UNEARNED INCOME

December 22, 2016

What is unearned income? Per the Social Security Administration (SSA) and the rules pertaining to Supplemental Security Income (SSI), any amount of money received (not earned) by a beneficiary who receives SSI benefits is referred to as unearned income. If a beneficiary receives any money will reduce a beneficiary’s Supplemental Security Income (SSI) benefits on a dollar-for-dollar basis.

Common Types of Unearned Income

  • Gifts (form of money from friends or family)
  • Gift cards
  • Annuities
  • Pensions
  • Alimony
  • Dividends, interest, and royalties
  • Prizes
  • Awards
  • In-kind support and maintenance (food or shelter) given to beneficiary or received by beneficiary because someone else paid for it
  • Inheritances

It is very important for a beneficiary who receives Supplemental Security Income (SSI) to understand that any of the above types of unearned income received will have a negative impact on his/her benefits. The risk is not to be taken lightly.

Resources:
https://www.ssa.gov/OP_Home%2Fhandbook/handbook.21/handbook-2136.html
https://www.ssa.gov/OP_Home%2Fhandbook/handbook.21/handbook-2140.html
https://www.ssa.gov/ssi/
https://www.ssa.gov/


Urbatsch, K., & Fuller, M. (2016). Administering the California special needs trust: A guide for trustees and those who advise them (2nd ed.). Bloomington, IN: IUniverse.