Income While on SSI

SSI is an asset and income-based disability program. In this blog post I will focus on the income limitations of such a program. There are two types of income for SSI purposes; Earned Income and Unearned Income. Earned Income would be considered any income that you receive as a wage earner. This kind of income usually involves a paycheck. On the other hand, Unearned Income is income that is not earned via wages. This kind of income is usually inherited or received via means that did not involve some form of labor.

Earned Income is relatively simple to figure out what will happen for SSI purposes. The wages, or net profit if you are self-employed, is given a SSI income disregard of $20 and $65. Thus, $85 can be disregarded from any SSI asset calculation per month. After this disregard, all remaining income will be divided in half because SSI allows you to keep half of your Earned Income. This calculation, however, is based on the current Federal Benefit Rate of $(841), which changes every year. Thus, the calculation for Earned Income will essentially look be the Federal Benefit Rate minus $85 and divided in half. This is the amount you, as an SSI recipient will both get to keep and will have deducted from your earnings.

Unearned Income, however, does not receive such a generous calculation. Essentially, unearned income receives a $20 disregard and all else gets a full reduction. Unearned Income is not limited to inheritances. Unearned Income includes, but is not limited to, annuities, pensions, SSDI benefits, alimony, support payments, dividends, interests, royalties, rental income, prizes, awards, and gifts. Even cash can be considered unearned income and must be reported to Social Security. Essentially, if you did not work to earn a source of income, it is considered Unearned Income and will be reduced dollar for dollar.

Failing to report such income or mistakes that result in Social Security failing to deduct such income can and will result in an overpayment situation. These overpayments may threaten to cut off all future Social Security Disability or SSI payments. Thus, we at Mission Possible, strongly recommend that you contact us at 866-687-1842 to figure out how to proceed with any source of income, whether it be earned or unearned.

~ Michael