Earn While on SSI Disability

Question: How Much Can You Earn While On SSI Disability?

When navigating the complex landscape of Social Security benefits, one of the most frequently asked questions pertains to how much you can earn while receiving Supplemental Security Income (SSI) disability benefits. Understanding these earnings limits is crucial for beneficiaries who wish to work and increase their income without jeopardizing their SSI benefits. This article aims to provide a thorough explanation of the SSI program, its income limits, and how the rules are structured to encourage individuals to work when possible.

Understanding SSI and Its Purpose

Supplemental Security Income (SSI) is a federal assistance program administered by the Social Security Administration (SSA) that provides financial support to individuals who are aged, blind, or disabled and have limited income and resources. Unlike Social Security Disability Insurance (SSDI), which is based on prior work history and contributions to the Social Security system, SSI is need-based and funded by general tax revenues. The primary goal of SSI is to help cover basic needs for food, clothing, and shelter.

SSI Income Limits: What You Need to Know

To remain eligible for SSI, recipients must adhere to strict income and resource limits. These limits are set to ensure that the benefits are directed toward individuals who require financial assistance the most.

Countable Income

SSI takes into account both earned and unearned income while determining eligibility. However, not all income is counted by SSI. Here are some distinctions:

• Earned Income: Wages or any other income from work.
• Unearned Income: Payments that aren’t earned through employment, such as Social Security benefits, pensions, gifts, and some forms of government benefits.

The SSA uses a formula to calculate "countable income," which determines the SSI benefits amount.

The General Income Exclusion and Earned Income Exclusion

1. General Income Exclusion: The first $20 of most income received in a month is excluded. This applies to both earned and unearned income.

2. Earned Income Exclusion: Along with the general exclusion, the first $65 of earned income in a month is excluded, plus half of the remaining earnings.

Example Calculation:

• Monthly Wages: $500

• Minus General Income Exclusion: $20

• Remaining: $480

• Minus Earned Income Exclusion: $65

• Remaining: $415

• Divide the Remaining Amount by Two: $207.50

Thus, for SSI purposes, the countable income from $500 earned is $207.50, which will be subtracted from the base SSI rate.

2023 Federal Benefit Rate

As of 2023, the federal benefit rate (FBR) for SSI is $914 per month for individuals and $1,371 for eligible couples. The SSI benefit amount is calculated by subtracting your countable income from the applicable FBR.

Limits for 2023

For individuals, the general rule of thumb is that each dollar of countable income above $85 (after exclusions) reduces SSI benefits by 50 cents.

Work Incentives in SSI

The Social Security Administration provides various work incentives and employment supports to help SSI recipients transition into employment.

Plan to Achieve Self-Support (PASS)

A PASS allows individuals to set aside income and/or resources for a specified period of time to pursue a work goal, such as starting a business, attending school, or purchasing tools needed for work. These saved amounts are not counted as income or resources for SSI purposes.

Student Earned Income Exclusion (SEIE)

For beneficiaries under age 22 and regularly attending school, SSI will exclude up to $2,220 of earned income per month (up to a maximum of $8,950 per year in 2023) from countable income.

Blind Work Expenses (BWE)

Blind individuals can exclude from their earnings any income used to pay for expenses related to work. These might include transportation, guide dogs, and other necessary items or services.

Impairment-Related Work Expenses (IRWE)

Expenses related to an individual’s disability that are necessary for them to work can be deducted from their income when determining SSI eligibility and payment amount. This can include things like attendant care services, transportation costs, and specialized work-related equipment.

Understanding Resource Limits

SSI also imposes resource limits. To qualify, individuals must not have countable resources exceeding $2,000, or $3,000 for a couple. Resources include things like cash, bank accounts, stocks, and personal property. However, SSI doesn’t count resources such as the home you live in, one vehicle, and household goods and personal effects.

FAQs: Clarifying Common Concerns

1. Can I still receive SSI if I work part-time?

Yes, you can work part-time and receive SSI benefits. The SSA has work incentives and income exclusions to encourage individuals to try out work without automatically losing their benefits.

2. What happens if I exceed the income limit?

If your countable income exceeds SSI thresholds, your SSI benefits may be reduced or suspended. However, certain incentives and deductions may help reduce your countable income, enabling you to remain eligible for benefits.

3. Are SSI benefits affected by recreational activities like gambling?

Yes, winnings from gambling are considered income and must be reported to the SSA. How they affect your SSI depends on the frequency, amount, and regularity of these winnings.

4. How does SSI address substantial services, like self-employment?

Self-employment income is considered along with expenses related to running your business. Net earnings are calculated annually and averaged over a 12-month period.

Encouragement to Explore Further

Understanding the specifics of SSI’s earnings limits and related work incentives can significantly benefit recipients looking to enhance their income while enjoying the security of SSI benefits. It's advised that individuals considering employment consult with the SSA or a financial advisor to explore all available options and incentives.

For more detailed guidance and updates on SSI benefits, you may wish to visit the Social Security Administration’s official site or reach out to local SSA representatives. Meanwhile, our website offers further resources and articles that help demystify the complexities of Social Security programs and ensure that you’re making informed decisions about your financial future.

Remember, knowing your rights and potential benefits under the SSI program can empower you to make choices that align with your personal and financial goals while ensuring continued support for your needs.