Before you panic, let’s talk about the thing that has half of America scratching its head: SSI (Supplemental Security Income). Did you know that your payment could be smaller than expected? And no, it’s not because of inflation or your spending at Starbucks.
The SSI benefit is distributed by the Social Security Administration (SSA) for people with little or no income and almost no savings. In other words, if your resources are limited, this program could be the help that keeps you afloat financially.
Now, attention: it is not the same check for everyone. Your income comes into play here (if you have any), if you live with someone who supports you, or even if someone gives you free shelter. But let’s go in parts, this is not a surprise exam.
SSI vs. Social Security: they are not the same
Don’t be confused. Social Security (the one for grandparents who worked all their lives) and SSI are like oil and water. You took the first one out of your taxes; The second is a little extra help if you are in financial struggle. And the SSDI (disability thing)? It’s not the same, either. That does depend on your work contributions.
In other words, in short, it is based on need and the SSA is not necessarily going to require that you have had a job and contributed to Social Security taxes.
The federal maximum amount is $967 per month (yes, it’s up a little since 2024, but it’s still tight). However, almost no one receives the cap. Because? Because the government performs calculations so complex they’re hard to understand. For a couple, the SSI pays up to $1,450 a month.
How is the calculation made?
If you earn money by working: For every dollar you receive, 50 cents are deducted from SSI. For example, if you make $300 at your part-time job, the government will take $150 from you. Result? Your SSI would be $943 – $150 = $793.
If someone gives you free room or board: This is considered “in-kind support.” In other words, they reduce your payment as if you were paying rent. For example, if your sister lets you live on her couch without charging you, SSI could take up to $300 (depending on the state).
If you have savings or properties: Here comes the surprise. If you are single and have more than $2,000 in the bank (or $3,000 if you are married), you are left without SSI. But don’t worry, your house and your car don’t count. Unless you have a yacht or a collection of Rolexes, in that case you could run into problems.
The case of Dorothy: the grandmother who did not receive the maximum
Put yourself in the situation of Mary, a woman who receives $500 from her pension and lives with her son, who gives her room and board without charging her. The government does the following:
- It subtracts his $500 pension.
- He deducts $300 for “in-kind support” (free house and food).
- Total: $943 (federal maximum) – $500 – $300 = $143. That’s right, you read that right! Mary would only receive $143, enough for a few tamales and little else.
SSI also offers a payment to hire an essential person
If you have someone who cares for you (a family member, a friend, even a good neighbor), that person could receive a payment per month. But keep in mind that it is not automatic. You have to prove that without them, you couldn’t live decently.
If you have a disability or a condition that prevents you from living without assistance, an essential person may be covered by SSI. You need someone to help you bathe, cook, go to the doctor, or even handle your medications. That person is your “essential person.” And SSI could give you an extra payment of up to $484 a month (yes, the amount went up in 2024, but it’s still not enough for what they do).
Furthermore, that money is not yours: it goes directly to the essential person. That is, you continue to receive your SSI cut (because living with someone counts as “in-kind support”), and the government also gives this extra to your caregiver.
