What SSI is and how it differs from Social Security

Supplemental Security Income (SSI) is a federal cash payment program run by the Social Security Administration for people with low income who are blind, disabled, or age 65 or older. Unlike regular Social Security, which is based on your work history and payroll taxes, SSI is a needs-based program — it looks at your current income and assets, not your past earnings.

The key difference: Social Security retirement or disability benefits reward people who paid into the system through work. SSI helps people who have little or no work history, or whose work history did not generate enough Social Security benefits to live on. You can receive both at the same time, but SSI payments are reduced dollar-for-dollar by other income you receive.

SSI is funded by general tax revenue, not the Social Security trust fund. The federal government sets a base payment amount each year (which changes annually for inflation), and some states add their own supplement on top of the federal payment.

Key Takeaways

  • SSI is a monthly cash payment for people with low income who are blind, disabled, or age 65 or older, based on financial need rather than work history.
  • The federal SSI payment amount changes each year for inflation, and some states provide additional money on top of the federal amount.
  • To receive SSI, your countable income must fall below the federal limit, and your assets (with some exceptions) must be under $2,000 for an individual or $3,000 for a couple.
  • If you work while receiving SSI, the first $65 per month of earnings and half of earnings above that are not counted against your payment, which allows you to keep working without losing all your benefits.
  • Children, students, and people in institutions can receive SSI under different rules than working-age adults living independently.

Income and asset limits that determine who receives SSI

SSI is strictly a low-income program. Your countable income — the money the Social Security Administration counts toward the limit — must be below the federal SSI payment amount. In 2024, the federal payment for an individual is $943 per month, though this changes annually. Some income does not count: the first $65 per month you earn from work, half of earnings above that, certain student income, and some in-kind support (like food or shelter someone gives you for free).

Your assets are also limited. You can own no more than $2,000 in countable assets as an individual, or $3,000 as a couple. A home you live in does not count. A car does not count. But savings accounts, stocks, bonds, and cash do count. Some people own items worth more than the limit and still receive SSI because those items are not counted — a wedding ring, household goods, or a burial plot, for example.

If you receive other benefits — Social Security retirement or disability, unemployment, workers' compensation, or a pension — those reduce your SSI payment. If you live with family members who support you, or if someone pays your rent or utilities, the Social Security Administration may count part of that as income to you, which also reduces your payment.

How work affects your SSI payment

You can work and still receive SSI, but your payment will be reduced based on your earnings. The Social Security Administration uses a formula called the Plan to Achieve Self-Support (PASS) or simpler work incentives to let you keep more of your earnings than you otherwise would.

Under the basic work incentive, the first $65 per month you earn is not counted. After that, half of your remaining earnings are not counted. So if you earn $200 per month, $65 is excluded, leaving $135. Half of that ($67.50) is also excluded, so only $67.50 counts as income against your SSI. Your SSI payment is then reduced by that $67.50.

If you are working toward a specific goal — like saving for a car to get to work, or paying for job training — you can set up a PASS plan with the Social Security Administration. A PASS plan lets you set aside money and income specifically for that goal without it counting against your SSI limit. This is a formal agreement, and you will need to work with a Social Security representative to set one up.

How to start receiving SSI payments

You begin by contacting your local Social Security office in person, by phone at 1-800-772-1213, or online at ssa.gov. You will need to provide proof of age (a birth certificate), proof of citizenship or legal residency (a passport or green card), and proof of income and assets (bank statements, pay stubs, lease agreements). If you are applying based on disability or blindness, you will also need medical records and documentation of your condition.

The Social Security Administration will send you to a doctor or specialist of their choice if they need to evaluate your condition. This evaluation is free to you. The process from application to a decision typically takes three to six months, though it can be longer if they need more information from you or your medical providers.

If you are denied, you have the right to appeal. You can request reconsideration, then a hearing before an administrative law judge, then further appeals. Many people are denied on the first application and approved on appeal, so do not assume a denial is final.

SSI for children and students

Children under 18 can receive SSI if they are disabled and their family's income and assets fall below the limits. The rules are different for children: the Social Security Administration looks at the parents' income and assets, not just the child's, and uses different income limits. A child's SSI payment is reduced based on the parents' income, even if the parents do not receive SSI themselves.

Students age 18 to 19 who are in school full-time can receive SSI if they meet the disability requirement and income limits. Once a student turns 19 or stops attending school full-time, they are treated as an adult for SSI purposes. Some student income — earnings from part-time work during the school year — is not counted, which gives students a small advantage over working-age adults.

How SSI interacts with housing and other benefits

If someone provides you with free food or shelter, the Social Security Administration counts part of that as income to you. This is called in-kind support and maintenance (ISM). If you live with family members who pay your rent and utilities, your SSI payment may be reduced by up to one-third of the federal payment amount. If you live in a group home or institution, different rules apply and your payment may be lower.

SSI does not affect your other benefits. You can receive SSI and Medicaid at the same time — in fact, in most states, receiving SSI automatically qualifies you for Medicaid. SSI also does not affect food assistance (SNAP) or housing vouchers, though your SSI income counts toward the limits for those programs.

What happens to SSI when circumstances change

You must report changes to the Social Security Administration within 10 days. Changes that matter include: earning more money, receiving other income, moving to a new address, changes in your living situation, marriage or divorce, or changes in your medical condition. If you do not report a change and you receive an overpayment as a result, you will have to repay it — the Social Security Administration will reduce your future SSI payments or ask you to repay the money directly.

If your income rises above the SSI limit, your payments stop, but you can restart them later if your income drops again. If your assets exceed the limit, you become ineligible until your assets fall back below the limit. Some people deliberately spend down assets to become may be able to access for SSI, which is legal, but you cannot give away assets to someone else to avoid the asset limit — that is considered a transfer and can delay your SSI start date.

Frequently Asked Questions

Can I receive SSI and regular Social Security at the same time?

Yes. If you receive Social Security retirement or disability benefits, your SSI payment is reduced by the amount of your Social Security benefit. Many people receive both, with SSI topping up their Social Security to the federal payment amount. You must report both incomes to the Social Security Administration.

What counts as an asset for SSI purposes?

Cash, bank accounts, stocks, and bonds count. A home you live in, a car, household goods, and a wedding ring do not. Burial plots and life insurance policies also do not count. If you own multiple vehicles or a second property, those count toward your limit. Ask the Social Security Administration about specific items if you are unsure.

If I get married, does my spouse's income affect my SSI?

Yes. Once you marry, the Social Security Administration counts your spouse's income and assets toward your SSI limit, even if your spouse does not receive SSI. The asset limit for a couple is $3,000 instead of $2,000. If your spouse's income is high, your SSI payment may be reduced or stop entirely.

How long does it take to hear back after I apply for SSI?

Most decisions take three to six months. If the Social Security Administration needs medical records or wants you to see a doctor, it can take longer. You can call your local office to check on the status of your application. If you are denied, you can request reconsideration or appeal to a judge.

Can I lose SSI if I inherit money or receive a gift?

An inheritance or gift counts as an asset once you receive it. If it pushes your total assets above $2,000, you become ineligible for SSI until you spend the money down. Some people plan ahead by setting up a special needs trust before receiving an inheritance, which keeps the money out of their name and preserves SSI may be able to access.