SSI has strict income limits that reduce your payment dollar-for-dollar once you cross them
Supplemental Security Income (SSI) counts almost all money you receive as income, and your monthly payment shrinks by $1 for every $2 you earn above a small threshold. In 2024, you can earn up to $65 per month without affecting your SSI payment at all. Beyond that, SSI counts only half of your earnings against your benefit. Once your countable income reaches the federal SSI payment amount—which varies by state but is roughly $943 per month for an individual—your SSI payment drops to zero.
The key word is countable income. SSI excludes certain types of money entirely, which means you can receive them without losing benefits. Understanding what counts and what doesn't is the difference between keeping your full payment and losing it.
Key Takeaways
- You can earn $65 monthly with no effect on SSI; earnings above that reduce your benefit by 50 cents per dollar earned.
- SSI excludes certain income types entirely, including the first $20 of any unearned income per month and most food and shelter assistance.
- Your state may add money to the federal SSI payment, and those state supplements often have different income rules.
- Work incentives like Plan to Achieve Self-Support (PASS) and Impairment Related Work Expenses (IRWE) can let you set aside earnings without losing benefits.
- You must report all income changes to Social Security within 10 days or face overpayment recovery.
The $65 monthly earnings exclusion and the 50% reduction
SSI gives you a $65 monthly buffer before it starts counting your work earnings. If you earn $65 or less in a month, your SSI payment stays the same. If you earn $100, SSI counts only $35 of that ($100 minus the $65 exclusion), and your payment drops by $17.50 (half of $35).
This continues until your countable income reaches the maximum. For 2024, the federal SSI payment for an individual living independently is $943 per month. Once your countable monthly income hits that amount, your SSI payment becomes zero. If you live with family or in a group home, the threshold is different because SSI assumes someone else is helping with your costs.
The $65 exclusion and the 50% reduction apply only to earned income—money you make from work. Unearned income, like Social Security benefits or pension payments, is treated differently and has its own rules.
What counts as income and what doesn't
SSI counts wages, self-employment income, and in-kind support (like food or shelter someone gives you) as income. It also counts unearned income: Social Security retirement or disability benefits, pensions, unemployment, and money from other people. However, SSI excludes the first $20 of any unearned income you receive in a month, and it excludes certain types of assistance entirely.
Money that does not count toward SSI includes: Supplemental Nutrition Assistance Program (SNAP) benefits, housing assistance, energy assistance, most scholarships and educational grants, and gifts under certain conditions. Some medical expenses you pay yourself reduce your countable income. If someone gives you money specifically to pay for medical care or work-related expenses, SSI may not count it.
In-kind support—when someone provides you food or shelter instead of money—is counted as income at a set value. If your parent lets you live in their house rent-free, SSI counts that as income. The exact amount depends on whether you pay for any of your own food.
How state supplements change the picture
Many states add their own money to the federal SSI payment. These state supplements have their own income limits, which are sometimes higher and sometimes lower than the federal limit. California, New York, and Massachusetts, for example, provide state supplements that increase the total monthly payment but also increase the income threshold at which your payment stops.
If you receive a state supplement, you need to know both the federal limit and your state's limit. Your state's SSI program office can tell you the exact threshold. Exceeding the state limit can end both your federal SSI and your state supplement, even if you are still below the federal limit.
Work incentives that protect your earnings
Social Security offers programs designed to let you keep more of your earnings without losing SSI. The most common is Plan to Achieve Self-Support (PASS), which lets you set aside income and resources for a specific work goal—like training for a job or starting a business. Money in a PASS plan does not count as income for SSI purposes, so you can earn and save more without losing benefits.
Another option is Impairment Related Work Expenses (IRWE), which excludes certain costs you pay to work. If you need transportation, medical equipment, or personal assistance to do your job, those costs can be deducted from your earnings before SSI counts them. For example, if you earn $500 but spend $150 on transportation to work, SSI counts only $350 as income.
A third program, Student Earned Income Exclusion (SEIE), excludes earnings for students under 22 who are in school. You can earn up to $2,170 per month (in 2024) with no effect on SSI, as long as you remain a full-time student. These limits change yearly, so check with Social Security for the current year's amounts.
Reporting income changes to Social Security
You are required to report any income change to Social Security within 10 days. This includes starting a job, getting a raise, receiving a bonus, or any change in unearned income. Failing to report can result in an overpayment—money SSI paid you that you were not may have access to to—and Social Security will ask you to repay it.
Contact your local Social Security office or call 1-800-772-1213 to report changes. Have your SSI case number ready. Social Security will adjust your payment for the month the change happened and going forward. If you report late, you may still owe back payments even though the delay was not intentional.
How to calculate your remaining SSI payment
Here is the basic formula: Take your monthly earnings, subtract $65, divide the remainder by 2, and subtract that from your SSI payment amount. For example, if you earn $200 per month and your SSI payment is $943:
- $200 (earnings) minus $65 (exclusion) = $135
- $135 divided by 2 = $67.50
- $943 (SSI payment) minus $67.50 = $875.50 (your new SSI payment)
This calculation assumes you have no other countable income. If you also receive Social Security benefits or other unearned income, those are subtracted from your SSI payment first, before the earnings calculation happens. The order matters because unearned income is treated more harshly—it reduces your SSI dollar-for-dollar after the first $20 exclusion.
Frequently Asked Questions
Can I work part-time and keep my full SSI payment?
Yes, if you earn $65 or less per month. Beyond that, your payment drops by 50 cents for every dollar you earn. Many people work part-time and receive a reduced SSI payment; you do not have to choose one or the other.
Does my spouse's income count against my SSI?
If you are married and both receive SSI, each person's income is counted separately for their own payment. If your spouse does not receive SSI, their income does not directly affect your SSI, but it may affect whether you are considered to have in-kind support (like shared housing costs).
What happens if I earn more than the SSI limit one month?
Your SSI payment for that month drops to zero, but you do not lose SSI itself. You remain may be able to access, and your payment resumes the following month based on your income that month. However, if your income stays above the limit for multiple months, Social Security may end your SSI case.
Can I use a PASS plan to go back to school while working?
Yes. A PASS plan can set aside both earnings and resources for education or job training. You can work, earn money, and put that money toward tuition or training costs without it counting against your SSI. You must have a written plan approved by Social Security before the money is set aside.
Do I lose Medicaid if my SSI payment drops to zero?
In most states, no. Medicaid stays active even if your SSI payment becomes zero, as long as you remain SSI-may be able to access based on your disability and resources. A few states have different rules, so check with your state Medicaid office to confirm.