Resource Center

SSI (Supplemental Security Income) Employment Supports

by Kim Donahue, Disaboom

Earned Income Exclusion
The Earned Income Exclusion helps you because the SSA (Social Security Administration) does not count most of your earned income when it figures your SSI (Supplemental Security Income) payment amount. The SSA does not count the first $65 of your earnings in a month plus one-half of the remainder. This means that it counts less than one-half of your earnings when it figures your SSI payment amount. The SSA applies this exclusion in addition to the $20 general income exclusion (an exclusion that is first applied to any unearned income that you may receive).

Student Earned Exclusion
Under the Student Earned Exclusion, if you are under age 22 and regularly attending school, the SSA does not count up to $1,510 of earned income per month when it figures your SSI payment amount. The maximum yearly exclusion is $6,100. These amounts are for the year 2007; they are adjusted each year based on the cost-of-living.

NOTE: Prior to 4/01/05, you also must have been unmarried and not head of your household in order to use the student earned income exclusion.

What is the definition of “regularly attending school?” “Regularly attending school” means that you take one or more courses of study and attend classes:

In a college or university for at least 8 hours a week; or
In grades 7-12 for at least 12 hours a week; or
In a training course to prepare for employment for at least 12 hours a week (15 hours a week if the course involves shop practice); or
For less time than indicated above for reasons beyond the student’s control, such as illness.

If you are home taught, you may be considered “regularly attending school” if:

You are instructed in grades 7-12 for at least 12 hours a week; and
The instruction is in accordance with a home school law of the state or other jurisdiction in which you reside.

If you are home taught because of a disability, you may be considered “regularly attending school” by:

Studying a course or courses given by a school (grades 7-12), college, university or government agency; and
Having a home visitor or tutor who directs the study.

How does it work? The SSA applies the student earned income exclusion before the general income exclusion or the earned income exclusion.

Plan to Achieve Self-Support (PASS)
A plan to achieve self-support (PASS) allows you to set aside income and/or resources for a specified time for a work goal.

For example, you could set aside money to pay expenses for education, vocational training, or starting a business as long as the expenses are related to achieving your work goal.

The SSA does not count the income that you set aside under your PASS when it figures your SSI payment amount. It does not count the resources that you set aside under your PASS when determining your initial and continuing eligibility for SSI.

A PASS can help you establish or maintain SSI eligibility and can increase your SSI payment amount. A PASS does not affect any SGA determination for your initial eligibility decision.

If you receive SSI or could qualify for SSI, you can have a plan. For example, if you have too much income to be eligible for SSI now, using the income to pay PASS expenses may make you eligible for SSI. You may not need a plan now, but you may need one next month or next year to remain eligible or to increase your SSI payment amount.

For more information about PASS, click here.

Property Essential for Self-Support
With the “Property Essential for Self Support” benefit, the SSA does not count some resources that are essential to your means of self-support when it decides your initial and continuing eligibility for SSI.

The SSA does not count your property if you use it in a trade or business (for example, inventory) or use it for work as an employee (for example, tools or equipment), regardless of the value or rate of return. Other use of the items does not matter.

The SSA does count up to $6,000 of equity value of non-business property that you use to produce goods or services essential to daily activities, regardless of the rate of return. An example is land used to produce vegetables or livestock solely for consumption by your household.

In addition, the SSA does not count up to $6,000 of equity value of non-business income-producing property if the property yields an annual rate of return of at least 6 percent. An example is a rental property.

However, the SSA does not consider liquid resources, for example, stocks, bonds, or notes as property essential to self-support, unless you use them as part of a trade or business.

Special SSI Payments for Individuals Who Work – Section 1619(a)
You can receive SSI cash payments even when your earned income (gross wages and/or net earnings from self-employment) is at the SGA level. This provision eliminates the need for the trial work period or extended period of eligibility under SSI.

NOTE: If you are blind, this does not apply to you because current law doesn’t apply the SGA requirement to individuals who are blind.

To qualify, you must:

Have been eligible for an SSI payment for at least 1 month before you begin working at the SGA level;
Still be disabled; and
Meet all other eligibility rules, including the income and resources tests.

How does it work? Your eligibility for SSI will continue for as long as you meet the basic eligibility requirements and the income and resources tests. The SSA will continue to figure your SSI payment amount in the same way as before. If your state provides Medicaid to individuals on SSI, you will continue to be eligible for Medicaid.

You do not need to file a special application. Just keep us up to date on your work activity.

Medicaid While Working – Section 1619(b)
This program stipulates that your Medicaid coverage can continue, even if your earnings alone or in combination with your other income become too high for an SSI cash payment.

To qualify, you must:

Have been eligible for an SSI cash payment for at least 1 month;
Still be disabled;
Still meet all other eligibility rules, including the resources test;
Need Medicaid in order to work; and
Have gross earned income that is insufficient to replace SSI, Medicaid, and any publicly funded attendant care (see the “threshold amount” discussion below).

What is the “threshold amount?” The “threshold amount” is the measure that the SSA uses to decide whether your earnings are high enough to replace your SSI and Medicaid benefits.

Your threshold amount is based on:

The amount of earnings that would cause your SSI cash payments to stop in your state; and
The annual per capita Medicaid expenditure for your state.

If your gross earnings are higher than the threshold amount for your state (see chart below), you may still be eligible if you have:

Impairment-related work expenses;
Blind work expenses;
A plan to achieve self-support;
Publicly funded attendant or personal care; or
Medical expenses above your state’s per capita amount (check with your local WIPA office for your state’s amounts).

Note: California, Iowa, Massachusetts, Nevada, and Oregon have separate threshold amounts for blind individuals; be sure to check for both if you live in any of these states.

Also, these states use eligibility rules for Medicaid that are different from the SSA’s SSI eligibility rules:

Connecticut	Indiana	New Hampshire	Oklahoma
Hawaii	Minnesota	North Dakota	Virginia
Illinois	Missouri	Ohio

If you live in one of these States, you will continue to be eligible for Medicaid under section 1619(a) or (b) if you were eligible for Medicaid in the month before you became eligible for section 1619.

Special Benefits for Individuals Eligible under Section 16719(a) or (b) Who Enter a Medical Treatment Facility
If you are eligible under section 1619, you can receive an SSI cash benefit for up to 2 months while in a Medicaid facility or a public medical or psychiatric facility.

What happens if you enter a public medical or psychiatric facility? Usually, if you are in a public medical or psychiatric facility, you are not eligible to receive an SSI payment. However, if you enter a public medical or psychiatric facility while you are eligible under section 1619, your SSI cash benefits can continue for up to 2 months. For this provision to apply, the facility must enter an agreement with the SSA that will allow you to keep all of the SSI payment.

Reinstating Eligibility without a New Application
If you have been ineligible for an SSI payment due to your work, you may be able to restart your SSI cash payment again at any time without a new application. If you have been ineligible for SSI and/or Medicaid for any reason other than medical recovery or work, you may be able to restart your SSI cash payment and/or Medicaid coverage within 12 months without a new application. When your situation changes, contact the SSA and ask about how you can restart your SSI benefits and/or Medicaid. If your cash payment and Medicaid benefits ended because of your work and earnings, and you stop work within 5 years of when your benefits ceased, the SSA may be able to start your benefits again.

(The following information is based on The Red Book from the Social Security Administration, as well as insights and information provided by Employment Works/CP of Colorado.)

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