How SSI income caps work

Supplemental Security Income (SSI) has an income limit, but it does not work like a cliff where you earn one dollar too much and lose everything. Instead, SSI reduces your monthly payment by 50 cents for every dollar you earn above a certain threshold. The federal limit changes each year, and your state may add its own rules on top.

For 2024, the federal SSI income limit is $65 per month in unearned income (like interest or pensions) and $1,346 per month in earned income (from a job). These numbers increase slightly most years to account for inflation. However, the first $20 of any unearned income and the first $65 of earned income do not count against you at all — this is called the "exclusion".

What matters for SSI is your countable income, which is what remains after exclusions and deductions are applied. If your countable income exceeds the limit, SSI subtracts the overage from your payment. If your countable income is high enough, your SSI payment becomes zero, but you may still stay on the SSI rolls and keep your Medicaid coverage.

Key Takeaways

  • SSI reduces your payment by 50 cents for every dollar you earn above $1,346 per month in wages, not by cutting you off entirely.
  • The first $65 of your monthly earnings and the first $20 of other income do not count, so you can earn some money without losing SSI.
  • Income limits vary by state because some states add their own SSI payments on top of the federal amount.
  • Your SSI payment can drop to zero if your income is high enough, but you may keep Medicaid even when your cash payment stops.

What counts as income for SSI

SSI counts almost any money that comes to you, with specific exceptions. Wages from a job count. Self-employment income counts. Money from a pension, annuity, or retirement account counts. Gifts and loans can count depending on how they are structured. Food and shelter you receive for free or below market value count as "in-kind" income.

Some things do not count: the first $2,000 you have in savings (called your "resource limit"), certain tax refunds, certain scholarships, certain home repair assistance, and certain food assistance programs. SSI also does not count the first $20 of unearned income per month and the first $65 of earned income per month, plus half of any earnings above $65.

The way SSI counts work-related income is important if you are employed. After you subtract the $65 exclusion and the first $20 of unearned income, SSI counts only half of what remains from your job. So if you earn $200 per month, SSI counts $67.50 of it ($200 minus $65, times 0.5). This is called the "50% reduction rule" and it is designed to encourage work.

How state SSI supplements change your limit

Twenty-seven states and Washington, D.C. run their own SSI supplement programs, which means they add money on top of the federal SSI payment. These states have their own income limits, which are sometimes higher and sometimes lower than the federal limit. California, New York, and Massachusetts have among the highest supplements.

If you live in a state with a supplement, you must meet both the federal SSI income rules and your state's rules. Your state's limit may be higher, which means you could earn more before your payment is reduced. Or your state may use the same federal limit but add extra money to your payment. Contact your state's SSI program office to learn the exact rules where you live.

If you move to a different state, your income limit and payment amount may change. Some people move from a state with a high supplement to one with a lower supplement and see their total payment drop, even though their income stays the same. This is one reason to check your state's rules before making a move.

How to report income changes to SSI

You must report changes in your income to the Social Security Administration within 10 days. This includes starting a job, getting a raise, losing a job, or receiving a one-time payment. If you do not report, SSI may overpay you, and you will owe the money back later.

You can report income changes by calling your local Social Security office, visiting a Social Security office in person, or using your my Social Security account online. When you report, have details ready: the job title, the employer name, how often you are paid, and the amount of each payment. If your income changes again later, report that too.

Social Security tracks your income month by month. If your income goes up one month and down the next, each month is counted separately. This means your SSI payment can change from month to month. Keep records of your pay stubs and any other income so you can show Social Security what you earned if there is a question later.

Work incentives that reduce how much income counts

SSI has several work incentives built in to help you keep more of your payment if you are employed. The most common is the 50% reduction rule mentioned earlier — SSI counts only half of your earnings above the $65 exclusion. This means you can work and still receive some SSI payment.

Another incentive is the Plan to Achieve Self-Support (PASS), which lets you set aside income and resources for a specific work goal without it counting against your SSI limit. For example, if you want to save money for job training or to start a business, a PASS plan can protect that money from being counted as income. You work with a Social Security representative to write the plan.

A third incentive is Impairment Related Work Expenses (IRWE), which lets you subtract certain costs related to your disability from your countable income. If you need special equipment, transportation, or personal care assistance to work, those costs may not count against your income limit. You must document these expenses and show they are necessary because of your disability.

What happens when your income exceeds the limit

If your countable income goes above the monthly limit, your SSI payment is reduced dollar-for-dollar by the amount over the limit. For example, if the limit is $1,346 and your countable income is $1,400, your payment is reduced by $54 that month. You still receive SSI, but less of it.

If your countable income is high enough that the reduction equals or exceeds your full SSI payment, your cash payment stops. However, you may still be considered an SSI recipient for purposes of Medicaid coverage, depending on your state. Some states continue Medicaid even when your cash payment is zero; others do not. Check with your state's Medicaid program to know where you stand.

If your income drops back below the limit later, your SSI payment resumes. There is no waiting period or reapplication needed — Social Security simply adjusts your payment based on your new income. This is why reporting income changes promptly matters: it ensures your payment is correct each month.

Frequently Asked Questions

Does my spouse's income count toward my SSI limit?

If you are married and both receive SSI, each person has their own income limit and their own payment. Your spouse's income does not directly reduce your payment. However, if you are married and only one of you receives SSI, part of the other person's income may be "deemed" to count toward the SSI recipient's limit, depending on your living situation and state rules.

What if I receive child support or alimony?

Child support and alimony are counted as unearned income for SSI purposes. They count toward your income limit and reduce your payment by 50 cents per dollar over the limit. The first $20 of unearned income per month is excluded, so small amounts may not affect your payment.

Do I lose SSI if I inherit money?

An inheritance itself does not count as income, but it counts as a resource. SSI has a resource limit of $2,000 for an individual. If your inheritance pushes you over that limit, your SSI payment stops until you spend the money down. Income generated by the inheritance, like interest, does count as income.

Can I work part-time and still receive SSI?

Yes. The 50% reduction rule and the $65 earned income exclusion are designed to let you work part-time. If you earn $200 per month, only about $67.50 counts against your limit, so your SSI payment is reduced by roughly $34. Many people on SSI work part-time jobs and receive both wages and a reduced SSI payment.

What if my income changes every month because I do gig work?

Report your actual income each month to Social Security. Gig work income is counted the same way as regular wages — the first $65 is excluded, and half of the rest counts against your limit. If your income varies, your SSI payment will vary too. Keep records of all payments so you can report accurately.