Income Exclusions for SSI Program (2024)

FAQs

What is excluded from income for SSI? ›

For example, if someone pays an individual's medical bills, or offers free medical care, or if the individual receives money from a social services agency that is a repayment of an amount he/she previously spent, that value is not considered income to the individual.

For the earnings limits, we don't count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains.

Income is anything you receive during a calendar month and can use to meet your needs for food or shelter.

How We Deduct Earnings From Benefits. In 2024, if you're under full retirement age, the annual earnings limit is $22,320. If you will reach full retirement age in 2024, the limit on your earnings for the months before full retirement age is $59,520.

The income exclusion rule sets aside certain types of income as non-taxable. There are many types of income that qualify under this rule, such as life insurance death benefit proceeds, child support, welfare, and municipal bond income. 1 Income that is excluded is not reported anywhere on Form 1040.

You must report your monthly wages and changes in income from other sources to get accurate monthly SSI payments. If you live with your spouse, you must also report their income.

Nontaxable income won't be taxed, whether or not you enter it on your tax return. The following items are deemed nontaxable by the IRS: inheritances, gifts and bequests. cash rebates on items you purchase from a retailer, manufacturer or dealer.

Social Security doesn't consider income tax returns to be additional income.

SSI is generally for individuals who don't earn more than $1,971 from work each month. The income limit increases for couples and when parents apply for children. We also look at other sources of income besides your job, like disability benefits, unemployment, and pensions.

What is deemed income for SSI? ›

In-Kind Income is food, shelter, or both that you get for free or for less than its fair market value. Deemed Income is the part of the income of your spouse with whom you live, your parent(s) with whom you live, or your sponsor (if you are a noncitizen), which we use to compute your SSI benefit amount.

If you received an inheritance and that caused you to be over the $2000 limit then you would need to pay down that amount (paying bills or buying exempt assets) before you are eligible for SSI benefits again.

Income limit exceptions

Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps) Section 8 housing vouchers. Rent rebates or property tax refunds. Temporary Assistance for Needy Families (TANF)

For beneficiaries who earn more than the income limit or who breach the resource limit, SSI benefits can be reduced or revoked altogether. Individuals cannot earn more than $1,971 per month or own more than $2,000 worth of assets to qualify.

We count in-kind support and maintenance as income when we figure the amount of your SSI. For example, if someone helps pay for your rent, mortgage, food, or utilities, we reduce the amount of your SSI.

1. You have little or no income (like wages and Social Security benefits) SSI is generally for individuals who don't earn more than $1,971 from work each month. The income limit increases for couples and when parents apply for children.

High-Income Earners

High-income employees are not technically exempt from Social Security taxes, but part of their income is. In 2024, every dollar of taxable income someone makes above $168,600 (up from $160,200 in 2023) will effectively be exempt from Social Security taxes.

However, such cards are always considered part of your income in the eyes of the SSA. That's because regardless of what you do with the card, you could potentially spend the money on food and/or shelter.