What is SSI and How is Income Defined?

Supplemental Security Income (SSI)  is a federal program administered by the Social Security Administration (SSA) that provides monthly payments to people who have low income and few resources. Unlike Social Security Disability (SSD), SSI is not based on your work history but on your financial need.

When determining your SSI eligibility, the SSA looks at both your income and your resources. Here’s how each is defined:

• Income: This includes money you earn from work, money you receive from other sources like gifts or pensions, and in-kind support (such as someone providing you with food or housing).
• Resources: Resources are things like savings accounts, property, and other valuable items that could be used to support you financially.
  
  

Income Limits for SSI in 2025

In 2025, the SSI income limit is based on the Federal Benefit Rate (FBR), which is the maximum amount of money you can receive from the program. Your income will determine how much, if any, you receive in SSI benefits.

Income Limit for an Individual:

• The individual income limit is $1,913 per month for earned income (income from work).
• For unearned income (like pensions, Social Security, or gifts), the limit is $1,913 per month as well.

Income Limit for a Couple:

• For couples applying together, the combined income limit is $2,913 per month.

How Does SSI Calculate Your Income?

While there are income limits, the SSA does not count all income in its calculations. For example:

• Earned Income: The SSA will subtract the first $65 of your monthly earnings and half of your remaining earned income.
• Unearned Income: The SSA will subtract $20 from any unearned income, such as pensions or Social Security benefits.

So, even if you earn more than the income limit, you may still qualify for SSI if the SSA excludes certain portions of your income in their calculation.

What Counts as Income for SSI?

The SSA considers several types of income when determining your eligibility for SSI. Here’s a breakdown:

1. Earned Income

• Money you earn from working, including wages or self-employment earnings, is considered earned income.
• If you work and earn more than the SSI limit, your benefits may be reduced, but not necessarily eliminated.

2. Unearned Income

• Unearned income includes things like Social Security benefits, pensions, unemployment, child support, or other non-work-related financial assistance.

3. In-Kind Income

• In-kind income refers to help you receive that provides food, shelter, or other necessities.
• If someone helps pay for your housing or food, the value of this assistance is considered income by the SSA and may reduce your SSI benefits.

4. Deemed Income

If you live with a spouse or someone else who provides financial support, the SSA may count some of their income as your own. This is called deemed income.

What Doesn’t Count as Income for SSI?

There are certain types of income that the SSA does not count when determining your eligibility:

• First $20 of any income (earned or unearned) is excluded.
• Food stamps (SNAP), Medicaid, and certain government assistance are not counted.
• Loans (as long as they are expected to be paid back).
• Income used for medical expenses (like a settlement for a personal injury).

What Happens If My Income Exceeds the SSI Limit?

If your income exceeds the SSI income limit, it does not automatically mean you are disqualified. The SSA will reduce your benefit amount based on the income you have, but you may still be eligible to receive some benefits, depending on the size of your income.

For example, if you earn $1,000 a month, the SSA will subtract the first $65, leaving $935, and then half of that amount. So, your countable income might be only $467.50, which could still allow you to receive partial SSI benefits.