Before you panic, let’s talk about something that has half of America scratching their heads: SSI (Supplemental Security Income). Did you know that your payment could be lower than anticipated? And, no, it is not due to inflation or your Starbucks purchases.
The Social Security Administration (SSA) provides SSI benefits to people who have little or no income and almost no savings. In other words, if you have limited resources, this program may be able to help you stay afloat financially.
Pay attention: the check is not the same for everyone. Your income (if you have any), living with someone who supports you, or even receiving free shelter all play a role. But let us go in sections; this is not a surprise exam.
SSI vs. Social Security: they are not the same
Do not be confused. Social Security (for grandparents who have worked their entire lives) and Supplemental Security Income (SSI) are incompatible. You deducted the first one from your taxes; the second is a little extra help if you are struggling financially. And what about SSDI (the disability program)? It isn’t the same either. That is dependent on your work contributions.
In other words, it is based on need, and the Social Security Administration will not necessarily require you to have worked and paid Social Security taxes.
The federal maximum is $967 per month (it has increased slightly since 2024, but it remains tight). However, almost nobody receives the cap. Because? Because the government performs complex calculations that are difficult to understand. For a couple, SSI pays up to $1,450 per month.
How is the calculation made?
If you earn money through work, 50 cents are deducted from your SSI. For example, if you earn $300 from a part-time job, the government will deduct $150 from you. Result? Your SSI would be $943 minus $150, which equals $793.
If someone gives you free room and board, this is considered “in-kind support.” In other words, they lower your payment as if you were paying rent. For example, if your sister lets you live on her couch for free, SSI may deduct up to $300 (depending on the state).
If you have savings or properties, you’re in for a surprise. If you are single and have more than $2,000 in savings (or $3,000 if you are married), you will be unable to receive SSI benefits. But don’t worry, your house and car do not count. Unless you own a yacht or a collection of Rolexes, you may run into problems.
The case of Dorothy: the grandmother who did not receive the maximum
Consider Mary, a woman who receives a $500 pension and lives with her son, who provides her with free room and board. The government does what follows:
- 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 about you (a family member, a friend, or even a good neighbor), they may receive a monthly payment. However, keep in mind that it is not automatic. You must demonstrate that without them, you could not live comfortably.
If you have a disability or a condition that makes it impossible for you to live independently, you may be eligible for SSI. You need someone to assist you with bathing, cooking, going to the doctor, or even managing your medications.
That individual is your “essential person.” And SSI could give you an extra payment of up to $484 per month (yes, the amount increased in 2024, but it is still insufficient for what they do).
Furthermore, that money does not belong to you; it goes directly to the essential person. That is, you continue to receive your SSI cut (because living with someone qualifies as “in-kind support”), but the government also provides this additional benefit to your caregiver.
