How Earnings Affect Your SSI Payments

The amount of your SSI payments is based on how much other income you have. When your other income goes up, your SSI payments usually go down. So when you earn more than the SSI limit, your payments will stop for those months. But, your payments will automatically start again for any month your income drops to less than the SSI limits. Just tell Social Security if your earnings are reduced, or if you stop working.

If your only income besides SSI is the money you make from your job, then Social Security does not count the first $85 of your monthly earnings. Social Security deducts from your SSI payments 50 cents of every dollar you earn after the $85 deduction. (The $85 deduction is made up of a $20 per month general income exclusion, which is first applied to any unearned income, and a $65 per month earned income exclusion).

Example: You work and earn $1,000 in a month. You receive no other income besides your earnings and your SSI.

$1,000 - $85 = $915

$915 ÷ 2 = $457.50

Social Security would deduct $457.50 from the maximum SSI ­payment that you may receive as an individual, which is $674 in 2010. You would therefore receive an SSI payment of $216.50 for the relevant month.

By working, you would have gross income of $1,216.50 ($1,000 of gross earnings plus SSI of $216.50). If you do not work, you would just have an SSI payment of $674.

This information was taken from the SSA Publication, “Working While Disabled—How We Can Help.” The earnings rules are different for SSDI benefits.

NOTE: It is important to keep in mind that certain "Work Incentives" may be available to help lower one's countable earnings that are used for the above SSI calculation. This results in an increase cash payment to the beneficiary. To explore all available "Work Incentives" that may be available, please contact your area CWIC.

Any questions may be directed to: rsi5@srt.com