The
Countable Income
Formula:
To calculate the
amount of a
Supplemental
Security Income (SSI)
check you will
receive, Social
Security will not
count all of your
income.
They will apply
some exclusions
(such as the
General Income
Exclusion
and
Earned Income
Exclusion,
and subtract half of
your earnings after
the exclusions are
applied) to
determine
countable income.
If you are eligible
for work incentives,
SSA will consider
these in calculating
benefits also.
Social Security will
subtract $20 (General
Income Exclusion)
and will subtract
$65 (Earned Income
Exclusion) from your
gross monthly
earnings.
Then
they will deduct any
Impairment-Related
Work Expenses (IRWE),
if applicable, and
then count half of
the remaining
income. The
remaining income is
known as the
Countable Earned
Income.
Several examples are
below:
If a single person
is receiving an SSI
check only and is
working, earning
$900 per month:
|
Step 1 |
|
|
| |
Earned
Income |
$900.00 |
| |
Subtract
General
Income
Exclusion |
-$20.00 |
| |
Subtract
Earned
Income
Exclusion |
-$65.00 |
| |
Countable
Earned
Income |
=$815.00 |
| |
Divide
remainder
of
earnings
by 2 |
/2 |
| |
Equals
Total
Countable
Earned
Income |
=$407.50 |
|
Step 2 |
|
|
| |
Federal
Benefit
Rate
(2012) |
$698.00 |
| |
Subtract
Total
Countable
Earned
Income |
-$407.50 |
| |
Equals
adjusted
SSI
payment
amount |
=$290.50 |
Before
working |
SSI = $698.00 |
| After
working |
Gross
earnings:
$900.00
New SSI
payment:
+
$90.50
Total
gross
monthly
income:
=
$1,190.50 |
In the scenario
above, the
individual has $900
in gross earned
income and a new SSI
payment of $290.50,
equaling a total
monthly gross income
of $1,190.50.
If a person is
receiving a Social
Security Disability
Insurance (SSDI)
benefit check and an
SSI supplement and
is working, earning
$700 per month:
Step 1 |
|
|
| |
Unearned
Income (SSDI Benefit) |
$300.00 |
| |
Subtract
General
Income
Exclusion |
-$20.00 |
| |
Countable
Unearned
Income |
=$280.00 |
Step 2 |
|
|
| |
Earned Income |
$700.00 |
| |
Subtract
Earned
Income Exclusion |
-$65.00 |
| |
Countable Earned Income |
=$635.00 |
| |
Divide
remainder
of
earnings
by 2 |
/2 |
| |
Equals
Total
Countable
Earned
Income |
=$317.50 |
Step 3 |
|
|
| |
Countable
Unearned
Income |
=$280.00 |
| |
Countable Earned Income |
=$317.50 |
| |
Total
Countable
Earned
Income |
=$597.50 |
Step 4 |
|
|
| |
Federal
Benefit
Rate
(2012) |
$698.00 |
| |
Subtract
Total
Countable
Income |
-$597.50 |
| |
Equals
adjusted
SSI
payment
amount |
=$101.50 |
Before
working |
SSDI $300.00
+SSI $357.00
Total monthly income $657.00 |
| After
working |
Gross
earnings:
$700.00
SSDI
$300.00
New SSI payment:
+
$101.50
Total
gross
monthly
income:
=
$1,101.50 |
In the scenario
above, the
individual has
$300 in an SSDI
benefit, $700 in
gross earned
income and a new
SSI payment of
$101.50, equaling
a total monthly
income of
$1,101.50.
The above
scenarios are
only examples.
Social Security
has several
additional work
incentives such
as
Student Earned
Income
Exclusion,
Impairment-Related
Work Expenses,
Blind Work
Expenses, or
Plan to Achieve
Self-Support that may apply
to you. Contact
an Indiana Works
Community Work
Incentives
Coordinator check this link
or your local Social Security
office to find out what
work incentives
are applicable
to you.
