Supplemental Security Income (SSI):
Income/Resource Limits and Accounts Exempt
from Benefit Determinations

Umar Moulta-Ali
Analyst in Disability Policy
January 25, 2013
Congressional Research Service
7-5700
www.crs.gov
RS20294
CRS Report for Congress
Pr
epared for Members and Committees of Congress

SSI: Income/Resource Limits and Accounts Exempt from Benefit Determinations

Summary
The Supplemental Security Income (SSI) program, authorized by Title XVI of the Social Security
Act, is a means-tested income assistance program financed from general tax revenues. Under SSI,
disabled, blind, or aged individuals who have low incomes and limited resources are eligible for
benefits regardless of their work histories. In December 2012, more than 8.2 million individuals
received SSI benefits, receiving monthly payments of $519.44 on average. The SSI program paid
out almost $4.6 billion in federally administered benefits that month. All but six states and the
Commonwealth of the Northern Mariana Islands supplement the federal SSI benefit with
additional payments, which may be made directly by the state or combined with the federal
payment.
As a means tested program, SSI places a limit on the assets or resources of its beneficiaries.
However, there are four types of accounts that represent an important part of the overall SSI
program and can be used by SSI beneficiaries to build assets or plan for the future, including (1)
money placed into burial accounts, (2) money used as part of a Plan for Achieving Self-Support
(PASS), (3) money placed in Individual Development Accounts (IDAs), and (4) money placed in
dedicated accounts for children. For the purposes of determining SSI eligibility these accounts are
not counted as resources and can be used by beneficiaries without affecting their eligibility.
This report provides an overview of income and resource limits for SSI benefit determinations as
well as the four types of accounts exempt from the SSI resource limitations. This report will be
updated to reflect any changes in this legislation or other relevant legislative activity.

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SSI: Income/Resource Limits and Accounts Exempt from Benefit Determinations


Contents
Introduction ...................................................................................................................................... 1
Income and Resource Limits ........................................................................................................... 1
Earned and Unearned Income.................................................................................................... 2
Treatment of Assets Held in Trusts ............................................................................................ 2
Documentation for Income and Asset Verification .................................................................... 2
Resources and Accounts Exempt from SSI Eligibility and Benefit Determinations ....................... 2
Earned and Unearned Income Exclusions ................................................................................. 3
Burial Accounts ......................................................................................................................... 3
Plans for Achieving Self-Support .............................................................................................. 4
Individual Development Accounts ............................................................................................ 4
Dedicated Accounts for Children .............................................................................................. 4

Contacts
Author Contact Information............................................................................................................. 5
Acknowledgments ........................................................................................................................... 5

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SSI: Income/Resource Limits and Accounts Exempt from Benefit Determinations

Introduction
The Supplemental Security Income (SSI) program, authorized by Title XVI of the Social Security
Act, is a means-tested income assistance program financed from general tax revenues. Under SSI,
disabled, blind, or aged individuals who have low incomes and limited resources are eligible for
benefits regardless of their work histories.
In December 2012, more than 8.2 million people received SSI benefits. In that month, these
beneficiaries received an average cash benefit of $519.44 and the program paid out almost $4.6
billion in federally administered SSI benefits.1 All but six states and the Commonwealth of the
Northern Mariana Islands supplement the federal SSI benefit with additional payments, which
may be made directly by the state or combined with the federal payment.2
For SSI recipients who live in another person’s household and receive in-kind support and
maintenance, the federal benefit rate is reduced by one-third (to about $476 per month for an
individual in 2013). Individuals who reside in public institutions throughout any given month are
generally not eligible for SSI.3 A cost of living adjustment (COLA) is applied annually in January
using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to reflect
changes in the cost of living. After a 3.6% COLA adjustment in 2012, a 1.7% COLA was applied
for 2013. Most SSI recipients are also eligible for Medicaid and the Supplemental Nutrition
Assistance Program (SNAP) benefits.4 In some cases, the income and resources of non-recipients
are counted in determining SSI eligibility and payment amounts.5
Income and Resource Limits
Individuals and couples must have limited assets or resources to qualify for SSI benefits.6
Resources are defined by regulation as “cash or other liquid assets or any real or personal
property that an individual (or spouse, if any) owns and could convert to cash to be used for his or
her support and maintenance.”7

1 Social Security Administration, SSI Monthly Statistics, December 2012, Table 1 at http://www.socialsecurity.gov/
policy/docs/statcomps/ssi_monthly/2012-12/index.html. This figure only includes federally administered benefits. The
maximum federal SSI payment (also referred to as the federal benefit rate) is $710 per month for an individual living
independently and $1,066 per month for a couple living independently in 2013. The average monthly benefit is lower
than the federal benefit amount because a person’s final monthly benefit is based, in part, on his or her earnings and
other income.
2 Arkansas, Arizona, Mississippi, North Dakota, Tennessee, and West Virginia do not pay a state supplement to people
who receive SSI.
3 The federal benefit rate for individuals who reside in a medical treatment facility where more than half of the bill is
paid by Medicaid (or, in the case of children, private health insurance) is reduced to $30 per month.
4 SNAP is the former food stamp program. For more information see CRS Report RL33829, Domestic Food Assistance
and the 2008 Farm Bill
, by Randy Alison Aussenberg.
5 This process is called “deeming” and is applied in cases where an eligible child lives with an ineligible parent, an
eligible individual lives with an ineligible spouse, or an eligible non-citizen has a sponsor.
6 For additional information on the SSI resource rules, see CRS Report 94-486, Supplemental Security Income (SSI), by
Umar Moulta-Ali.
7 20 C.F.R. §416.1201.
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The countable resource limit for SSI eligibility is $2,000 for individuals and $3,000 for couples.
These limits are set by law, are not indexed for inflation, and have been at their current levels
since 1989.8
Earned and Unearned Income
Two types of income are considered for purposes of determining SSI eligibility and payment
amounts: earned and unearned income. Earned income includes wages, net earnings from self-
employment, and earnings from services performed. Most other income not derived from current
work (e.g., Social Security benefits, other government and private pensions, veterans’ benefits,
workers’ compensation, and in-kind support and maintenance) is considered “unearned.” In-kind
support and maintenance includes food, clothing, or shelter that is given to an individual. If an
individual (or couple) meets all other SSI eligibility requirements (including the resource test
described below), their monthly SSI payment equals the federal benefit rate minus their countable
income.
Treatment of Assets Held in Trusts
Generally, assets held in a trust that could be used for the benefit of an individual are considered a
resource for SSI purposes unless there is no circumstance under which a payment from the trust
could ever be made for the benefit of the individual or the individual’s spouse. The Foster Care
Independence Act of 1999 (P.L. 106-169) changed the status of irrevocable trusts for SSI benefit
calculations. Before its passage, assets placed in irrevocable trusts were not considered assets
when determining benefit eligibility. P.L. 106-169 changed SSI eligibility requirements so that the
value of income and resources from both irrevocable and revocable trusts are considered in
determining eligibility and payment amounts. However, the Commissioner of Social Security
may waive this provision if it would cause undue hardship for certain individuals.
Documentation for Income and Asset Verification
When applying for SSI, an individual must provide documentation that the Social Security
Administration uses to determine income and resource eligibility, such as a Social Security card
or record of a Social Security number; a birth certificate or other proof of age; a copy of a
mortgage or lease and landlord’s name; payroll slips, bank records, insurance policies, car
registration, and other income information; medical information if applying for disability; and
proof of immigration status (if not a U.S. citizen).
Resources and Accounts Exempt from SSI Eligibility
and Benefit Determinations

Not all resources are counted for the purposes of determining SSI eligibility. Excluded resources
include an individual’s home, a car used for essential transportation (or, if not essential, up to
$4,500 of its current value), property essential to income-producing activity, household goods and

8 42 U.S.C. §1382(a).
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personal effects totaling $2,000 or less, and life insurance policies with a combined face value of
$1,500 or less.9
Earned and Unearned Income Exclusions
A certain amount of monthly earned and unearned income is excluded from SSI eligibility and
benefit determinations. Monthly unearned income exclusions include a general income exclusion
of $20 per month that applies to non needs-based income. Monthly earned income exclusions
include any unused portion of the $20 general income exclusion, the first $65 of earnings, one-
half of earnings over $65, and impairment-related expenses for blind and disabled workers.10
Laws governing several federal benefit programs prohibit the SSA from counting benefits paid
under these programs as resources and include food stamps, housing and energy assistance, state
and local needs-based assistance, in-kind support and maintenance from non-profit organizations,
and student grants and scholarships used for educational expenses.11
In addition, the Social Security Act and federal regulations provide various types of resource
exclusions that allow individuals or couples to own certain assets and not have them counted
against their $2,000 or $3,000 resource limit. The following section of this report will detail the
four types of accounts that a person or couple may deposit money and not have that money
counted as a resource for the purposes of determining their SSI eligibility.
Burial Accounts
Money set aside by an SSI recipient to pay for his or her burial expenses can be excluded from
the SSI resource limits. Each person may set aside up to $1,500 for burial expenses, and these
expenses must be separately identifiable from other assets and money held. A burial plot owned
by an individual or a couple is not considered a resource and its value is not counted against the
$2,000 or $3,000 resource limit.
There are two cases in which the amount of the burial expense exclusion may be reduced. First,
the total amount permitted to be excluded is reduced by the face value of all life insurance
policies held by the individual or his or her spouse. The face value of a policy is the amount the
insurer agrees to pay the beneficiary upon the death of the insured. Second, the excluded amount
of burial expenses is reduced by the total amount of money held in an irrevocable trust
(commonly called an irrevocable burial trust) available to meet the burial expenses of the
individual or his or her spouse.

9 The SSI resource exclusions can be found in Section 1613 of the Social Security Act (42 U.S.C. §1382b) and at 20
C.F.R. §§416.1210-416.1239.
10 Couples receive the same income exclusions as individuals (i.e., a single earned income exclusion of $65, rather than
two $65 exclusions).
11 With the exception of SNAP, the programs with these statutory exclusions are mainly smaller programs that provide
benefits to a limited group of people. A complete list of these programs can be found at 20 C.F.R. §416.1236.
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Plans for Achieving Self-Support
A Plan for Achieving Self-Support (PASS) is an individual plan for employment designed by an
SSI beneficiary. An SSI beneficiary designs his or her own PASS, usually with the assistance of a
state Vocational Rehabilitation agency, disability service organization, or Ticket to Work
Employment Network. The plan must be submitted in writing to the SSA and must be approved
by a special network of SSA employees called the PASS Cadre.
A PASS must include a specific goal for employment, such as a specific job type desired or a plan
for setting up a small business. In addition, a PASS must include a timeline for achieving the
employment goal. The PASS must also include a list of any goods, such as assistive devices or
job-specific tools, or services, such as schooling, that will be needed by the beneficiary to achieve
his or her goal and must include a timeline for the use of these goods or services and their cost.
Resources included in an approved PASS are not counted against the SSI resource limits. There is
no limit to the amount of resources that can be excluded as part of a PASS and these resources
can include money set aside to pay for elements of the PASS such as training or items purchased
as part of the PASS such as assistive technology devices. If a beneficiary does not fulfill the terms
of the PASS, then these resources can be counted and he or she may lose SSI eligibility and be
required to reimburse the SSA for benefits paid after eligibility was lost.
Individual Development Accounts
Individual Development Accounts (IDAs) are matched savings accounts that allow families and
persons with low incomes to set aside money for education, the purchase of a home, or the
creation of a business.12 An individual may place money from his or her earnings into an IDA and
have that amount of money matched by the state with funds from the state’s Temporary
Assistance for Needy Families (TANF) block grant. In addition, under the provisions of the
Assets for Independence Act, P.L. 105-285, nonprofit organizations, and state, local, or tribal
governments may compete for grants to fund IDAs for low-income households. IDAs funded
through this grant process are often referred to as Demonstration Project IDAs.
Money saved in a TANF IDA or a Demonstration Project IDA, including the state contribution
and any interest earned, is not counted as a resource for the purposes of determining SSI
eligibility.13 There is no limit to the amount of money in an IDA that can be excluded from the
SSI resource calculation. However, there are limits to the amounts states and other entities can
contribute to IDAs.14
Dedicated Accounts for Children
When a child SSI beneficiary is owed back SSI benefits of more than six months, his or her
representative payee is required to place those benefits in a dedicated account at a financial

12 For additional information on IDAs, see CRS Report RS22185, Individual Development Accounts (IDAs):
Background and Current Legislation for Federal Grant Programs to Help Low-Income Families Save
, by Gene Falk.
13 There are other types of IDAs that are targeted to specific groups, including refugees and persons living in assisted
housing. However, only TANF and Demonstration Project IDAs are exempt from the SSI resource rules.
14 See footnote 12.
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institution.15 This dedicated account must be in the child’s name and can not be invested in
stocks, bonds, or other types of securities. Any money placed in the account and any interest
earned on the account is the property of the child.
The representative payee may use the money from the dedicated account for the medical care or
education and training needs of the child. In addition, money from this account can be used for
personal needs assistance, special equipment, housing modifications, or therapy for the child
based on his or her disability or for other items and services for the child approved in advance by
the SSA. Money from a dedicated account can not be used for the daily expenses, food, clothing,
or shelter of the child. The representative payee is responsible for keeping records and receipts of
all deposits and expenditures and is liable to the SSA for any misuse of money in a dedicated
account.
Money in a dedicated account for children is not counted as a resource for the purposes of
determining the child’s SSI eligibility or the SSI eligibility of the representative payee.

Author Contact Information

Umar Moulta-Ali

Analyst in Disability Policy
umoultaali@crs.loc.gov, 7-9557


Acknowledgments
This report updates a previous report written by Scott Szymendera and builds upon previous work of April
Grady, Rachel Kelly, and Jennifer Lake. All questions should be directed to the current author.


15 Back benefits are often the result of delays in the disability determination process. For additional information, see
CRS Report RL32279, Primer on Disability Benefits: Social Security Disability Insurance (SSDI) and Supplemental
Security Income (SSI)
, by Umar Moulta-Ali.
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