Special Needs Parenting :: When You or Your Child Receives SSI
Supplemental Security Income (SSI) is a program through the Social Security Administration which provides monthly payments to individuals with disabilities and some older adults with limited resources or income. Not all people with disabilities will qualify for SSI for various reasons but it is worth investigating because this monthly income can be helpful to families.
For children under 18 years of age, SSI is based on the parents' income which is why many children under 18 years do not qualify for SSI. Once a child turns 18, they are considered an adult and the qualifications for SSI change. One qualification for SSI once a child with a disability turns 18 is how their disability affects "gainful employment". Other things to be considered are monthly income, assets, and other sources of income. See important information at this link: https://www.ssa.gov/ssi/text-resources-ussi.htm
Sometimes, an adult with a disability will be initially denied for SSDI (Social Security Disability Insurance) because, in most cases, this individual has never worked. SSDI is an earned benefit while SSI is an entitlement program with no work requirements. It is possible, in some instances, to receive both SSI and SSDI. This article focuses on SSI for individuals with disabilities only.
An application can be made for SSI online, by phone, or in person. To apply online, use this web link: https://www.ssa.gov/ssi/eligibility. It is often easier to apply online than the other methods.
If you applied for SSI, you may receive a letter that denies SSDI, ignore it and wait for the determination of SSI letter.
One thing we counsel our clients about is the necessity of setting up a Representative Payee bank account once you receive the letter stating you or your child have been approved to receive SSI should the individual not be able to handle their own funds. You cannot set up this account prior to receiving notification of approval. This type of account is important because SSI funds must not be commingled with your personal bank account. Representative Payees are individuals who will manage the SSI funds on behalf of the recipient. There can only be one Representative Payee per individual. More information on Representative Payees can be found here: https://www.ssa.gov/payee/faqrep.htm and https://www.ssa.gov/pubs/EN-05-10076.pdf
It is important to note that SSI is only received as long as certain criteria are maintained. First, the asset limit for individuals receiving SSI is currently $2,000; for couples, it is $3,000. This means that should an individual's cashable assets (cash, stocks, bonds, insurance, etc.) exceed $2,000 or a couple’s assets exceed $3,000, they will no longer receive SSI. In Texas, once an individual qualifies for SSI, they automatically qualify for Medicaid. If SSI is lost, so is Medicaid. A list of what is considered an asset is found here: https://www.ssa.gov/ssi/text-resources-ussi.htm. If SSI ceases because the assets exceed the asset limit, assets will need to be reduced to fall under the asset limit. Assets will need to be spent for the benefit of the individual receiving SSI and proof may be required by the Social Security Administration in order to reinstate both SSI and Medicaid.
Another thing worth noting is the monthly wage reporting for individuals who work and receive SSI. Social Security requires the gross wages be submitted each month in the first six days of the month. Individuals with only one job can report wages by phone or through a mobile app; however, should an individual have more than one job, wage reporting will need to be mailed to SSA. More information can be found here: https://www.ssa.gov/ssi/wage-reporting.html.
In 2024, the monthly SSI payment is $943 per month for an individual and $1,415 for an eligible individual with an eligible spouse. Keep in mind that income and assets will reduce monthly payments. Information about the 2024 monthly payments is located here: https://www.ssa.gov/oact/cola/SSI.html. In order to get the maximum payment of SSI (minus any countable income), a rental agreement should be established for individuals living in a family home and rent should be paid each month.
Should you need assistance applying for SSI, contesting an SSI rejection, or to learn more about rental agreements, contact Boyd Handley at The Handley Law Office. 281.703.3616.