Anytime a letter bearing the seal of the Social Security Administration arrives, James feels afraid to open it.
An adult with cerebral palsy, he depends on Social Security disability benefits for the majority of his income.
The benefits cover his rent and bills each month.
Its also suffused with fear.
Millions of people are in James situation, fearful and confused by the labyrinth of rules governing their benefits.
And thats despite the official Social Security position that people on disabilityshouldwork to their fullest potential.
Heres a primer on how the system works.
Is It Legal to Work While on Disability?
Yes, its even encouraged.
The Social Security Administration helps disabled people find employment through work-incentive programs.
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SSI vs. SSDI Whats the Difference?
According to the SSA, disabled means applicants:
Beyond this definition, the programs vary greatly.
And the work rules are totally different.
Several states add to that amount, according to theSocial Security Administration.
The total fluctuates annually.
The first $20 in unearned income is also disregarded.
After that, SSI benefits are reduced dollar-for-dollar.
So are many recipients.
SSI is typically for people who havent paid Social Security taxes from past W2 jobs.
Once they work enough in the eyes of Social Security, they may be able to transfer to SSDI.
But the vast majority of people on SSI dont and cant work.
This program isnt for low-income people, per se.
Income and assets outside work earnings are unlimited.
Both are free and voluntary.
Only SSI recipients are eligible to join PASS.
Both SSI and SSDI recipients are eligible to join Ticket to Work.
They get an exemption from whats called a Continuing Disability Review.
This periodic medical check-in determines if a person meets the strict definition of disabled.
What the Ticket program does is it provides protection.
It gives people the opportunity totryto go back to work, Vieillet says.
And if they dont make it, nothing ventured, nothing lost.
Why Do Disabled People Still Lose Out?
For starters, federal policy hasnt kept up with inflation or changes in the labor market, experts say.
Thats especially so for Supplemental Security Income, the program James is on.
While the program mainly caters to the elderly and children with disabilities, James situation highlights several dated provisions.
For example, the $85 income deduction was set when the act was signed into law in 1972.
It hasnt budged since.
The $2,000 cap on liquid assets to qualify for SSI was set in 1989.
Another issue is the maximum monthly payout of $914.
While this number does change annually, Romig notes its well below the poverty line.
This makes it difficult for even the most earnest recipients to accurately report their income.
You always want people to work to their fullest potential, of course.
This is America, Romig says.
Thats one of our foundational ideals.
For the average person, it can be downright overwhelming.
For disabled workers, joining a free work-incentive program and employment web connection can help.
Ticket to Work offers benefits protection for recipients who want to test the employment waters.
Adam Hardy is a former staff writer for The Penny Hoarder.
Robert Bruce, a senior writer with The Penny Hoarder, contributed.
This story was originally published in July 2019.
Income thresholds and other statistics have been updated for 2023.
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