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, 2019. The 5 months were March, April, May, June, and July 2022. Armando is eligible to receive SSDI benefits beginning August 2022. His monthly benefit amount is $300, which reduces his SSI to $561:

$300 SSDI - $20 general income exclusion = $280 countable unearned income

$841 FBR - $280 countable unearned income = $561 SSI payment.

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 2022. 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 begins work at the car dealership. The dealership pays him $2,000 a month.

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.

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 level. We refer to this 36-month time period as the re-entitlement period.

We stop 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.

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.

Armando’s income for January 2025 through December 2025 is SSDI of $300 per month and wages of $2,000 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:

$2,000 - $65 = $1,935

From this amount, we deduct the $350 IRWE for the taxi transportation:

$1,935 - $350 IRWE = $1,585

The second step in figuring Armando’s earned income is to divide this result by 2:

$1,585 ÷ 2 = $792.50 countable earned income

We now add the countable unearned income and the countable earned income to determine total countable income:

$280 countable unearned income + 792.50 countable earned income = $1,072.50 total countable income

Finally, we subtract the total countable income from the SSI FBR to determine SSI eligibility and payment amount:

$841 (FBR in January 2022) - $1,072.50 countable income = $0 SSI payment (Note:  We used the FBR for 2022 because at this time we do not know the FBR for 2025.)

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) as long as 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 reports that he received a pay increase to $2,300 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:

$2,300 wages - $20 general income exclusion - $65 earned income exclusion = $2,215

$2,215 - $400 IRWE = $1, 815 ÷ 2 = $907.50 countable earned income

$841 (FBR in January 2022) - $907.50 countable income = $0 SSI payment (Note:  We used the FBR for 2022 because at this time we do not know the FBR for 2026.)