Many individuals are eligible for benefits under both the SSDI and SSI programs at the same time. We use the term “concurrent” when individuals are eligible for benefits under both programs. Below we describe how a return to work may affect a person’s concurrent benefits.
Armando files applications for SSDI benefits and SSI on February 27, 2024. His medical condition caused him to stop work beginning February 14, 2023. We call this date his “alleged onset date” of disability.
Armando was approved for disability benefits.
Armando receives an award letter on June 7, 2024, stating he is approved for disability benefits with his alleged onset date of February 14, 2023.
| March 2023 | Armando’s SSI begins the month after he filed his application. He is eligible for $914 per month (the Federal Benefit Rate [FBR] in 2023). Armando also becomes eligible for Medicaid. |
| August 2023 |
Armando's SSDI benefits begin. This is the month after Armando completed his 5-month waiting period. The 5 months began the first full month after Armando's approved onset date of February 14, 2023. The 5 months were March, April, May, June, and July 2023. Armando is eligible to receive SSDI benefits beginning August 2023. His monthly benefit amount is $300, which reduces his SSI to $634: $300 SSDI - $20 general income exclusion = $280 countable unearned income $914 FBR - $280 countable unearned income = $634 SSI payment. $300 SSDI + $634 SSI = $934 combined monthly amount |
Armando qualifies for Medicare.
| August 2025 |
Armando qualifies for Medicare after 24 months of entitlement to SSDI benefits. Medicare Part A is premium-free. Medicare Part B is optional but there is a premium. Armando’s state pays his Part B premium for him because he is eligible for SSI and has been covered by Medicaid since March 2023. Armando now has both Medicare and Medicaid. Medicare is the primary payer, and Medicaid is the secondary payer. If Medicaid eligibility lapses, the Medicare premiums would be deducted from SSDI benefits if they are still being issued. If no payments from Social Security are received, then Armando will be billed quarterly for his Medicare. |
Armando returns to work.
| January 2025 | Armando contacts his local Social Security office to let them know he started working at the car dealership. The dealership pays him $3,000 a month. |
How Armando’s work affects his SSDI benefits.
| January 2025 | Armando’s trial work period (TWP) begins. During the TWP, Armando can continue to receive full SSDI benefits for at least 9 months regardless of the amount of his earnings. Each month that Armando earns over the TWP amount will count as a TWP service month. His TWP ends with the 9th TWP service month in a rolling 60-month period. |
| September 2025 |
Armando provides pay stubs showing his steady work activity since January 2025. We determine Armando's TWP months are January, February, March, April, May, June, July, August, and September 2025. Armando completes his TWP in September 2025. |
| October 2025 | Armando’s extended period of eligibility (EPE) begins the month after his TWP ended. For the next 36 months (through September 2028), Armando will be paid benefits for any month he does not work over the substantial gainful activity (SGA) level. We refer to this 36-month period as the re-entitlement period. |
Is Armando performing SGA?
We know from Armando's pay stubs that he receives $3,000 a month in wages. Armando tells us that he can complete only 4 car repairs a day, compared to his co-workers who complete an average of 6-8 car repairs a day. Armando believes he is paid the same salary as his fellow co-workers. If this is the case, Armando’s employer may be subsidizing his wages.
We contact the employer and learn that they are paying Armando $3,000 a month, the same rate as experienced employees who complete 6-8 repairs a day. The employer pays Armando the same rate as the experienced employees because he knows about Armando’s disability and understands it takes him longer to complete tasks. The employer calculates that the actual worth of Armando’s services is $2,800 a month. This means that Armando has a monthly subsidy of $200, which is the difference between what he is paid ($3,000) and what his employer says his services are worth ($2,800).
Armando takes a taxi to and from work and provides receipts showing this cost is $350 per month. Armando’s treating physician confirms that his condition prevents him from driving. He cannot take public transportation because crowded situations aggravate his condition. Since Armando pays for his work transportation and there is a medical need for him to take a taxi, we can deduct the cost of his transportation expenses as impairment-related work expenses (IRWE).
We use Armando's subsidy and IRWE to determine if his earnings are SGA as follows:
$3,000 wages - $200 employer subsidy - $350 IRWE = $2,450 monthly earnings
$2,450 is over the monthly SGA level, so Armando is engaging in SGA in the 1st month of his EPE, October 2025. (Note: We usually adjust these amounts every year based on increases in the national average wage index.)
Armando's SGA level work activity affects his benefits in the EPE.
| January 2026 |
We suspend Armando’s SSDI benefits. Armando does not meet our requirements in October 2025 because we determined he was engaging in SGA. We can pay Armando for the month of cessation and the 2 following months. We refer to these three months as the “grace period”. Armando’s grace period months are October, November, and December 2025. For any month that Armando’s earnings fall below the SGA limit during his 36-month re-entitlement period, we can restart his benefits without a new application. If we restart Armando’s benefits during the re-entitlement period, he can continue to collect benefits if his work activity is below the SGA limit, even after the 36-month re-entitlement period ends. |
Will Armando's entitlement to SSDI terminate?
| October 2028 |
Armando’s entitlement will terminate if his work activity continues over the SGA level. This is the 1st month after the end of the 36-month EPE. Armando’s entitlement may stop earlier than October 2028 if he no longer meets our disability requirements. |
How does Armando’s work activity affect his SSI?
SGA rules are different for SSI. For SSI, we only consider SGA when the initial claim is filed (unless the disability is blindness, then we do not consider SGA at all). We do not consider SGA after a person becomes eligible for SSI. However, we must determine whether the person continues to meet the non-disability requirements, including income and resources. We determine the effect of Armando’s earnings on his SSI eligibility and payment amount on a month-by-month basis.
| January 2025 |
Armando’s income for January 2025 through December 2025 is SSDI of $300 per month and wages of $3,000 per month. Because Armando’s monthly income does not change, the calculation will be the same for all months in 2025. First, we figure his countable unearned income by subtracting the $20 general income exclusion from his SSDI: $300 SSDI - $20 = $280 countable unearned income Next, we calculate his countable earned income by first subtracting the $65 earned income exclusion from his wages: $3,000 - $65 = $2,935 From this amount, we deduct the $350 IRWE for the taxi transportation: $2,935 - $350 IRWE = $2,585 NoteArmando’s subsidy is not an earned income exclusion for SSI. A subsidy applies only to the SSDI SGA determination. This means we cannot subtract the $200 monthly subsidy when we figure his SSI payment and eligibility. However, the IRWE deduction applies to both the SSDI SGA and SSI payment determinations. The second step in figuring Armando’s earned income is to divide this result by 2: $2,585 ÷ 2 = $1292.50 countable earned income We now add the countable unearned income and the countable earned income to determine total countable income: $280 countable unearned income + 1292.50 countable earned income = $1,572.50 total countable income Finally, we subtract the total countable income from the SSI FBR to determine SSI eligibility and payment amount: $967 (FBR in January 2025) - $1,572.50 countable income = $0 SSI payment Armando will not receive SSI payments for January 2025 through December 2025 because of his SSDI benefits and monthly earnings. However, he is still eligible for SSI and Medicaid While Working (under section 1619(b) of the Social Security Act) if his earnings remain under his state’s threshold amount, he needs the Medicaid coverage; and he continues to be eligible for SSI except for his earnings. Armando will not receive SSDI benefits beginning January 2026 if he works over the SGA level. |
| January 2026 |
Armando reports that he received a pay increase to $3,300 per month beginning in January. His IRWE has increased to $400 per month. Armando’s wages are his only income since he is not receiving an SSDI payment. Here is how we figure his SSI eligibility and payment amount for January 2026: We subtract both the general income exclusion and earned income exclusion from monthly earnings: $3,300 wages - $20 general income exclusion - $65 earned income exclusion = $3,215 $3,215 - $400 IRWE = $2,815 ÷ 2 = $1407.50 countable earned income $967 (FBR in January 2025) - $1407.50 countable income = $0 SSI payment (Note: We used the FBR for 2025 because at this time we do not know the FBR for 2026.) Armando is not eligible for any SSI payment unless his earnings or IRWE change. |
Will Armando continue to have Medicaid?
Medicaid will continue if Armando's earnings are below his state's threshold amount, he needs the Medicaid coverage, and he continues to be eligible for SSI except for his earnings. During this time, he is eligible for an SSI payment for any month that his countable income is under the FBR amount. When Armando’s earnings exceed the state threshold amount, his Medicaid will end. However, he may then be eligible to buy into Medicaid if he resides in a state that has the optional Medicaid buy-in program.
Will Armando continue to have Medicare?
Armando will no longer receive SSDI payments, but his Medicare coverage will continue for at least 93 months after his TWP (which ended September 2025) as long as he continues to have a disabling impairment (has not medically improved). Armando’s Medicare coverage will terminate on July 1, 2033.
Armando could then choose to purchase Premium Medicare Part A. If he purchases Part A, he can purchase Part B. He can qualify for the Part A reduced rate since he has earned at least 30 quarters of coverage. We will base Armando’s Medicare Insurance (Parts A and B) premiums on the rates in 2033, the year his premium-free coverage ends.
Armando will have to file an application with Social Security if he decides to purchase Medicare coverage in 2033. He will also have to undergo a medical continuing disability review. Armando can purchase Medicare coverage if we determine that his medical condition has not improved after conducting this review.
If Armando still has Medicare when he turns age 65, it will automatically convert to Medicare under the Aged provisions.
Summary of Example with Concurrent Benefits
| Date | Event | |
| 03/23 | SSI and Medicaid start |
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| 08/23 | SSDI benefits start |
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| 08/25 |
Medicare starts Medicare is primary, and Medicaid is secondary. |
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01/25 |
Work starts TWP begins SSDI continues SSI stops due to earnings Working at SGA but below SSI state threshold amount; Medicaid continues. Medicaid will end when earnings are above the SSI state threshold amount. |
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| 09/25 | Last month of the TWP |
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10/25 |
EPE begins Work at SGA continues SSDI benefits cease, due to SGA SSDI payment in 10/25 (grace period) |
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| 11/25 | SSDI payment in 11/25 (grace period) |
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SSDI payment in 12/25 (grace period) |
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| 01/26 | SSDI benefits stop | |
| 09/28 | Last month of EPE |
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| 10/28 |
SSDI termination month Extended Medicare continues if still disabled |
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| 07/33 |
Extended Medicare stops May be able to purchase Medicare Part A (Premium HI), Medicare Part B, and Medicare Part D and/or buy into Medicaid |
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09/33 |
Last month to file for EXR if no longer working and still have a disability |