October is National Disability Employment Awareness Month, a time to celebrate the contributions of workers with disabilities. For many families, though, the idea of a job comes with a very real worry: “If my child starts working, will they lose their benefits?”
As a dad of three kids with special needs, I understand that fear. The good news is that the rules are designed to encourage work, not punish it. With some planning, a job can mean more income, more independence, and more confidence, while critical benefits stay in place.
First, know which benefit you’re dealing with
Supplemental Security Income (SSI) is needs-based. It pays up to $994 per month for an individual in 2026 and comes with a $2,000 resource limit.
Social Security Disability Insurance (SSDI) is based on work history. Adults whose disability began before age 22 may also receive benefits on a parent’s record once that parent retires, becomes disabled, or passes away.
The two programs treat earnings very differently. For a broader overview, see our post on government benefits for families with special needs.
How working affects SSI
SSI doesn’t stop the moment someone earns a paycheck. Social Security ignores the first $65 of monthly earnings (plus a $20 general exclusion), then counts only half of what’s left.
Here’s a simplified example. If your adult child earns $1,000 per month, about $457 of that income counts against their SSI. Their check drops to roughly $537, but their total monthly income rises to more than $1,500.
Students under 22 get an even better deal. The Student Earned Income Exclusion allows them to earn up to $2,410 per month, or $9,730 per year, without any reduction to SSI.
How working affects SSDI
SSDI offers a runway to test work:
- Trial Work Period: Any month earning more than $1,210 in 2026 counts as a trial month. You get nine of them within a rolling five-year window, and benefits continue in full.
- Extended Period of Eligibility: For the 36 months after the trial period, benefits are paid in any month earnings fall below $1,690 (the 2026 substantial gainful activity level for non-blind individuals).
- Expedited Reinstatement: If benefits stop because of work and the disability later prevents you from working, you can generally request reinstatement within 5 years without starting a new application.
Work-related costs related to the disability, such as specialized transportation or equipment, may also be deducted from countable earnings.
What about Medicaid?
For many families, Medicaid is the benefit they worry about most. Two protections help here in Washington:
- Continued Medicaid under Section 1619(b) allows many SSI recipients to keep Medicaid even after earnings become too high for an SSI check.
- Apple Health for Workers with Disabilities (HWD) allows working Washingtonians with disabilities to purchase Medicaid coverage, with a premium based on income.
Pair work with an ABLE account
Earning more can quickly bump up against SSI’s $2,000 resource limit. An ABLE account solves much of that problem, since the first $100,000 doesn’t count. Through ABLE to Work, account owners who don’t participate in an employer retirement plan may be able to save even more of their earnings. We cover this in our post on [the 2026 ABLE age expansion]([ABLE BLOG URL]).
Get support and report earnings
Report earnings to Social Security promptly. Overpayments are one of the most common and stressful problems families face, and they’re usually avoidable. Free benefits counseling is available through Social Security’s Work Incentives Planning and Assistance (WIPA) program, and Washington’s Division of Vocational Rehabilitation can help with job preparation and placement.
If your young adult is just leaving school, our post on aging out of school services is a helpful next read.
Build a plan that supports their goals
Work can be a meaningful part of a fulfilling life, and benefits rules shouldn’t stand in the way. Learn more about our financial planning for families with special needs, or schedule a call to talk through how work fits into your family’s plan.
