The answer is yes, but there are limits to how much you can earn and still qualify for Supplemental Security Income (SSI) benefits.
This guide will help you understand the income and asset limits for SSI in 2023, how your earnings affect your benefits, and how you can potentially work around the limits using ABLE accounts.
Understanding SSI Eligibility:
SSI is a federal income supplement program designed to help low-income individuals with disabilities and seniors who have limited income and resources. To qualify for SSI, you must meet specific eligibility criteria, including:
- Income: Your income must be below the federal income limit, which is $1,913 per month for individuals and $2,827 per month for couples in 2023.
- Resources: Your countable resources (assets) must be below the federal resource limit, which is $2,000 for individuals and $3,000 for couples in 2023.
- Disability or Age: You must be 65 or older, blind, or have a disability that prevents you from working.
Impact of Earnings on SSI Benefits:
If you earn income from work or other sources, it will affect your SSI benefits. The Social Security Administration (SSA) will calculate your countable income, which is your gross income minus certain deductions, such as:
- $65 per month: This is the general income exclusion.
- One-half of your remaining earnings: This is the earnings deduction.
For example, if you earn $1,000 per month, your countable income would be $1,000 – $65 – ($1,000 – $65)/2 = $467.50.
The SSA will reduce your SSI benefits by $1 for every $2 you earn over the countable income limit. So, in this example, your SSI benefits would be reduced by $233.75 per month.
Working Around the Limits with ABLE Accounts:
If you have income or assets that exceed the SSI limits, you may be able to use an Achieving a Better Life Experience (ABLE) account to work around the limits. ABLE accounts are tax-advantaged savings accounts designed for individuals with disabilities.
You can contribute up to $16,000 per year to an ABLE account, and the money in the account will not count towards your SSI resource limit. You can use the funds in your ABLE account to pay for qualified disability expenses, such as education, housing, transportation, and healthcare.
Additional Considerations:
- State Supplements: Some states offer supplemental payments to SSI beneficiaries. These payments can vary from state to state, so it’s important to check with your state’s social services agency for more information.
- Special Needs Trusts: Special needs trusts can also be used to help individuals with disabilities qualify for SSI benefits. These trusts allow you to set aside assets for the beneficiary without affecting their eligibility for SSI.
While there are limits to how much you can earn and still qualify for SSI, there are ways to work around the limits and maximize your benefits. By understanding the eligibility criteria, income and resource limits, and available resources, you can make informed decisions about your finances and ensure that you receive the benefits you deserve.
Here are some additional resources that you may find helpful:
- Social Security Administration: https://www.ssa.gov/ssi/
- National Disability Institute: https://www.nationaldisabilityinstitute.org/
- Benefits.gov: https://www.benefits.gov/
Any money or in-kind item that satisfies a person’s need for food or shelter is considered income. For the purposes of SSI, income is defined as any amount received that can be used directly, through sale, or through conversion to satisfy a person’s basic needs for housing and food.
The amount of earnings for 2022 that will not affect SSI beneficiaries who are students under the age of 22’s eligibility or benefits is $8,230 annually. Until we have excluded the maximum amount for the year, we are able to exclude $2,040 in earnings per month. Details on the SEIE are on Student Earned-Income Exclusion.
How To Legally Earn Money And Keep Your Disability Benefits In 2022
FAQ
How much money can I make before it affects SSI?
How much money can you make without it affecting your Social Security?
What is the maximum amount I can earn while collecting Social Security in 2022?
What happens if you have more than $2000 in the bank on SSI?
How much SSI can I earn in 2024?
Your maximum countable income can’t exceed the SSI income limit, and any money you earn above the SSI income limit reduces your monthly benefit. As a result, the maximum total income you can earn and still receive a (very tiny) SSI benefit is $1,971 per month in 2024.
How much SSI can I earn a month?
Subtract your countable income from your monthly SSI benefit. When you do these calculations, you’ll find that you can earn up to $1,913 per month in earned income before losing your entire SSI benefit—assuming you have no other countable income coming in.
What is the maximum monthly SSI benefit in 2023?
In 2023, the maximum monthly SSI benefit is $914. If you have $910 in countable income, you would still be eligible to receive an SSI benefit of $4.00. The Social Security Administration considers countable income to include any cash or cash-equivalents (in-kind income) you receive during the course of the month minus any excludable income.
How much SSI can I get if I have unearned income?
This can include both earned income and unearned income. Benefits are reduced on a dollar-for-dollar basis based on the countable income you have. In 2023, the maximum monthly SSI benefit is $914. If you have $910 in countable income, you would still be eligible to receive an SSI benefit of $4.00.