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4. Supplemental Security Income

What is the Supplemental Security Income (SSI) program?

Supplemental Security Income (SSI) is a cash assistance program funded and administered by the Federal Government. The program is authorized by Title XVI (Supplemental Security Income for the Aged, Blind, and Disabled) of the Social Security Act.

Beginning in January 1974, SSI replaced the Federal/State matching grant program of adult assistance to the aged, blind, and disabled. Under SSI, there is no minimum age limit for establishing eligibility based on blindness or disability.

Who administers the SSI program?

The Social Security Administration (SSA) administers the SSI Program. Local Social Security offices handle applications.

What is the purpose of SSI?

The basic purpose of SSI is to assure a minimum level of income to people who are aged, blind, or disabled and who have limited income and resources.

What are the basic principles of SSI?

There are several basic principles under the SSI program:

  1. Payments are to be made to aged, blind, and disabled people whose income and resources are below specified amounts. This provides objective, measurable standards for determining your eligibility and the amount of payment;
  2. Title XVI determines:
    1. Your right to SSI benefits;
    2. Your benefit amount; and
    3. The conditions under which you are eligible.
    If you disagree with our decision on your case, you can obtain an administrative review of the decision. If you are still not satisfied, you may take court action.
  3. SSI benefits are paid under conditions that protect your dignity as much as possible. [Note: There is a restriction on expenditures of retroactive benefits paid to children under the age of 18 placed and into a dedicated account.
  4. The eligibility requirements and the Federal income floor are identical everywhere the program operates. This provides assurance of a minimum income that States and the District of Columbia may choose to supplement.
  5. Although some of your earned income is counted against the SSI income limit, benefit amounts are not reduced dollar-for-dollar as the result of income from work. Thus, you are encouraged to work if you can. Blind and disabled recipients, if they are capable, are referred to the appropriate State vocational rehabilitation agencies for services to help them enter the labor market.
Where does the SSI program operate?

The SSI program operates in the 50 States, the District of Columbia, and the Northern Mariana Islands. The program also covers blind or disabled children of military parents stationed abroad and certain students studying outside the U.S. for a period of less than one year.

When are SSI benefits paid?

SSI benefits are not paid in the month that you first apply. After the month of application or the month in which you first become eligible and meet SSA requirements, SSI benefits are normally paid on the first day of the month they are due. For example, benefits for August are paid August 1. It is important to project eligibility and to estimate future income and resources as accurately as possible. We identify and correct errors in payments due to inaccurate estimates when we review your eligibility.

How are SSI benefits financed?

SSI benefits are financed from the general funds of the United States Treasury. They are not paid out of the Social Security or Medicare trust funds. States that supplement the Federal benefits make these payments from State funds.

Can states supplement basic SSI benefits?

States may supplement the basic SSI benefits. In addition, any State may make an agreement with us to administer its supplementation program. We would pay the State supplementary amounts along with the basic SSI benefits. Each month, we charge the State an administration fee for every State supplementary payment issued during that month.

Can SSA make eligibility decisions for the States?

Under Section 1634 of the Social Security Act, some States can contract to have us make Medicaid eligibility decisions. In these States, the SSI application serves as an application for Medicaid.

What roles do the States play in administering Medicaid?

The States are responsible for sending notices and issuing Medicaid cards or coupons based on information given to them by the State data exchange (SDX) system.

What if SSA does not make Medicaid decisions in a certain State?

If we do not make Medicaid eligibility decisions in a certain State, local Social Security offices advise applicants who have questions about Medicaid to visit their local Medicaid office

What are food stamps?

Food stamps are coupons, issued by the States under the Food Stamp Act of 1977, as amended. They are used to assist SSI recipients in the purchase of food and other necessary household items.

How does a SSI applicant/recipient apply for food stamps?

Social Security offices notify you as a SSI applicant/ recipient of the benefits under the food stamp program and make a food stamp application available to you. Social Security offices can also take your food stamp application if:

  1. Your household is potentially eligible for SSI;
  2. You are not receiving food stamps; and
  3. You do not have a pending food stamp application.

Food stamp applications may be taken with initial SSI claims or upon redetermination. You have the choice of applying at a local Social Security office or at a State food stamp office.

How is food stamp eligibility determined?

Food stamp eligibility is based on your household circumstances, not on your individual circumstances. Eligibility for food stamps is determined by the food stamp agency.

For food stamp purposes, a SSI household is a household in which all members are either receiving SSI or have a pending SSI application. Social Security offices forward the food stamp applications and any supporting documents to the local food stamp offices within one day of taking the application.

Do you live in California?

If you are a SSI applicant living in California, you receive a cash payment with your supplementary payment instead of food stamps. States that administer food stamps in this manner are called food stamp “cash-out” States.

What are the categories of eligibility?

In order to be eligible for SSI benefits, you must fit one of the following three categories:

  1. Aged–An “aged” person is someone who is age 65 or older;
  2. Blind–A “blind” person is someone whose vision, with use of a correcting lens, is 20/ 200 or less in the better eye or who has tunnel vision of 20 degrees or less. There is no minimum age limit; OR
  3. Disabled
    1. A “disabled” person age 18 or older is someone who meets the definition of disability for adults in Social Security law. That is, he or she must be unable to engage in substantial gainful activity (SGA) due to a SGA physical or mental impairment which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.
    2. A “disabled” person under the age of 18 is someone who meets the definition of disability for children in Social Security law. That is, he or she must have a SGA physical or mental impairment that results in marked and severe functional limitation(s), and which can be expected to result in death, or has lasted or can be expected to last for a continuous period of not less than 12 months.
Does your income amount determine whether you are eligible for SSI?

Yes. In order to receive SSI benefits, you cannot have monthly countable income more than the current Federal benefit rate (FBR). The FBR for an eligible couple is approximately one and one half as much as that for an individual. These amounts are set by law and are subject to annual increases based on cost-of-living adjustments. As of January 2003, the FBR for an individual is $552 and that for an eligible couple is $829. However, individual States may supplement these amounts.

Does the amount of real or personal property you own determine whether you are eligible for SSI?

Yes. In order to receive SSI benefits, you cannot own countable real or personal property (including cash) in excess of a specified amount at the beginning of each month. For an individual with an eligible or ineligible spouse, the applicable limit is one and one-half times as much as that for an individual without a spouse. These limits are set by law, and they are not subject to regular cost-of-living adjustments. But they are subject to change. The limits for January 2001 are $2,000 for an individual and $3,000 for a couple.

What are other requirements for SSI eligibility?

In addition to the categorical and need criteria described above, you must file an application and meet all of the following eligibility requirements:

  1. Be a resident of one of the 50 States, the District of Columbia, or the Northern Mariana Islands, or be a child who is a U.S. citizen and lives outside the U.S. with a parent in the U.S. armed forces;
  2. Be a citizen of the U.S., or an alien in an immigration category qualified to receive Federal benefits and meet certain additional requirements;
  3. Not be a resident of a public institution throughout a month;
  4. Not be absent from the U.S. for a calendar month unless:
    1. You are a child who is a U.S. citizen and lives outside the U.S. with a parent in the U.S. armed forces; or
    2. You are a student who is temporarily abroad for the purpose of conducting studies;
  5. File for any other benefits for which you are potentially eligible;
  6. Not refuse, without good cause, vocational rehabilitation services if you are blind or disabled;
  7. Accept appropriate treatment, if available, for drug addiction or alcoholism;
  8. Not be a fugitive felon; and
  9. Not be violating a condition of parole or probation.
How is an alien eligible for SSI benefits?

A qualified alien can be eligible for SSI benefits if he or she meets one of the categories listed in “A” through “H” below:

  1. Who is lawfully admitted for permanent residence (LAPR), and:
    1. Has 40 qualifying quarters of creditable work; or
    2. Is a veteran, active duty member of the U.S. military or a spouse or dependant child of a veteran or member of the U.S. military; or
    3. Was lawfully residing in the United States on 8/22/96 and is blind or disabled; or
    4. Is lawfully residing in the United States and was receiving SSI on 8/22/96; or
    5. Was granted one of the alien classifications listed below within the last seven years:
      1. Refugee under section 207 of the INA;
      2. Asylee under section 208 of the INA;
      3. Alien whose deportation is being withheld under section 243(h) of the INA or whose removal has been withheld under section 241(b)(3) of the INA;
      4. Cuban/Haitian entrant under one of the four categories in Section 501(e) of the Refugee Education and Assistance Act of 1980; or
      5. Amerasian immigrants under section 584 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988.
  2. Refugee under section 207 of the INA and:
    1. Is a veteran, active duty member of the U.S. military, or a spouse or dependant child of a veteran or member of the U.S. military; or
    2. Was lawfully residing in the United States on 8/22/96 and is blind or disabled; or
    3. Is lawfully residing in the United States and was receiving SSI on 8/22/96; or
    4. Was granted refugee status under section 207 of the INA within the last seven years.
  3. Granted asylum under section 208 of the INA and:
    1. Is a veteran, active duty member of the U.S. military or a spouse or dependant child of a veteran or member of the U.S. military; or
    2. Was lawfully residing in the United States on 8/22/96 and is blind or disabled; or
    3. Is lawfully residing in the United States and was receiving SSI on 8/22/96; or
    4. Was granted asylum within the last seven years.
  4. Deportation withheld under section 243(h) of the INA or removal withheld under section 241(h)(3) of the INA and:
    1. Is a veteran, active duty member of the U.S. military or a spouse or dependant child of a veteran or member of the U.S. military; or:
    2. Was lawfully residing in the United States on 8/22/96 and is blind or disabled; or
    3. Is lawfully residing in the United States and was receiving SSI on 8/22/96; or
    4. Deportation or removal was withheld within the last seven years.
  5. Conditional entrant under section 203(a)(7) of the INA and:
    1. Is a veteran, active duty member of the U.S. military or a spouse or dependant child of a veteran or member of the U.S. military; or
    2. Was lawfully residing in the United States on 8/22/96 and is blind or disabled; or
    3. Is lawfully residing in the United States and was receiving SSI on 8/22/96.
  6. Paroled into the U.S. for one year or more under section 212(d)(5) of the INA and:
    1. Is a veteran, active duty member of the U.S. military or a spouse or dependant child of a veteran or member of the U. S. military; or
    2. Was lawfully residing in the United States on 8/22/96 and is blind or disabled; or
    3. Is lawfully residing in the United States and was receiving SSI on 8/22/96; or
    4. Was granted Cuban/Haitian entrant status within the last 7 years under 501(e) of the Refugee Education and Assistance Act of 1980.
  7. Cuban/Haitian entrant under Section 501(e) of the Refugee Education and Assistance Act of 1980 and:
    1. Is a veteran, active duty member of the U.S. military or a spouse or dependant child of a veteran or member of the U.S. military; or
    2. Was lawfully residing in the United States on 8/22/96 and is blind or disabled; or
    3. Is lawfully residing in the United States and was receiving SSI on 8/22/96; or
    4. Was granted Cuban/Haitian entrant status within the last seven years.
  8. Battered spouse or child who petitioned for status as a lawfully admitted permanent resident , or suspension of deportation, and:
    1. Is a veteran, active duty member of the U.S. military or a spouse or dependant child of a veteran or member of the U.S. military; or
    2. Was lawfully residing in the United States on 8/22/96 and is blind or disabled; or
    3. Is lawfully residing in the United States and was receiving SSI on 8/22/96.

Certain other aliens who are not qualified aliens may also get SSI. They include:

What other benefits do you need to apply for before you can be eligible for SSI?

SSI is a program of last resort. Therefore, you must file for any other benefits for which you may be eligible. This means benefits such as Social Security benefits, private pensions, etc., which share all of the following characteristics:

  1. Require an application or similar action;
  2. Entail conditions for eligibility;
  3. Provide either periodic or one-time payments; and
  4. Are sources of income that reduce SSI benefits
How do you know of other benefits for which you could be eligible?

We must provide you with written notice of potential eligibility for other benefits and of your requirement to “take all appropriate steps” to pursue these benefits. You have 30 days from receipt of the notice to file for the benefits involved.

Are fugitive felons eligible for SSI?

No. Fugitive felons are not eligible for SSI benefits. You will not receive SSI payments if, during any part of the month, you are fleeing to avoid:

  1. Trial on a criminal charge of felony*;
  2. Jail or prison after conviction of a felony*; or
  3. Custody after conviction of a felony*.

* In New Jersey, a high misdemeanor.

Are probation and parole violators eligible for SSI?

No. Probation and parole violators are not eligible to receive SSI benefits. You may not receive SSI payments for any month during which you are violating a condition of probation or parole imposed under Federal or State law.

Can you qualify for benefits under more than one of the eligibility categories?

It is possible for you to qualify for SSI under more than one of the three eligibility categories of aged, blind, or disabled. For example, you may be both blind and disabled, or you may be over age 65 and blind or disabled.

How are Federal SSI benefits affected if you fit more than one of the eligibility categories?

The Federal SSI benefit rate is the same for all categories. However, because of differences in income/resources exclusions, a blind or disabled individual may receive a higher SSI benefit than an aged person. However, the individual age 65 or older must have an established onset of blindness or disability before the month he or she turned age 65 in order to qualify for the higher exclusions.

How are Federally Administered State Supplementation benefits affected if you fit more than one of the eligibility categories?

States with Federally administered supplementation programs may vary their supplementation amounts by category. For example, if a person was blind before age 65 but was age 65 or older at the time of filing, he or she may choose to receive a higher State supplement based on blindness, if that option is provided. However, such an individual’s Federal SSI payment is based on age 65 and not on blindness.

What are the penalties for fraud?

Penalties for fraud include possible fines and imprisonment.

What actions are considered fraudulent?

Penalties are imposed if a person with intent to defraud:

  1. Willfully and knowingly deceives, misleads, or threatens any claimant, prospective claimant, or beneficiary regarding benefits by word, circular, letter, or advertisement;
  2. Knowingly charges or collects, whether directly or indirectly, any fee more than the maximum fee set by the Commissioner of Social Security;
  3. Makes false statements or misrepresentations in applying for benefits;
  4. Makes false statements or misrepresentations of material facts at any time if for use in determining benefit rights;
  5. Conceals, or fails to reveal, information about events affecting initial or continued right to benefits or the amount of payment; or
  6. Converts payments received on behalf of another to a use other than for the use and benefit of the eligible person.
How does income affect SSI benefits?

The amount of your income determines your eligibility for SSI and the amount of your benefit. Generally, the more income you receive the lower your SSI benefit. If you have too much income, you are not eligible for SSI benefits. However, not everything you get is considered income and not all income counts in determining your eligibility.

In certain situations, other people are expected to share financial responsibility for an individual. In these situations, the income (and resources) of others are considered in determining the individual’s eligibility and payment amount.

How is income defined for SSI purposes?

Income is anything you receive during a calendar month that is used or could be used to meet your needs for food or shelter. It may be in cash or in-kind. In-kind income is not cash; it is food shelter, or something you can use to get food or shelter.

What is NOT income for SSI purposes?

Certain things you receive are not income, even if they have value. Among them are:

  1. Medical care and services, including room and board, provided by anyone while you are living in a medical treatment facility such as a hospital or nursing home;
    >Note: Cash provided by an individual, a non-governmental medical services pro gram, or health insurance is income if it is not reimbursement for, or restricted to the future purchase of, program-approved services.
  2. Social Services;
    Note: Cash provided by an individual or a non-governmental social services program is Income if it is not reimbursement for, or restricted to the future purchase of, program-approved services.
  3. Receipts from the sale, exchange, or replacement of a resource. These receipts are simply resources that have changed their form. This includes any cash or in-kind item provided to replace or repair a resource that has been lost, damaged, or stolen;
  4. Income tax refunds;
  5. Payments by credit life or credit disability insurance;
  6. Proceeds of a loan. This includes money you borrow or receive as repayment of a loan;
  7. Money paid by someone else directly to a supplier on your behalf. However, goods or services you receive as a result of the payments may be income even if the third-party payments themselves are not;
  8. Replacement of income already received, e.g., replacement of a stolen paycheck;
  9. Assistance you receive to protect your residence from bad weather, such as insulation or storm doors; and
  10. Any item (other than an item of food or shelter) that would be an excluded non-liquid resource if you kept it.
What is “countable income”?

Countable income is the amount left over after:

  1. Eliminating from consideration all items that are not income; and
  2. Applying all appropriate exclusions to the items that are income.

Countable income is determined on a calendar month basis. It is the amount actually subtracted from the FBR to determine your eligibility and to compute your monthly benefit amount.

Why is it important to distinguish earned income from unearned income?

It is important to distinguish earned income from unearned income because not as much earned income is countable.

How does SSA count income?

We count income by determining countable income for each calendar month of eligibility. This means looking at income you received (or deemed to have received ) in a given month. We then apply exclusions appropriate to that month’s income.

What happens if countable income is more than the FBR?

If your countable income is more than the FBR, you are not eligible for a Federal benefit. Since SSI payments are made on the first day of a month for that same month, we need to use an estimate of countable income to project your eligibility for that month.

When does SSA review the estimates of countable income?

We review the estimates (and revise them, if necessary) whenever there is a report of change or a redetermination.

What month is used to compute your benefit amount?

If you are eligible for a particular month, we usually compute your SSI benefit amount for the month using your countable income from two months before the current month. This is called retrospective monthly accounting.

When does SSA count your income?

Generally, we count both earned and unearned income in the month of actual or “constructive” receipt, whichever is earlier.

What does “constructive” receipt mean?

“Constructive” receipt means that income is credited to your account or set aside for your use, whether or not you actually receive it in hand. For example, if an individual asks an employer to hold his or her regular July 15 paycheck pending return from vacation on August 3, the wages are income in July. Similarly, a month’s income includes certain amounts withheld at the source. For example, amounts deducted from a payment to satisfy a garnishment or to make certain payments, such as insurance premiums, are considered income in the month the withholding occurs. >

Note: There is an exception. Net earnings from self-employment are determined on an annual basis and allocated equally over all 12 months of the tax year.

What is earned income?

Earned income is:

  1. Wages paid or constructively paid for services you perform as an employee;
  2. Net earnings from self-employment estimated for a current year on the basis of volume of business, past experience, etc.;
  3. Payments for participating in a sheltered workshop or work activities center program;
  4. Sickness or temporary disability payments received within the first six months of stopping work; and
  5. Royalties you earned in connection with any publication of your work and any honoraria received for your services.

Earned income may be paid in cash or in-kind. If it is in-kind, its full current market value is the amount used to determine your countable income.

What are the earned income exclusions?

In figuring countable earned income, certain exclusions are authorized by other Federal laws and by Title XVI of the Social Security Act. Countable earned income can never be less than zero, nor can any earned income exclusion apply to unearned income.

We apply earned income exclusions in the following order:

  1. Exclusions authorized by Federal laws other than Title XVI;
  2. The full amount of any earned income tax credit payments;
  3. Up to $30 per calendar quarter of earned income if received infrequently or irregularly. For example, if the income is received only once during a calendar quarter or if its receipt cannot reasonably be expected (effective 7/1/04);
  4. Up to $1,370 in a month for 2004 (but no more than $5520 per year) for a blind or disabled child who is a student regularly attending school;
  5. Any portion of the $20 per month general income exclusion that is not used against unearned income in the same month;
  6. $65 of earned income;
  7. Impairment-related work expenses of a disabled (not blind) individual who:
    1. Is under age 65; or
    2. Received SSI based on a disability for the month before turning age 65;
  8. One-half of the month’s remaining earned income;
  9. Any expenses reasonably attributable to the earning of income for a blind (not disabled) individual who:
    1. Is under age 65; or
    2. Received SSI because of blindness for the month before turning age 65; and
  10. Any earned income used to fulfill an approved plan for achieving self-support in the case of a blind or disabled individual who:
    1. Is under age 65; or
    2. Received SSI based on blindness or disability for the month before turning age 65

Note: An eligible couple gets the same income exclusions as an eligible individual. However, the benefit rate is higher for an eligible couple.

What is “unearned income”?

“Unearned income” is all income that is not earned. Some common types of unearned income are:

  1. In-kind support and maintenance (food or shelter) given to an individual or received by an individual because someone else paid for it;
  2. Private pensions and annuities;
  3. Periodic public payments such as Social Security benefits, Railroad Retirement benefits, Department of Veterans Affairs pension and compensation payments, civil service annuities, workers’ compensation, unemployment compensation, and payments based on need involving Federal funds;
  4. Life insurance proceeds and other death benefits, to the extent that the total amount is more than the expenses of the deceased person’s last illness and burial paid by the individual;
  5. Gifts and inheritances;
  6. Support and alimony payments in cash or in-kind;
  7. Prizes and awards;
  8. Dividends and interest;
  9. Rents and royalties (except those royalties defined as earned income); and
  10. Certain payments not considered wages for Social Security purposes:
    1. In-kind payments to agricultural and certain domestic workers;
    2. Tips under $20 per month;
    3. Jury fees;
    4. Money paid to individuals who are residents, but not employees, of institutions; and
    5. Military pay and allowances, except basic pay.
What are the unearned income exclusions?

As with earned income, certain unearned income exclusions are authorized by other Federal laws as well as by Title XVI. Countable unearned income can never be less than zero. However, there is one unearned income exclusion that can be applied to earned income (see (M) below). Unearned income exclusions are applied in the following order:

  1. Exclusions authorized by Federal laws other than Title XVI. These include, but are not limited to, exclusion of most benefits provided under the:
    1. Food Stamp Act (value of food coupons);
    2. National School Lunch and Child Nutrition Acts;
    3. Older Americans Act;
    4. National Housing Act (various types of Federal housing assistance);
    5. Agent Orange Product Liability Litigation;
    6. Radiation Exposure Compensation Trust Fund (RECTF);
    7. Japanese-American and Aleutian Restitution Payments; and
    8. Payments to an individual from any source because of his or her status as a victim of Nazi persecution; and
    9. Any earnings an individual contributes to his/her TANF or Demonstration Project Individual Development Accounts, any matching funds, and interest on the earnings and matching funds;
  2. Any public agency’s refund of taxes on real property or food;
  3. Assistance based on need and funded wholly by a State and/or one of its political subdivisions (including Indian tribes). It does not matter whether these payments are made directly to an individual or are paid to someone else on his or her behalf. This exclusion includes all State payments used to supplement SSI;
  4. Any portion of a grant, scholarship, fellowship, or gifts used for paying tuition, fees or other necessary educational expenses (effective 6/1/04). However, any amount set aside or actually used for food or shelter is not excluded;
  5. Food raised by an individual or by his or her spouse if consumed by the household;
  6. Assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided under any Federal statute because of a catastrophe declared by the President to be a major disaster;
  7. Up to $60 per calendar quarter of unearned income if received infrequently or irregularly; i.e., if received only once during a calendar quarter from a single source or if its receipt cannot reasonably be expected;
  8. Payments received by certain recipients under the Alaska Longevity Bonus program;
  9. Payments to an individual for providing foster care to a child placed in the individual’s home by a qualified agency;
  10. Any interest earned on excluded burial funds and any appreciation in the value of an excluded burial arrangement left to accumulate and become part of the separately identifiable burial fund;
  11. Certain home energy and other needs-based support and maintenance assistance;
  12. One-third of support payments made by an absent parent to or for an eligible child;
  13. The first $20 per month of an individual’s total unearned income other than income based on need. Payments are based on need if the recipient’s income is a factor in determining eligibility for the payments. (Any portion of this exclusion that cannot be used up against unearned income is applied against earned income received in the same month);
    Note: A needs-based payment funded solely by any combination of a State and its political subdivisions (including Indian tribes) is called “assistance based on need” and is excluded totally (see (C) above). A needs-based payment funded wholly or partially by a non-governmental organization or by the Federal Government is called “income based on need.” It does not qualify for this $20 general exclusion;
  14. Any unearned income used to fulfill an approved plan for achieving self-support in the case of a blind or disabled individual who:
    1. Is under age 65; or
    2. Received SSI based on blindness or disability for the month he or she turned 65;
  15. Federal housing assistance, whether provided directly by the Federal Government or through other entities such as local housing authorities, nonprofit organizations, etc.;
  16. Any interest accrued on (or after April 1, 1990) and left to accumulate as part of the value of an excluded burial space purchase agreement;
  17. The value of any commercial transportation ticket received as a gift and not converted to cash. This applies to travel among the 50 states, District of Columbia, Puerto Rico, Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands;
  18. Hostile fire/imminent danger pay from the Uniformed Services received in or after October 1993;
  19. Payments received from a State fund to aid victims of crime;
  20. Relocation assistance provided under Title II of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970;
  21. Austrian Social Insurance payments that are based, in whole or in part, on wage credits received for certain losses suffered before and during World War II;
  22. Payments made by the Dutch Government under the Netherlands Act on Benefits for Victims of Persecution 1940-1945 to individuals who were victims of persecution and suffering from illnesses or disabilities resulting from the persecution;
  23. Dividend or interest income earned on countable resources or resources excluded under other Federal laws (effective 7/1/04).

Note: An eligible couple gets the same income exclusions as an eligible individual, although there is a higher benefit rate for a couple.

How do resources affect SSI benefits?

The amount of your resources determines whether you are eligible for any given month. If your countable resources are within the limit for eligibility, they have no effect on the amount of your SSI payment. If you have too many resources, you are not eligible for SSI benefits. However, not everything you own is a resource and not all resources count.

Does somebody else share responsibility for you?

In certain situations, a person is expected to share financial responsibility for another individual. If someone else shares financial responsibility for you, like a spouse or a parent if you are a child, the resources (and income) of that person(s) are also considered in determining your eligibility.

What is considered a resource for SSI purposes?

For SSI purposes, a resource is any of the following owned by you (or your spouse, if any): cash, liquid assets, and real or personal property that can be converted to cash to obtain support and maintenance. If you have the right, authority, or power to liquidate the property, it is considered a resource.

How are resources categorized?

Resources generally are categorized as either “liquid” or “non-liquid.” The difference between the two types of resources is important when determining whether:

  1. A resource can be excluded as non-business property essential to self-support; or
  2. You qualify for conditional payments.
What are “liquid” resources?

Liquid resources are those resources that are:

  1. In the form of cash; or
  2. Convertible to cash within 20 working days.

The most common types of liquid resources are savings and checking accounts, stocks, bonds, mutual funds, promissory notes, certain trusts, and certain types of life insurance.

What are “non-liquid” resources?

Non-liquid resources are all resources that cannot be converted to cash within 20 working days. They include both real and personal property. Examples are household goods and personal effects, automobiles, machinery, livestock, buildings and land.

What is NOT considered a resource?

The term “resource” does not apply to:

  1. Any property right that has a legal restriction preventing its sale or liquidation;
  2. Home energy or support and maintenance assistance;
  3. Restricted allotted land owned by an enrolled member of an Indian tribe if the individual cannot sell, transfer, or otherwise dispose of the land without the permission of others;
  4. Except for cash reimbursement of medical or social services expenses already paid by the individual, cash received for medical or social services that is not income ;
    Note: This exclusion applies only for the calendar month following the month of its receipt. Cash retained until the first moment of the second calendar month following its receipt is a resource at that time.
  5. Retroactive in-home supportive services payments to ineligible spouse and parent, but only for the month following receipt;
  6. Death benefits an individual will use to pay the deceased’s last illness and burial expenses for the first month following the month of receipt. This only applies for one calendar month following receipt; and
  7. Certain gifts of domestic travel tickets if excluded from income and not converted to cash.
Can more than one person own a resource?

Resources may be owned outright by just one person or ownership may be shared by two or more people.

How do you determine what is your resource if you share ownership with another person?

Only that portion of a property that is designated as belonging to you can be considered your resource. If there is more than one owner and the consent of the co-owner(s) is needed for you to liquidate your share, then your share is not a resource if the co-owner(s) do not agree to sell.

If you have a time deposit, checking, or savings account and you have unrestricted access to the funds, you are considered to own the entire amount, even if there is a co-owner on the account. However, if you own the account with another or others who receive or who have filed for SSI benefits, we assume the funds are owned in equal shares.

How are your resources valued if you are married?

The total value of a countable property owned only by you and your (eligible or ineligible) spouse is compared with the resource limit for a couple.

What resources are countable?

Not all of your resources count in determining your eligibility for SSI. Countable resources are those left after we:

  1. Eliminate from consideration any asset that is not a resource; and
  2. Apply all appropriate exclusions to the assets that are resources.

Countable resources are determined on a monthly basis. We compare them with the applicable statutory resources limit to determine whether you are eligible for that month.

What are the applicable resource limits?

As of January 2003, the applicable limits are:

  1. $2,000 for an individual without a spouse; and
  2. $3,000 for an individual with an eligible spouse or a living-with ineligible spouse.
How does SSA value resources?

We generally value both liquid and non-liquid resources at their equity value. Equity value is the price for which the item can reasonably be expected to sell for on the open market, in the particular geographic area, minus any encumbrances (e.g., a loan, a mortgage).

Are there any exceptions to valuing cash?

Cash is always valued at its face value. The fact that you owe money does not mean that a specific amount of cash in hand or in a bank account is actually “encumbered.”

Are there any exceptions to valuing automobiles?

An automobile that cannot be totally excluded based on its use is valued at its current market value. A subsequent vehicle is valued at equity.

When are resources valued?

Your countable resources are established for each month using their value as of the first moment of the month. We do not consider any change in the value of countable resources, or any conversion of a resource from an excluded to a non-excluded form (or vice versa), until the beginning of the following month. When you file a claim or seek reinstatement during a month, your resources are valued as of the first moment of that month to determine eligibility.

What are the resource exclusions?

In determining countable resources, certain exclusions are authorized by Title XVI of the Social Security Act, by other Federal laws, and by certain court cases. These exclusions are:

  1. An individual’s home, regardless of value. This exclusion applies to a home owned by the individual or the individual’s spouse if it is the principal place of residence. A home includes any adjacent land and related buildings on it;
  2. Restricted allotted Indian lands;
  3. Household goods and personal effects regardless of value;
  4. One vehicle, regardless of value, if you or a member or your household uses it for transportation;
  5. Property of a trade or business without limit;
  6. Non-business property of a reasonable value that is needed for self-support;
  7. Resources of a blind or disabled individual that are needed to carry out an approved plan for achieving self-support ;
  8. Life insurance;
  9. Burial spaces and certain burial funds up to $1,500;
  10. Disaster relief;
  11. Payments or benefits excluded by provisions of a Federal statute other than Title XVI of the Social Security Act;
  12. Title XVI or Title II retroactive payments;
  13. Housing assistance;
  14. Refunds of Federal income taxes and advances made by an employer relating to an earned tax credit;
  15. Shares of stock held by a native of Alaska in a regional or village corporation during the 20-year period in which, under the provisions of the Alaska Native Claims Settlement Act, such stock cannot be transferred;
  16. Payments received as compensation for expenses incurred or losses suffered as a result of a crime for nine months following receipt;
  17. Relocation assistance from a State or local government for nine months;
  18. Dedicated financial institution accounts required to be established for the payment of past-due benefits to disabled children; and
  19. Grants, scholarships, fellowships or gifts provided for tuition, fees or other necessary educational expenses for 9 months after the month of receipt (effective 6/1/04).

Note: An eligible couple gets the same resource exclusions as an eligible individual. However, the resource limit is higher for an eligible couple.

Are automobiles or other vehicles excluded from resources?

One automobile or other vehicle belonging to you (or spouse, if any) is excluded from resources if you or a member of your household uses it for transportation. The value of the automobile or vehicle does not matter.

Is your SSI eligibility affected if you dispose of a resource below its market value?

If you give away or sell a resource at less than fair market value on or after December 14, 1999, you may be ineligible for SSI for up to 36 months. We also must report such a transfer to the State Medicaid agency. A transfer of assets may result in a period of ineligibility for some Medicaid covered nursing home services.

What are the statutory resources limits?

The following table shows the applicable statutory resources limits:

Resources Limitations
Effective Date Single Individual Individual and Spouse
1/1/87 $1,800 $2,700
1/1/88 $1,900 $2,850

1/1/89, and later

$2,000 $3,000

What is “deeming”?

When we determine the eligibility and amount of payment for an SSI recipient, we consider the income and resources of people responsible for the recipient’s welfare. This concept is called “deeming.” It is based on the idea that those who have a responsibility for one another share their income and resources. It does not matter if money is actually provided to an eligible individual for deeming to apply.

In what situations are income and resources deemed?

There are four types of situations where income and resources are deemed:

  1. From an ineligible spouse to an eligible individual;
  2. From a parent to a child under age 18;
  3. From a sponsor to an alien; and
  4. From an essential person to an eligible qualified individual.
What items are not included in the deeming of income?

The following items are not included when deeming the income of an ineligible spouse or parent. Item A is not included when deeming the income of a sponsor or an essential person, but items B through AA are included.

  1. Income excluded by Federal laws other than the Social Security Act;
  2. Any public income-maintenance payments received by an ineligible spouse or parent, and any income counted or excluded in figuring the amount of those payments;
  3. Any income of an ineligible spouse or parent used by a public income-maintenance program to determine the amount of that program’s benefit to someone else;
  4. Any portion of a grant, scholarship, fellowship, or gift used to pay tuition or fees (effective 6/1/04);
  5. Money received for providing foster care to an ineligible child;
  6. The value of food stamps and the value of Department of Agriculture donated foods;
  7. Food raised by an ineligible spouse or parent and consumed by household members;
  8. Tax refunds on income, real property, or food purchased by the family;
  9. Income used to fulfill an approved plan for achieving self-support (for blind and disabled individuals);
  10. Income used to comply with the terms of court-ordered support, or child support payments enforced under Title IV (Grants to States for Aid and Services to Needy Families with Children and for Child-Welfare Services, Part D-Child Support and Establishment of Paternity) of the Social Security Act;
  11. The value of in-kind support and maintenance;
  12. Payments received by certain recipients under the Alaska Longevity Bonus program;
  13. Disaster assistance;
  14. Certain home energy and support and maintenance assistance;
  15. Income received infrequently or irregularly );
  16. Work expenses if the ineligible spouse or parent is blind;
  17. Income of an ineligible spouse or parent paid under a Federal, State, or local governmental program to provide chore, attendant, or homemaker services;
  18. Certain housing assistance;
  19. The value of any commercial transportation ticket received as a gift. This applies to travel among the 50 States, District of Columbia, Puerto Rico, Virgin Islands, Guam, American Samoa and the Commonwealth of the Northern Marianna Islands. If a ticket is converted to cash, the cash is income in the month the spouse or parent receives the cash;
  20. Refunds of Federal income taxes and advances made by an employer relating to an earned income tax credit;
  21. Payments from a fund established by a State to aid victims of crimes;
  22. Relocation assistance;
  23. Hostile fire and imminent danger pay received from one of the uniformed services;
  24. Impairment-related work expenses incurred and paid by an ineligible spouse or parent, if the ineligible spouse or parent receives Social Security disability benefits;
  25. Any interest earned on excluded burial funds and any appreciation in the value of an excluded burial arrangement left to accumulate and become part of the separately identifiable burial fund;
  26. Any additional increment in pay, other than any increase in basic pay, received while serving as a member of the uniformed services, if:
    1. The spouse or parent received the pay as a result of deployment to or while serving in a combat zone, and
    2. The spouse or parent was not receiving the additional pay immediately prior to deployment to or service in a combat zone.
  27. Dividend or interest income earned on countable resources or resources excluded under other Federal laws (effective 7/1/04).
What is excluded from the deeming of resources?

Any resources excluded for an eligible individual are also excluded for an ineligible spouse or ineligible parent for purposes of deeming. In addition, the following two exclusions apply to deemed resources:

  1. Pension funds owned by an ineligible spouse or by an ineligible parent or spouse of a parent are excluded from resources for deeming purposes. Pension funds are defined as funds held in Individual Retirement Accounts (IRA’s) or in work-related pension plans.
  2. For 9 months following the month of receipt by an ineligible spouse or ineligible parent, the unspent portion of any retroactive payment of:
    1. Hostile fire and imminent danger pay received from one of the uniformed services, and
    2. Family separation allowance received from one of the uniformed services as a result of deployment to or while serving in a combat zone.
When does a change for an eligible individual into or out of a deeming situation become effective?

A change for an eligible individual into or out of a deeming situation is effective the month following the month of change. This rule also applies for changes within the deeming household that affect the computation of deemed income, such as the birth or death of an ineligible child, the marriage or separation of an ineligible parent, etc.

How are income and resources deemed from an ineligible spouse to an eligible individual?

When an eligible individual lives in the same household with an ineligible spouse, the income and resources of the ineligible spouse are deemed available to the eligible individual. If there are ineligible children under age 21 in the household, an allocation for their living allowance is provided. A living allowance is also provided for the ineligible spouse.

When does deeming NOT apply?

Deeming does not apply when the eligible individual is not in the same household as the ineligible spouse unless:

  1. The absence is temporary; or
  2. The ineligible spouse is absent from the household due only to a duty assignment as a member of the armed forces on active duty.
What income is excluded?

Certain types of income are excluded when determining the income to be deemed from the ineligible spouse. They are listed above. Also, there are additional exclusions provided based on whether the ineligible spouse receives earned or unearned income.

Can deeming result in a higher payment?

Under spouse-to-spouse deeming, an individual can never receive a higher payment with deeming than would be received if deeming was not done. If deeming does apply, the ineligible spouse’s income is combined with the income of the eligible individual and compared to the FBR for a couple.

What resources are excluded?

The same resource exclusions that apply to an eligible individual apply to an eligible individual with an ineligible spouse, but two additional exclusions above apply to an ineligible spouse. The resources of the eligible individual and the ineligible spouse are counted together and compared to the resource limit for a couple.

How are income and resources deemed from a parent to a child under age 18?

A child under age 18 is subject to deeming from a natural or adoptive parent or a stepparent living in the same household. However, if a child lives only with the stepparent due to the death or divorce of the natural parent, the stepparent is not considered a parent for deeming purposes.

What income is excluded?

The same exclusions that apply to the income of an ineligible spouse, as listed above, apply to the ineligible parent. There are also living allowances for the parent(s) and an allocation for each ineligible child under age 21 living in the household. Any income of an ineligible child reduces the amount of the allocation.

The type of calculation used to figure the amount of deemed income for the child depends on the type of income the parent has after allocations are made for ineligible children.

When does deeming NOT apply?

Deeming does not apply if the eligible child does not live in the same household as the parent, unless the absence is temporary (e.g., the child is away at school).

What resources are excluded?

Any resources excluded for an eligible individual are excluded for an ineligible parent(s). However, two additional exclusions explained above apply to an ineligible parent(s). Currently, the balance of countable resources more than $2,000 in the case of one parent, or $3,000 in the case of two parents (or one parent and the parent’s spouse), is deemed to the child.

Is there an exception to normal parent-to-child deeming?

There is a provision that allows a waiver of the normal parent-to-child deeming rules. This waiver applies in very few circumstances. Beginning July 1, 1990, parental income or resources are not deemed to any child under age 18 who:

  1. Is disabled;
  2. Received SSI benefits limited to the $30 reduced benefit rate because of residence in a medical treatment facility;
  3. Is eligible for Medicaid under a State home care plan; and
  4. Would be ineligible for SSI benefits because of deemed parental income or resources.
What is sponsor-to-alien deeming?

The income and resources of an individual who sponsors an alien’s entry into the U.S. (by signing an affidavit of support) are considered in determining the alien’s eligibility for SSI. The income and resources of the sponsor’s spouse are also considered when the spouse is living with the sponsor. This process is called sponsor-to-alien deeming. Deeming applies whether or not the alien lives with the sponsor.

What is an affidavit of support?

The sponsor of an alien must sign an affidavit of support, an agreement in which the sponsor promises to provide assistance to the alien. The Immigration and Naturalization Service (INS) currently uses two different types of affidavits:

  1. For aliens who applied for admission to the U.S. (or applied for a change in their immigrant status) prior to December 19, 1997, an unenforceable affidavit (INS Form I-134) was used; and
  2. For aliens applying for admission or change of status on or after December 19, 1997, a new legally enforceable affidavit (INS Form I-864) is generally used. The new affidavits are used only in family situations, including employment-based immigration with family involvement.

Different deeming rules apply to aliens, depending on which type of affidavit their sponsor signed.

When does sponsor-to-alien deeming apply?

Deeming applies to all aliens sponsored under the legally enforceable affidavit of support. When the enforceable affidavit is used, deeming continues until the alien becomes a U.S. citizen or obtains 40 work credits. Deeming can be suspended in certain cases, if the alien is subjected to battery or cannot obtain food and shelter.

Deeming also applies to aliens sponsored under the unenforceable affidavit of support, unless:

  1. The alien has been granted asylum by the Attorney General;
  2. The alien is living in the U.S. under color of law and has not been admitted for permanent residence;
  3. The alien filed for SSI prior to October 1, 1980;
  4. The alien is sponsored by an organization; or
  5. The alien becomes blind or disabled after admission for permanent residence. In this case, deeming applies up until the month disability or blindness begins.
What income is excluded?

The exclusions that apply to the income of an ineligible spouse or parent listed above do not apply to a sponsor, except for certain types of income excluded by other Federal laws. Allocations are provided for the sponsor, the sponsor’s spouse in the same household, and the sponsor’s dependents as defined by the Internal Revenue Service. These allocations are subtracted from the income of the sponsor and the living-with spouse to determine the amount of income to deem to the alien.

What resources are excluded?

Resources excluded from the resources of an eligible individual are also excluded from the resources of a sponsor. Currently, the balance of countable resources above $2,000 (or $3,000 for a sponsor with a living-with spouse) are deemed to an alien.

What is the purpose of work incentives for the blind and disabled?

SSI payments provide a basic level of support for blind or disabled individuals with low earnings ability due to their impairments. A number of work incentive provisions have been incorporated into the SSI program. The purposes of the work incentives are to:

  1. Enable blind and disabled individuals to return to work;
  2. Increase their levels of work activity without the loss of SSI disability status; and/or
  3. Have their SSI benefits protected from reduction based on the increased earnings. In most States, they also permit continued Medicaid coverage after cash payments end.