That depends on the disability program for which you are eligible. Social Security is responsible for two disability programs: Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).
SSDI gives you and certain members of your family money if you have a disability and have worked long enough and paid enough Social Security taxes. Many people wrongly think that having assets will hurt their SSDI, but this isn’t true for most assets.
You are eligible for SSDI if you can’t work, and your benefits are based on your average lifetime earnings before your disability starts. Owning a home, a vehicle, money in a savings account, or having other assets has no bearing on SSDI payments and does not affect your Social Security Disability Insurance benefits.
In contrast, SSI is based on financial needs. It is intended for elderly, blind, and disabled people with limited household income and assets.
Many SSI recipients are shocked to hear that having assets does impact their payments. Since SSI is a needs-based program, Social Security considers the value of your assets.
The general rule is: SSI applicants with more than $2,000 in assets ($3,000 if they are married) are not eligible for assistance. The SSA will issue a “technical denial” of benefits to claimants with resources above the $2,000 threshold. This type of denial is not based on medical evidence of disability and is solely based on financial eligibility.
Below, we will examine some specific scenarios and how they fit with this general rule.
How Do Assets and Income Affect Supplemental Security Income (SSI) Benefits? (3 Ways)
1. Total Financial Assets
An SSI applicant who is unmarried and receiving payments primarily on disability is allowed no more than $2,000 in assets. (As we will cover shortly, not all assets count towards the SSI resource limit.)
After Marriage
The asset cap for SSI applicants and married recipients is $3,000, regardless of whether only one spouse qualifies for disability. Except for an IRA or pension plan, every single one of a spouse’s assets is counted towards the cap.
As a Minor
If a child under 18 who lives with a parent applies for or gets SSI benefits, the parent’s assets will count toward the child’s asset limit. The Social Security Administration (SSA) will also take into account the assets of a parent’s partner.
The Social Security Administration will also disregard the first $3,000 of a child’s combined countable resources if there are two parents. The child’s $2,000 resource cap will be applied to any assets worth more than that sum.
2. Monthly Income
Your monthly income cannot exceed the Federal Benefit Rate (FBR), which is $914 for single people and $1,371 for married couples.
3. Additional Benefits
When deciding if you can get SSI, the SSA looks at your earned and unearned income. You might not be able to get SSI if you get payments that you didn’t work for, like child support, alimony, or VA benefits. If you are married, and your spouse works, their income will also affect your ability to receive SSI.
What Assets and Income Are Excluded from Consideration for SSI Eligibility?
The SSA does not consider certain physical assets when reviewing your application for SSI benefits.
Your House
A property you own outright is not considered an asset for SSI purposes by the Social Security Administration. Your house must be your primary residence to be exempt (not counted toward) from the SSA’s asset limit. Your house, the property it is built on, and any nearby structures are all excluded.
A Vehicle
One vehicle can be excluded from the asset limit provided you or a member of your household use it for transportation.
Engagement Rings
Regardless of their worth, engagement and wedding rings do not count toward the SSI asset limit.
ABLE Accounts
Up to $100,000 will be excluded by the SSA from SSI calculations if it is in an ABLE account. Achieving a Better Living Experience (ABLE), accounts are specialized accounts for people who become disabled before they turn 26. They don’t qualify as assets for SSI eligibility.
PASS Savings
The money set aside by SSI recipients for their Plan for Achieving Self-Support (PASS) is not considered. For instance, you may set aside over $2,000 to enroll in a training course or school.
IDA Savings
Savings in Individual Development Accounts (IDAs) are not considered by the SSA for determining SSI eligibility. IDAs are specialized accounts created to let people receiving Temporary Assistance for Needy Families (TANF) subsidies set aside money specifically for school, a property investment, or a business venture.
You must use the earnings from your employment to finance the account. TANF, in some states, matches the funds you deposit into the account.
Burial Expenses
Burial expenses of up to $3,000 (for both you and your spouse) and burial sites for immediate family members are not considered for Social Security purposes.
Support Payments
Certain government support payments won’t count towards your SSI resource limit for up to nine months (without this exemption, they would instantly be considered cash or money in the bank that may have put you over the asset limit). These include:
● Earned income tax credit payments
● Child tax credit payments
● State or local relocation assistance payments
● Crime victim’s assistance
● Grants, scholarships, fellowships
Conclusion
Your financial assets will significantly impact your eligibility for disability benefits. It’s important to disclose all your assets to the SSA, as your application will be reviewed occasionally to ensure that you remain eligible for disability benefits.
