We provide the education and tools to empower & encourage people in the state of South Dakota receiving Supplemental Security Income (SSI) & Social Security Disability Insurance (SSDI) benefits to re-establish their self-sufficiency.
Benefits Specialists can answer questions about how work will impact public benefits such as SSI, SSDI, Medicaid, Medicare, SNAP, energy assistance and more.
Contact a Benefits Specialist when:
2024 FAST FACTS to SOCIAL SECURITY’S WORK INCENTIVES and BENEFITS – Download PDF
Many people with disabilities want to work but have many questions about how work will affect their benefits, particularly health care benefits. Social Security and SSI have special work incentives that make it possible for people with disabilities to test their ability to work and still receive monthly payments and health insurance. Below is a summary of the work incentives that apply to:
Title II (SSDI, CDB, DWB)
Under the Title II program, an individual has the right to utilize work incentives to test their ability to work. This includes full cash benefits during the nine month trial work period followed by a 36 month extended period of eligibility, and a five year period in which SSA can start cash benefits without a new application. Individuals may continue to have Medicare coverage during this time or even longer.
Trial Work Period – A period of 9 months (not necessarily consecutive, but must occur within a 60-month period) during which an individual will receive full SSDI benefits regardless of how high their earnings may be. Only months during which an individual earns over $1,110 in 2024 or works over 80 hours in self-employment are counted as trial work period months.
Extended Period of Eligibility – The 36 consecutive months following a successful trial work period. The beneficiary who is blind or disabled may receive a disability benefit check for any month that their earnings are below the substantial gainful activity (SGA) level. For 2024, SGA is $1,550 countable/month for a disabled individual and $2,590 countable/month for a blind individual.
Impairment-Related Work Expenses – Certain items or services that may be needed to work, related to the disability. The cost of such items may be deducted from gross earnings to determine if the individual is performing at SGA.
Continuation of Medicare – Most people receive at least 93 consecutive months of hospital and medical insurance under Medicare. You pay no premium for hospital insurance (Part A). Although cash benefits may cease due to work, you have the assurance of continued health insurance under Continuation of Medicare and the Medicare Buy-In Program.
Continued Payment under a Vocational Rehabilitation Program – a person who medically recovers while participating in a vocational rehabilitation program that is likely to lead to the person becoming self-supporting, may receive benefits until the program ends.
Subsidy and Special Conditions – SSA’s name for support an individual receives on the job that may result in their receiving more pay than the actual value of the services performed. A Subsidy is provided by the employer and Special Conditions are provided by an outside support (i.e. VR, Job Coach, etc.). SSA uses the real value of the work performed to determine SGA.
Unsuccessful Work Attempt – If, within 6 months of the person starting work, the individual made an effort to do substantial work but stopped or, their income was reduced to below the SGA level because of the their impairment and/or the removal of “special conditions” related to their impairment but essential to their ability to do their job.
Unincurred Business Expenses (Self-Employed Only) – SSA deducts from the person’s net earnings contributions that are given to them without cost for self-employment. SSA does this in an effort to obtain an accurate measure of the value of the work performed. (SSA generally follows the IRS rules to figure net earnings from self-employment.)
Working While Blind – a blind individual continues receiving benefits as long as their earnings are below the SGA of $2,590/month.
Expedited Reinstatement – an individual who no longer receives SSDI/SSI benefits due to work, has 60 months to request reinstatement of benefits. The individual will receive provisional benefits for 6 months while a disability determination is made. Should SSA determine that the individual is no longer disabled, the provisional benefits will not be considered an overpayment.
2024 FAST FACTS to SOCIAL SECURITY’S WORK INCENTIVES and BENEFITS – Download PDF
Many people with disabilities want to work but have many questions about how work will affect their benefits, particularly health care benefits. Social Security and SSI have special work incentives that make it possible for people with disabilities to test their ability to work and still receive monthly payments and health insurance. Below is a summary of the work incentives that apply to:
SSI (Title XVI)
SSI work incentives offer the individual opportunities to continue to receive their SSI cash benefits and/or Medicaid coverage while they work. If the individual cannot receive SSI cash benefits because their earnings are too high, eligibility for Medicaid may continue. In many cases, if the person loses their job or is unable to continue working, they can renew eligibility without filing a new application.
Earned Income Exclusion – Allows for the first $65 of earnings in a month, plus one-half of the remainder to be excluded when figuring the SSI payment amount. This exclusion is applied in addition to the $20 general income exclusion if not calculated under unearned income.
Student Earned Income Exclusion – A person under age 22, and regularly attending school can exclude up to $2,290 of earned income per month or up to $9,230 per year when figuring their SSI payment.
Property Essential To Self-Support – Allows the individual to exclude certain resources, which are essential to the person’s means of self-support.
Impairment Related Work Expenses – Certain items or services that may be needed to work, due to the disability. The cost of such items may be deducted from gross earnings to determine if the individual is performing at SGA.
Plan for Achieving Self-Support – Allows a person to set aside income (other than SSI) and resources for a specified time for a work goal. This may make the person eligible for SSI or more SSI cash payment.
Continued Medicaid Coverage under 1619 (b) – Allows for individuals to continue to receive Medicaid when their SSI cash payment is stopped due to earnings that exceed the SGA level but fall below the state-specific threshold amount. The threshold amount for 2024 is $43,595 a year.
Continued Payment under a Vocational Rehabilitation Program – a person who medically recovers while participating in a vocational rehabilitation program that is likely to lead to the person becoming self-supporting, may receive benefits until the program ends.
Blind Work Expenses – Any earned income that an individual who is blind uses to meet any expense incurred to earn that income.
Expedited Reinstatement – an individual who no longer receives SSDI/SSI benefits due to work, has 60 months to request reinstatement of benefits. The individual will receive provisional benefits for 6 months while a disability determination is made. Should SSA determine that the individual is no longer disabled, the provisional benefits will not be considered an overpayment.
Overview – Download PDF
Continued Medicaid Eligibility – Section 1619 (b) This incentive continues Medicaid coverage for most working SSI beneficiaries even after earnings become too high to allow a cash benefit. To qualify for this incentive the person must:
What does the 1619 (b) provision do?
Resources:
Overview – Download PDF
The student earned income exclusion (SEIE) is a work incentive that allows certain SSI recipients who are under age 22 and regularly attending school to exclude a specified amount of gross earned income per month up to a maximum annual exclusion. The student earned income exclusion (SEIE) decreases the amount of countable earned income, thus permitting SSI recipients to keep more of the SSI check when they work. In many cases, the SEIE allows students to test their ability to work without experiencing any reduction in the SSI check at all.
Who is eligible for the student earned income exclusion? – Only SSI recipients who meet Social Security’s definition of “student child” are eligible for this exclusion. A student child is someone who is under the age of 22 and who regularly attends school, college or training to prepare for a paying job.
What does “regularly attending school” mean? “Regularly attending school” means that the person takes one or more courses of study and attends classes:
A person who is homebound because of a disability may be a student when he or she studies a course or courses given by a school (grades 7-12), college, university, or government agency; and has a home visitor or tutor from school who directs the study or training.
How is the Student Earned Income Exclusion applied?
The SEIE is applied to a student’s gross earnings before the general and earned income exclusions. A student is an individual who is under age 22 and regularly attending school, college, or training designed to prepare him/her for a paying job. In 2024, the Social Security Administration (SSA) will exclude all gross earnings up to a maximum of $2,290 per month until the full annual exclusion of $9,230 is exhausted or the individual is no longer a student. The annual SEIE maximum applies to the true calendar year that begins in January and ends in December. It is not possible to apportion the amount of the SEIE applied in a given month. All earnings received in a month up to the current monthly maximum will be excluded as long as the annual maximum has not been reached. As of January of 2001, SEIE amounts are indexed annually, meaning they go up (or at least remain the same) each year in January.
What happens to the SEIE over vacations or summer break? An individual remains a student for the purposes of the SEIE when classes are out if he/she actually attends classes regularly just before the time classes are out and:
For most students, this would allow the SEIE to be applied to summer employment when school is not is session. When an SSI recipient graduates from school and does not intend to resume school later, the SEIE will apply for the last month during which school was attended, then stop. When a student changes intent to return, and does not return to school, the individual is no longer considered a student effective with the month the intent changed.
How does the Social Security Administration know whether student status applies?
The individual should report student status to SSA. SSA verifies student status during the SSI re-determination process or as needed. School enrollment is documented by presenting a school record such as an ID card, tuition receipt, or other comparable evidence. If the individual does not have any evidence to present, the SSA may contact the school to verify attendance. If the SSA is aware of the student status, the SEIE generally will be applied automatically when earnings are reported. However, it is recommended that student status be clearly indicated in writing when notifying the SSA of employment. There is no special form or process needed to request the SEIE.
ABLE BASICS & FACTS – Download PDF
What is an ABLE account? ABLE accounts are tax-advantaged savings and investment accounts for individuals with disabilities. They were created as a result of the passage of the Stephen Beck Jr., Achieving a Better Life Experience Act of 2014, better known as the ABLE Act. The individual with the disability is the account owner.
Who Is eligible? An ABLE account owner must have had a significant disability onset prior to age 26. An account can be opened at any age. Individuals who never received SSI and/or SSDI, or who began receiving benefits after age 26, need to request a Disability Certification from their physician indicating that the significant disability onset was prior to age 26. In January 2026, the disability onset becomes prior to age 46.
Why the need for an ABLE account? Many individuals with disabilities and their families depend on a variety of public benefits for income, health care, food and housing assistance. Eligibility for these public benefits requires meeting a means test that limits eligibility and requires individuals to report savings and assets. Cash savings, investment funds, retirement funds and other items of significant value may make them ineligible for some of these programs. ABLE accounts allow eligible individuals to save and invest money, largely without affecting eligibility for public benefits. Medicaid eligibility is not affected by ABLE savings in any amount up to the individual state 529 savings limit.
How Do I Open An Account? ABLE accounts are opened through the state ABLE program website. It takes a minimal amount of time to open an account. You can view state by state comparisons on the ABLE website. The website is available at https://www.ablenrc.org.
How Do I Manage My Account? ABLE accounts are savings accounts that offer choices for investing. You can make changes to your investments twice a year. The minimum contribution to open the account is typically small and varies from state to state. Many of these accounts come with a debit card. Nearly all of the accounts have a minimal quarterly fee for handling the investment.
Who can contribute? The account owner, family, friends, an employer or the account owner’s Special Needs Trust (SNT) may contribute funds into the account. ABLE account owners – both those who receive and those who do not receive public benefits – may save for qualified disability expenses.
How can funds be used? Funds in ABLE accounts can be used for a wide array of qualified disability expenses such as education, transportation job training, housing and more!
What are Qualified Disability Expenses? Under IRS regulations, qualified disability expenses include, but are not limited to, expenses for the beneficiary’s education, housing…
Becoming ABLE Account Ready
Identify your need for savings: Whether you are working and producing income and/or a Social Security beneficiary of SSI and/or Social Security Disability Insurance (SSDI) monthly income payments, make a list of short- and long-term needs to set aside for funds in an ABLE account. Consider whether these needs will be covered by any public benefit program you currently receive or may receive in the future.
Identify sources for income: Friends, family and an employer may all be invited to contribute to your ABLE Account. The total allowable contributions from all contributors combined is currently $18,000 in 2024. Your contributions to an ABLE account are not tax deductible for purposes of filing your federal taxes, but may be deductible for purposes of your state income tax depending on where you live. A beneficiary who is working can deposit up to $14,580./year more in 2024 if he or she isn’t participating in an employer-sponsored retirement plan.
Consider an ABLE account as part of long-term financial goals: The ABLE account funds will not impact continued eligibility for SSI, Medicaid and other public benefits. If you already have or are considering a Special Needs Trust, or SNT, discuss your long-term goals with your financial advisor or attorney about whether an ABLE account could be established to complement the goals of the trust. The SNT also protects against loss of eligibility for public benefits. The costs of establishing an SNT with the engagement of a knowledgeable attorney will more likely be higher than establishing an ABLE account with a state. An ABLE account can cover a broader array of qualified disability expenses than a Special Needs Trust.
Be aware of stipulations related to all ABLE accounts: You may not be eligible for an ABLE account if your age of onset of disability is after age 26, or your disability does not meet the threshold to document significant disability below age 26. If you establish an ABLE account and do not use all the resources in the account before you die, the remaining funds are subject to a payback provision to the state if you used Medicaid for any supports and services. A few states have passed laws to eliminate the Medicaid payback provision.
Compare state ABLE programs: More than 30 states have opened ABLE programs and others invite eligible individuals nationwide to open an ABLE account outside of their state of residence. You can compare states by going to the website: https://www.ablenrc.org .
Your needs are unique: No two eligible individuals have the same needs for opening and managing an ABLE account. You may have set short-term priorities and be withdrawing funds weekly or monthly. Another individual may have longer term needs and priorities for saving and using an ABLE account.
Talk with people you trust: Create a circle of support of family and friends. Though not required in order to open an ABLE account, you may consider consulting a financial advisor who has experience with creating and/or managing a Special Needs Trust. Seek referrals from families who have experience using the trust. For many families, the ABLE account will be a significant and viable option in addition to, rather than instead of, a trust program.
Be informed: As states continue to open ABLE programs, the ABLE National Resource Center will compare and contrast individual state programs to help you make informed decisions.
Overview – Download PDF
Many South Dakotans with disabilities want to work. However, individuals with disabilities continue to have high rates of unemployment and experience significant barriers to employment. One of the most commonly cited barriers to employment is the fear of losing healthcare coverage. In the traditional Medicaid program, if an enrollee earns too much money or saves too much money, he or she becomes ineligible for the program and loses healthcare coverage. This is obviously a disincentive for people with disabilities to return to work or remain working. However, South Dakota has implemented a work incentive called Medical Assistance for Workers with Disabilities (MAWD) to help address this barrier to employment.
What is Medical Assistance for Workers with Disabilities (MAWD)? MAWD is a change to the traditional Medicaid system that extends healthcare coverage to working South Dakotans with disabilities whose income and assets would otherwise make them ineligible. It “de-links” disability from earnings, and provides an incentive for people with disabilities to work. It provides an opportunity for people to not have to continue to choose between maintaining needed healthcare coverage or becoming independent and productive through employment.
What are the Advantages of MAWD? MAWD allows enrollees in the program to earn more money and save more of their earnings than traditional Medicaid limits allow. People can work and retain their Medicaid healthcare coverage.
What are the Eligibility Requirements for MAWD? To be eligible for the MAWD program, a person must be employed, have a significant disability, have countable resources less than $8,000, and have less than 4963 in monthly unearned income. Unearned income is income not earned from your job or business, such as SSDI or VA benefits.
Who Do I Contact to Learn More About or to Apply for MAWD?
SSA (Social Security Administration) – The United States Social Security Administration | SSA
SSA Redbook – Social Security Online – The Red Book – A Guide to Work Incentives (ssa.gov)
SSA Office locator – Field Office Locator | SSA
Wage Reporting – How To: Report Wages to SSA (youtube.com) | SSA Electronic Wage Reporting Options (youtube.com)
Ticket to Work – Choose Work! – Ticket to Work – Social Security (ssa.gov)
Medicare – Welcome to Medicare | Medicare
Medicare Plans in SD – Medicare in South Dakota | Medicare Plans
Shine – Senior Health Information and Insurance Education
South Dakota Department of Social Services – Department of Social Services (sd.gov)
SD Department of Human Services – South Dakota Department of Human Services (sd.gov)
SD Division of Rehabilitation Services – Division of Rehabilitation Services (sd.gov)
State of South Dakota – South Dakota Official State Homepage (sd.gov)
Achieving a Better Life Experience (ABLE) – ABLE National Resource Center (ablenrc.org)
Disability Rights SD (DRSD) – Disability Rights South Dakota – Formerly SD Advocacy Services (drsdlaw.org)
WRIL – Western Resources for Independent Living (https://wrill.org)
ILC – Independent Living Choices – Sioux Falls, SD (ilcchoices.org)
US Department of Veterans Affairs – Veterans Benefits Administration Home (va.gov)
South Dakota Lifeline Affordable Connectivity Program (lifewireless.com) 1(888) 641-8722
Coming soon…
Carissa needed help understanding her benefits in college and when she was first starting her career. The Benefits Specialist Network was there for her every step of the way!
Black Hills Special Services Cooperative (BHSSC)
730 E. Watertown St.
Rapid City, SD 57701
605-391-2838
mhosman@bhssc.org
(Western SD)
Black Hills Special Services Cooperative (BHSSC)
2339 N. Maple Ave, Suite 2
Rapid City, SD 57701
605-394-2311
barry.gravatt@state.sd.us
(Western SD)
Black Hills Special Services Cooperative (BHSSC)
221 S. Central Ave, Suite 33
Pierre, SD 57501
605-494-3601 Ext. 1521
tbame@bhssc.org
(Central SD)
Black Hills Special Services Cooperative (BHSSC)
1310 Main Ave, S. Suite 102
Brookings, SD 57006
605-688-4935
brad.konechne@state.sd.us
(Aberdeen, Brookings, Watertown)
Black Hills Special Services Cooperative (BHSSC)
3113 Spruce, Suite 128
Yankton, SD 57508
605-668-3050
bonnie.gusso@state.sd.us
(Mitchell, Yankton)
Black Hills Special Services Cooperative (BHSSC)
811 E. 10th St., Dept. 21
Sioux Falls, SD 57103
605-367-5330
rhonda.erickson@state.sd.us
(Sioux Falls)
