Income Exclusions for SSI Program

Not everything an individual receives is considered to be income. Generally, if the item received cannot be used as, or to obtain, food, clothing, or shelter, it will not be considered as income. For example, if someone pays an individual's medical bills, or offers free medical care, or if the individual receives money from a social services agency that is a repayment of an amount he/she previously spent, that value is not considered income to the individual. In addition, some items that are considered to be income are excluded when determining the amount of an individual's benefit.

Principal earned income exclusions

• The first $65 per month plus one-half of the remainder (see below)
• Impairment-related work expenses of the disabled and work expenses of the blind
• Income set aside or being used to pursue a plan for achieving self-support by a disabled or blind individual

Principal unearned income exclusions

• The first $20 per month
• Income set aside or being used to pursue a plan for achieving self-support by a disabled or blind individual
• State or locally funded assistance based on need
• Rent subsidies under HUD programs and the value of food stamps
• Infrequent or irregularly received income ($20 or less a month)

General earned income exclusion—the most significant exclusion
The first $65 ($85 if the individual has no income other than earnings) of any monthly earned income plus one-half of remaining earnings are excluded for SSI benefit computation purposes. This general earned income exclusion is intended to help offset expenses incurred while working.

For 2009, if an individual has only earnings income, then he or she could earn up to $1,435 per month and still be eligible for an SSI benefit. However, if an individual has monthly earnings of $980 or more in 2009, then the person would be considered to be engaging in substantial gainful activity and would probably not be eligible for SSI disability benefits (unless he or she is blind).