Understanding Supplemental Security Income
SSI Spotlight on Income From The Arts
2008 Edition

I am an artist who gets SSI benefits.

It depends on the nature of your work in the arts.

	If you work as someone's employee to produce artwork, the money counts as wages.
	If you have a small business, the money counts as earnings from self–employment.
	If you are neither employed nor self–employed as an artist, money you get for your artwork counts as "unearned" incomeincome in the month you get it.

It is called "unearned" incomeincome because you don't get the money from employment or self–employment.

Although we may need to reduce your SSI benefits when you receive other incomeincome, we don't count all of your incomeincome. So, often you end up with more money.

When you have wages, we look at your gross monthly amount.

From that amount:

	we subtract the first $65; and
	we then subtract one–half of what's left.

Other deductions may also apply.

	If your earnings are the only incomeincome you have (other than your SSI benefits), we subtract $20 per month from your earnings.
	If you are a student under the age of 22, we usually can subtract more of your earnings, subject to monthly and annual limits.
	If you are disabled but not blind, we subtract expenses you have because of your disability that enable you to work (wheelchair, prosthesis, medicines, etc.).
	If you are blind, we subtract all of your work expenses (taxes, lunches, transportation, etc.).
	If you have an approved Plan to Achieve Self–Support (PASS)Plan to Achieve Self–Support (PASS), we subtract any of your incomeincome that goes to meet your approved work goal.

After subtracting these amounts, the remaining wages will reduce your SSI benefits. But, since we always count less than half of your wages, you end up with more money.

You deduct your business expenses on Schedule C of your Federal income tax return. You then calculate your "net earnings from self–employment" on Schedule SE.

We divide those net earnings equally among the months in your taxable year. For each month, we subtract the same deductions that apply to wages.

The remaining amount of your net earnings reduces your SSI benefits. But, since we always count less than half of your net earnings, you end up with more money.

Not necessarily. If your art incomeincome is from wages or self–employment, your Medicaid coverage usually continues for as long as you are unable to afford similar coverage.

Also, if your earnings later drop, you may be able to get SSI benefits again without filing a new application.

We look at the gross amount you received. We then subtract any costs you had in producing the incomeincome (art supplies, paper, etc.). We call these costs your "expenses of obtaining incomeincome." We also deduct $20 from your total incomeincome each month. The remaining incomeincome reduces your SSI benefits.

Most of the deductions listed above that apply to wages and earnings from self–employment don't apply to "unearned" incomeincome. So, usually "unearned" incomeincome causes a bigger reduction in your SSI benefits. But, most of the time, you still end up with more money.

Under the law, awards of any kind are "unearned" incomeincome in the month you get them. If you spend the money in the month you get it, then your SSI benefits usually are affected only in that month. But any money you keep after the month you get it counts as a resourceresource for SSI purposes as long as you have it.

The SSI limit on resourcesresources is $2,000 ($3,000 if you have a spouse). If your resourcesresources exceed the limit in any month, you are not eligible for SSI benefits.

Grants you receive for study don't count against your SSI benefits as long as the money is used for tuition, fees, and necessary educational expenses. But any of the money you use for something else, including your food and shelter, counts as your "unearned" incomeincome in the month you received the money.

Also, if you don't spend the grant money in the month you get it, it counts as your resourceresource for as long as you keep the money. (Grants, scholarships and educational gifts received after June 1, 2004 will not count as a resourceresource for nine months after you receive them.)

Certain money you receive under Title IV of the Higher Education Act of 1965 or from the Bureau of Indian Affairs is excluded from incomeincome and resourcesresources regardless of how you use it.

If you receive a grant to help train an artist, and training artists is part of your business as a self–employed person, then the grant counts as part of your earnings from self–employment. Otherwise, the money (less any necessary expenses) counts as your "unearned" incomeincome in the month you receive it.

Probably not. In most cases, property that you use to help support yourself does not count, subject to certain limits. We call it "property essential to self–support."

The best way to avoid being overpaid is to talk to us as soon as you know you may receive the money. We can explain to you how the rules work and how to avoid or minimize the amount of an overpaymentoverpayment. You can call us at 1–800–772–1213.

You must tell us right away whenever your incomeincome changes. If you don't, we may pay you too much SSI, and you may have to pay it back.

Remember also to keep track of your expenses when you produce your art. If we don't know about your expenses, we can't deduct them from your incomeincome.

Unfortunately, we can't give you grants or loans for training or supplies. But, if you already have some incomeincome in addition to your SSI benefits, we may be able to give you more SSI benefits if you use your other incomeincome to develop as an artist or to start a business. See the SSI Spotlight on Plans to Achieve Self–Support (PASS)Plans to Achieve Self–Support (PASS).

Yes. There are SSI Spotlights on a number of the topics discussed in this spotlight:

• Continued Medicaid Eligibility for People Who Work (Section 1619(b))Continued Medicaid Eligibility for People Who Work (Section 1619(b))
• Impairment–Related Work ExpensesImpairment–Related Work Expenses
• Plans to Achieve Self–Support (PASS)Plans to Achieve Self–Support (PASS)
• Property You Need for Self–SupportProperty You Need for Self–Support
• ResourcesResources
• Special SSI Rule for Blind People Who WorkSpecial SSI Rule for Blind People Who Work
• Student Earned Income ExclusionStudent Earned Income Exclusion

These spotlights are also available from any Social Security office and on our web site at www.socialsecurity.gov/pubs/faxindx1.htmlwww.socialsecurity.gov/pubs/faxindx1.html, or you can ask us to FAX them to you by calling a toll–free number, 1–888–475–7000, from a touch–tone phone.