Navigating Employment and Disability Benefits
Unlocking Opportunities, Overcoming Challenges, and Maximizing Support for Individuals and Families
Frequently the parents I talk with will ask me about the impact of their kids working on their Social Security benefits. It can seem unfair sometimes because we want our kids to work but we don’t want them to lose the benefits they need to live independently of us. There are a LOT of benefits received when a child finds meaningful employment. So what can you do?
Unfortunately, if you’re child is receiving Supplemental Security Income (SSI) the answer is not much. Typically you can expect their benefit to be reduced by $1 for every $2 earned. Social Security will ignore the first $85 before applying this reduction, but how much of a help is that? For the record, it’s the first $20 of any income (passive or active) and then the next $65 of active income.
ABLE accounts CANNOT do anything to lower countable income, they reduce countable assets. A 1st Party Special Needs Trust MAY be able to reduce certain types of income (specifically child support and Survivor Benefit Plans), but that’s outside the scope of this article. I’m only aware of two programs that could allow you to work and not negatively affect your SSI benefits. These are the Plan to Achieve Self-Support (PASS) and Impairment-Related Work Expenses. I’ll do a deeper dive into both of these programs in future Waypoints articles.
In the interim, should you want to learn more about either program or have questions about your situation I encourage you to contact a Benefits Counselor. Benefits Counselors, also known as “Community Work Incentives Coordinators” (CWICs) are trained by Social Security. As you may have guessed from their name, their goal is to help you enter the workforce and earn enough so you no longer need Social Security benefits. They can answer your questions. Even better, they can help you develop a plan that will meet your (or your child’s) employment goals.
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