Ssi Calculation

SSI Payment Estimator

(e.g., Social Security benefits, pensions, interest, gifts)

(e.g., wages from employment, net earnings from self-employment)

Understanding Supplemental Security Income (SSI)

Supplemental Security Income (SSI) is a federal program administered by the Social Security Administration (SSA) that provides monthly cash payments to meet basic needs for food, clothing, and shelter. It's designed for individuals who are aged (65 or older), blind, or disabled, and who have limited income and resources.

Who is Eligible for SSI?

To be eligible for SSI, you must meet certain criteria:

• Be age 65 or older, blind, or disabled.
• Be a U.S. citizen or eligible alien.
• Reside in one of the 50 states, the District of Columbia, or the Northern Mariana Islands.
• Have limited income and resources.

The income and resource limits are crucial. Generally, your countable resources (like cash, bank accounts, stocks, bonds, and property you own) must not exceed $2,000 for an individual or $3,000 for a couple. Your income is evaluated monthly to determine your payment amount.

How SSI Payments Are Calculated

The calculation of your SSI payment is based on a few key factors, primarily your income. The goal is to ensure your total monthly income (including SSI) reaches a certain level, known as the Federal Benefit Rate (FBR). For 2024, the FBR is $963 for an individual and $1,445 for an eligible couple.

Here's a simplified breakdown of how income affects your SSI payment:

1. Types of Income

• Unearned Income: This includes money you receive that isn't from work, such as Social Security benefits, pensions, unemployment benefits, interest, dividends, and gifts.
• Earned Income: This is money you receive from working, such as wages, salaries, or net earnings from self-employment.
• In-Kind Support and Maintenance (ISM): This refers to food or shelter you receive for free or for less than its fair market value. ISM can reduce your SSI payment, often by up to one-third of the FBR. This calculator does not account for ISM.

2. Income Exclusions

The SSA doesn't count all of your income when determining your SSI payment. Certain amounts are excluded:

• General Income Exclusion ($20): The first $20 of most income you receive each month is not counted. This exclusion is applied first to unearned income. If you have less than $20 in unearned income, the remainder of the exclusion is applied to your earned income.
• Earned Income Exclusion ($65): After the general exclusion, the first $65 of your earned income each month is not counted.
• Half of Remaining Earned Income: After applying both the general and earned income exclusions, only half of your remaining earned income is counted.

3. The Calculation Steps (as used in the calculator):

1. Determine your Federal Benefit Rate (FBR): This is the maximum federal SSI payment for your filing status (individual or couple).
2. Apply the General Income Exclusion ($20): This is subtracted from your unearned income first. If any of the $20 exclusion remains, it's then applied to your earned income.
3. Apply the Earned Income Exclusion ($65): This is subtracted from your remaining earned income.
4. Count Half of Remaining Earned Income: The earned income left after the exclusions is divided by two.
5. Calculate Total Countable Income: Add your remaining unearned income (after the $20 exclusion) and half of your remaining earned income.
6. Determine Your SSI Payment: Subtract your total countable income from the FBR. If the result is less than zero, your SSI payment is $0.

Examples of SSI Calculation

Example 1: Individual with Only Unearned Income

• Filing Status: Individual
• Monthly Unearned Income: $300 (e.g., Social Security Disability Insurance)
• Monthly Earned Income: $0
• FBR (Individual): $963
• Calculation:
  • Unearned Income: $300
  • Minus General Exclusion: $300 – $20 = $280
  • Countable Unearned Income: $280
  • Countable Earned Income: $0
  • Total Countable Income: $280
  • Estimated SSI Payment: $963 (FBR) – $280 = $683

Example 2: Individual with Only Earned Income

• Filing Status: Individual
• Monthly Unearned Income: $0
• Monthly Earned Income: $500
• FBR (Individual): $963
• Calculation:
  • Earned Income: $500
  • Minus General Exclusion: $500 – $20 = $480
  • Minus Earned Income Exclusion: $480 – $65 = $415
  • Half of Remaining Earned Income: $415 / 2 = $207.50
  • Countable Unearned Income: $0
  • Total Countable Income: $207.50
  • Estimated SSI Payment: $963 (FBR) – $207.50 = $755.50

Example 3: Couple with Both Unearned and Earned Income

• Filing Status: Couple
• Monthly Unearned Income: $800 (combined)
• Monthly Earned Income: $600 (combined)
• FBR (Couple): $1,445
• Calculation:
  • Unearned Income: $800
  • Minus General Exclusion: $800 – $20 = $780
  • Countable Unearned Income: $780
  • Earned Income: $600
  • Minus Earned Income Exclusion: $600 – $65 = $535
  • Half of Remaining Earned Income: $535 / 2 = $267.50
  • Total Countable Income: $780 + $267.50 = $1,047.50
  • Estimated SSI Payment: $1,445 (FBR) – $1,047.50 = $397.50

Important Considerations and Limitations

This calculator provides an estimate based on the most common federal SSI rules for income. However, the actual SSI calculation can be more complex and may involve other factors not included here:

• State Supplements: Many states provide an additional payment on top of the federal SSI payment. These amounts vary significantly by state and are not included in this calculator.
• In-Kind Support and Maintenance (ISM): If someone else pays for your food or shelter, or you live in someone else's household and don't pay your fair share of household expenses, your SSI payment may be reduced.
• Student Earned Income Exclusion (SEIE): For students under age 22 who are regularly attending school, a portion of their earned income can be excluded, up to a certain monthly and annual limit.
• Impairment-Related Work Expenses (IRWE) and Blind Work Expenses (BWE): Certain expenses related to your disability or blindness that enable you to work can be deducted from your earned income.
• Plan to Achieve Self-Support (PASS): This allows disabled or blind individuals to set aside income and resources for a work goal.
• Deeming of Income and Resources: If you live with a spouse who doesn't receive SSI, or with a parent (if you're a child), a portion of their income and resources might be "deemed" to you, affecting your eligibility and payment.
• Resource Limits: This calculator focuses on income, but your countable resources must also be below the limit ($2,000 for an individual, $3,000 for a couple).

For a precise determination of your SSI eligibility and payment amount, it is always best to contact the Social Security Administration directly or consult with a qualified benefits counselor.