The value of your resources is a factor that determines whether you are eligible for Social Security or Supplemental Security Income (SSI) benefits. Family benefits provide monthly payments to certain family members of people eligible for Retirement or Disability, also known as “spousal” or “child” benefits. If you or a family member receive Social Security or SSI, certain life changes could entitle you to an increase in your benefit amount. Social Security periodically reviews SSI beneficiaries’ income and assets to ensure they remain eligible. This process, called “redetermination”, is distinct from a continuing disability review, which checks your continued eligibility.
When you start receiving disability benefits, certain members of your family may qualify for benefits based on your work, including your spouse, divorced spouse, children, adult child, or other dependents. SSI benefits help pay for basic needs like rent, food, clothing, and more. For example, a recipient living in California gets a $500 Social Security benefit as a surviving spouse and a $463 SSI payment. From there, your family members can collect against your Primary Insurance Amount (PIA) or what your Social Security benefit would be at full retirement age (between 66 and 67 for today’s retirees).
In general, living expenses do not affect the amount of SSI benefit that you receive. Your SSI benefit is based on your income, not on your expenses. However, money for food or shelter can be obtained if you live with an adult son or daughter, siblings, cousins, or unrelated roommates. There is a maximum family benefit, but taxes collected are put into special trust funds.
SSDI benefits are tied to your work history and pay benefits to you and certain family members if you have a work history and do not need work credits. Caring for a family member can make you ineligible for SSDI benefits, but it does not require you to have a work history.
| Article | Description | Site |
|---|---|---|
| Social Security and Supplemental Security Income (SSI) | The taxes that are collected are put into special trust funds. You qualify for these benefits based on your work history (or your spouse or parent). The amount … | ssa.gov |
| SSI Living Arrangement Rules and Avoiding SSI Reductions | When individuals with disabilities live with family members, it can complicate their eligibility for Supplemental Security Income (SSI). | specialneedsalliance.org |
| Quick Guide to Social Security Benefits for Family Members | Spouse’s Benefits: Your spouse or former spouse may get up to 50% of your full benefit on your earnings record when you start receiving your Social Security … | triagecancer.org |
📹 Turn on Social Security at 62 and Your Minor Children Can Collect The Dependent Benefit
Not many people realize that if you are age 62 or older and have children under the age of 18, your children are eligible to receive …
What Can Cause Your Social Security To Be Suspended?
Fraudulent activities, such as providing false information or not reporting income, can lead to immediate suspension of Social Security benefits. Changes in income, assets, or living situations may also affect eligibility. A primary reason for benefit suspension is exceeding the Retirement Earnings Test (RET) limits, which applies to those receiving benefits before reaching full retirement age. Rather than withdrawing retirement benefits, individuals can temporarily suspend them to accrue delayed retirement credits for larger payments upon resumption.
Incarceration for over 30 days due to a criminal conviction also leads to benefit suspension. If benefits are suspended, individuals will temporarily stop receiving payments and may need to resolve specific issues. Commonly, benefits are suspended if a recipient returns to work and exceeds the Substantial Gainful Activity (SGA) threshold. Additionally, exceeding SSA resource limits or experiencing medical improvement can result in suspension.
While benefits can be voluntarily suspended until age 70, withdrawing benefits requires a formal application if initiated within the past year. Understanding these factors can help navigate the complexities of the SSA system and maintain benefit eligibility.
How Much Can Someone On SSI Have In Savings?
The resource limit for Supplemental Security Income (SSI) is set at $2, 000 for individuals and $3, 000 for couples. This limit encompasses countable resources, such as bank account balances, stocks, and bonds. While receiving SSI, individuals can maintain a savings account, but higher balances may reduce their SSI benefits. Importantly, individuals can hold up to $100, 000 in ABLE accounts, potentially increasing their resource limits significantly.
SSI is a needs-based program, meaning eligibility is tied to these asset limits. If a beneficiary's countable resources exceed the limit, they risk losing their SSI benefits. Additionally, there is no restriction on savings for individuals receiving Social Security Disability Insurance (SSDI). Exceptions exist within the rules, allowing certain beneficiaries to exceed the stated resource limits under specific circumstances.
Proposed reforms, like the SSI Savings Penalty Elimination Act, aim to modify these limits further, potentially raising them to $10, 000 for individuals and $20, 000 for couples. Overall, understanding what constitutes countable resources and how they impact SSI eligibility is vital for beneficiaries looking to manage their finances effectively while receiving assistance.
What Income Is Not Counted For SSI?
Certain forms of assistance and income are exempt from counting against Supplemental Security Income (SSI) eligibility. For instance, when an individual receives help with medical bills, free medical care, or repayments from social services for past expenses, these amounts do not count as income. Additionally, up to $100, 000 in an Achieving a Better Life Experience (ABLE) account is not counted. Generally, items that cannot be used to acquire food or shelter are not considered income.
SSI payments are reduced based on countable income (CI), and it is important to review SSI guidelines to identify exceptions for different income types. Some specific non-countable income examples include pension payments, pension income, disaster assistance, school grants, certain scholarships, energy assistance, and amounts placed in a Plan for Achieving Self-Support (PASS) account. Social Security also allows the exclusion of the first $20 from most income and the first $65 from earned income.
Understanding what constitutes "non-countable" income assists individuals in making informed financial decisions. Ultimately, if an individual's countable income exceeds the SSI resource limit of $2, 000 for individuals or $3, 000 for couples, they cannot access SSI benefits. Nonetheless, there are substantial exemptions that can help determine eligibility effectively.
What Can Cause You To Lose Your SSI?
Exit from the Supplemental Security Income (SSI) program can occur for several reasons, including death, medical recovery, excess income or resources, or changes in living arrangements. Benefits may be suspended due to excess income; for instance, if your income or assets exceed the SSI eligibility limits, Social Security will cease payments. In 2024, the individual income limit stands at $943 per month, with an asset limit of $2, 000. Common reasons for losing benefits include surpassing these financial thresholds, returning to work, or experiencing medical improvements.
After a Trial Work Period (TWP), benefits may be suspended if earnings continue to exceed the limits. It's also essential to monitor changes in your financial situation, as they can trigger a loss of benefits. If benefits are terminated, they may be reinstated if the individual continues to meet disability criteria. In some cases, such as incarceration or divorce, benefits may also be impacted. Understanding these factors is crucial to maintaining SSI or Social Security Disability Insurance (SSDI) benefits.
What Happens If You Have More Than $2000 In The Bank On SSI?
To qualify for Supplemental Security Income (SSI), individual resources must be valued at $2, 000 or less, while married couples cannot exceed $3, 000. Resources include valuable items like vehicles, cash, or stocks but exclude certain assets. If an individual's countable resources exceed this limit at the month's start, SSI benefits are denied for that month. If excess resources are sold, SSI eligibility may resume the month after the sale. Income, which encompasses wages, pensions, and financial support, can affect eligibility as well but is subject to different thresholds.
Maintaining resources below specified limits is essential for benefit retention; a single recipient with assets over $2, 000 risks losing SSI coverage. The Social Security Administration (SSA) may notify individuals of overpayment if their assets exceed the limit, but benefits will not count as assets until the following month. For those who disagree with overpayment notices, there is a provision to appeal by submitting Form SSA-561. It’s crucial to manage finances prudently as exceeding asset limits—regardless of the source—can result in benefit reduction or termination.
Furthermore, certain savings strategies can allow some individuals to set aside funds, temporarily bypassing the strict monetary limits for eligibility in SSI and related programs such as Medicaid. Overall, understanding and navigating resource and income limits are key to successfully meeting SSI eligibility requirements.
Does Being Married Affect Social Security Benefits?
Marriage significantly influences Supplemental Security Income (SSI), which is a Social Security benefit for low-income individuals. The impact primarily arises for couples where both spouses qualify for SSI; they become subject to a reduced maximum couple’s benefit, which is lower than the sum of individual benefits. In contrast, marriage does not affect Social Security retirement benefits, as these are determined by individual work histories. Both spouses can receive their benefits independently, without limitation from each other’s benefits.
However, marriage can affect other benefits like SSI, Survivors, Divorced Spouses, and Child's benefits. It is important to note that while remarriage does not impact retirement benefits, it may alter eligibility or amounts for the aforementioned benefits. Proper reporting of changes, such as name updates or marital status, is crucial. Couples should understand the calculation of Social Security benefits, maximum family limits, and potential claim strategies.
To qualify for spousal benefits, couples generally must be married for at least a year, with exceptions for certain circumstances. Ultimately, while marriage can open avenues for additional benefits, it can also lead to a reduction in SSI based on the spouse's income and assets. Thus, planning and awareness are key for married individuals receiving these benefits.
What Is The 10 Year Rule For Social Security?
To qualify for Social Security benefits, you must have worked and paid taxes into the system for at least 10 years, earning a minimum of 40 work credits. You can begin collecting your own benefits as early as age 62, based on your lifetime earnings. Previously, married individuals could opt to claim spousal benefits and later switch to their own benefits at age 70 to maximize monthly payments. A common question addressed is the requirement that a marriage must last at least 10 years for divorced spousal and survivor benefits.
Generally, you must be married for at least one year to receive spousal benefits, but this does not apply if you have a child with your spouse. For survivor benefits, the marriage must last at least 9 months. Spouses can claim Social Security benefits at age 62, and they will receive up to 50% of their partner's primary insurance amount (PIA) at their full retirement age (FRA). If divorced, you are eligible for benefits based on your ex-spouse’s record if your marriage lasted 10 years or more, assuming you remain unmarried.
Additionally, specific rules regarding earnings gaps and tax caps should be understood to maximize benefits. The Social Security system has strict guidelines about marriage duration for benefits and the calculation of covered employment periods.
What Can Reduce SSI Benefits?
In determining your Supplemental Security Income (SSI), we consider in-kind support and maintenance as income, which can decrease your SSI benefits. For instance, if someone assists with rent, mortgage, food, or utilities, your SSI amount may be reduced accordingly. If Social Security benefits were due but not paid, the SSI will also offset these amounts. Furthermore, the Windfall Offset can cut a beneficiary's Social Security payment by up to half of their pension.
Living arrangements, such as residing in someone else’s home and paying less than the fair share of food, can lower your SSI amount. Income from work also affects benefits, as for every $2 earned, your SSI payment is reduced. Certain circumstances, such as remarrying or working in jobs not subject to Social Security tax, may lower lifetime benefits. Additionally, if you're collecting Social Security before full retirement age, your benefits can be reduced.
SSI provides monthly payments to those aged 65 and older or with disabilities and limited income/resources, aimed at assisting with basic needs. However, these benefits can be decreased due to in-kind support, living arrangements, and other income sources. Understanding how these factors interplay is crucial for SSI beneficiaries.
What Are The Three Ways You Can Lose Your Social Security?
Here are several ways you could lose your Social Security benefits. First, claiming benefits before reaching your full retirement age can result in forfeiting up to 30% of your benefits. Working while receiving early benefits is another pitfall that may reduce your payments. Second, being a significantly lower-earning spouse may affect your overall benefit amount. Additionally, reaching income thresholds can render part of your benefits taxable; if your earnings exceed $25, 000 as a single filer or $32, 000 for joint filers, up to 85% of your benefits may be taxed.
Third, certain life situations such as incarceration for over 30 days, returning to work after accepting disability benefits, or having your condition improve can lead to loss of benefits. Similarly, not paying taxes can result in garnishment. Divorcing after lengthy marriages may alter spousal benefits. It's crucial for anyone eligible for Social Security to be aware of these conditions to ensure they maximize their benefits during retirement and avoid common mistakes that could lead to a financial shortfall.
How Can You Get Disqualified From SSI?
To qualify for benefits such as Supplemental Security Income (SSI), individuals must be at least 65 years old, blind (either totally or partially), or have a medical condition preventing them from working for at least 12 months or leading to death. Those who do not meet these criteria will be disqualified. Furthermore, SSI has income and asset limits, with exceptions available. For large sums of assets, considering a special needs trust is advisable, while smaller amounts may require "spending down" to meet the resource limit.
SSI provides monthly payments to disabled individuals and older adults with limited income and resources. An individual may be eligible if they have a disability and earn less than $1, 550 monthly. Social Security reviews SSI beneficiaries' income and assets periodically in a process called "redetermination," ensuring continued eligibility.
Disqualifications can arise from exceeding income thresholds or not meeting age or disability requirements. Particularly, SSDI benefits could be denied for earning over $880 monthly. Noncitizens risk losing SSI if they lose eligible status. A felony conviction typically does not impact eligibility, but other non-medical reasons can disqualify applicants, underscoring the importance of understanding the qualifications for SSI benefits.
How Can I Avoid Losing My SSI Benefits?
There is good news for those receiving Supplemental Security Income (SSI) benefits; you may be able to save money without losing your benefits. The most common methods include ABLE accounts, Special Needs Trusts, Individual Development Accounts, and PASS accounts. It’s crucial to understand SSI eligibility rules to protect your inheritance while maintaining benefits. For large sums received, consider establishing a Special Needs Trust. For smaller sums, employing a spend down strategy can help, which involves reducing your assets below the SSI resource limit by purchasing exempt items like a home or paying off a mortgage.
It’s essential to be transparent with the Social Security Administration (SSA) about financial changes, including inheritances. Non-countable income sources include state SSI supplements and SNAP benefits. A Special Needs Trust permits you to accept an inheritance without losing SSI benefits. If you’re dual-eligible for SSDI, be mindful that losing SSI benefits might occur before affecting SSDI. Consider trial work periods, and remember to report work activities to minimize impact on your benefits.
To avoid reductions from In-Kind Support and Maintenance (ISM), establish rental agreements when living with family. For maintaining benefits, spend down assets, create an ABLE account, or explore lifetime gifting options.
📹 Can children receive Social Security benefits based on their parents’ earnings?
Children who meet certain requirements can receive Social Security benefits if their parent is retired or disabled, or their parent …
You went on about what kind of account to put the childs money into but it all comes in one payment to the retired person. “If a child is a minor, their Social Security benefits will be issued in the name of the representative payee.” It goes into the same bucket, as you said it is additional income meant to subsidize the expenses until the kid reaches age of majority.
CLARIFICATION IN FAMILY MAXIMUM BENEFIT CALCULATION: In this article, we reference the Family Maximum Benefit calculation at 4:16 in the article. There is an important item that I want to clarify about the calculation of the family Max. When you calculate the Family Maximum Benefit amount, you always use your Full Retirement Age Benefit in the calculation regardless of when you actually filed for social security benefits. If you file for social security benefits early at age 62, instead of using the reduced 62 age benefit of $1,200 social security benefit to calculate the remaining amount available for your children, you have to use the FRA benefit of $1,700 in the formula before determining how much your children are eligible to receive. Social security would reduce the children’s benefits by an equal amount until their total benefit is reduced to the family maximum limit. These are the steps: 1) Max Family Benefit = $1,700 (FRA) x 150% = $2,550 2) $2,550 (Family Max) – $1,700 (FRA) = $850 3) Divide $850 by 4 eligible children = $212.50 for each child This results in the following social security benefits paid to retiree and their 4 children: You: $1,200 Child 1: $212.50 Child 2: $212.50 Child 3: $212.50 Child 4: $212.50 We have a article on this topic the provides a detailed illustration of the calculation: greenbushfinancial.com/all-blogs/social-security-dependent-benefit-minor-child (Comment is for education. Not advice)
I am 55 with a 4 year old. I am looking at retiring when I am 64 and start drawing SS. My daughter will be 13. I’ll have her start drawing SS based on my FRA (so over the 6 years that’s going to be a substantial amount). I understand that the monies she receives has to be put into an account “owned” by her (and I can be custodian) So that we don’t get a letter when she’s 18 or 19 that we owe any unspent money back to the IRS. I asked my bank if I can open such an account and they basically said no. I will always be listed as a owner along with my daughter. Here is what they said: “Your daughter would need to have a parent or legal guardian on the account with her. She can be listed as the Tax Reported Owner and you could be listed as second on the account, however, you would still be considered an owner of the account” So, if my daughter would be considered the “tax reported owner” but I am still a co-owner, would that satisfy the IRS rules so that we don’t have to pay any monies back (as long as I don’t get the 1099-DIV) Hope that makes sense. I am NOT going to be opening a UTMA or UGMA account. Thanks Mark PS has anyone every done this? Have their child draw SS before the age of 18 (or 19 if still in high school)? What kind of account were you able to get so that the IRS doesn’t ask for any unspent monies to be returned.
I am 62 years old and I began receiving benefits Feb 2024. I reside now in the Philippines. I applied for benefits for my spouse and 2 stepchildren at the same time when i applied for my benefits. I had to complete many forms and provide lots of documentation, as well as have my wife set up separate joint accounts for each child, and one of her own to receive benefits. Because i processed my request through the US embassy in the Philippines, it takes several months to get an answer. I should know by the end of the year whether all benefits have been approved. If yes, benefits will be paid retroactively to February. I will post back once i have an answer.
So, listening again to your explanation of titling the account in the child’s name, how does that stop SSA from getting the money if there is anything left at age 18? Unless, they ask specifically in their latter to the parent for any saved money in the parents name? How does the work around not qualify the SSA from demanding any remaining dollars for the child’s account? Where did you get that information? On the SSA site? Thanks…
I have not heard of the government requiring an account be set up for the child or demanding unused money be returned. I have received this benefit for years for my daughter and me (as the caregiver) all because I fell in love with and married an older man! This is a fabulous benefit that has helped me tremendously – I receive about $60,000 a year. There is a family maximum and I guess mine is that amount. So even if we had six children, I would still get $60,000. The family maximum depends on the retiree’s income bracket. The child and the adult(s)’ money can be deposited together and used for daily expenses. I was never told to set up an account for my daughter. The only negative is that, now that my daughter is a teenager, I would like to earn some extra money but I cannot make more than about $20,000 or I would lose my portion of the benefits.
My son receives $700 and will turn 18 in February 2025, he will continue until May 2025 for when he graduates, then his $700 will be shared between my daughter who is 6 years old, and my wife who is 43 years old and she receives the same amount as my kids because she is considered their care giver. Throughout my 46 year work history I paid ss taxes and my employer paid ss taxes which equaled $220,000 total in taxes paid, I break even in 4 years of retirement, sweet deal…
I’m a ChFC for longer, since I’m about 20 years older, I didn’t know about this either. I found out because I had heard that the reason this exists came from politicians negotiating w/Unions for fire fighters & police. The fire department tells the men to marry younger women and retire after 20 years and clean up on this benefit. I’ve heard it’s really fraudulent and I could understand why I’ve heard that
I will be 62 in March. My wife who is 63 and I have 2 minor children. 6 and 4. I plan on taking SS early and take advantage of the family benefit. We are struggling financially and plan on using the money to help with the mortgage payments. Are we legally allowed to do this? Also my wife plans on working till 70 then taking her benefits 9 max benefits). In the event she passes first would I be able to claim her benefits (greater amount than mine) give up mine and also claim the family benefit till my kids turn 18? Thanks
What I have read so far indicates to document all of the dependent spending specifically like a budget or accounting sheet. Anything remaining has to be in some kind of saving/bond to make interest. then when they turn 18, the SSA will expect/demand the unspent money back with interest back. How does having a separate account for the child offset this? I do not see how this can be a work around?
Nice article! Concerning the Maximum Family Benefit, what factors impact the Max benefit (150% to 188%)? Is there anything I can do to push that maximum benefit toward 188%. I have two children that will be 17 and 14 years old when I turn 62. Also in the article it was not real clear when the child stops collecting. You said age 18, but it is really age 18 or when they graduate from high school, whichever occurs LAST. Thanks!
I am wondering why you did not know about minor children of a parent’s benefits. I knew about them and I do not claim to be an expert. You need to speak to protective filing date for when the parent and the minor children applied for the parent and the minor children. SSA routinely drops the ball on minor children protective filing date. ask me how I know