If you are receiving Supplemental Security Income (SSI) payments and have any additional income the Social Security Administration (SSA) may deduct the value or partial value of that income from each of your monthly checks. SSA makes these deductions because SSI payments are based upon the recipient’s financial need.
As of January 2012, the maximum monthly benefits for SSI is $698. Any necessary deductions will be subtracted from that amount.
SSA classifies income as any of the following, click here for direct link to SSA’s website:
· Earned Income is considered to be wages from working or self-employment net-income.
· Unearned Income is all income that is not earned by working. For example pensions, State disability payments, unemployment benefits, and cash from friends and relatives all are considered unearned income.
· In–Kind Income is food or shelter given to you for free or less than its fair market value.
· Deemed Income is the part of the income of your spouse or parent(s) that you live with that is deducted from your benefits.
If you are receiving any type of the above stated income SSA will make a deduction. Depending on what type of income you are receiving the calculation of the deductions will be different. For all types of income SSA exempts the first $20.
For earned income, SSA will exempt the first $20. Then exempt an additional $65. Any earned income over $65 will then be divided into half and deducted from your monthly benefit amount.
For example, if you are receiving SSI and make $200 per month in earned income, the deduction will be made like this:
$200 – 20 = $180 – 65 = $115.00/2 = $57.50
Meaning $57.50 would be deducted from the maximum SSI payment of $698.00 month.
For unearned income, SSA will still exempt the first $20 but any amount above that will have a dollar for dollar deduction.
For example, if you have unearned income valued at $200 per month, the calculation of your deduction will look like this:
$200 – 20 = $180
Meaning that $180 would be deducted for the maximum SSI payment of $698.00 per month, resulting in a monthly benefit amount of $510.
The value of any in-kind income is deducted in the same fashion as unearned income. For deemed income a portion of the value of your spouse’s or parent(s)’ income may be deducted.
SSA does recognize several exemptions which do not offset the monthly benefit amount. For example, the value of food stamps or assistance based on need from a state/local government. For more examples of these exemptions and SSA’s rules on SSI payments please click here.
