The purpose of this guide is to educate New Yorkers with disabilities about the impact of earnings on Supplemental Security Income benefits

Golden, Thomas P

Lopez-Soto, Edwin J.

English

The purpose of this guide is to educate New Yorkers with disabilities about the impact of earnings on Supplemental Security Income benefits.SS49_PDF.pdf: 9561 downloads, before Oct. 1, 2020.0-SS49_TXT.txt: 167 downloads, before Oct. 1, 2020

Golden, Thomas P.

eCommons (Cornell Univ.)

Supplemental Security Income: Calculating the Impact of Earnings on Benefits

DigitalCommons@ILR

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Mapping Your Path to Work
Answers To Your Work Questions 
From New York Makes Work Pay
Calculating the Impact of Earnings on Benefits
Supplemental 
Security Income
$
  SUPPLEMENTAL SECURITY INCOME 1
1 Supplemental Security Income
2 How will My SSI Cash Benefits be Impacted by 
Going to Work?
3 Three Examples
6 Are There Any Other Incentives That Can 
Support Work?
7 What if I Have Questions About How My 
Benefits will be Impacted by Going Back to 
Work?
8 SSI Budget Worksheet
This booklet is part of a series of New York Makes Work Pay 
publications that help New Yorkers with disabilities plan a 
path to employment.
In This Guide
The purpose of this guide is to educate New Yorkers 
with disabilities about the impact of earnings on 
Supplemental Security Income benefits. 
  SUPPLEMENTAL SECURITY INCOME 1
Supplemental Security Income
$
Supplemental Security Income (SSI) is a means-
tested program—meaning, it is based on the 
amount of “other” income you receive and is only 
intended to bring a beneficiary up to a certain 
minimum level of income. This minimum level of 
income is known as a Federal Benefit Rate (FBR).  
Some states, like New York, also supplement the 
FBR. In New York in 2010, individuals living alone 
and having no unearned or earned income, will 
receive $761 per month in SSI cash benefits. SSI 
beneficiaries living with others in 2010, and having 
no unearned or earned income, will receive $697 
per month in SSI cash benefits. In New York, an 
SSI beneficiary who receives at least $1 of SSI is 
automatically eligible for Medicaid.
  SUPPLEMENTAL SECURITY INCOME 22 SUPPLEMENTAL SECURITY INCOME 33
How will My SSI Cash Benefits be Impacted 
by Going to Work? 
When an SSI beneficiary goes to work, the Social Security Admin-
istration (SSA) will decrease the SSI cash benefit a little bit at a time 
as earnings go up. SSA uses gross earnings (before taxes) to decide 
how much to subtract from the SSI check. To understand how the 
SSA calculation works, it is important to understand that SSA con-
siders earned and unearned income differently and allows certain 
income exclusions against both. Here is how the amount is figured:
 ; If an SSI beneficiary works, the first $20 of unearned income 
(Social Security Disability Insurance benefits, Unemployment 
Insurance benefits, income deemed available from a parent or 
spouse, etc) is excluded. The remaining balance is considered 
the net countable unearned income. 
 ; If there is no unearned income, then the $20 exclusion is taken 
from earned income (such as wages or self-employment).
 ; Next, SSA will disregard the next $65 of earned income as a fur-
ther income exclusion.
 ; Of the remaining earned income, SSA will then disregard one 
half. What is left is considered the individual’s net countable 
earned income.
 ; If the individual had unearned income from the first step re-
maining after the $20 exclusion, that amount is then added to 
the net countable earned income from the preceding step. This 
equals the total net countable income.
 ; The net countable income is then subtracted from the SSI cash 
benefit rate depending on the individual’s living arrangement.
 ; The amount left over is the amount of the person’s adjusted 
monthly SSI cash payment.
  SUPPLEMENTAL SECURITY INCOME 22 SUPPLEMENTAL SECURITY INCOME 33
Three Examples
EXAMPLE 1:  SSI beneficiary has unearned income   
 but no earned income.
Sam has a disability and lives alone. Sam receives $285 in month 
Social Security Disability Insurance (SSDI) benefits. 
SSA will disregard or not count the first $20 each month of Sam’s 
SSDI cash benefits. What is left is the net countable unearned in-
come. Since Sam has no earned income, the net countable unearned 
income is subtracted from the SSI cash benefit rate in New York for 
an individual that lives alone. The amount left over is the amount 
of Sam’s adjusted monthly SSI cash payment.
 $285 Social Security Disability Insurance
 -  $20 Unearned income not counted
 $265 Net countable unearned income
 $761 2010 SSI cash benefit base rate 
  (individual living alone)
 - $265 Net countable unearned income
	 $496	 New	monthly	SSI	cash	benefit
The net increase of monthly income to Sam when he is an SSI recip-
ient, who is also eligible for SSDI benefits, is $20 per month. ($285 
+ $496 = $781 or $20 more than his SSI cash benefit rate of $761). As 
Sam still gets at least $1 of SSI, he gets Medicaid automatically.
Sam will be dramatically better off if he goes to work as the exam-
ple on the next page illustrates.
  SUPPLEMENTAL SECURITY INCOME 44 SUPPLEMENTAL SECURITY INCOME 55
EXAMPLE 2:  SSI beneficiary has no unearned income but  
 has earned income.
Sam lives alone and receives only SSI benefits. Sam earns $285 per 
month in gross wages. SSA will disregard the first $85 each month 
($20 income disregard as there is no unearned income and $65 
earned income disregard). Then, an additional 50% will also be 
disregarded or not counted. What is left is the net countable earned 
income. The net countable earned income is subtracted from the 
SSI cash benefit rate in New York for an individual who lives alone. 
The amount left over is the amount of Sam’s adjusted monthly SSI 
cash benefit.
 $285 Gross wages
   -  $85 Income not counted (combined $20 unearned and  
  $65 earned income disregard)
 $200
  - $100 Additional 50% not counted
 $100 Net countable earned income
 $761 2010 SSI cash benefit base rate 
  (individual living alone)
 - $100  Net countable earned income
 $661	 New	monthly	SSI	cash	benefit
By working, Sam now has $285 per month in earnings (although 
taxes are deducted, Sam will more than likely get them back at the 
end of the year) plus $661 per month in SSI, thereby increasing his 
monthly income to $946. In addition, as Sam still gets at least $1 of 
SSI, he gets Medicaid automatically. Thus, Sam is considerably bet-
ter off working than not working.
EXAMPLE 3:  SSI beneficiary has both unearned income   
 and earned income.
Sam lives alone and receives $285 per month in SSDI cash benefits. 
Sam also earns $265 per month in gross wages.
  SUPPLEMENTAL SECURITY INCOME 44 SUPPLEMENTAL SECURITY INCOME 55
SSA will disregard or not count the first $20 each month of Sam’s 
SSDI benefits as it is unearned income. What is left is the net count-
able unearned income ($285 - $20 = $265). 
SSA will also disregard or not count the first $65 of Sam’s earned 
income ($265 - $65 = $200). Then, an additional 50% will also be 
disregarded or not counted ($200/2 = $100). What is left ($100) is the 
net countable earned income. 
We then add the net countable unearned income ($265) and the net 
countable earned income ($100) to get the total countable income 
($265 + $100 = $365). 
In this case since Sam lives alone, the total countable income is sub-
tracted from the SSI cash benefit rate in New York for an individual 
who lives alone ($761 - $365 = $396). The amount left over ($396) is 
the amount of Sam’s new adjusted monthly SSI cash benefit.
 $285 Social Security Disability Insurance
   - $20 Unearned income not counted
 $265 Net countable unearned income
 $265 Gross wages
  - $65 Earned income disregard
 $200
 - $100 Additional 50% not counted
 $100 Net countable earned income
 $265 Net countable unearned income
 + $100 Net countable earned income
 $365 Total countable income
 $761 2010 SSI cash benefit base rate
  (individual living alone)
 - $365  Total countable income
 $396	 New	monthly	SSI	cash	benefit
  SUPPLEMENTAL SECURITY INCOME 66 SUPPLEMENTAL SECURITY INCOME 77
When Sam receives SSDI benefits and also works, he winds up 
with $946 per month ($285 + $265 + $396 = $946) instead of the liv-
ing alone SSI rate for an individual who also receives SSDI of $781. 
In addition, as Sam still gets at least $1 of SSI, he gets Medicaid 
automatically.
Are There Any Other Incentives That Can 
Support Work?
The SSI program has other work incentives available that act as 
income disregards—very similar to the unearned ($20) and earned 
income ($65) disregards discussed earlier. These work incentives 
can be deducted from gross monthly earnings as part of SSA’s 
calculation in determining the amount of your adjusted SSI cash 
benefit. A brief description of each follows.
 ; Impairment Related Work Expenses (IRWE) are work expenses 
related to a disability that are needed to work and are paid for 
by the individual.
 ; Blind Work Expenses (BWE) are any ordinary and necessary 
expenses attributable to the earning of income for an individual 
who is blind and are paid for by that individual.
 ; Plan For Achieving Self Support (PASS) allows an individual 
to set aside their own income and/or resources in a special ac-
count, not counted for SSI purposes, to support their objectives 
and activities associated with assisting them in achieving a 
specific work goal.
 ; Student-Earned Income Exclusion (SEIE) helps students under 
the age of 22 who regularly attend school, receive SSI, and work 
to exclude up to $1,640 per month up to a maximum of $6,600 
per year in 2010. These figures change annually.
These are all SSI work incentives and can positively affect the 
amount of an individual’s SSI cash benefit. The impact of each is 
  SUPPLEMENTAL SECURITY INCOME 66 SUPPLEMENTAL SECURITY INCOME 77
determined by the placement of the disregard in the SSA calcula-
tion. Note that subsequent guides on these work incentives will 
be available to provide more comprehensive information on their 
application. A sample calculation sheet showing the placement of 
each follows.
What if I Have Questions About How My 
Benefits will be Impacted by Going Back to 
Work?
If you have any questions about how your benefits will be impact-
ed by going back to work, you can contact the specialists toll-free 
at 1-888-224-3272. The hotline is available during business hours on 
Monday through Friday, except on holidays, and every effort will 
be made to return calls the same day or within one business day.
Additionally, SSA has contracted with local organizations to pro-
vide work incentive and planning services for Social Security SSDI 
and SSI beneficiaries. The Work Incentive Planning Assistance 
(WIPA) agencies have people who have been specially trained to 
help individuals with disabilities considering returning to work or 
returning to work. You can get a list of the WIPA’s in New York at: 
https://secure.ssa.gov/apps10/oesp/providers.nsf/bystate
  SUPPLEMENTAL SECURITY INCOME 88 SUPPLEMENTAL SECURITY INCOME 99
SSI Budget Worksheet
The following worksheet can be used to assist you in calculating the impact of 
income on your SSI cash benefits.
Name 
Month         Social Security #
 
STEP 1
Calculating 
Total 
Countable 
Unearned 
Income
1 Unearned Income*
2 “Any-Income” Deduction -           $20.00
3 Total Countable Unearned Income
(Subtract line 2 from line 1.)
=
STEP 2
Calculating 
Total 
Countable 
Earned 
Income
4 Gross Earned Income
5 Student Earned Income Exclusion - 
6 Remainder (subtract Line 5 from Line 4) =
7 “Any-Income” deduction if not used before** -           $20.00
8 Remainder (Subtract line 7 from line 6.) =
9 Earned-Income Deduction -           $65.00
10 Remainder (Subtract line 9 from line 8.) =
11 Impairment-Related Work Expense, if not blind (IRWE) -
12 Adjusted Gross Earned Income 
(Subtract line 11 from line 10.)
=
13 50% of Adjusted Gross Earned Income as a 
Work Incentive Deduction (Divide line 10 in half.)
-
14 Remainder (Subtract line 13 from line 12.) =
15 Blind Work Expenses (BWE) -
16 Total Countable Earned Income
(Subtract line 15 from line 14.)
=
STEP 3
Calculating 
Total 
Countable 
Income
17 Total Countable Unearned Income (Amount from line 3)
18 Total Countable Earned Income (Amount from line 16) +
19 Total Countable Income  (Add line 17 and line 18.) =
20 PASS Deduction -
21 Total Countable Income
(Subtract line 20 from line 19.)
=
STEP 4
Calculating 
Adjusted    
SSI Payment
22 Total Countable Income (Amount from line 21)
23 Base SSI Rate (fill in appropriate amount) -
24 Adjusted SSI Payment 
(Subtract line 23 from line 22.)
=
STEP 5
Calculating 
Total Usable 
Income
25 Adjusted SSI Payment (Amount from line 24)
26 Gross Earned Income Received (Amount from line 4) +
27 Gross Unearned Income Received (Amount from line 1) +
28 IRWE, BWE or PASS Expenses (Combine lines 11, 15, & 20.) -
29 Total Financial Outcome 
(Add lines 25, 26, and 27. Subtract line 28.)
=
*  Insert sum of all combined unearned income on line 1.
**  You only get to use the $20 any-income deduction once. If you do not use all of the deduction to  
 reduce your unearned income, you can use the balance to reduce your earned income.
  SUPPLEMENTAL SECURITY INCOME 88 SUPPLEMENTAL SECURITY INCOME 99
www.N YMA K E SWO R K PAY . o r g
Development of the “Map Your Path to Work” guides is made 
possible by a Comprehensive Employment Services Medicaid 
Infrastructure Grant funded by the U.S. Department of Health 
and Human Services, Centers for Medicare and Medicaid Services 
(CMS) to the New York State Office of Mental Health (OMH) 
and its management partners the Burton Blatt Institute (BBI) at 
Syracuse University and the Employment and Disability Institute 
(EDI) at Cornell University.
Employment and Disability Institute
Cornell University
201 Dolgen Hall
Ithaca, New York  14853
voice:  607-255-7727
fax:  607-255-2763
tty:  607-255-2891
email:  nymakesworkpay@cornell.edu
web:  www.nymakesworkpay.org


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Supplemental Security Income: Calculating the Impact of Earnings on Benefits

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