WHAT IS EARNED INCOME?

January 19, 2017

Individuals who receive Supplemental Security Income (SSI) benefits will lose eligibility for Supplemental Security Income (SSI) payments if he/she receives earned income. Earned income may be cash or in kind. The Social Security Administration (SSA) refers income paid as in-kind earned income as the value of food, clothing, shelter or other items provided to the beneficiary of Supplemental Security Income (SSI) benefits instead of tangible cash.

Examples of Earned Income:

  • Wages paid
  • Net earnings of self-employment
  • Payments for services performed in sheltered workshop or work activities center that are designed to help individuals become self-supporting
  • Any royalties earned in connection to the publication of an individual’s work
  • Any honorariums received such as reward or donation received of services rendered

Keep in mind, earned income reduces a SSI Recipient’s monthly benefit by .50 cents for each dollar that he/she has earned (Urbatsch & Fuller, 2016). That is after he/she has taken an earned income exclusion of $65.00.