The Social Security Administration (SSA) treats SSDI (Social Security Disability Insurance) benefits and SSI (Supplemental Security Income) benefits differently. If you receive SSDI benefits, the SSA generally won’t reduce your benefits even if you receive income from other sources, provided you are not performing work in exchange for that income. For example, if you receive income from a private pension or retirement account, it will not reduce your SSDI benefits. However, the rules for SSI are different.
In a previous blog post, we discussed why some SSI beneficiaries might see their benefits reduced if they receive help paying for food and shelter, as well as how to avoid such a reduction. In addition to these special rules for “In-Kind Support and Maintenance,” there are separate rules for other types of income, including when and how these income sources might reduce your SSI benefits.
Your Benefits Could Be Reduced if You Receive Unearned Income
If you receive income from any source that is not paying you in exchange for work, then after the first $20, the SSA will reduce your monthly benefit dollar for dollar. For example, if you receive $500 in unearned income, the SSA will reduce your benefit that month by $480. A cash gift from a family member is an example of unearned income.
Your Benefits Could Be Reduced if You Earn Income From Working
If you are working and earning an income, the SSA will not count the first $65 of your income, plus one-half of the remainder, but the rest of your earnings will reduce your benefit. For example, if you earn $500 in a month, then $65 will not come out of your benefit. Of the remaining $435, the SSA will only count $217.50 as earned income, so your benefit will be reduced by $217.50.
However, if your only sources of income in a given month are SSI and your earned income, then the formula is different: the SSA will not count the first $85 of your income, rather than the first $65. In the example above, if you earn $500, then $85 will not come out of your benefit. Of the remaining $415, the SSA will only count $207.50 as earned income, so your benefit will be reduced by $207.50.
Working for Income Could Put Your Benefits at Risk
Even though you can perform some work and still receive SSI benefits, it is important to know that working too much may cause your benefits to end. Once your benefits end, you may be required to file a new application to get your benefits back. An experienced attorney can advise you on the rules surrounding how much you can work and still receive SSI.
If you would like assistance with your Social Security Disability Insurance application or appeal, please contact one of Hawks Quindel S.C.’s experienced disability attorneys for a free consultation. We help individuals throughout the Midwest.