Supplemental Security Income (SSI) is a program designed to help people who are elderly, blind or disabled and who have little to no income. Blind or disabled children may also qualify. It provides money to meet basic needs like food, clothing, housing and the like. SSI, unlike Social Security, is paid for through general taxes and not Social Security taxes, like your paycheck with holdings. SSI is also administered by the Social Security Administration. This article will explain more about the Supplemental Security Income program, eligibility, how to apply, and documents you might need when applying for benefits.
Overview of Supplemental Security Income
SSI, or Supplemental Security Income is administered by the Social Security Administration, however, it is not Social Security. SSI is a program designed to help those over 65, the blind or disabled who have very little income. Many people who are eligible for SSI may also be eligible for Social Security, although the money you receive comes form a different place.
Social Security benefits are paid to those who are “insured” through the program. That means that they have earned enough credits through their employment and have paid into the program through payroll with holdings. SSI, on the other hand does not require a predetermined amount of credits or employment history. SSI funds come from the US Treasury via general funds derived from income taxes.
Because of the focus on income, people who receive SSI may be able to receive other benefits provided by the state they live in like Medicaid, which helps pay medical costs like hospital stays, prescription drugs, and doctor bills. SSI recipients may also be eligible for food and/or housing benefits.
Eligibility
According to the Social Security Administration, to be eligible to receive SSI, one must be
- 65 years old or older
- blind, or
- disabled
And who;
- has limited income;
- has limited resources;
- is a US citizen, a national or a legal alien;
- who is a resident of one of the 50 US States, or District of Columbia or the Northern Marianas Islands; and
- who has not been out of the country for a full calendar month or 30 consecutive days.
In addition, you can’t be in an institution where the US government is paying the bills. Also, you must apply for all benefits to which you are entitled e.g. pensions, Social Security etc. You can find a complete list of eligibility criteria and definitions on the SSA website.
Benefits
The max federal benefit under SSI changes yearly based on the Consumer Price Index (CPI). In 2021, the max payment for an individual was $794 and for a couple was $1191. some states also provide additional payments to SSI recipients.
Income
Income is defined as cash or in-kind payments that help meet your needs for food or housing. That means that if you get cash, or anything that can easily be sold for cash, these amounts will be used as your income. This could be wages from a job, royalties, unearned income like pensions or disability payments, or food or shelter. The more income you have, the lower your SSI benefit will be.
SSI Income Limits
Social Security will not include the following in calculation of your income:
- The first $20 of most income received in a month
- The first $65 of earnings (wages, etc) and half of earnings over $65 you receive in a month
- The value of Food Stamps (SNAP) you receive
- Income tax refunds
- Home energy assistance
- Income based on need as determined by your state
- Food or shelter from non-profits.
The calculations are pretty simple. SSA takes the income and subtracts from it the income they don’t count. They then take your countable income and subtract that from the SSI max amount.
SSI Resource Limits
The Social Security Administration will also look at the amount of resources you have to determine your eligibility for SSI. These resources include cash in the bank, land, other real estate, stocks, bonds, mutual funds, life insurance, vehicles and in short anything you own that could be sold to pay for food and shelter.
The Resource Limit, or the amount of resources you are allowed to have and still qualify are $2000 for an individual and $3000 for a couple. However, there are resources that do not count toward those limits including;
- The home you live in and the land it is on;
- one vehicle, regardless of the value, as long as someone in the household uses it for transportaiton;
- household goods and personal effects like you wedding rings;
- life insurance policies with a face-value of less than $1500;
- Burial Plots for you and your family; and
- Burial funds up to $1500 each for you and your spouse.
How to Apply
You can apply for SSI benefits in a couple of ways. since the program is administered by the Social Security Administration, you can visit a SSA local office to apply for benefits in person. You can also call the local office and apply over the phone. We have a complete list of local Social Security Office locations on our site complete with maps, travel directions, phone numbers, office hours and tips. In addition to calling and visiting, you may be able to start your SSI application by using the Social Security Administration’s application for disability benefits. Everyone has a right to apply for SSI and there is not cost to do so.
When to Apply
It is recommended that you apply as soon as possible so that you don’t lose any benefits. The SSA cannot pay you any benefits retroactively. the good news is that if you call them to make an appointment, but are not able to apply until 60 days later, they may be able to use the date you called in as the start date for your benefits. Be proactive and responsive. If you call to make an appointment and you miss the appointment, the SSA will try to contact you back. But you shouldn’t count on them to contact you.
Documents You Might Need
You will need a Social Security number and card if you don’t already have one. You will need proof of your age, like a birth certificate or religious birth record like a baptismal certificate. If you are a citizen, the birth certificate may show you were born in the US. If it does not, you will need some other proof of resident status like a passport or naturalization certificate. If you are a resident alien, then you will need some sort of documentation like a Permanent Resident card, or military discharge papers if you served in the US armed forces.
Additional documents you may need include proof of income like pay stubs or a tax return; proof of resources like banking statements, deed or tax documents for your real estate, car titles; proof of living arrangements like rental receipts; and medical sources like doctor’s reports to show you are disabled. You may even be asked to bring work history related documents.
This is not a complete list of all the rules or policies of the Supplemental Security Income program. But hopefully, this article has given you an idea of what to expect and provided some resources to help you make the right decision for you and your family.
