SSI / SSDI Work Incentives Planning Assistance

Prescott Valley for Northern AZ
New Horizons Independent Living Center
Voice / TTY:  928-772-1266 or Toll-free:  800-406-2377
Fax:  928-772-3808 or Email
 

The Ticket to Work and Self-Sufficiency Program is an employment program for people with disabilities who are interested in going to work. It was designed to remove many of the barriers that previously influenced people’s decisions about going to work because of the concerns over losing health care coverage. The goal of the Ticket Program is to increase opportunities and choices for Social Security disability beneficiaries to obtain employment, vocational rehabilitation (VR), and other support services from public and private providers, employers, and other organizations, while minimizing the risk of losing necessary health care.

Under the Ticket Program, the Social Security Administration provides disability beneficiaries with a “Ticket” they may use to obtain the services and jobs they need from a new collection of organizations called Employment Networks (ENs). Beneficiaries receiving Tickets can contact one or more ENs to discuss services, and once an agreement between the beneficiary and EN is reached, the two work together to develop a work plan to assist the beneficiary in reaching his or her employment goal.

SSI Work Incentives

Unearned and Earned Income Exclusions – First $20 of unearned income is not counted and first $65 of earned income is not counted. If no unearned income, then the $20 can be used towards earned income.

$2 for $1 Reduction – After the earned and unearned income exclusions, Social Security will deduct $1 from your SSI cash benefit for every $2 that you earn.

Impairment Related Work Expenses (IRWE) - Items or services paid for by the beneficiary that are directly related to the disability that enable work, may be deducted from “countable” earned income.

Plan for Achieving Self-Support (PASS) – Earnings can be set aside in a special savings plan that must be approved by Social Security. The plan must be for a vocational goal such as purchasing equipment needed to work, pay for school or training, or start-up for self-employment.

1619 (b) – maintaining AHCCCS – Even if a beneficiary no longer receives an SSI check he/she may still be eligible for AHCCCS if their income is under the state “threshold” amount, still meet resource requirements, and remain disabled.

“Threshold” amount: $26,638 yearly or $2,219 monthly (2010).  If his/her income is over the “threshold” amount, they can apply for the AHCCCS Freedom to Work Program – see brochure.

Student Earned Income Exclusion (for under age 22 only) – Students who are under 22 years old and regularly attending school may exclude earned income up to $6,600 per year or $1,640 monthly (2010).

Blind Work Expenses – Items necessary for work (not necessarily related to the individual’s blindness) may be deducted from countable earned income for people who are legally blind.

AHCCCS Freedom to Work - Will allow working individuals with a disability to “buy-in” to the State’s AHCCCS program for a low monthly premium based on income once they have earned beyond the 1619(b) threshold.

SSDI Work Incentives

9-Month Trial Work Period (TWP) – No matter how much you earn during this period, SSA will still send you your check!! SSA is monitoring your monthly gross (before they take out taxes) wages to see how long it takes you to gross over $720 per month, 9 times. They then see if you completed all nine months in a 5 year period. The amount they look at goes up every January - $720 is the 2010 amount.

36-Month Extended Period of Eligibility (EPE) – Starts right after your TWP ends! Now, SSA looks at your “countable” gross wages to see if they are over ($1,000 non-blind or $1,640 if you are blind) per month.  SSA refers to this amount as Substantial Gainful Activity (SGA).  If you have countable gross wages above these amounts, you may not be eligible to receive your Social Security cash benefits for that month.  Any month during the EPE that your countable gross wages are below ($1,000/$1,640), you will be due your Social Security cash benefits check for that month without your needing to reapply.

Extended Medicare – If, at some point, your earnings are high enough to be terminated from your Social Security disability benefit, you will continue to have Medicare Part A coverage for at least 93 months after you completed your Trial Work Period. Your Medicare Part B and D will continue as long as you (or the state, if eligible) pay your monthly premiums and you are eligible for Medicare Part A. If the free Medicare part A runs out, you can purchase Medicare by applying at the Social Security office.

Impairment Related Work Expenses (IRWE) – Items or services paid for by the beneficiary that are directly related to the disability that enable work, may be deducted from countable earned income.

Subsidies - Special condition(s) provided by an employer or third party (job coaching, lower productivity, and fewer assigned work tasks) may allow Social Security to overlook a percentage of an individual’s monthly earned income.

Unsuccessful Work Attempt – An effort on the part of a beneficiary to do substantial work (beyond the TWP) which they stopped or reduced earnings below the SGA level at six months or less due to their disability or the removal of special conditions related to their impairment.

Expedited Reinstatement (EXR / Easy Back-On) - Within 60 months of check stopping can get back on without re-applying. Work must have ended due to disability. A person may receive up to 6 months of provisional checks while SSA conducts medical review for reinstatement.

AHCCCS Freedom to Work - will allow working individuals with a disability to “buy-in” to the State’s AHCCCS program for a low monthly premium based on countable, earned income