Understanding Supplemental Security Income (SSI)

Understanding Supplemental Security Income (SSI)

Let's explore one of the Social Security benefits, Supplemental Security Income (SSI). The benefits provided by the U.S. government through the Social Security Administration are designed with clear objectives and definitions to guarantee basic living rights for American citizens or permanent residents. In today's post, we'll delve into the origins, eligibility criteria, and application process for these benefits. We'll also discuss the restrictions and guarantees that come with receiving SSI.

What is SSI?

Supplemental Security Income (SSI) is a cash assistance program that provides monthly payments to individuals who meet one of the following criteria:

1. Visually impaired
2. Disabled
3. Aged 65 or older and have low income

Among those who meet one of these conditions, additional eligibility includes low-income individuals. If a child has a disability or visual impairment and the parents are low-income, the parents may also receive SSI. These benefits are distributed uniformly across the United States, regardless of where you live.

History of SSI

SSI is a federal benefit program created in 1972 to protect low-income individuals and started providing benefits in 1974. Initially, a program began in 1935 to safeguard the lives of visually impaired individuals, which evolved in the 1950s into a program for people with disabilities. The current SSI program, which began in 1974, aims to help low-income individuals who are visually impaired, disabled, or over 65.

SSI applications are made through the Social Security office, leading many to believe that the benefits come from the Social Security Trust Fund. However, SSI benefits are actually funded by the U.S. Treasury General Fund, primarily from income taxes.

SSI Income Eligibility

SSI categorizes income into four main types:

1. Earned Income: Wages, royalties, and sheltered workshop income.
2. Unearned Income: Social Security benefits, pensions, disability income, unemployment benefits, interest, dividends, and cash gifts.
3. In-Kind Income: Food or shelter received for free or at a reduced rate (except for housing or food provided by non-profit organizations).
4. Deemed Income: Income from a spouse or parents, which is considered part of the applicant's income.

Asset Limits for SSI

Not everyone is eligible for SSI benefits; applicants must meet specific asset limits. Assets include real estate, bank accounts, cash, and bonds. To qualify, individuals must have less than $2,000 in assets, and couples must have less than $3,000.

Exclusions from asset limits include:

• Primary residence
• One vehicle
• Life insurance policies worth less than $1,500
• Burial funds up to $1,500

1. Download SSI-related PDF:
   • Access the document here.
2. Print SSI Application Forms:
   • Visit this link to print the necessary SSI forms.

SSI Rules

Recipients must report all income and changes in their circumstances. This includes moving, bank account changes, changes in family size, income variations, financial assistance from others, and payments for rent, food, utilities, and other expenses. The government frequently checks this information, especially for SSI and SSDI beneficiaries, to ensure there are no changes in disability status.

1. Apply for SSI Online:
   • Begin your online application here.
2. Get Help with SSI Application:
   • For assistance with the SSI application process, visit this page.

ABLE Accounts

The Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account for individuals with disabilities. Family and friends can contribute to this account, which can hold up to $100,000 without affecting SSI eligibility. This account is specifically for those who became disabled before age 26, and the benefits received are not counted as income.

1. ABLE Accounts Information:
   • Find details on ABLE accounts at the IRS website here.

Conclusion

SSI is a crucial benefit designed to support individuals who are visually impaired, disabled, or elderly with low income, ensuring they can maintain a basic standard of living. By understanding the eligibility criteria, reporting requirements, and the importance of programs like ABLE accounts, beneficiaries can better navigate the SSI system and maximize the support available to them.