The Supplemental Security Income program provides monthly financial payments to qualifying individuals whose disabilities prevent them from working. However, the SSI program has strict financial eligibility requirements, including limits on the amount of monthly income that an applicant can earn. Furthermore, an SSI recipient’s monthly income will affect the value of the benefits they receive. Consequently, what SSI counts as income will affect an applicant’s eligibility for benefits and how much they might receive.
Earned Income: What Counts in Indiana
Countable income includes most kinds of earned income, including wages, self-employment earnings, commissions, farming income, and “gig” work. However, Social Security regulations provide exemptions for the first $20 of income and the first $65 of earnings, as well as one-half of earnings over $65 received in a month.
Unearned Income: Common Sources Counted by the SSA
The Social Security Administration also counts other kinds of unearned income, such as:
- Social Security retirement or disability benefits (e.g., SSDI)
- State unemployment benefits
- Workers’ compensation benefits
- VA disability benefits
- Pension benefits
- Child support payments
- Alimony payments
- Interest and dividends on savings and investments
In-Kind Support and Maintenance in Indiana
The Social Security Administration also considers the “in-kind support and maintenance” that an applicant receives when calculating their countable income. In-kind support and maintenance (ISM) constitutes unearned income in the form of food or shelter received from others. SSI applicants must provide the SSA with detailed information about their household, including:
- The number of people in the household
- The overall household expenses
- How they and their fellow household members divide expenses
- What help they receive from others outside the household
For example, an SSI applicant may have ISM added to their countable income if they live with family members rent-free or if relatives or friends regularly deliver groceries to them without reimbursement. The SSA uses two methods for calculating the value of ISM:
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The value of the one-third reduction rule for recipients who live in another person’s household and receive food and shelter from within the household
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The presumed maximum value rule for SSI recipients who reside in another’s household but receive support from outside the household or recipients who live in their own household and receive support from within and outside the household.
Income That Does Not Count Toward SSI Limits
Many particular forms of earnings do not count toward your income limit for SSI eligibility, including:
- State, tribal, or local SSI supplement payments
- Supplemental Nutrition Assistance Program (SNAP) benefits
- Section 8 housing vouchers
- Rent rebates
- Property tax refunds
- Income tax refunds
- Temporary Assistance for Needy Families (TANF) benefits
- Home energy assistance payments
- Small cash gifts received irregularly or infrequently
- Grants, scholarships, fellowships, or gifts used for tuition and educational expenses
- Need-based food or shelter provided by nonprofit agencies
- Cash or assets from loans that you have to repay
- Money that someone else spends to pay for your costs other than food or shelter
- Income set aside under a Plan to Achieve Self-Support
- Disaster assistance
- Up to $2,000 per year for participating in specific clinical trials
- Refundable federal and advanced tax credits
- Certain tribal trust fund payments paid to members of federally recognized Native American tribes
Special Situations That May Affect Countable Income
Various other situations may also affect how the Social Security Administration calculates an SSI applicant’s or recipient’s countable income, such as:
- Shared housing arrangements in which the applicant or recipient does not contribute their “fair share” to housing or food expenses
- Kinship caregivers who receive state or federal benefits, some of which qualify as countable income
- Applicants or recipients who perform temporary or seasonal work, which can cause income and, therefore, SSI benefits to fluctuate
Contact an SSI Lawyer Today
If you’re a Vanderburgh County resident whose disability prevents you from working, you might qualify for financial benefits from the Supplemental Security Income program. Contact Wambach Disability Law today for a free, no-obligation consultation with an SSI lawyer in Evansville about starting your claim.