SSI benefits for a total of $1,091, which is more than the maximum $841 they could have received if they did not work. For full-time students under the age of 22, there is an even more generous earned income exclusion for the purposes of SSI payable calculations.

People who receive SSDI face a different equation. These people retain their full SSDI benefit as long as long as they earn more than the SGA threshold. So, a person who earns $1,340 a month and has $800 in SSDI benefits would receive $2,140/month.

Fourth, due to the otherworldly internal logic that seems to drive many government programs, a person who has demonstrated disability by providing evidence that they are limited in their capacity to work has, by obtaining SSI or SSDI benefit, opened to themselves

a number of Work Incentives within the Social Security regulations that are designed to help people with disabilities start to work, return to work or find a better paying or more fulfilling job. See some of these work incentives in the box below. •

ABOUT THE AUTHOR:

Alexandra Baig maintains her own national financial planning practice, Companions On Your Journey, and also acts as the Benefits Specialist for Clancy & Associates, a Chicago-based law firm focusing on special needs planning. Alexandra has an MBA from the University of Michigan and her CERTIFIED FINANCIAL PLANNER™ designation and is a member of the Academy of Special Needs Planners. In particular, she is well-versed in the government benefits available to people with special needs and the rules governing them. Her goal is to help people with disabilities and their families make the most of public and private money to live the life they chose.

EXTENDED PERIOD OF ELIGIBILITY

The worker then enters the Extended Period of Eligibility. This is a consecutive 36month period when the person receives an SSDI payment in any month in which s/he does not earn over the SGA threshold and does not receive a payment in any month that s/he does exceed that threshold. As a result, payments may occur for all months, some months or no months during this period, but the worker will remain technically eligible. Once the worker has completed that period (and a two-month grace period which may overlap), if s/he continues to earn more than the SGA threshold, s/he is no longer eligible for SSDI benefits.

EXPEDITED REINSTATEMENT

However, if the worker who formerly had SSDI and then lost eligibility due to work income subsequently decreases her/his level of work due either to worsening of the disabling condition(s) or the removal or discontinuation of special supports, s/he can request to have benefits reinstated in an expedited fashion and without a new application.

UNSUCCESSFUL WORK ATTEMPT

If a worker is able to earn more than the SGA threshold and loses benefits but then is unable to sustain that level of work, the period of time during which s/he was earning above the threshold is considered an "unsuccessful work attempt" and does not count against the worker for ongoing disability determination.

SECTION 1619(A)

Mathematically, with no unearned income, a worker will hit the SGA threshold before the SSI payable calculation for

mula reduces her/his SSI payable to $0. This is because ($1,349 - $85)/2 = $632 and the maximum SSI payment is $841. So even though a person working consistently above the SGA threshold is technically no longer disabled, s/he will receive a small SSI payment.

SECTION 1619(B)

People who work at a significant (but not substantial) level may be less concerned with keeping their eligibility for a small cash payment than they are with keeping their eligibility for Medicaid, which is often tied to SSI eligibility. Medicaid is important because most adult services in all states are funded by Medicaid dollars and a service recipient must therefore maintain Medicaid eligibility. A person who has had SSI and Medicaid concurrently, and then ceases to be paid any SSI due to her/his level of work income, remains categorically eligible for Medicaid under section 1619(b).

MEDICAID BUY-IN FOR WORKERS

If a worker has not had SSI concurrent with Medicaid but requires Medicaid eligibility to provide access to adult disability services, then s/he can pay a small monthly premium to obtain Medicaid through a Medicaid Buy-in program for workers with disabilities. Most states have such a program.

CONTINUING MEDICARE ELIGIBILITY

A worker who receives SSDI for 24

months, begins to receive Medicare and later loses SSDI eligibility because s/he has passed through both the Trial Work Period and the Extended Period of Eligibility and continues to earn above SGA, retains Medicare eligibility for seven years and nine months after completing their Trial Work Period. Following that period, the worker would need to purchase further Medicare coverage, but would be able to do so because of disability, even if under 65.

PLAN TO ACHIEVE SELF-SUPPORT (PASS)

If a worker wants or needs to set aside money to reach a work-related goal, s/he may submit a PASS application to the SSA. The PASS must detail the goal(s), the time horizon and the cost associated with each step or component. Examples of PASS goals include obtaining a certification or a degree, or purchasing a piece of technology or equipment, or accumulating funds to cover the costs of starting up a business. Income (earned or unearned) contributed to a PASS is not countable for the purposes of SSI eligibility or the calculation of SSI payable. Moreover, assets within a PASS do not count towards the asset limitation for SSI eligibility.

ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) ACCOUNTS.

ABLE accounts are not, strictly speaking, a work incentive. However, they are highly useful to people with disabilities who work and who receive SSI and/or rely on services funded by Medicaid. This is because assets held in an ABLE are not countable for purposes of SSI eligibility until they exceed $100,000 and are not counted for Medicaid eligibility until much higher thresholds, which vary by state.