Disability Benefits 101: Working with a disability in California
Frequently Asked Questions: Wages and Supplemental Security Income
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1) What happens when I work while receiving benefits from the Supplemental Security Income (SSI) program?

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Social Security work incentives, as well as the new Ticket to Work program, may support your efforts to re-enter the workforce. Since SSI is designed to supplement your income, Social Security uses the countable income calculation to determine how much your wages will reduce your benefit.

Underreporting earnings to Social Security may result in overpayments where you will be responsible to pay back those benefits. Make sure to report all of your gross income. Gross income is the amount you are paid before taxes are deducted from your paycheck. If you are self-employed, you can report earnings based on your most recent IRS tax return. To avoid an overpayment, report earnings to the Social Security Administration at 800-772-1213 (voice) or 800-325-0778 (TTY).

2) I have extra expenses when employed due to my disability. What are Impairment Related Work Expenses (IRWEs)?

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Impairment Related Work Expenses are documented expenses for services or items related to one's impairment that you pay for in order to support work activities. Wheelchair repairs, out of pocket payments for prescription medication or medical services, or a computer screen reader are examples of IRWEs.
  • IRWEs must be verified with original receipts or canceled checks.
  • IRWEs are approved at the local Social Security field office on a case-by-case basis.
  • There is no fixed list of approved IRWEs.

3) If my wages reduce my Supplemental Security Income (SSI) benefit to zero, will I lose Medi-Cal (Medicaid) coverage?

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Not necessarily. There are many Social Security employment rules and work incentives that allow you to keep Medi-Cal (Medicaid) even if you no longer continue to receive a SSI benefit. You may be able to continue Medi-Cal (Medicaid) coverage at no cost through SSI's 1619(b) provisions. The Social Security Administration (SSA) provides these details on Medi-Cal (Medicaid) protectionOffsite Link.

You will be eligible for 1619(b) if:

  • You have received an SSI benefit payment in the past twelve months;
  • You continue to meet medical disability requirements;
  • You continue to meet non-disability requirements;
  • You need Medicaid health coverage to continue to work; and
  • Your wages are below the 1619(b) threshold amount of $34,324 annually (as of 2010 in California).

Note: The 1619(b) threshold amount is $37,252 for blind recipients (as of 2010 in California).

4) What happens if my wages or earnings exceed the current 1619(b) threshold?

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If your income exceeds the 1619(b) threshold, you may still be able to keep Medi-Cal coverage. You can request that Social Security continue your 1619(b) Medi-Cal by requesting an individual income threshold. If your income increases due to wages from employment, you may want to consider Medi-Cal's 250% California Working Disabled Program.

5) If I have to stop working after I used all of Social Security's work incentives, can I re-apply for benefits without submitting a new application?

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Yes. Social Security has an easy to use Expedited Reinstatement of Benefits form. If your benefits ended due to employment, benefits can be reinstated immediately if you received Supplemental Security Income or Social Security Disability Insurance. You can receive these benefits for six months while Social Security decides if you are disabled and meet all of the conditions:
  • Supplemental Security Income and Social Security Disability Insurance benefit payments were stopped because of earnings from work;
  • You are unable to work or perform Substantial Gainful Activity, earnings of $1,000 per month in 2010, because of impairment(s) that are the same as or related to those of the original disability; and
  • The request for reinstatement is submitted within 5 years of the month the benefits ended and for the original disability.

6) How often does the Social Security Administration conduct medical reviews?

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When Social Security awards you disability benefits, they schedule a review depending on how severe they consider your disabling condition(s) to be, and when they think you may medically improve.
  • If medical improvement is expected soon, they review your claim within the first three years;
  • If medical improvement is considered possible, they review your claim at least once every three years;
  • If medical improvement is not expected, they review your claim every five to seven years.

7) Are there any Social Security programs that can help fund my preparation for the workforce?

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Yes. One of them is the Plan for Achieving Self-Support Program (PASS). The PASS program allows certain people with disabilities to set aside earned or unearned income. Social Security will exempt this income when it is placed into an approved PASS plan and used towards a vocational goal, such as college or a training school. PASS is a Supplemental Security Income (SSI) program. You must meet SSI financial rules to use the program. A detailed application is required. PASS can be a valuable tool for competitive employment.
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http://www.disabilitybenefits101.org/ca/situations/reentry/faqs.htm