Written by: Laurie Schaller, Financial Empowerment Manager and Subject Matter Expert, National Disability Institute (NDI)
Many states have taken steps to increase wages for employees. The next step is to ensure that everyone, including people with disabilities, is working to their fullest ability. For individuals who receive SSI and/or SSDI benefits, there are work supports and financial tools that can help a person earn and save more income while maintaining health care benefits and supports like Medicaid, Medicaid Waiver and Medicare.
Working may bring added costs. A person may need a reliable, modified vehicle, more physical therapy or assistive technology beyond what an employer, vocational rehabilitation or the Department of Labor will provide. These expenses may qualify as Impairment Related Work Expenses. A Plan for Achieving Self-Support is another option that can help a person pay for training, education, reliable transportation and tools related to a work goal. A person who has a disability may also use their ABLE account to save for Qualified Disability Expenses (QDEs) including basic living expenses, work related expenses, and retirement. Most state ABLE plans offer investment options too.
ABLE investment growth is not taxable and does not impact means-tested benefits now or in the future. This is important for those who have a disability and may need means-tested benefits in the future. For example, 403(b), 401(k) savings may impact means-tested benefits now, taking someone over a countable resource limit. More importantly, when 403(b), 401(k) funds are disbursed in the future, they may be taxable, and funds are countable income that may impact benefits. ABLE disbursements do not impact benefits when used to pay for QDEs.
Filing income taxes is essential for people with disabilities who work, especially for SSI beneficiaries. Filing taxes builds a person’s earnings record and may lead to future SSDI, retirement benefits and Medicare benefits. Whether a person receives a W-2, a 1099, or if they are self-employed, it is important that they file income taxes.
Tax credits can further support financial goals. The Earned Income Tax Credit (EITC) may increase a person’s income tax refund. A person who deposits earned income into their ABLE account may be eligible for the Saver’s Tax Credit, which could reduce income taxes. These tax credits boost income and savings. Call 211to find a free tax preparation site near you.
A person who has a disability that began before age 26 is ABLE eligible. On 1/1/2026, the ABLE age of eligibility expands to include people who have a disability that began before age 46. A person does not need to be receiving disability benefits to be ABLE eligible. An ABLE account may be opened at any age. More people than ever can take advantage of ABLE to build a path toward employment, independence, and long-term financial wellness. The combination of working, using work supports, filing taxes and opening an ABLE account can be part of a strategy for a stronger financial future. Visit the ABLE National Resource Center to learn more.
2025