What is all the income an individual receives in a year including both earned and unearned income?

Understanding SSI Home Page / Understanding Supplemental Security Income SSI Income

SUPPLEMENTAL SECURITY INCOME (SSI) INCOME

WHAT IS INCOME?

Income is any item an individual receives in cash or in-kind that can be used to meet his or her need for food or shelter.  Income includes, for the purposes of SSI, the receipt of any item which can be applied, either directly or by sale or conversion, to meet basic needs of food or shelter.

• Earned Income is wages, net earnings from self–employment, certain royalties, honoraria, and sheltered workshop payments.
• Unearned Income is all income that is not earned such as Social Security benefits, pensions, State disability payments, unemployment benefits, interest income, dividends and cash from friends and relatives.
• In-Kind Income is food, shelter, or both that you get for free or for less than its fair market value.
  
• Deemed Income is the part of the income of your spouse with whom you live, your parent(s) with whom you live, or your sponsor (if you are an alien), which we use to compute your SSI benefit amount.
  

WHY IS INCOME IMPORTANT IN THE SSI PROGRAM?

Generally, the more countable income you have, the less your SSI benefit will be. If your countable income is over the allowable limit, you cannot receive SSI benefits. Some of your income may not count as income for the SSI program.

WHAT INCOME DOES NOT COUNT FOR SSI?

Examples of payments or services we do not count as income for the SSI program include but are not limited to:

the first $20 of most income received in a month;

the first $65 of earnings and one–half of earnings over $65 received in a month;

the value of Supplemental Nutrition Assistance Program (food stamps) received;

income tax refunds;

home energy assistance;

assistance based on need funded by a State or local government, or an Indian tribe;

small amounts of income received irregularly or infrequently;

interest or dividends earned on countable resources or resources excluded under other Federal laws;

grants, scholarships, fellowships or gifts used for tuition and educational expenses;

food or shelter based on need provided by nonprofit agencies;

loans to you (cash or in–kind) that you have to repay;

money someone else spends to pay your expenses for items other than food or shelter (for example, someone pays your telephone or medical bills);

income set aside under a Plan to Achieve Self-Support (PASS). See the SSI Spotlight on Plan to Achieve Self–Support;

earnings up to $2,040 per month to a maximum of $8,230 per year (effective January 2022) for a student under age 22. See the SSI Spotlight on Student Earned Income Exclusion;

the cost of impairment–related work expenses for items or services that a disabled person needs in order to work. See the SSI Spotlight on Impairment–Related Work Expenses;

the cost of work expenses that a blind person incurs in order to work. See the SSI Spotlight on Special SSI Rule for Blind People Who Work;

disaster assistance;

the first $2,000 of compensation received per calendar year for participating in certain clinical trials;

refundable Federal and advanced tax credits received on or after January 1, 2010; and

certain exclusions on Indian trust fund payments paid to American Indians who are members of a federally recognized tribe

HOW DOES YOUR INCOME AFFECT YOUR SSI BENEFIT?

Step 1: We subtract any income that we do not count from your total gross income.  The remaining amount is your "countable income".

Step 2: We subtract your "countable income" from the SSI Federal benefit rate.  The result is your monthly SSI Federal benefit as follows:

1)   Your Total Income
- Your income that we do not count
= Your countable income

2)   SSI Federal benefit rate
- Your countable income
= Your SSI Federal benefit

THE FOLLOWING EXAMPLES ARE BASED ON SAMPLE DOLLAR AMOUNTS:

EXAMPLE A – SSI Federal Benefit with only UNEARNED INCOME

Total monthly income = $300 (Social Security benefit)

1)     $300  (Social Security benefit)
           -20  (Not counted)
      =$280  (Countable income)

2)    $841  (SSI Federal benefit rate)
        -280  (Countable income)
     =$561  (SSI Federal benefit)

EXAMPLE B – SSI Federal Benefit with only EARNED INCOME

Total monthly income = $317 (Gross wages)

1)  $317  (Gross wages)
       -20  (Not counted)
     $297
       -65  (Not counted)
  = $232   divided by 1/2 =$116   (Countable income)

EXAMPLE C – SSI Federal Benefit and STATE SUPPLEMENT with only UNEARNED INCOME

The facts are the same as example A, but with federally administered State supplementation.

1)  $300  (Social Security benefit)
        -20  (Not counted)
  

2)  $841  (SSI Federal benefit rate)
   

3)  $561  (SSI Federal benefit)
      +15 (State supplement payment for an individual living alone)
 

EXAMPLE D – SSI Federal Benefit and STATE SUPPLEMENT with only EARNED INCOME

Total monthly income = $317 (Gross wages)

1)  $317  (Gross wages)
    

2)  $841  (SSI Federal benefit rate)
   

3)  $725  (SSI Federal benefit)
      +15  (State supplement payment for an individual living alone)
 

For information on how your living arrangement affects your SSI benefit, see our chapter on LIVING ARRANGEMENTS.

HOW WILL WINDFALL OFFSET AFFECT MY BENEFIT?

Windfall offset occurs when we reduce your retroactive Social Security benefits if you are eligible for Social Security and SSI benefits for the same months.

We reduce your Social Security benefits by the amount of SSI you would not have received if we had paid you Social Security benefits when they were due.

WHEN DOES DEEMED INCOME APPLY?

When a person who is eligible for SSI benefits lives with a spouse who is not eligible for SSI benefits, we may count some of the spouse's income in determining the SSI benefit.

When a disabled or blind child under age 18 lives with parent(s), (or a parent and a stepparent), and at least one parent does not receive SSI benefits, we may count some of the parents' income in figuring the child's SSI benefit.

When an alien has a sponsor, with certain exceptions, we count some or all of the sponsor's income in figuring the SSI benefit.

WHEN DOES DEEMED INCOME NOT APPLY?

When you no longer live with a spouse or parent.

When a disabled or blind child attains age 18.

When an alien's sponsorship ends.