According to the Social Security Administration, more than 7.4 million people with limited income and resources depend on monthly benefit payments from the Supplemental Security Income (SSI) program. The program, administered by Social Security, assists people with limited income and resources who are disabled, blind, or age 65 or older.
Whether you currently receive SSI benefits or are thinking about applying for them, you’ll want to know the SSI income limit in case you decide to get a job. Sackett and Associates has helped people with issues related to SSI and other federal disability benefit programs for more than 45 years. The following explanation of the SSI program focuses on answering a question frequently asked of them: “How much can you earn on SSI?”
SSI And Financial Limitations
SSI eligibility is based on financial need, so applicants must meet strict limitations on income and resources. The value of resources or assets that you own, such as bank accounts, a car, or a home, may not exceed $2,000 for individuals and $3,000 for couples. Some resources, such as a home you own and use as your primary residence or a car that you own for personal use, do not count as resources.
Determining the income threshold for SSI begins with the maximum federal benefit. The maximum monthly SSI benefit payable in 2025 to an individual is $967, and $1,450 for married couples. The benefit amount can change annually through a cost-of-living adjustment effective in January.
Income you receive from sources other than SSI may reduce the amount of the monthly benefit you are entitled to receive. However, not all income that you receive counts toward the SSI earnings cap.
What Income Counts Toward Reducing Your SSI Benefits?
Social Security classifies income as earned or unearned. Earned income includes the following:
- Net income from self-employment
- Wages from working at a job
- Royalties
- Honoraria
- Sheltered workshop payments
Unearned income includes the following
- Social Security benefits
- Pensions
- State disability benefits
- Unemployment benefits
- Interest income
- Dividends
- Cash received from friends or relatives
Any food or shelter given to you for free or at a reduced price is in-kind income that Social Security classifies as unearned income.
What Is Countable Income, And How Does It Affect SSI Benefits?
Countable income is an essential concept to know when working while receiving SSI benefits. The money you receive each month in wages from your employer is earned income, but not all of it affects your SSI benefits or eligibility for the program. The reason is that only some of your income from working counts for purposes of SSI because you can exclude some of the earned and unearned income.
The first $20 of unearned income you receive in a month may be excluded. If you do not have unearned income, the $20 can be used to exclude earned income. You also have a monthly earned income exclusion of the first $65 and one-half of the remaining earnings.
For example, if you work and earn $417 during a month, you may exclude the first $20 to reduce it to $397. The $65 earned income exclusion reduces your earnings to $332, and excluding one-half of it leaves only $166 as countable income. The maximum federal SSI benefit that you could receive would be $967 minus $166 for a monthly benefit payment of $801.
More SSI Work Incentives You Need To Know About
The earned income exclusion is only one of the SSI work rules available to people with disabilities. Other incentives for recipients of SSI who wish to take advantage of work opportunities include the following:
- Student Earned Income Exclusion: Students under the age of 22 may work while attending school and exclude up to $2,350 of monthly gross wages, up to a maximum of $9,460 annually. The exclusion amounts can change annually, so it’s best to discuss them with your disability benefits
- Impairment Related Work Expense: Expenses you pay to enable you to work may be excluded from earned income. The excluded expense must be directly related to the disability, such as special equipment, medication copays, and specialized transportation.
- Plan to Achieve Self-Support: This program allows you to save money toward educational or vocational goals and exclude it as countable income or a resource.
Recipients of SSI benefits have access to the Ticket to Work program to assist them with training, job placement, and other forms of employment support services.
Get Help from Disability Professionals at Sackett Law
It’s easy to be confused by SSI work rules, so don’t jeopardize your eligibility for benefits by making a mistake. Get help from the disability team at Sackett and Associates. Learn why people in Northern California and nationwide have relied on them for advice and representation for more than 45 years by contacting Sackett Law today for a free consultation.
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