The Social Security Administration (SSA) offers many perks, such as retirement payments, help for disabled people through Social Security Disability Insurance (SSDI), and help for disabled children and adults who don’t have a lot of money or resources. The Supplemental Security Income (SSI) program also helps people aged 65 and up who are not disabled but have limited means and income.
There are a number of situations in which Social Security benefits could be lost. However, it is possible to get these benefits back after they have been lost, and people need to know about these situations.
One common reason people lose their Social Security payments is that they make too much money. You can work and get Social Security benefits at the same time, but if you make more than the annual limit, your monthly benefits may go down.
Exceeding Income Limits
One common reason people lose their Social Security payments is that they make too much money. You can work and get Social Security benefits at the same time, but if you make more than the annual limit, your monthly benefits may go down.
Supplemental Security Income (SSI) Limits
For most people, SSI eligibility means that their monthly income must be less than $1,971. Couples can make a little more than the cap, but if your income is higher than this, you might not be able to get SSI anymore.
Also, your SSI payment will go down by $1 for every $2 you earn from work. It’s important to remember that any job you have goes towards this income, and you must tell the SSA right away if your monthly income or where you live changes.
Social Security Disability Insurance (SSDI) Income Limits
People who get SSDI have a little more freedom when it comes to making extra money. The SSA calls the time you can keep getting SSDI benefits if you start working while on benefits a “work trial period.” You can keep getting these benefits for up to nine months.
In 2024, if your gross monthly income is more than $1,110, that month will count towards your trial time of nine months. These nine months don’t have to be in a row, but they do have to happen within a five-year time. During this test time, you can make as much money as you want while still getting SSDI benefits.
There is a “extended period of eligibility” (EPE) that lasts for 36 months after the nine-month trial term is over. While this is going on, you won’t be able to get SSDI for that month if your earnings go over the EPE limit, which in 2024 is set at $1,550 per month or $2,590 if you are blind.
If you keep making more than this amount after the EPE stops, your SSDI benefits will end. If, on the other hand, you find that you can’t keep working, you might be able to get your benefits back.
Resource Limits for SSI
To get SSI, you need to show proof of both your income and your means. According to the SSA, “resources” are any things you own that could be sold for cash and used to pay for food or a place to live. This includes money in the bank, stocks, mutual funds, U.S. savings bonds, real estate, cars, personal belongings, and life insurance.
But some things don’t count towards the cap. These include your home and the land it’s on, one car you use for transportation, your household goods, your personal effects, and life insurance policies worth no more than $1,500.
If you are single, your resources must be less than $2,000, and if you are married, they must be less than $3,000. The Centre on Budget and Policy Priorities says that about 70,000 SSI recipients lose their benefits every year because they have too many resources.
It has been suggested that these amounts should be raised to $10,000 for individuals and $20,000 for couples, but these changes have not yet been made official.
Changes in Marital Status
Whether you are married or not can also affect your Social Security payments, especially if you get divorced. In some cases, you might not be able to get benefits based on how much your ex-spouse makes.
For instance, you usually can’t get benefits based on a marriage that lasted less than 10 years or if you get married again. If, on the other hand, your second marriage ends in divorce, annulment, or the death of your new spouse, you may be able to get benefits again based on the record of your first spouse.
Incarceration
Being in jail or prison can have a big effect on your Social Security payments. The SSA may stop your Social Security and SSI payments if you are in jail for more than 30 days.
Benefits from Social Security and SSDI while in prison
If you have to go to jail and your benefits are stopped, you can ask for them to be reinstated the month after you get out. It’s important to know that even if your benefits are stopped, your spouse or children may still get them as long as they are still qualified.
Benefits from SSI while in jail
SSI payments are also stopped while someone is in jail. But you can start getting paid again as soon as you get out of jail, though the amount will depend on the date of your release and may only be a partial payment. Your SSI benefits will end if you are in jail for more than 12 months in a row. You will need to apply for benefits again with the SSA after you get out.