Exceptions to SSI income and resource limits (2024)

FAQs

What are the resource exclusions for SSI? ›

Resource limit exceptions

Generally, things that don't count toward your resource limit include: Your home and the land it's on, as long as you live there. 1 vehicle per household. Most personal belongings and household goods.

For example, if someone pays an individual's medical bills, or offers free medical care, or if the individual receives money from a social services agency that is a repayment of an amount he/she previously spent, that value is not considered income to the individual.

WHAT IS THE RESOURCE LIMIT? The limit for countable resources is $2,000 for an individual and $3,000 for a couple.

SSI is generally for individuals who don't earn more than $1,971 from work each month.

Nontaxable income won't be taxed, whether or not you enter it on your tax return. The following items are deemed nontaxable by the IRS: Inheritances, gifts and bequests. Cash rebates on items you purchase from a retailer, manufacturer or dealer.

The income exclusion rule sets aside certain types of income as non-taxable. There are many types of income that qualify under this rule, such as life insurance death benefit proceeds, child support, welfare, and municipal bond income. 1 Income that is excluded is not reported anywhere on Form 1040.

For the earnings limits, we don't count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains.

In general, the Social Security Administration (SSA) considers countable income to be items that you receive during a calendar month that can be used as, or to obtain, food or shelter.

Start with your total gross earned income (earnings before taxes are deducted). Subtract anything left over from that $20 general exclusion. Then subtract another $65, the earned income exclusion. Subtract any Impairment Related Work Expenses (more about these on the SSI and Work page).

You Aren't Disabled, or Old Enough

To qualify for benefits, you need to be 65 years of age or older, totally or partially blind, or have a medical condition that stops you from working and will last at least 12 months or result in death. If you do not meet these requirements, you will be disqualified.

What is the 1/3 rule for SSI? ›

We may reduce your Supplemental Security Income (SSI) payment by one-third if you live in another person's household throughout a month and you do not pay for the food and shelter you get from the household.

For individuals seeking Supplemental Security Income (SSI) benefits, it is important to know that these accounts are treated as an asset, which can result in ineligibility for SSI. 401(k) plans are counted as a resource under the federal rules.

Current beneficiaries who exceed the limits are suspended and then terminated from program participation if their savings remain above the limits, and they must repay any benefits paid while they are over the limit. SSI beneficiaries are limited to only $2,000 in assets of any kind.

The earned income exclusions reduce the amount of your countable wages and make it easier to qualify for SSI if you're working. The exclusions explain the discrepancy between the SSI countable income limit ($943 per month) and the maximum amount you can earn and still qualify for SSI ($1,971 per month).

SSI considers “income” anything a person receives that can be used for food or shelter. Income includes but isn't limited to cash, checks, and “gift” items received, such as food and shelter. SSI divides income into 2 categories — earned and unearned.

SSI beneficiaries may have no more than $2,000 in assets for individuals and $3,000 for couples, with certain exceptions.

The types of earnings (or compensation payments) that are excluded from Social Security wages include: Tips (if they total less than $20 per month) Reimbursed business travel expenses. Employer-paid health or accident insurance premiums.

An individual can spend their SSI monthly benefit in any way they see fit. But remember to spend this money wisely. It's best to spend your SSI monthly benefit on basic necessities and paying off bills. If there is money left over, you may spend your monthly benefit on any other entertainment or activity of leisure.

How can inheritance affect SSI eligibility? SSI benefits have extremely strict limits on the amount of assets, or countable resources , you can have. The countable resource limit is $2,000 per individual or $3,000 per couple.