What Supplemental Security Income Is

Supplemental Security Income (SSI) is a federal cash payment program for people with very low income and limited resources — it is not the same as Social Security retirement or disability benefits. SSI is run by the Social Security Administration, which is why the names sound similar, but the two programs have different rules about who qualifies, how much you receive, and what you must report.

SSI pays a monthly amount to people who are 65 or older, blind, or disabled and who have less than $2,000 in countable resources (or $3,000 if you are married). The payment goes directly to you, not to a family member, and the amount varies by state because some states add money on top of the federal payment.

You do not have to have worked to receive SSI. This is the key difference from Social Security retirement or disability benefits, which require a work history. SSI is a needs-based program, meaning it looks at your current income and assets, not your past earnings.

Key Takeaways

  • SSI is a needs-based program for people 65 or older, blind, or disabled with very low income and under $2,000 in resources; it does not require a work history.
  • The federal SSI payment amount is the same nationwide, but many states add their own money, so your total payment depends on where you live.
  • You must report changes in income, living situation, and resources within 10 days or you may lose benefits or owe money back.
  • SSI recipients often also receive Medicaid, and some states tie Medicaid coverage to SSI status, so losing SSI can affect your health insurance.

Who Can Receive SSI

You must meet one of three conditions: be 65 or older, be blind, or be disabled. "Disabled" means you have a medical condition that prevents you from working and is expected to last at least 12 months or result in death. The Social Security Administration uses its own definition of disability, which is stricter than many other programs.

You also must have less than $2,000 in countable resources if you are single, or $3,000 if you are married and both spouses are receiving SSI. Countable resources include cash, bank accounts, stocks, and property you own — but not your home, one vehicle, or certain personal items. Some resources do not count at all, such as a burial plot set aside for you or life insurance with a face value under $1,500.

Your monthly income must be low enough to may have access to. The exact limit changes each year. If you work, SSI counts only part of your earnings against the income limit, and there are work incentives that let you earn more without losing all your benefits right away.

How Much SSI Pays and Where the Money Comes From

The federal SSI payment amount is set by Congress and changes once a year in January if the cost of living has risen. The amount is the same in every state for the federal portion. However, 10 states add their own state supplement on top of the federal payment, so your total monthly amount depends on which state you live in.

Some states pay a higher supplement if you live in your own home versus in someone else's home or an institution. If you move to a different state, your payment may change. You must report a move to Social Security within 10 days.

SSI is funded by general tax revenue, not by the Social Security payroll tax. This is another way it differs from Social Security retirement and disability benefits, which come from the trust fund built up by workers' contributions.

How SSI Affects Other Benefits and Health Insurance

Most SSI recipients also receive Medicaid, the health insurance program for people with low income. In most states, receiving SSI automatically qualifies you for Medicaid. In a few states, you must explore for Medicaid separately even if you receive SSI, but you will likely be found to meet the income and resource limits.

If you lose SSI benefits, you may also lose Medicaid coverage in your state. Some states have "SSI-related" Medicaid, meaning your Medicaid ends when your SSI ends. Other states have separate Medicaid programs that may continue even if SSI stops. Contact your state Medicaid office to understand what happens to your coverage if your SSI payment changes.

If you receive both SSI and Social Security retirement or disability benefits, the Social Security payment counts as income and reduces your SSI amount dollar-for-dollar. This is called the "deemed income" rule. You do not lose SSI entirely, but your payment shrinks by the amount of your Social Security check.

What You Must Report and When

SSI requires you to report changes within 10 days. The most common changes are: a new job or a change in hours or pay; money you receive (gifts, inheritance, tax refunds, loans); a change in where you live or who you live with; a change in your marital status; a new bank account or an increase in savings; and a change in your medical condition if you are receiving SSI as a disabled or blind person.

You report changes by calling Social Security at 1-800-772-1213, visiting your local Social Security office, or using your online account at ssa.gov. If you miss the 10-day window, you may be overpaid — meaning Social Security will have sent you money you were not supposed to receive — and you will have to pay it back.

Social Security also conducts periodic reviews to confirm you still meet the rules. If you are receiving SSI as a disabled or blind person, you will receive a notice asking you to report on your medical condition and work activity. Answer these reviews carefully and on time, because missing a important date can result in your benefits being stopped.

SSI and Work: How Earnings Affect Your Payment

You can work and receive SSI at the same time, but your earnings will reduce your payment. SSI uses a formula: it does not count the first $65 of your monthly earnings, and then it counts half of everything above that. This means you can earn some money without losing your entire SSI check.

There are also work incentives that let you earn more without losing benefits as quickly. The "Plan to Achieve Self-Support" (PASS) lets you set aside income and resources for a work goal, such as education or starting a business, without those amounts counting against your SSI limits. The "Impairment Related Work Expenses" (IRWE) deduction lets you subtract costs related to your disability that help you work, such as transportation or medical equipment.

If you are thinking about working, contact your local Social Security office or a work incentives planning and information (WIPA) project before you start. These free services explain how work will affect your benefits and help you plan so you do not lose coverage by accident.

How to Report a Change or Get More Information

You can report changes to your SSI case by phone, mail, or in person. Call Social Security at 1-800-772-1213 (TTY 1-800-325-0778 for deaf and hard of hearing callers). You can also create an account at ssa.gov and report some changes online. If you prefer to visit in person, find your local Social Security office at ssa.gov/locator.

If you have questions about how a specific change will affect your benefits, ask to speak with a representative before you make the change. For example, if you are thinking about moving in with someone else or starting a job, call ahead and describe your situation. Social Security can tell you how it will affect your payment so you can make an informed decision.

Frequently Asked Questions

Can I receive both SSI and Social Security retirement or disability benefits?

Yes, but your Social Security payment counts as income and reduces your SSI amount. If you receive $1,200 in Social Security and the federal SSI payment is $943, your SSI check will be reduced by $1,200, which means you would receive no SSI. However, you keep your Medicaid in most states, which is often the main reason to keep the SSI case open even if the payment is zero.

What happens to my SSI if I move to a different state?

Your federal SSI payment stays the same, but your state supplement may change. Some states pay more than others. You must report your move within 10 days. Contact Social Security before you move so they can tell you what your new payment will be in the state you are moving to.

Does SSI count money my family gives me as a gift?

Gifts count as income in the month you receive them and reduce your SSI payment. However, gifts do not count toward your resource limit ($2,000 for a single person). If you receive a large gift, report it within 10 days so Social Security can adjust your payment correctly for that month.

Can I lose SSI if I go to the hospital or nursing home?

Your SSI payment may be reduced if you are in a hospital or nursing home for a full month, but you will not lose it entirely. The rules depend on whether Medicaid is paying for your care and how long you stay. Contact Social Security before you enter a facility to understand how it will affect your benefits.

What is the difference between SSI and SSDI?

SSI is needs-based and does not require work history; SSDI (Social Security Disability Insurance) is based on your work record and earnings history. You can receive both if you may have access to for both, but the rules about income and resources are different. SSI has a $2,000 resource limit; SSDI has no resource limit.