1. What Are Work Incentives?

Work incentives are SSA rules and programs that:

• Allow you to try working without immediately losing your benefits
• Provide continued healthcare coverage while you transition back to employment
• Offer income exclusions to reduce how much earned income counts against SSI payments
• Support training and vocational rehabilitation services to help you reenter the workforce

2. SSDI Work Incentives in Michigan

If you receive SSDI, these are the main work incentives:

a. Trial Work Period (TWP)

• You can test your ability to work for at least nine months without losing your SSDI benefits, no matter how much you earn during these months.
• For 2024, any month you earn over $1,110 (gross) counts as a TWP month.
• The nine months do not need to be consecutive but must occur within a rolling 60-month period.

b. Extended Period of Eligibility (EPE)

• After your Trial Work Period ends, you enter a 36-month Extended Period of Eligibility.
• During this period, you will receive SSDI benefits for any month your earnings are below Substantial Gainful Activity (SGA) limits, which are $1,550 per month for non-blind individuals in 2024.
• If you earn above SGA in a month, you do not receive SSDI for that month, but your benefits can restart in any following month your earnings drop below SGA within this 36-month window.

c. Expedited Reinstatement (EXR)

• If your SSDI benefits end because you worked above SGA but you become unable to work again within five years, you can apply for Expedited Reinstatement.
• This allows your benefits to be quickly restarted without filing a new application, and you may receive provisional payments while your reinstatement is processed.

d. Continued Medicare Coverage

• Even if your SSDI payments stop due to work, you can continue to receive Medicare Part A coverage premium-free for at least 93 months after your TWP ends.
• You can then keep Medicare by paying premiums if you still need it.

3. SSI Work Incentives in Michigan

If you receive SSI, these work incentives apply:

a. Earned Income Exclusion

• The first $65 of earned income each month is excluded, plus half of the remaining earnings.
• This means your SSI payment only reduces partially when you work, allowing you to increase your overall income.

b. Student Earned Income Exclusion

• For SSI recipients under age 22 who are students, up to $2,290 per month (maximum $9,230 annually in 2024) of earned income is excluded, allowing you to work part-time without affecting your SSI eligibility.

c. Plan to Achieve Self-Support (PASS)

• PASS allows you to set aside income or resources for a specific work goal, such as education, equipment, or starting a business, without counting these funds against your SSI eligibility.
• You must submit a detailed PASS plan to SSA for approval, explaining how the funds will help you achieve financial independence.

d. Impairment-Related Work Expenses (IRWE)

• If you have expenses related to your disability that enable you to work (such as specialized transportation, equipment, or attendant care), the cost of these items can be deducted from your countable income when SSA determines your SSI payment or SSDI SGA eligibility.

e. Blind Work Expenses (BWE)

• For blind SSI recipients, any expense needed to earn income can be excluded, regardless of its relation to blindness or disability, including transportation, service animal care, or income taxes.

4. Ticket to Work Program

Both SSDI and SSI recipients in Michigan can participate in Ticket to Work, a voluntary program that provides:

• Free employment support services, vocational rehabilitation, and job placement assistance
• Protection from medical Continuing Disability Reviews (CDRs) while participating and making progress in the program

5. Benefits of Using Work Incentives

Using SSA work incentives allows you to:

• Test your ability to work without risking benefits immediately
• Increase your monthly income through combined earnings and partial SSI payments
• Gain training, confidence, and work experience to achieve financial independence
• Maintain access to crucial healthcare coverage like Medicare and Medicaid

6. Reporting Requirements for Work Incentives

It is important to:

• Report all work activity, earnings, and changes in hours or pay to SSA promptly to avoid overpayments
• Keep detailed records of your work incentive use, including trial work months and impairment-related expenses
• Consult with a benefits planner to ensure correct use of work incentives while maximizing income and protecting benefits