Common Pitfalls

Social Security has two disability benefits programs with very similar names:

• Supplemental Security Income (SSI) gives a cash benefit to people with disabilities who have low income and low resources. You do not need to have worked in the past to get SSI.
• Social Security Disability Insurance (SSDI) gives a cash benefit to people with disabilities who qualify because they used to work or have a parent who worked.

Some people qualify for both programs at the same time. If you get benefits from Social Security, but aren’t sure which ones you get, open a free my Social Security account or order a free Benefits Planning Query (BPQY) at your local Social Security office or by calling 1-800-772-1213 or 1-800-325-0778 (TTY).

When you apply for Supplemental Security Income (SSI) benefits, the decision can take a long time. You don’t want Social Security to deny your application because of some missing piece of information. Make sure you include contact information for all doctors, physical therapists, and others who have treated you for your disability.

However, you also want to apply as soon as you can, because if you are approved for SSI you will be paid your benefits for the entire time back to the date you applied. If you don’t have everything ready when you apply, that’s OK — go ahead and apply with as many details as you can, but be sure to send any missing information as quickly as possible.

If you feel that Social Security made an incorrect decision, you can file an appeal:

• If you are denied Supplemental Security Income (SSI) benefits, you have 60 days from when you get the denial letter to file an appeal. Do it quickly. If you don’t appeal within 60 days, you may lose the right to appeal.
• If you were already on SSI and are appealing a change in your benefits amount or an overpayment notice, you should appeal within 10 days. If you do, you might keep getting your original SSI benefits amount until Social Security makes a decision about your appeal.
• Note: Social Security figures that you get a letter within five days after they sent it.

Learn more about appeals.

If the Social Security Administration denies your application for Supplemental Security Income (SSI) benefits and you disagree with the decision, file an appeal. Do not just fill out the application forms again — that would be refiling.

If you appeal and win, your benefits will be paid back to your original application date. If you refile, Social Security will start all over and you will not get any past benefits you might have gotten.

Learn more about appeals.

Many people on Supplemental Security Income (SSI) are afraid to work because they think they’ll lose their SSI benefits and automatic Medicaid coverage. However, SSI’s rules are designed to make work possible.

When you work, SSI’s earned income exclusion means that you get to keep at least your first $65 in earned income each month without lowering your SSI benefits at all. After that, every dollar of earnings only reduces your SSI benefits amount by fifty cents, so you usually end up with more money than you would if you weren’t working.

If you earn enough for your SSI benefits to go to zero, you may be able to keep your Medicaid coverage through SSI’s 1619(b) rule or through Medicaid Buy-In for Workers with Disabilities (MBIWD). Even if you lose your Medicaid, you should either become eligible for employer-sponsored coverage or private individual coverage. And, if you can’t afford the individual coverage, the government may help you pay for it through tax credits.

Learn more about your health coverage options in DB101’s How Health Benefits Work article.

If you stop getting SSI benefits and then your job doesn’t work out, you may be able to get back on SSI benefits quickly through quick benefits restart or Expedited Reinstatement (EXR), as long as you still have a disability and meet other SSI rules.

The bottom line: Most people on SSI who go back to work end up better off.

Impairment Related Work Expenses (IRWEs) or Blind Work Expenses (BWEs) are expenses related to your disability that support your work. Social Security subtracts these expenses from your countable income when calculating your benefits amount. This means you get higher SSI benefits.

You must have receipts or cancelled checks for all IRWEs or BWEs, otherwise Social Security will not subtract them from your countable income. Make sure you always get receipts for all work expenses and file them with Social Security.

If you have any questions about IRWEs and BWEs or about how to tell Social Security about them, talk with a benefits planner.

If your earned income, unearned income, marital status, or living arrangements change, even slightly, you must report the change twice:

• To your local County Department of Job and Family Services (CDJFS) office within 10 days of when the change happens.
• To Social Security at the start of the month after the change. You can report:
  • In person, by phone, or by fax during the first 10 days of the next month.
  • Using the SSI Telephone Reporting System, the SSI reporting app, or My Social Security during the first 6 days of the next month.

If you don’t report a change, Social Security may pay you too much in SSI benefits. This is called an overpayment. When Social Security figures out the mistake, you may have to pay money back.

If Social Security decides that they paid you more in benefits than they should have, they’ll send you a letter telling you they’ve made an overpayment and explaining how much money you must pay back.

Deal with an overpayment notice right away. The overpayment letter will ask for the money to be returned within 30 days, but Social Security is willing to work out a reasonable monthly payment plan with you. Contact your local Social Security office immediately to talk about your options or call 1-800-772-1213 or 1-800-325-0778 (TTY).