The Social Security Administration (SSA) offers several benefits, including retirement payments, disability benefits through Social Security Disability Insurance (SSDI), and aid for disabled adults and children with low income and resources. Furthermore, the Supplemental Security Income (SSI) program provides support to people aged 65 and up who are not disabled but have limited income and resources.
Several circumstances could result in the loss of Social Security payments, but it is also possible to reclaim these benefits after they have been lost, and beneficiaries must be aware of these.
Earning more above specific income restrictions is a common reason for losing Social Security benefits. While you can collect Social Security benefits while still working, earning more than the stated income criteria may result in a reduction in your monthly benefits.
Exceeding income limits
Earning more above specific income restrictions is a common reason for losing Social Security benefits. While you can collect Social Security benefits while still working, earning more than the stated income criteria may result in a reduction in your monthly benefits.
Supplemental Security Income (SSI) limits
To qualify for SSI, your monthly income must be less than $1,971 if you are an individual. The income limit is slightly higher for couples, but if you earn more than this amount, you may no longer be eligible for SSI. Furthermore, for every $2 you earn at work, your SSI payout will be decreased by $1. It is vital to note that every work you have counted against this income, and you must promptly report any changes in your monthly income or living circumstances to the SSA.
Social Security Disability Insurance (SSDI) Income Limits
Those receiving SSDI have a little more leeway when it comes to generating extra money. If you begin working while receiving SSDI benefits, you can continue to receive them for up to nine months as part of what the SSA calls a “work trial period.” In 2024, if your gross monthly earnings surpass $1,110, that month will contribute towards your nine-month trial term. These nine months do not need to be consecutive, but they must fall within a five-year rolling period. During this trial period, there is no limit on how much you can earn while collecting SSDI payments.
After the nine-month trial period ends, there is a 36-month “extended period of eligibility” (EPE). During this time, if your wages surpass the EPE limit—set at $1,550 per month in 2024, or $2,590 if you are blind—you will be ineligible for SSDI payments for that month. If you continue to earn more than this amount after the EPE expires, your SSDI benefits will be withdrawn. However, if you discover that you are unable to continue working, you may be able to reinstate your benefits.
Resource Limits for SSI
SSI eligibility is determined by both income and resources. The Social Security Administration defines “resources” as whatever you own that can be converted into cash and used to pay for food or shelter. This includes cash, bank accounts, equities, mutual funds, US savings bonds, real estate, life insurance, personal property, and automobiles. Certain resources, however, do not count toward the cap, such as your home and the land it sits on, one car used for transportation, household items, personal possessions, and life insurance policies with a combined face value of $1,500 or less.
To qualify for SSI, your resources must be less than $2,000 if you are single and $3,000 if you are married. According to the Center on Budget and Policy Priorities, around 70,000 SSI participants lose their payments each year because they exceed the resource limit. Although legislative proposals have been made to extend these restrictions to $10,000 for individuals and $20,000 for couples, such changes have yet to become law.
Changes in Marriage Status
Your marital status might also affect your Social Security benefits, especially in the event of a divorce. There are a few circumstances in which you may be unable to get benefits based on your ex-spouse’s salary. For example, if your marriage lasted shorter than ten years or if you remarried, you are normally unable to receive benefits from your prior marriage. However, if your subsequent marriage ends in divorce, annulment, or the death of your new husband, you may be able to claim benefits based on your prior spouse’s record.
Incarceration
Being jailed has a substantial impact on your Social Security benefits. If you are in prison for more than 30 days, the Social Security Administration may suspend your Social Security and Supplemental Security Income benefits.
Social Security and SSDI Benefits While Incarcerated
If your benefits are interrupted due to incarceration, you can request that they be reinstated the month after you are released. Importantly, even if your benefits are suspended, your spouse and children may continue to get them as long as they are eligible.
SSI Benefits during incarceration
SSI benefits are also suspended when incarcerated. Payments can continue immediately following your release, albeit the amount will be determined by the precise release date and may be only a partial payment. If you are detained for more than 12 months in a row, your SSI payments will be canceled, and you will be required to complete a new application with the SSA upon your release.
