700 per month.

For people with questions regarding work and the receipt of SSI or SSD benefits, you should contact your local legal services office. In Erie County, that office is Neighborhood Legal Services at 847-0650.