A new Supplemental Security Income (SSI) payment is coming, one of the most important benefits distributed among millions of American citizens, and it is worth making some clarifications that may cause confusion because, in general, it is not the same as Social Security benefits nor is it the same as disability benefits (SSDI) for workers.
Again, it is not the same as Social Security (which you access if you worked and paid taxes), but is designed for people with very little income and almost no resources (like property, savings, etc.). The idea is to cover basic needs: food, rent, medicine… the essentials for a comfortable life.
But be careful: it is not a fixed amount for everyone. It depends on your financial situation, where you live, if you have a partner, or if someone helps you with care. Now, let’s go into detail about this program, which provides payments to a portion of the 7.4 million recipients covered by the SSA.
How is the SSI payment that you could access calculated?
SSI works like this: each month, the government gives you money, but subtracts a little depending on what you earn or receive from other aid. For example:
- If you work part-time and earn $300, they don’t deduct that full $300. Only half remains (that is, $150).
- If someone gives you free accommodation or food, that can also reduce your payment (it’s called In-Kind Support).
Additionally, to be eligible, your resources (things you have: bank accounts, a second car, etc.) cannot exceed $2,000 if you are single or $3,000 if you are married. But don’t worry! The house where you live and a car do not count.
The maximum SSI benefit payment is divided into three categories:
- Individual: $967 per month. If you have no income or help from anyone, this is the most you would receive. But if you earn something, like $200, $100 (half) would be subtracted and your SSI would be $843.
- Couple: $1,450 per month. This is for two people who are both eligible (for example, two adults with disabilities). If one works or receives other income, the total is adjusted.
- Essential Person Payment: $484 per month. This is the most curious. If you live with someone who helps you survive (such as a caregiver who assists you with your disability), that person can receive this additional payment. But keep in mind that it is automatic: you have to prove that that person is essential for your well-being.
These amounts are federal. Some states (like California or New York) add extra money, but there may be additional requirements because they are programs that are not controlled by the federal government.
Why doesn’t everyone get the maximum?
Imagine that a retiree we will call Mary receives $500 from a pension and lives at her son’s house, who gives her free food. The government would subtract the $500 from your pension and classify your child’s room and board as “in-kind support,” which is equivalent, for instance, to about $300 a month. So, from the $967, the $500 is subtracted first and then the $300: thus, the SSI payment awarded will be $167.