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SSI will likely be the first government benefit your child will be awarded. This article explains the SSI eligibility rules.
Typically, your child will be awarded SSI after the age of 18. Why 18? Because up until age 18, parents’ income and resources deem to their child rendering the child financially ineligible for SSI. (Note: Some children younger than 18 may qualify for SSI if their parents have limited income and resources.)
When your child applies for benefits after the age of 18, your child will probably have no or negligible work record, so your child will not be eligible for Title II Social Security Disability Insurance (SSDI). And if you, the parent, are healthy, not receiving SSDI, and not old enough to receive Social Security Retirement benefits, then your child will not be eligible to receive Childhood Disability Benefits (CDB) off your work record.
What’s left? Supplemental Security Income (SSI), right? (Note: I am assuming your child is unmarried.)
Here's some background information on SSI:
SSI was passed by Congress in 1972 and implemented in 1974. The money for the program comes from general tax dollars.
Think of SSI as a government safety net of last resort. The purpose of SSI is to provide food and shelter. Granted: The federal benefit rate of $914 in 2023 (plus any small state supplement) is too small to live on. Nonetheless, receiving the cash benefit is much better than nothing. And importantly, obtaining SSI is a crucial first step in your child's government benefits journey.
SSI is awarded to three categories of people:
In very general terms, to be eligible for SSI, you must be aged, blind or disabled, and financially needy. If you are over age 65 and financially needy, you’re eligible. If you are under 65, you must be either blind or disabled and financially needy.
To qualify for SSI, your child must meet seven requirements:
Let’s go through each criterion one at a time:
Requirement 1: US Citizen or Meet Requirements for a Non-Citizen
To receive SSI, your child must be a citizen of the United States. Under certain circumstances, SSI is available to legal immigrants for some time.
Requirement 2: Resident of the US (or One Territory)
Your child must reside in the United States or the Northern Mariana Islands, a US protectorate, to receive SSI. Exception: If a parent is serving in the US military and serving abroad, and the child lives with the parent, that child can receive SSI.
Requirement 3: Blind or Disabled
Your child must be blind or disabled. As we discussed in an earlier chapter, Social Security defines adult “disability” as the inability to do any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months.
As we have discussed in the chapter on Social Security’s definition of disability, the essential evidence to prove your child’s disability is what your child’s current medical providers write in your child’s current medical charts.
Generally, having a diagnosis is not enough. To prove “disability,” your child must provide current medical evidence that they cannot engage in substantial gainful activity (See Requirement 7 below).
An individual may qualify for SSI payments if they’re blind. Social Security considers one to be blind if their vision can’t be corrected to better than 20/200 in their better eye. They also consider one blind if their visual field is 20 degrees or less in their better eye for a period that lasted or is expected to last at least 12 months. The duration requirement does not apply to SSI payments.
Requirement 4: Limited Income
In general, limited income means your child must have “income” less than the SSI federal benefit rate (FBR), which is $914 per month for an individual and $1,372 per month for a couple in 2023. If your child is applying for SSI shortly after age 18, then your child probably meets this requirement since your child likely has little unearned or earned income.
Determining limited income is actually far more complicated since Social Security only counts some income. For example, if your child has only unearned income, such as income from pensions, dividends, cash gifts, Social Security benefits, etc., your child would need less than $934 of unearned income ($934 - $20 General Income Exclusion = $914). Or, for example, if your child has only earned income, your child’s gross wages or net-self-employment earnings would have to be less than $1,913 in 2023 ($1,913 - $20 General Income Exclusion - $65 Earned Income Exclusion divided by 2 = $914). We’ll discuss this concept of countable income in more detail in the next chapter.
Social Security also increases the income limit with the amount of any state supplement. Many states give supplemental payments to SSI recipients.
Below is a description from Social Security regarding income:
______________________________________________________________________________
Income is money you receive such as wages, Social Security benefits, and pensions. Income also includes such things as food and shelter. The amount of income you can receive each month while still getting SSI depends partly on where you live. You can call us to find out the income limits in your state.
We don’t count all your income when we decide whether you qualify for SSI. For example, we don’t count:
If you’re married, we include part of your spouse’s income and resources when deciding if you qualify for SSI. If you’re younger than age 18, we include part of your parents’ income and resources. And, if you’re a sponsored noncitizen, we may include your sponsor’s income and resources.
If you’re a student, some of the wages or scholarships you receive may not count.
If you have a qualifying disability, and are working, we don’t count wages you use to pay for items or services that help you to work. For example, if you need a wheelchair, the wages you use to pay for the wheelchair don’t count as income when we decide if you qualify for SSI.
Also, we don’t count wages a blind person uses for work expenses. For example, if a blind person uses wages to pay for transportation to and from work, the wages used to pay the transportation cost aren’t counted as income.
If you’re blind or have a qualifying disability, some of the income you use (or save) for training, or to buy items you need to work, may not count.
______________________________________________________________________________
Requirement 5: Countable Resources No More Than $2,000 ($3,000 for a Married Couple)
SSI is for financially needy people. How does Social Security measure whether an individual is financially needy? If your child has countable resources above $2,000, your child will not be eligible to receive SSI. Sadly, this $2,000 figure has not increased since 1989.
What is a countable resource? In general, it’s any asset that the individual can easily convert to cash, like a checking account, savings account, or most investment accounts.
However, Social Security does not count some specific assets, so-called exempt assets. Social Security does not count the following items:
Warning: If your child owns over $2,000 of resources, only let your child transfer that money to someone else if you are being counseled by an attorney or a benefits professional. By transferring any money in your child’s name to someone else, Social Security may consider the transfer impermissible. Depending on the amount impermissibly transferred, Social Security may deny eligibility for SSI for up to 3 years.
Don’t worry, though. There are solutions to the problem of excess resources:
At the time of your child’s application, Social Security looks back three years to see if there were any impermissible transfers. If your child owns considerable money, find a special needs attorney or benefits advocate to advise you – before moving any money. You’re in treacherous waters.
Requirement 6: Must File for any Other Benefits
To receive SSI, your child must apply for any other benefits, such as veteran benefits, Social Security Disability benefits, or worker’s compensation. Remember, SSI is a benefit of last resort. For example, Social Security always first awards Title II benefits from Social Security funds. SSI is paid from general tax dollars. The government only wants to pay from general revenues as a last resort. If your child is entitled to significant other benefits, your child will not be considered financially needy by Social Security and, therefore, ineligible to receive SSI.
Requirement 7: Either Not Working or Working at Less Than Substantial Gainful Activity (SGA)
As you may recall from the prior chapter explaining Social Security’s definition of adult disability, Social Security uses a five-step sequential evaluation process to determine disability. The first step is asking whether the claimant is working above the SGA level.
It’s okay to work. However, if the claimant’s countable earned income exceeds substantial gainful activity (SGA), then Social Security will determine the claimant is not “disabled” and deny the application. For example, in 2023, if the claimant’s countable earned monthly income is above $1,470 (net of impairment-related work expenses), the application is denied even if the individual has a medical impairment.
SGA does not apply to statutorily blind individuals applying for SSI.
SSI will likely be the first government benefit your child will be awarded. This article explains the SSI eligibility rules.
Typically, your child will be awarded SSI after the age of 18. Why 18? Because up until age 18, parents’ income and resources deem to their child rendering the child financially ineligible for SSI. (Note: Some children younger than 18 may qualify for SSI if their parents have limited income and resources.)
When your child applies for benefits after the age of 18, your child will probably have no or negligible work record, so your child will not be eligible for Title II Social Security Disability Insurance (SSDI). And if you, the parent, are healthy, not receiving SSDI, and not old enough to receive Social Security Retirement benefits, then your child will not be eligible to receive Childhood Disability Benefits (CDB) off your work record.
What’s left? Supplemental Security Income (SSI), right? (Note: I am assuming your child is unmarried.)
Here's some background information on SSI:
SSI was passed by Congress in 1972 and implemented in 1974. The money for the program comes from general tax dollars.
Think of SSI as a government safety net of last resort. The purpose of SSI is to provide food and shelter. Granted: The federal benefit rate of $914 in 2023 (plus any small state supplement) is too small to live on. Nonetheless, receiving the cash benefit is much better than nothing. And importantly, obtaining SSI is a crucial first step in your child's government benefits journey.
SSI is awarded to three categories of people:
- The aged;
- The blind; and
- The disabled.
In very general terms, to be eligible for SSI, you must be aged, blind or disabled, and financially needy. If you are over age 65 and financially needy, you’re eligible. If you are under 65, you must be either blind or disabled and financially needy.
To qualify for SSI, your child must meet seven requirements:
- Your child must be a US citizen or meet requirements for a non-citizen;
- Your child must be a resident of the US (or one territory);
- Your child must be blind or disabled (according to Social Security’s definitions);
- Your child must have limited income;
- Your child must have countable resources of no more than $2,000 ($3,000 for a couple);
- Your child must file for any other benefits;
- Your child must either not be working or working at less than substantial gainful activity (SGA).
Let’s go through each criterion one at a time:
Requirement 1: US Citizen or Meet Requirements for a Non-Citizen
To receive SSI, your child must be a citizen of the United States. Under certain circumstances, SSI is available to legal immigrants for some time.
Requirement 2: Resident of the US (or One Territory)
Your child must reside in the United States or the Northern Mariana Islands, a US protectorate, to receive SSI. Exception: If a parent is serving in the US military and serving abroad, and the child lives with the parent, that child can receive SSI.
Requirement 3: Blind or Disabled
Your child must be blind or disabled. As we discussed in an earlier chapter, Social Security defines adult “disability” as the inability to do any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months.
As we have discussed in the chapter on Social Security’s definition of disability, the essential evidence to prove your child’s disability is what your child’s current medical providers write in your child’s current medical charts.
Generally, having a diagnosis is not enough. To prove “disability,” your child must provide current medical evidence that they cannot engage in substantial gainful activity (See Requirement 7 below).
An individual may qualify for SSI payments if they’re blind. Social Security considers one to be blind if their vision can’t be corrected to better than 20/200 in their better eye. They also consider one blind if their visual field is 20 degrees or less in their better eye for a period that lasted or is expected to last at least 12 months. The duration requirement does not apply to SSI payments.
Requirement 4: Limited Income
In general, limited income means your child must have “income” less than the SSI federal benefit rate (FBR), which is $914 per month for an individual and $1,372 per month for a couple in 2023. If your child is applying for SSI shortly after age 18, then your child probably meets this requirement since your child likely has little unearned or earned income.
Determining limited income is actually far more complicated since Social Security only counts some income. For example, if your child has only unearned income, such as income from pensions, dividends, cash gifts, Social Security benefits, etc., your child would need less than $934 of unearned income ($934 - $20 General Income Exclusion = $914). Or, for example, if your child has only earned income, your child’s gross wages or net-self-employment earnings would have to be less than $1,913 in 2023 ($1,913 - $20 General Income Exclusion - $65 Earned Income Exclusion divided by 2 = $914). We’ll discuss this concept of countable income in more detail in the next chapter.
Social Security also increases the income limit with the amount of any state supplement. Many states give supplemental payments to SSI recipients.
Below is a description from Social Security regarding income:
______________________________________________________________________________
Income is money you receive such as wages, Social Security benefits, and pensions. Income also includes such things as food and shelter. The amount of income you can receive each month while still getting SSI depends partly on where you live. You can call us to find out the income limits in your state.
We don’t count all your income when we decide whether you qualify for SSI. For example, we don’t count:
- The first $20 of your monthly income.
- The first $65 of your monthly earnings from working and half the amount over $65.
- Supplemental Nutrition Assistance Program (SNAP) benefits, formerly known as food stamps.
- Shelter you get from private nonprofit organizations.
- Most home energy assistance.
If you’re married, we include part of your spouse’s income and resources when deciding if you qualify for SSI. If you’re younger than age 18, we include part of your parents’ income and resources. And, if you’re a sponsored noncitizen, we may include your sponsor’s income and resources.
If you’re a student, some of the wages or scholarships you receive may not count.
If you have a qualifying disability, and are working, we don’t count wages you use to pay for items or services that help you to work. For example, if you need a wheelchair, the wages you use to pay for the wheelchair don’t count as income when we decide if you qualify for SSI.
Also, we don’t count wages a blind person uses for work expenses. For example, if a blind person uses wages to pay for transportation to and from work, the wages used to pay the transportation cost aren’t counted as income.
If you’re blind or have a qualifying disability, some of the income you use (or save) for training, or to buy items you need to work, may not count.
______________________________________________________________________________
Requirement 5: Countable Resources No More Than $2,000 ($3,000 for a Married Couple)
SSI is for financially needy people. How does Social Security measure whether an individual is financially needy? If your child has countable resources above $2,000, your child will not be eligible to receive SSI. Sadly, this $2,000 figure has not increased since 1989.
What is a countable resource? In general, it’s any asset that the individual can easily convert to cash, like a checking account, savings account, or most investment accounts.
However, Social Security does not count some specific assets, so-called exempt assets. Social Security does not count the following items:
- The home you live in and the land it is on;
- One vehicle, if you or a member of your household use it for transportation;
- Household goods and personal effects;
- Life insurance policies you own with a combined face value of $1,500 or less;
- Burial plots or spaces for you or your immediate family;
- Burial funds of up to $1,500 each for you and your spouse's burial expenses;
- Property you or your spouse use in a trade or business, or on your job if you work for someone else;
- If you are disabled or blind, money or property you have set aside under a Plan to Achieve Self-Support;
- Up to $100,000 of funds in an Achieving a Better Life Experience (ABLE) account established through a State ABLE program.
Warning: If your child owns over $2,000 of resources, only let your child transfer that money to someone else if you are being counseled by an attorney or a benefits professional. By transferring any money in your child’s name to someone else, Social Security may consider the transfer impermissible. Depending on the amount impermissibly transferred, Social Security may deny eligibility for SSI for up to 3 years.
Don’t worry, though. There are solutions to the problem of excess resources:
- Your child may be able to spend the money buying goods or services for their sole benefit. Keep receipts;
- Your child may be able to transfer the money into an ABLE account (See Part III of this book); and
- Your child may be able to transfer money into a first-party special needs trust (See Part III of this book).
At the time of your child’s application, Social Security looks back three years to see if there were any impermissible transfers. If your child owns considerable money, find a special needs attorney or benefits advocate to advise you – before moving any money. You’re in treacherous waters.
Requirement 6: Must File for any Other Benefits
To receive SSI, your child must apply for any other benefits, such as veteran benefits, Social Security Disability benefits, or worker’s compensation. Remember, SSI is a benefit of last resort. For example, Social Security always first awards Title II benefits from Social Security funds. SSI is paid from general tax dollars. The government only wants to pay from general revenues as a last resort. If your child is entitled to significant other benefits, your child will not be considered financially needy by Social Security and, therefore, ineligible to receive SSI.
Requirement 7: Either Not Working or Working at Less Than Substantial Gainful Activity (SGA)
As you may recall from the prior chapter explaining Social Security’s definition of adult disability, Social Security uses a five-step sequential evaluation process to determine disability. The first step is asking whether the claimant is working above the SGA level.
It’s okay to work. However, if the claimant’s countable earned income exceeds substantial gainful activity (SGA), then Social Security will determine the claimant is not “disabled” and deny the application. For example, in 2023, if the claimant’s countable earned monthly income is above $1,470 (net of impairment-related work expenses), the application is denied even if the individual has a medical impairment.
SGA does not apply to statutorily blind individuals applying for SSI.