How Much Money Can You Make On SSI

If you're considering applying for Supplemental Security Income (SSI) or are navigating the complexities of the program, it's essential to understand how much money you can make while receiving benefits. SSI is a needs-based program designed to provide financial assistance to individuals who are aged, blind, or disabled and who have limited income and resources. It’s distinct from Social Security Disability Insurance (SSDI), and one of its core eligibility factors is the level of income you receive. Let’s break down the specifics of how much you can earn and other aspects related to SSI benefits.

Understanding SSI Income Limits

Earned vs. Unearned Income

When discussing SSI and how much you can make, it's crucial to differentiate between earned and unearned income:

• Earned Income: This includes wages from a job or net earnings from self-employment.
• Unearned Income: This encompasses all other types of income, such as Social Security benefits, pensions, unemployment benefits, interest income, etc.

SSI Income Rules

The Social Security Administration (SSA) sets specific rules for how different types of income affect SSI benefits:

1. General Income Exclusion: The SSA does not count the first $20 of any type of income received in a month.
2. Earned Income Exclusion: Beyond the general exclusion, the first $65 of earned income is also not counted. After subtracting these exclusions, SSI reduces your benefit by 50% of the remaining earned income.

Illustrative Example

To clarify, if you have no unearned income and $500 of earnings in a month:

• Exclude the first $20 (general exclusion).
• Then, exclude the next $65 from earned income.
• Half of the remaining earned income ($500 - $65 = $435 / 2 = $217.50) will be counted.
• The remaining amount considered ($217.50) will be deducted from your SSI payment.

The more income you earn, the lower your SSI benefit becomes, but you can still maintain a level of income from employment while receiving some benefits.

2023 SSI Federal Benefit Rate

For 2023, the federal benefit rate (FBR) for SSI is:

• Individual: $914 per month
• Couple: $1,371 per month

It’s worth noting that some states supplement SSI payments with additional amounts, which can vary significantly by state. If you reside in a state providing a state supplement, your total SSI benefit could be higher.

Limits on Resources

In addition to income, SSI has resource limits:

• Individual Resource Limit: $2,000
• Couple Resource Limit: $3,000

Resources include cash, bank accounts, stocks, personal property, vehicles, and other assets. However, not all resources are counted. For example, the home you live in and one vehicle are typically excluded.

Understanding How Income Affects SSI Payments

Monthly Reporting

If you work while receiving SSI, you must report your earnings monthly to the SSA. This is crucial because your earned income affects your benefit amount. The SSA provides various methods for reporting, including in-person, by phone, by mail, or online through the my Social Security portal.

Effect of Earnings on SSI Benefits

The relationship between earnings and SSI benefits can be complex. Each dollar you earn can impact your benefits, but SSI is designed to encourage work where possible. As a result, the income exclusions ensure that not every dollar of income directly reduces your benefit amount dollar-for-dollar.

Student Earned Income Exclusion (SEIE)

For eligible students under 22 regularly attending school, the Student Earned Income Exclusion (SEIE) allows for an additional income exclusion. In 2023, students can exclude up to $2,220 of earned income monthly, with a maximum exclusion of $8,950 annually. This benefit is invaluable for students who are working part-time or in internships.

Special SSI Considerations

Blind Workers

SSI has special rules for individuals who are blind. They can deduct certain work expenses related to their disability, known as Blind Work Expenses (BWE), from their earnings in calculating SSI benefits. This can include costs like transportation to and from work, guide dogs, and more.

Plan to Achieve Self-Support (PASS)

PASS allows an SSI recipient to set aside money for a specific goal, like starting a business, attending school, or preparing for a job, without affecting their SSI benefits. It’s a motivational tool that aids recipients in achieving self-sufficiency.

FAQs on SSI Earnings

Can I receive SSI if I own a house?

Yes, owning the house you live in does not affect your SSI benefits, as it is excluded from resource consideration.

Do gifts count as income for SSI?

Yes, gifts are generally considered unearned income and may affect your SSI benefits. However, certain small gifts or one-time payments might not impact your SSI if they are within certain limits.

How does living arrangement affect my SSI?

Your living arrangement may affect your SSI benefits. For example, if you live with someone who provides you with free food or rent, the SSA may reduce your benefits under the concept of "in-kind support and maintenance."

Can SSI benefits be garnished?

Generally, SSI benefits are protected from garnishment by creditors, meaning they can't typically be seized to pay off debts. However, exceptions include garnishments for federal taxes or debts, federally guaranteed student loans, and alimony or child support.

Encouraging Financial Literacy and Exploration

Understanding SSI’s complexities can dramatically impact your financial planning. If eligible, consider exploring state-specific benefits and resources designed to maximize your economic well-being. Additionally, you may wish to consult with a benefits specialist or financial advisor for personalized advice.

Finally, keep abreast of updates to SSI regulations, as they can affect your benefits. The SSA frequently updates benefit amounts and exclusion limits based on cost-of-living adjustments (COLAs) and other legislative changes.

By navigating the SSI framework wisely, you can strive for financial stability while making informed decisions about your potential earnings and resources.