Ask Larry

Will My Part-Time Work Cause My Benefit Rate To Increase?

Hi Larry, I have been on ssi disability since 2011. I am working part time and paying in to SS. My full retirement age is 66 and 4 months. Will my benefit amount increase? If not do I still have to pay into the fund. Thank you.

Hi,

If you're receiving Supplemental Security Income (SSI), then having earnings and paying into Social Security wouldn't increase your benefit rate. SSI is are needs based benefits that aren't calculated based on your contributions. If you are drawing SSI and you become eligible for Social Security benefits, you could basically only receive roughly the higher of the two benefit rates.

On the other hand if what you are receiving is Social Security disability (SSDI) benefits, then additional earnings could potentially increase your rate. The computational formula is complex, though, so I can't tell you whether or not you might be due an increase. However, if you're earning a low enough amount to be able to continue receiving SSDI benefits, it's doubtful that your earnings would be high enough to significantly increase your benefit rate. Whether or not your earnings may result in an increase in your benefit rate, though, you must still pay the required Social Security taxes your covered earnings.

Best, Jerry

Posted: 
May 25 2020 - 11:02am
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