Work Incentives Glossary of Terms

Student Earned Income Exclusion (SSI)

  • This exclusion is applied before any other SSI exclusions.
  • Allows individuals under 22, regularly attending school

to exclude earned income up to a monthly amount and an annual maximum amount. (annually determined January 1.)

Blind Work Expense (SSI)

  • Earned income that an individual, defined as blind by SSA, uses to meet the expenses of working. These expenses would not count when SSI eligibility and benefit payments are made. The expenses do not need to be related to blindness but must be out of pocket expenses. Example: income taxes, meals during work hours, transportation, guide dog expenses, childcare, and others.

Plan for Achieving Self Support (SSI)

  • PASS is an income and/or resource exclusion that allows a person who is disabled or blind to set aside income (wages)/unearned and/or resources for an occupational objective.

PASS can help an individual establish or maintain SSI eligibility and also can increase or help maintain the individual’s SSI payment amount as the person gains the capacity for self support.

Extended Period of Eligibility (SSDI)

  • The EPE is 36 consecutive months starting with the completion of the Trial Work Period. The individual will receive benefit checks when earning below SGA, will not be eligible for benefit check when earnings are at SGA or higher. During the EPE if a person goes below SGA they are eligible for the cash benefit without reapplying. Medicare continues even though cash benefit may not.

Extended Medicare Coverage (SSDI)

  • Medicare coverage will continue for a total of 92 months from the time Trial Work Period has ended an EPE starts. Medicare will continue as long as someone is considered medically eligible but may not be receiving a cash benefit from SSDI and Medicare will continue as long as you are receiving an SSDI cash benefit.

Expedited Benefits (SSDI and SSI)

  • Effective January 1, 2001, when a person’s SSDI or SSI disability benefits have ended because of earnings from work, he or she would be able to request reinstatement of benefits without filing a new application.

Property Essential for Self Support (SSI)

  • Some resources that would normally be counted that a person needs to be self- supporting may be excluded in the resource test under this Work Incentive. For example, property such as tools, equipment, and cars that a person uses for work would not count as resources. Or, if a person has a trade or business, the property that the business owns will not count. Land that a person might own and use to grow crops for sale or family food may also be excluded from the resource test for eligibility for SSI.

1619 A (SSI)

  • Permits a person to continue to receive an SSI payment while they work at SGA.

1619 B (SSI)

  • A person earning income that eliminates the SSI cash benefit can still be eligible for Medicaid. There is an annual Threshold amount that varies from State to State. Also, if a person has a high use of Medicaid due to the disability, State’s can calculate individual Thresholds.

Impairment Related Work Expenses (IRWE) (SSI and SSDI)

  • The cost of certain expenses related to the disability that a person needs in order to work can be deducted from the income reported to SSI for a reduced income calculation. The cost of expenses must be paid out of pocket with the income earned, not paid by some other agency providing services. Examples of some expenses are:
  • Transportation
  • Work related equipment modified to accommodate disability
  • Job support
  • Medication

For an IRWE deduction to be allowable the following criteria must be met:

  • Must be directly related to enabling a person to work
  • The expense must be paid by the person in a month in which a person has worked
  • The expense must be reasonable and not be more than a person is earning in a month. Unless prorated over number of months due to cost.

Subsidy (SSDI/SSI)

  • Support received on the job that results in more pay than the actual value of the services performed. The value of the subsidy is excluded when counting earnings to determine if the person is performing SGA (Substantial Gainful Activity)

Section 301 Vocational Rehabilitation (SSI and SSDI)

  • If a person recovers while participating in a vocational rehabilitation program, benefits may continue until the program ends. This includes being determined no longer disabled through a Continuing Disability Review (CDR).

Trial Work Period (SSDI)

  • Unless medical recovery is an issue. Title II beneficiaries are entitled to a nine month Trial Work Period for testing work skills while maintaining benefits. Individuals earn a TWP when monthly earnings go above a monthly amount determined annually. During TWP a full benefit checks continues, even if it goes above the monthly SGA level. These 9 months do not need to be consecutive and months are not counted unless earned within a 60 month period of time. Example: If a month is earned in January of 2000 and the next month is not earned until January 2006 the 1st month earned in January 2000 is outside the 60 month window.

Ticket to Work Program (SSI and SSDI)

  • The Ticket to Work Program is a employment support that is available to SSI and SSDI beneficiaries aged 18-64. The goal is to assist beneficiaries to obtain employment with sufficient wages to eliminate cash payments from SSI and/or SSDI.