Money/Finance - Social Security Income Benefits
Supplemental Security Income Benefits
Supplemental Security Income (SSI) is the other benefit program operated by the Social Security Administration. SSI is a cash payment program, which started in 1974, for the low income aged (65), blind or disabled. Unlike Social Security, it does not depend on your contributions to SSA through FICA. SSI eligibility is based on need. If you fit into the approved categories of being age 65 or older, legally blind, or permanently and totally disabled and you have very low income and assets, you are eligible for SSI. You apply at the local Social Security office. If you qualify, you will receive a cash payment to supplement your other income, up to the SSI limit. More importantly for many older women, in Michigan, qualifying for SSI means you automatically also qualify for Medicaid benefits, which cover most medical expenses.
SSI Income Limits
SSI income limits differ depending on your household size. The income limit also changes each year, to allow for a cost of living increase. For Michigan, in 2006, you are income eligible for SSI as an individual if your countable income is $623 or less. Couples are income eligible if their monthly countable income is $934 or less. What is included as countable by SSI standards is a bit complicated. While SSI counts in-kind help you receive for food or shelter, it also deducts some other income you might receive. The first $20 dollars from any source is disregarded. If you have some earned income (from wages or salary) a larger amount is disregarded. The earned income disregarded is the first $65 plus ½ of the rest. Only net rental income is included in SSI's calculation of income. This means if you have rental expenses they are deducted from the total rent received to reach the net rental income. SSA can work with you to figure your countable SSI income. Don't assume, however, that because you have monthly income slightly over the SSI income limit listed above, you are not eligible.
SSI Asset Limits
If you calculate that you are income eligible, you must also be asset eligible for SSI. Under SSI rules, you must have $2,000 or less in countable assets as an individual, or under $3,000 in countable assets as a couple. Unlike income, the asset limit does not go up each year. It has been set at these amounts since 1989. Countable, again, has a specific meaning to SSA. Not counted, or excluded from this asset limit are: the value of your home, if you live in it; a vehicle if used for medical trips; household furnishings up to $2,000 in total value; burial items; some life insurance; and a few other specialty items.
If you are receiving SSI, Social Security requires you to report any changes in your circumstances promptly (within ten days). If you inherit some money that puts you over SSI's asset limit, and neglect to report this to SSA, you can be expected to pay back the benefits you received while you were over the asset limit.
Divestment
Effective 12/14/99 there is a penalty for most transfers of assets (what is called divestment) in the 36-month period prior to application. The individual is ineligible for a number of months determined by dividing the transferred amount by the monthly SSI benefit (not to exceed 36 months). Certain transfers are exempt, such as to a spouse or disabled child.
Rules for Legal Immigrants
U.S. citizenship is generally required for SSI eligibility. Legal aliens who were receiving SSI before 8/22/96 (when the Federal law was changed) continue to be eligible. Also, a legal immigrant in the U.S. since before 8/22/96 is entitled to SSI if she later becomes disabled.
(For assistance on these and other Financial/Money Issues, contact the Legal Hotline for Michigan Seniors at (800) 347-5297. More resources are also located in the Resource Section of this website.
