What is Supplemental Security Income (SSI)?
The Supplemental Security Income program (SSI) is a cash assistance program designed to provide minimum income to people who are aged, blind, or disabled. Although your eligibility for Social Security retirement and disability benefits is based on how long you’ve worked and how much you’ve earned during your lifetime, your eligibility for SSI is based on financial need. If your resources and income fall below certain levels, you may be able to receive SSI benefits. Often, people who get SSI also get other government assistance as well, such as food stamps and Medicaid. However, SSI is a program of last resort; before applying for it, you must file for all other benefits for which you may be eligible.
Who is eligible for SSI benefits?
The following individuals who have income and resources less than a certain limit may be eligible for SSI benefits:
- An aged person (age 65 or over).
- A blind person regardless of age: A blind person is defined as a person whose vision, with use of a corrective lens, is 20/200 or less or who has tunnel vision of 20 degrees or less.
- A disabled person regardless of age: A disabled person is defined as a person who has a medically determinable physical or mental problem that keeps him or her from working and that is expected to last for a year or more or end in death. The definition for a disabled child differs slightly, since most children don’t work. A child will be considered disabled if he or she is not working and has an impairment that is as severe as one that would disable an adult. The medical requirements for disability and the process used to determine disability are the same for SSI and the Social Security disability program.
Disabled Social Security and SSI beneficiaries have the chance to participate in vocational rehabilitation, employment, or other support services from approved providers. Most beneficiaries become eligible for the SSA’s Ticket to Work Program when they start receiving Social Security disability benefits or SSI benefits based on disability. This program is free and voluntary, and provides support services that will help you return to work. Other work incentives are also available.
How much money can you make and still get SSI?
Income limit
You can have a certain amount of income and still be eligible for SSI. Under SSI, income includes earned income (earnings from wages and self-employment), unearned income (e.g., retirement benefits, pensions, and interest), in-kind support (e.g., gifts of food, shelter, and clothing), and deemed income (income from a spouse, parent, or sponsor used to compute your benefit). Not all of your income is countable, however. For example, when figuring your eligibility for benefits, some income is excluded, including (but not limited to) the following types of income:
- The first $20 of most income received in a month
- The first $65 a month earned from working and half the amount over $65 (if there is no unearned income, $85 a month of earned income plus half the amount over $85)
- Food stamps
- Most food, clothing, and shelter received from private nonprofit organizations
- Most home energy assistance
- Earned income you use to pay for items or services you need to work if you are disabled
- Earned income you use to pay for expenses caused by working if you are blind
If only one member of a couple living together in the same household is eligible for SSI, the ineligible member is considered in the calculation. If an unmarried child under 18 is living at home, some of the parents’ income may be used to determine the child’s eligibility.
Income limits are subject to annual cost-of-living related increases.
For more specific information on SSI income limits and program rules, visit the Social Security Administration’s website, ssa.gov.
Resources limit
You cannot have resources (cash or other liquid assets and real or personal property) in excess of $2,000 if you are an individual with no spouse or in excess of $3,000 if you have a spouse. Everything you own, however, is not considered a resource. For example, these (and other) things are not considered resources:
- The home you live in and the land it’s on if you own it as your principal residence
- Personal household goods
- Your car, when used to provide necessary transportation
- Life insurance policies with a combined face value of $1,500 or less
- Burial plots for you and members of your immediate family
- Up to $1,500 in burial funds for you and up to $1,500 for your spouse
- Certain items you use for work or to earn income if you are blind or disabled
- Up to $100,000 of funds in an Achieving a Better Life Experience (ABLE) account
For example, these things are considered resources:
- Real estate (other than your primary residence)
- Cash
- Bank accounts
- Stocks and bonds
If only one member of a couple is eligible, the couple’s resources are still considered together, and the couple’s limit still applies. If an unmarried child under age 18 is living at home and the parents’ resources exceed $3,000 (for a couple), the excess can be included with the child’s income to determine eligibility.
How much money will you receive from SSI?
How much you receive will depend on where you live
Your basic federal SSI benefit will be the same in Georgia as it would be in Idaho, because your benefit is based on the same criteria everywhere. The maximum federal benefit for 2023 is $914 for an eligible individual and $1,371 for an eligible individual with an eligible spouse. However, you might receive more than this because most states add money to your basic benefit. This supplement will vary because of differences in regional living costs and state-defined eligibility criteria. Your state may send you the supplement separately or combine it with your federal benefit. To find out if your state pays supplementary benefits and how much it pays, call the Social Security Administration at (800) 772-1213. In some cases (for example, if your family has money coming in besides the SSI benefit) you may get less than the basic benefit.
Some months, you may not receive a benefit check
Your eligibility for SSI benefits is determined on a month-by-month basis. Your countable income is figured by adding up all your earned and unearned income that can’t be excluded by law or under the Social Security Act. Then, that amount is compared to the federal benefit rate. If the FBR is less than your countable income, you won’t receive a federal SSI check that month.
Your federal benefit amount is based on your monthly income two months ago
Your monthly payment is usually based on your countable income from the second month before the current month. This countable income is subtracted from the current month’s FBR to determine your SSI payment.
If you are eligible for a state supplement payable with your federal check, the supplement will be calculated by subtracting any excess countable income. In some months, you may be eligible only for the state supplement. States may vary payment amounts based on living arrangements or geographical area and may disregard some income when calculating payments.
Other factors that will affect your SSI benefit
- Federal and state maximum benefits: You can’t receive a benefit check in excess of federal and state maximum benefits. Each state has its own maximum benefit.
- Your living arrangements: Your basic SSI payment may be reduced by up to one-third if you live in someone else’s household and receive maintenance and support from that person. Maintenance and support is food, clothing, or shelter you receive and for which you do not pay.
While you are receiving SSI, what other benefits can you receive?
- Medicaid and Medicare assistance: You can probably get Medicaid to help you pay health care expenses. If you get Medicare because you are age 65 or over, your state may assist you with paying your Medicare premiums if you have low income and few resources.
- Social Services: You may be eligible for social services provided by the state, city, or county, such as homemaker services, meals, and transportation.
- Interim payments: Some states make interim payments to individuals waiting for a decision on eligibility for federal payments.
- Food stamps: You may be eligible for food stamps. If everyone in your household receives SSI, Social Security will help you prepare the application.
- Social Security: If you qualify, you may be eligible for Social Security retirement or disability benefits as well as SSI. However, the income you receive from Social Security benefits will be used to determine your eligibility for SSI payments.
Thank you for taking the time to read this article. We hope it has given you some insight into Social Security. If you have any questions or would like more information, please feel free to contact us. We would love to hear from you. Our newsletter is a great way to stay up-to-date with our latest offerings and get helpful retirement planning tips. Signing up is easy; click here.
Broadridge Investor Communication Solutions, Inc. prepared this material for use by Social Security Benefit Planners, LLC.
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on individual circumstances. Social Security Benefit Planners, LLC provide these materials for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
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