:max_bytes(150000):strip_icc()/GettyImages-483787493-164ef6627560471f99497920d3769614.jpg)
Sam Becker is a freelance writer and the founder of Xyston, a boutique editorial services firm. His writing and coverage have appeared in and on CNBC, Fortune, Curbed, Business Insider, and more.
Updated August 19, 2024 Fact checked by Fact checked by Suzanne KvilhaugSuzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands.
Part of the Series Financial Planning for Families with DisabilitiesSupplemental Security Income
Special Needs Trust
Other Sources of Income
Healthcare and Long Term Care
If you’re a beneficiary of Supplemental Security Income (SSI) and you also have a job or other income stream, it's possible that what you earn could affect the SSI benefits that you receive.
If you earn too much money or have too much in assets, you could see your SSI benefits reduced or even revoked altogether. There are ways to work around the asset and income limits, however, through the use of ABLE accounts. Read on to learn about these and other SSI facts.
People who receive SSI benefits are generally older or have a disability that prevents them from working. Beneficiaries receive funds from the government to help them pay for their basic living expenses, such as food, clothing, and shelter.
“It’s a needs-based system,” says Mary Anne Ehlert, a certified financial planner and founder of Protected Tomorrows, a financial planning firm focused on helping families with members who have special needs.
“SSI benefits are for someone who doesn’t have income, hasn’t paid into the system (which differentiates SSI from Social Security benefits), and who needs help."
The program is income- and asset-based. “You need to prove you can’t make money and have no assets," Ehlert says.
There is both an income limit and an asset limit that beneficiaries cannot breach to get or retain their SSI benefits.
SSI earned income data for 2024 shows that an individual beneficiary cannot earn more than $1,971 per month. For couples, that figure is $2,915 per month. In addition, the limit on assets in 2024 is $2,000 for individuals and $3,000 for couples.
“SSI beneficiaries technically cannot be gainfully employed,” says Cynthia Haddad, co-founder of Special Needs Financial Planning, a specialty practice of Sequoia Financial Group.
Haddad says that beneficiaries also must prove that “approval is based on your ability to work,” and that the Social Security Administration (SSA) will look at whether or not you’re able to work in addition to whether a beneficiary qualifies for SSI based on their income and assets.
SSI income limits change every year with cost-of-living adjustments (COLA). In 2024, SSI and Social Security benefits increased by 3.2%, affecting approximately 7.5 million SSI beneficiaries
In 2024, individuals can receive a maximum monthly federal SSI payment of $943. Couples can receive $1,415. These figures increased from $914 and $1,371, respectively, in 2023.
As mentioned, the 2024 earned income limit for an individual is $1,971 and $2,915 for a couple. Those numbers change annually, too.
Given that SSI benefits are meant for those who can’t work due to a disability, Ehlert says that “if you can make more than [the income limit], the SSA takes that as a signal that you’re not disabled.”
As for the asset limit, there are some notable exceptions to what’s included in the SSA “countable resources”—commonly known as assets. (And again, total countable resources cannot amount to more than $2,000 for an individual or $3,000 for a couple in 2024.)
That includes cash in bank accounts, investments, and even life insurance policies. However, it doesn’t include the following:
The SSA will calculate a beneficiary’s countable income when determining eligibility for, or potential changes to, SSI benefits. What happens if you’re over the limit? There are many factors to consider, such as whether your income was earned or not, and if your state supplements your SSI benefits.
Generally speaking, your benefits will be gradually reduced, and eventually terminated, if your income breaches the limits, according to Ehlert.
After $85 in monthly income ($65 in earnings, and $20 of any type of income), the SSA will reduce benefits by one-half of earnings for the month.
“For beneficiaries, the first $85 in monthly income is free in the eyes of the SSA,” Ehlert says, “but after that, half is taken away from their SSI check.” Benefits will likely be terminated if a beneficiary’s income exceeds $1,971 per month in 2024.
Not all of your income counts toward the SSI limit. For instance, when the SSA determines your eligibility, it does not count the first $65 earned from working, and one-half of earnings over that amount earned in a given month. You should contact the SSA to learn more, but there are other stipulations to the income limit that beneficiaries should understand.
Both Haddad and Ehlert point to ABLE accounts as a potential way for beneficiaries to work around the income and asset limits for SSI benefits. ABLE accounts were created under the same part of the tax code as 529 plans.
Beneficiaries who find themselves with extra funds—which may put them over either the asset or income limit—can stash those funds in an ABLE account where they won’t be counted until the account contains more than $100,000.
“ABLE accounts are very similar to 529 plans, and [in 2024] up to $18,000 per year can go into those accounts,” says Ehlert. “And family members and friends can also make contributions.”
An individual may have a special needs trust (also called a supplemental needs trust), which is designed to hold assets for a disabled person while preserving their eligibility for government benefits, like SSI payments.
These trusts help cover expenses beyond what SSI or other government benefits may provide. However, the assets contained in them don’t count toward an income or asset limit as long as the money is spent on qualifying expenses.
Special needs trusts have some characteristics in common with ABLE accounts, but a key difference is that they’re designed to complement or supplement government benefit programs.
Like ABLE accounts, distributions should benefit the beneficiary and cover items or services that SSI benefits do not provide.
If you want to get benefits for a disabled child, the same eligibility rules (income and asset limits) apply to the child’s parents, up until the child turns 18. “At 18, if the child has a disability, they become eligible on their own,” Haddad says. The child will then need to go through a process of proving that they are unable to work (a process that can take many months) and thus need SSI benefits to cover their living expenses.
Most states supplement federal SSI payments. The only states that do not are Arizona, Arkansas, Mississippi, North Dakota, Tennessee, and West Virginia, along with the Northern Mariana Islands. Some states pay and administer their own supplement payments as well. Beneficiaries will need to contact their states to get more information regarding the size and scope of their SSI supplemental payments.
The income that SSI is based on is divided into two categories: earned and unearned. Earned income is wages, net earnings from self-employment, royalties, and honoraria, and money from sheltered workshops. Unearned income includes Social Security benefits, workers' compensation, veterans' compensation or pension, unemployment, pensions, support and maintenance in kind, annuities, rent, and more.
There are income and asset limits for beneficiaries of SSI. If you meet or exceed either of these limits, your SSI payments will be reduced by the SSA and potentially terminated.
In 2024, the income limit for an individual is $1,971. The limit for a couple is $2,915. The 2024 asset limits for individuals and couples are $2,000 and $3,000, respectively.
However, beneficiaries can use ABLE accounts as a potential workaround for limits (if their ABLE account contains less than $100,000).
Article SourcesThe offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Description Part of the Series Financial Planning for Families with DisabilitiesSupplemental Security Income
Special Needs Trust
Other Sources of Income
Healthcare and Long Term Care
:max_bytes(150000):strip_icc()/Childwithdisabilitymaskot-56c9287f5f9b5879cc45c0e0.jpg)
:max_bytes(150000):strip_icc()/GettyImages-1022202372-ecac91e25e3141ac81da49e7f7f9f229.jpg)
:max_bytes(150000):strip_icc()/__opt__aboutcom__coeus__resources__content_migration__brides__public__brides-services__production__2016__11__14__5829c060e86107243de86457_07-Rosecliff-Mansion-Newport-Rhose-Island-Wedding-Christian-Oth-Studio-12fefc85d44748da90917ff5c00c39af.JPG)
:max_bytes(150000):strip_icc()/Mediation-56a260535f9b58b7d0c975bb.jpg)
:max_bytes(150000):strip_icc()/affectionate--happy-senior-bride-and-groom-hugging-at-wedding-cake-in-sunny-rural-garden-1015137798-5c40370dc9e77c0001f1e642.jpg)
:max_bytes(150000):strip_icc()/GettyImages-1277773748-d7b9b93136034b06be9c4306510a32d1.jpg)
A representative payee bank account holds the funds paid to Social Security and SSI beneficiaries. A representative payee manages the funds on a beneficiary's behalf.
Getting a marriage annulled can render it void, but the process for obtaining an annulment can be more complicated than divorce.
Joint property is any property that's legally held in the name of two or more parties. This can be accomplished in a few ways but it's not without risk.
The marriage penalty is an increased tax burden for married couples compared to filing their tax returns as singles. It's more likely to hit spouses with similar incomes.
The Social Security tax, levied on both employers and employees, funds Social Security and is collected in the form of a payroll tax or a self-employment tax.
A Social Security number (SSN) is a numerical identifier assigned to U.S. citizens and some residents to track their income and determine benefits.
We and our 100 partners store and/or access information on a device, such as unique IDs in cookies to process personal data. You may accept or manage your choices by clicking below, including your right to object where legitimate interest is used, or at any time in the privacy policy page. These choices will be signaled to our partners and will not affect browsing data.
Store and/or access information on a device. Use limited data to select advertising. Create profiles for personalised advertising. Use profiles to select personalised advertising. Create profiles to personalise content. Use profiles to select personalised content. Measure advertising performance. Measure content performance. Understand audiences through statistics or combinations of data from different sources. Develop and improve services. Use limited data to select content. List of Partners (vendors)
