Supplemental Security Income

• The Social Security Administration (SSA) is a government agency that runs the Social Security program which provides retirement and disability income to millions of Americans. SSI is another benefit program administered by the SSA. The SSA states that to be eligible for SSI your personal resources cannot exceed $2,000 ($3,000 for couples) and you must be age 65 or older, disabled or blind.
  
  

Wages and SSI

• SSI payments are only available to individuals with low income. The SSA states that the federal benefit rate for SSI is $674 a month and that one-half of the wages you earn from a job are subtracted from your benefit rate as "countable income." There is, however, a $20 exemption for income gained from any source and a $65 exemption for earned income. For example, if you earned $585 in wages in a month, it would reduce your SSI income by $250; since [$585 - ($20 + $65)] / 2 = $250.
  
  

Potential

• If your wages are high enough, it may reduce your SSI benefit to zero. For example, if you earn $2,085 a month, the countable income that you must subtract from your benefit rate is $1,000. Since $1,000 is greater than the benefit rate, the benefit would be reduced to zero in this case. The fact that wages earned reduce SSI may provide a disincentive for SSI recipients to work.
  
  

Considerations

• Many types of income besides income earned from jobs have an impact on SSI benefits. The SSA lists the following as examples of other types of countable income that reduces SSI benefits: royalties, Social Security retirement or disability benefits, self-employment income, pensions, unemployment benefits, interest income, and cash from friends and relatives. Assistance you receive based on financial need from other programs like food stamps does not reduce your SSI benefit.