Supplemental Security Income, Eligibility, Rules, and Application

Supplemental Security Income SSI

What Supplemental Security Income

Supplemental Security Income (SSI) of 1972 is a federal income supplementation program (funded by federal tax revenues) that provides regular monthly cash assistance to vulnerable people (adults and children with little income and resources and meet specific financial criteria i.e. have little to no income).

These vulnerable people include;

• The elderly(over 65’s who meet financial qualifications),
• People with blindness, and
• The disabled (suffering a medical condition that makes them unable to work for more than 12 months or results in death.).

This assistance goes towards meeting their basic needs like shelter and food. They may also be eligible for SSI even if they are still receiving Social Security Disability Insurance or Social Security Retirement Benefits.

The Social Security Administration (SSA) administers the SSI.

Eligibility for Supplemental Security Income

Qualification is based on;

Income and resources limit

• The Federal Benefit Rate (FBR)

FBR sets the SSI income limits and the maximum monthly SSI payment. For eligibility, an individual or a couple cannot exceed the limits set by FBR.

• Asset base

For the year 2022, only individuals with assets of $2,000 or less (or couples with $3,000 or less) qualify for SSI. These asset limits are exclusive of the individual’s home and adjacent land, household effects, Life insurance policies with a face value of $1,500 or less, burial plots, and one automobile.

• Countable Income

A person’s countable income should not exceed the maximum FBR of $841 for an individual and $1,261 for couples to receive SSI. The FBR is adjusted for early Social Security cost-of-living adjustment. Individuals are allowed to claim an additional $421 per month for an “essential person” towards the stipend of those essential for the provision of basic care.

• Earned and unearned income

The first $20 per month of unearned income is exempted or disregarded (Standard disregard) when determining eligibility. This includes Social Security benefits, pensions, interest, and child support. Similarly, SSA disregards (Earned Income Disregard) the first $65 of an individual’s earned income over a month when determining eligibility. But, each dollar of earnings above this level typically reduces SSI benefits by half (the average SSI monthly benefit was lowered to $625 in April 2022).

A larger portion of earned income is never counted. Technically, a person must earn more than $1,767 a month ($2,607 for a couple) to be ineligible for SSI.

• Support ‘‘in kind’’

SSA considers any support ‘‘in kind’’ or full Medicaid as income. Other disregarded income includes SNAP benefits (food stamps), Shelter provided by private nonprofit organizations, most home energy assistance, student wages or scholarships, and wages used by individuals with a qualifying disability to buy work-related expenses e.g. wheelchairs, etc.

This is generally valued at (and therefore reduces SSI payments) one-third of the maximum federal benefit amount.

Any state’s supplement to an individual’s federal SSI payments goes to increase both their allowed income level for eligibility and the amount of the monthly SSI payment.

• Spouses Income

SSA may consider a portion of the income from an individual’s ineligible spouse or parent/step-parent (for child applicants) as countable income.

Other rules to meet

Immigrations status

• Only U.S. citizens or nationals are eligible for SSI and certain non-U.S. citizens who are lawfully residing in the United States.
• An individual needs to be a resident of one of the 50 states, the District of Columbia, or the Northern Mariana Islands.
• The only exemption to this rule applies to children with a qualifying disability of military parents on permanent duty outside the U.S. and certain students temporarily abroad.
• Individuals are not eligible for SSI payments for any period (more than 30 consecutive days) they were absent from the United States.
• SSI benefits are not available to residents of Puerto Rico, the U.S. Virgin Islands, American Samoa, and Guam.

Age

• Individuals aged 65 and older can qualify for SSI based on their age.
• In special cases, children below 18 years may be considered disabled for SSI eligibility. For this to happen, it must be medically proven that the disability results in severe functional limitations for at least 12 months and may lead to death.

Disability

A nonelderly adult qualifies as disabled for purposes if;

• They cannot engage in any “substantial gainful level” income-generating activity.
• It’s medically proven that they have a “severe” impairment,” that will last for at least 12 months or result in death.
• The individual meets SSA’s strict rules that define whether the medical impairment meets the definition of disability.
• SSA considers their inability to return to their past work or to do any work.

Please note;

Special rules are applicable to Blind or individuals with a qualifying disability, and who are in employment. Any increase in their employment income may reduce or stop SSI payments. They may be able to keep Medicaid coverage.

Savings for work goal or for school does not affect the amount of SSI.

Application for Supplemental Security Income

Online Applications

It’s a pretty straightforward process. A large part of the application can be completed online at SSA’s website (www.ssa.gov/benefits/ssi ).

You can also start an application by leaving some basic information on SSI’’s online tool (www.ssa.gov/benefits/ssi/start.html ). No documentation is required at this point as you are only showing SSA that you are interested in SSI. This process takes 5-10 minutes. We will need information about you, and if applicable, the person you are assisting.

Personal Information (for the applicant or the person offering assistance) needed includes:

• Biodata which includes your Name, Date of birth, and Social Security number.
• Contact details which include Mailing address, Phone number, and Email address (optional).

After completing the process, the SSA representative will schedule an appointment (usually between -14 days from the date of expressing interest) via mail or email to help in applying for the benefits.

In some cases, an SSA representative will put through a phone call to schedule the appointment.

Phone Applications

Call SSA via 1-800-772-1213 (TTY 1-800-325-0778 if deaf or have challenges in hearing) to book an appointment with your local SSA office for filing the application.

Documentations required

It’s advisable to have this item when making the application. Even if you don’t have all of the things listed below, apply anyway. Our representatives can help you get whatever is needed. Please bring:

• Identification (including your Social Security card or a record of your Social Security number).
• Proof of age (birth certificate).
• Information regarding your home (mortgage status or lease and landlord’s name).
• Proof of income (Payroll slips, bank books, insurance policies, burial fund records, etc.).
• Doctor/Hospital or Clinic contacts (Their names, addresses, and telephone numbers). This is applicable to blind or disabled applicants.
• Residency status (Proof of U.S. citizenship or eligible noncitizen status).
• Proof of bank account (checkbook stubs, bank statements, credit union, or savings and loan account number.

If approved for SSI, payments will be processed electronically. If denied and you disagree with the decision, you can appeal it.

How much Social Security Income is taxable

The IRS makes a clear distinction between Social Security retirement benefits and SSI payments.

The distinction can sometimes be a little confusing for individuals above 65 who are collecting both the SSI and Social Security retirement benefits.

• SSI payments are considered government assistance hence not considered earned income for Earned Income Credit (EIC) purposes. There is no obligation to report to IRA or pay taxes. However, a full report of all incomes must be made to the SSA.
• Social Security retirement benefits may be taxable depending on your other sources of income. That other income (including tax-exempt interest) plus 50% of your Social Security benefit determines the filing eligibility.

It’s taxable if the total of one-half of your benefits, plus all of your other income, is greater than the base amount for your filing status. Please file a return if your base:

1. Is greater than $25,000 and you are a single filer, head of household, or qualifying widow(er),
2. Is more than $25,000 for married filing separately and living apart from your spouse for the entire year
3. Greater than $32,000 for those married filing jointly
4. And $0 if you’re married filing separately and lived together for some time during the tax year

• Social Security disability benefits do follow the same rules as Social Security retirement benefits if the benefits meet the above-stated thresholds.

Bottom line

• Individuals enrolled in SSI will be subject to timely “continuing disability reviews” after the initial eligibility determination to see if the enrollees’ medical condition is showing improvement.
• SSA also does reviews to determine an individual’s ability to return to work, or if they had their wages increased, or completed their vocational rehabilitation training.
• Children turning 18 may also have their eligibility reviewed using the adult disability determination rules.
• Most states supplement the SSI benefits with additional payments to Nonelderly SSI beneficiaries. Even if they don’t qualify for SSI benefits, most of the time they will automatically be eligible for Medicaid, SNAP assistance, and housing assistance.