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Supplemental Security Income (SSI) |
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Income From |
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It depends on the nature of your work in the arts.
 | If you work as someone's employee to produce artwork, the money counts as wages. |
| If you have a small business, the money counts as earnings from self–employment. |
| If you are neither employed nor self–employed as an artist, any money you get for your artwork counts as "unearned" income in the month you get it. |
 | It is called "unearned" income because you don't get the money from employment or self–employment. |
Although we may need to reduce your SSI benefits when you receive other income, we don't count all of your income. So, often you end up with much more money.
When you have wages, we look at your gross monthly amount.
From that amount:
| we subtract the first $65; and |
| we then subtract one–half of what's left. |
Other deductions may also apply.
| If your earnings are the only income you have (other than your SSI benefits), we subtract $20 per month from your earnings. |
| If you are an unmarried student under the age of 22, we usually can subtract more of your earnings, subject to monthly and annual limits. |
| If you are disabled but not blind, we subtract expenses you have because of your disability that enable you to work (wheelchair, prosthesis, medicines, etc.). |
| If you are blind, we subtract all of your work expenses (taxes, lunches, transportation, etc.). |
| If you have an approved Plan to Achieve Self–Support (PASS), we subtract any of your income that goes to meet your approved work goal. |
After subtracting these amounts, the remaining wages will reduce your SSI benefits. But, since we always count less than half of your wages, you end up with more money.
You deduct your business expenses on Schedule C of your Federal income tax return. You then calculate your "net earnings from self–employment" on Schedule SE.
We divide those net earnings equally among the months in your taxable year. For each month, we subtract the same deductions that apply to wages.
The remaining amount of your net earnings reduces your SSI benefits. But, since we always count less than half of your net earnings, you end up with more money.
Not necessarily. If your art income is from wages or self–employment, your Medicaid coverage usually continues for as long as you are unable to afford similar coverage. Also, if your earnings later drop, you may be able to get SSI benefits again without filing a new application.
We look at the gross amount you received. We then subtract any costs you had in producing the income (art supplies, paper, etc.). We call these costs your "expenses of obtaining income." We also deduct $20 from your total income each month. The remaining income reduces your SSI benefits.
Most of the deductions listed above that apply to wages and earnings from self–employment don't apply to "unearned" income. So, usually "unearned" income causes a bigger reduction in your SSI benefits. But, most of the time, you still end up with more money.
Under the law, awards of any kind are "unearned" income in the month you get them. If you spend the money in the month you get it, then your SSI benefits usually are affected only in that month. But any money you keep after the month you get it counts as a resource for SSI purposes as long as you have it.
The SSI limit on resources is $2,000 ($3,000 if you have a spouse). If your resources exceed the limit in any month, you are not eligible for SSI benefits.
Grants you receive for study don't count against your SSI benefits as long as the money is used for tuition, fees, and necessary educational expenses. But any of the money you use for something else, including your food and shelter, counts as your "unearned" income in the month you received the money.
Also, if you don't spend the grant money in the month you get it, it counts as your resource for as long as you keep the money. (Grants, scholarships and educational gifts received after 6/1/04 will not count as a resource for nine months after you receive them.)
Certain money you receive under Title IV of the Higher Education Act of 1965 or from the Bureau of Indian Affairs is excluded from income and resources regardless of how you use it.
If you receive a grant to help train an artist, and training artists is part of your business as a self–employed person, then the grant counts as part of your earnings from self–employment. Otherwise, the money (less any necessary expenses) counts as your "unearned" income in the month you receive it.
Probably not. In most cases, property that you use to help support yourself does not count, subject to certain limits. We call it "property essential to self–support."
The best way to avoid being overpaid is to talk to us as soon as you know you may receive the money. We can explain to you how the rules work and how to avoid or minimize the amount of an overpayment. You can call us at 1–800–772–1213.
You must tell us right away whenever your income changes. If you don't, we may pay you too much SSI, and you may have to pay it back.
Remember also to keep track of your expenses when you produce your art. If we don't know about your expenses, we can't deduct them from your income.
Unfortunately, we can't give you grants or loans for training or supplies. But, if you already have some income in addition to your SSI benefits, we may be able to give you more SSI benefits if you use your other income to develop as an artist or to start a business. See the SSI Spotlight on Plans to Achieve Self–Support (PASS).
Yes. There are SSI Spotlights on a number of the topics discussed in this spotlight:
These spotlights are also available from any Social Security office, or you can ask us to FAX them to you by calling a toll–free number, 1–888–475–7000, from a touch–tone phone.
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| THIS INFORMATION IS GENERAL. FOR MORE INFORMATION, CALL 1–800–772–1213 (TTY 1–800–325–0778), VISIT OUR WEBSITE (www.socialsecurity.gov) ON THE INTERNET, OR CONTACT YOUR LOCAL SOCIAL SECURITY OFFICE. |
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