Supplemental Security Income & Legal Eligibility
In addition to Social Security Disability Insurance (SSDI), the Social Security Administration offers Supplemental Security Income (SSI) benefits to people with disabilities. While claimants for SSDI usually must have accumulated work credits, SSI does not have a work credit requirement. Instead, it is available to people with limited income and resources. A person may be eligible for SSI if they are at least 65 years old, are totally or partially blind, or cannot work due to a medical condition that is expected to last at least one year or result in death. The five-step sequential evaluation of a disability that applies to SSDI claims also applies to SSI claims.
The SSA sets a certain amount each year as the basic payment of SSI benefits for an individual with a disability. It also sets a certain amount as the basic payment of SSI benefits for a couple when both spouses are recipients, which is about 50 percent greater than the individual amount. Since many states add supplements to SSI payments, some recipients may get more than the basic payment. On the other hand, some recipients may get less than the basic payment if they receive other income. Further factors that may affect the amount of the payment include where the recipient lives and who else lives in their household.
Income Rules for SSI Recipients
The SSA deducts “countable” income from SSI benefits. Income generally means any item that a person receives in cash or in kind that can be used to meet their need for food or shelter. Thus, it extends well beyond wages that a person earns from a job. But not all income is countable. For example, the SSA does not count the first $20 that an individual receives each month.
The SSA treats earned income differently from unearned income. While earned income involves items such as wages, self-employment earnings, royalties, and stipends, unearned income involves items such as other government benefits, pensions, interest and dividends, and money received from family members. The SSA does not count the first $65 of earned income each month, in addition to half of earned income beyond that amount. The SSA counts most unearned income, but there are some exceptions. It does not count tax refunds, Supplemental Nutrition Assistance Program benefits (food stamps), home energy assistance, grants and scholarships for educational expenses, and government financial aid related to the COVID-19 pandemic, among other examples.
Another type of “income” that the SSA may count is in-kind income. An SSI recipient gets this type of income when they receive food or shelter for less than its fair market value. In-kind income may be deducted when a family or household member (other than a spouse) helps pay for food or rent, for example. On the other hand, the SSA does not deduct in-kind income when an SSI recipient takes out a loan to pay for these expenses or receives assistance from a non-profit organization.
Resources Rules for SSI Recipients
In addition to having limited income, an SSI recipient must have limited resources. Resources may include money, bank accounts, stocks, bonds, real estate, personal property, cars, or a life insurance policy, among other examples. In general, resources are assets that can be converted into money so that a person with a disability can pay for food and shelter. The SSA provides a monetary ceiling for the resources of an individual and a separate monetary ceiling for the resources of a couple, which is 50 percent greater.
However, not all resources count for SSI purposes. Resources that are typically not counted include, among other examples:
- The recipient’s home and the surrounding land
- A vehicle that they use for transportation
- Household goods and personal effects
- Property used in a trade or business, or on the job if the recipient works for someone else
- Life insurance policies below a certain value
- Grants or scholarships set aside for educational expenses (for nine months)
- Health flexible spending arrangements
- Cash received for the purpose of replacing an excluded resource (for nine months)
Trusts are generally counted as resources, but special needs trusts are not counted if they are properly devised. An SSI recipient or their family member may want to consult an attorney if they are considering a special needs trust.
