Working While Receiving Social Security Benefits in Arizona
If you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits in Arizona, you may work while continuing to receive these benefits, but there are important rules and limitations you need to be aware of. Specific guidelines determine how much you can work and earn without jeopardizing your benefits. Understanding these rules can help you make informed decisions about employment while maintaining your financial stability.
Understanding SSDI and SSI
There are two types of Social Security disability programs. Each program has different rules regarding work and income.
Social Security Disability Insurance (SSDI)
This program is for individuals who have worked and paid Social Security taxes but cannot work due to a disability. SSDI benefits are based on your work history and earnings.
Supplemental Security Income (SSI)
This program is for disabled individuals with limited income and resources, regardless of their work history. SSI benefits are need-based and provide financial assistance for basic living expenses.
Working While Receiving SSDI Benefits in Arizona
If you receive SSDI, the SSA has a system that allows you to test your ability to work without immediately losing your benefits.
The Trial Work Period (TWP)
SSDI recipients are allowed a Trial Work Period (TWP), which permits them to test their ability to work for up to nine months within a rolling 60-month period. During this time, you can earn any amount without losing your benefits. In 2025, any month you earn more than $1,160 is considered a trial work month. If you earn below this amount, it does not count toward your TWP. Once you have used up all nine trial work months within a 60-month window, your benefits will be subject to different rules.
The Extended Period of Eligibility (EPE)
After your TWP, you enter a 36-month Extended Period of Eligibility (EPE). During this time, if your earnings are below Substantial Gainful Activity (SGA) levels of $1,620 per month in 2025, or $2,700 for blind individuals, you can continue to receive SSDI benefits. If your earnings exceed the SGA threshold, you may no longer receive SSDI benefits. If your earnings drop below SGA during the 36 months, benefits may be reinstated without needing to reapply.
Expedited Reinstatement
If your SSDI benefits stop due to earning above SGA, but you later become unable to work again within five years, you may qualify for Expedited Reinstatement. This allows you to resume benefits without filing a new application.
Working While Receiving SSI Benefits in Arizona
SSI has stricter income limits than SSDI because it is a need-based program. Your earnings can impact your monthly benefit amount significantly.
The General Income Exclusion
The General Income Exclusion is a rule applied to SSI that allows recipients to exclude the first $20 of their monthly income, regardless of whether it is earned or unearned. This exclusion helps reduce the amount of income counted against SSI benefits, allowing recipients to keep more of their monthly payments. If you have earned income, the first $65 is also excluded. After these exclusions, your SSI benefit is reduced by $1 for every $2 you earn.
Benefits Not Counted Toward SSI Eligibility
Specific benefits and assistance programs do not count as income for SSI purposes and will not affect your eligibility. These include the Supplemental Nutrition Assistance Program (SNAP), housing assistance, energy assistance programs, needs-based aid from nonprofit organizations, and state and local government assistance based on need. These benefits can help supplement your financial situation while you work and receive SSI, ensuring you have the necessary support without jeopardizing your eligibility.
Plan to Achieve Self-Support (PASS)
Arizona residents receiving SSI can take advantage of PASS, which allows individuals to set aside income for work-related goals, such as education or starting a business, without affecting SSI eligibility.
Work Incentives and Programs Available in Arizona
The SSA offers several programs to help people with disabilities transition back to work safely.
Ticket to Work Program
Ticket to Work is a free and voluntary program that provides career counseling, vocational rehabilitation, and job placement services. It is available to individuals ages 18-64 who receive SSDI or SSI.
Impairment-Related Work Expenses
Under the Impairment-Related Work Expenses program, if you have disability-related expenses such as medication, transportation, or specialized equipment needed for work, these costs can be deducted from your countable income. This may allow you to remain eligible for benefits longer.
Arizona Vocational Rehabilitation Services
Arizona Vocational Rehabilitation Services offers training, education, and job placement assistance for individuals with disabilities seeking employment.
Reporting Work and Earnings to SSA
It is crucial to report any work activity and earnings to the SSA immediately to avoid overpayments and potential penalties. You can report earnings online via a My Social Security account, by phone at 1-800-772-1213, or in person at a local Social Security office. Failing to report changes in work status or income can lead to benefit overpayments, which require repayment to SSA.
Do You Have Questions about Social Security Disability Rules?
Working while receiving SSDI or SSI benefits can be complex, and mistakes could jeopardize your financial security. Roeschke Law, LLC can guide you through the process to ensure compliance with SSA regulations. Let us help you navigate the system to maximize benefits and protect your financial future. Call 1-800-975-1866 today for a free case evaluation.