Your new job & your Supplemental Security Income (SSI)

Your new job & your Supplemental Security Income (SSI)

Ambassador OrientationApril 8, 2010

Presented by:Karla BellCalifornia Health Incentives Improvement ProjectSan Diego State University Interwork Institute

Overview

Tips How earned income affects SSI SSI Calculation Examples

IRWE SEIE

Plan to Achieve Self-Support Earned Income Reporting Resources

Work Incentive Tips Work incentives provide a safety net

You still have an SSI payment & Medi-Cal (IHSS too!)

To use most work incentives: Tell Social Security that you have gone to work or Report changes in your earnings

Some work incentives require you to ask Social Security to determine if you can use them

Ambassador Pay Rate

$15/hour for first 6 months If goals are met increase to $18/hour Maximum of 10 hours/week Monthly:

$0-$645 first 6 months Raising to $0-$774

$15 x 10 hours/week = $150 $150 x 4.3 = $645/month

How earnings affect SSI payments

SSA counts less than half of your earned incomeFor example:

$645 in wages $230 counts against SSI

Certain Impairment Related Work Expenses can also be deducted from your gross wages

Under age 22 and in school, use Student Earned Income Exclusion

SSI Calculation Steps$645 Gross Wages-$20 General Income Exclusion $625 Remainder-$65 Earned Income Exclusion $560 Remainder÷ 2$280.00 Total Countable Earned Income

$639.66 Your SSI Rate-$280.00 Total Countable Income$359.66 Adjusted SSI Payment

$645.00 Gross Wages+$359.66 SSI$1004.66 Total Financial Outcome

SSI Calculation Steps $774 Gross Wages-$20 General Income Exclusion $754 Remainder-$65 Earned Income Exclusion $689 Remainder÷ 2$344.50 Total Countable Earned Income



Impairment Related Work Expenses (IRWE)

Social Security deducts IRWE when they figure SSI payment amounts when: Item or service enables you to work Need item/service because of disabling impairment You paid the cost and are not reimbursed The cost is reasonable You paid the expense in a month that you received

earned income or performed work while you used the impairment related item or service

The cost may be pro-rated over a 12-month period for nonrecurring expenses

Impairment Related Work Expenses (IRWE) Examples

Medications Attendant Care

Services Medical devices Medical services Prosthesis Expendable medical

supplies Appliances/devices

prescribed by physician

Diagnostic procedures Costs related to a

service animal Modifications to home

or vehicle Transportation costs Assistive Technology Training to use work-

related equipment

SSI Calculation Steps-IRWE$645 Gross Wages-$20 General Income Exclusion $625 Remainder-$65 Earned Income Exclusion $560 Remainder-$100 Impairment Related Work Expense$460÷ 2$230.00 Total Countable Earned Income



IRWE

All Impairment Related Work Expenses must be verified by your local Social Security field office

Provide them with original receipts or canceled checks of the expenses

SSA will determine if the expense may be deducted

Request in writing in order to use appeal rights (if necessary)

Student Earned Income Exclusion (SEIE)

Test ability to work without any reduction in your SSI check

Under age 22 and regularly attending school, college or training to prepare for a paying job

Do not count up to $1640 of earned income per month when figure SSI payment

Maximum yearly exclusion is $6600 in 2010


Regularly attending school is: In college or university for at least

8 hours a weekMay be approved for less time if it

is due to a reason beyond student’s control such as illness or unavailability of transportation


School enrollment can be verified with an ID Card, tuition receipt, or other evidence

SSA can contact the school to verify attendance

It is recommended that your student status is clearly indicated in writing when notifying SSA of employment

SEIE should be applied automatically when earnings and student status are reported

SSI Calculation Example-SEIE$645 Gross Wages-$645 Student Earned Income Exclusion $0.00 Total Countable Income

$639.66 Your SSI Rate-$ 0.00 Total Countable Income$ 639.66 SSI Payment

$645.00 Gross Wages+$639.66 SSI$1284.66 Spendable Income

SEIE Yearly Exclusion

Maximum yearly exclusion is $6600 in 2010

If you earn $645.00/month, and work 9 months (April-December) you could exclude the entire $5805.00 total earnings

Can remain in effect even when you are on summer break as long as you resume school when school reopens

Remember the Asset Limit!

SSI has a $2000 asset limit

So be careful when saving money in a checking or savings account

Plan to Achieve Self-Support (PASS)

A PASS can help you reach your job goal Allows you to set aside income and/or

resources for a specified time for a work goal

Help you establish or maintain SSI eligibility and can increase your SSI payment amount

Both SSI and SSDI recipients may qualify Must have income other than your SSI

payment or excess resources


Requirements: Vocational Goal Complete a written plan Reasonable time frame for meeting your

vocational goal List and explain your necessary expenses

Examples: Educational costs (tuition, fees, books, tutoring, counseling), business start-up costs for self-employment, vehicle modifications, job coach, dues & publications for academic or professional purposes


Who can help & resources:

PASS Cadres (see flier)

WIPA Community Work Incentives Coordinator

Vocational Counselor

Disability Benefits 101 PASS Calculator

How does PASS work?$645 Gross Wages-$20 General Income Exclusion $625 Remainder-$65 Earned Income Exclusion $560 Remainder÷ 2$280.00 Total Countable Earned Income-$280.00 PASS Deduction$0.00 Total Countable Income


$645.00 Gross Wages+$639.66 SSI-$280.00 PASS Expenses$1004.66 Total Financial Outcome

Earned Income Reporting

Report all wages & net earnings from self-employment

Report new employment to SSI Claims Representative in person or with a letter

Take or mail copies of all pay stubs each month Provide pay stubs as soon as receive last stub each

month-no later than the 10th of the next month Earnings count in month received Remember if you have a representative payee, they

are responsible to report any changes in your income


As an Independent Contractor you are considered self-employed by SSA

SSA will look at your Net Earnings for Self-Employment (NESE) for the year

As a self-employed individual you will also be able to deduct any of your business related expenses from your gross income

Your net earnings would be prorated over the entire 12 months of any given year


You will need to provide SSA with an estimate of their NESE for the year

Provide copies of your tax returns at the end of the year as verification of their actual NESE

Talk to your SSI Claims Representative to confirm how to report your earnings

Keep a binder with all of your pay stubs, letters sent to SSA, receipts from work incentives you are claiming, letters from SSA

Reporting Check In

Have you contacted your SSI Claims Representative yet?

How did it go? Any questions?

Local Resources

Work Incentives Planning and Assistance (WIPA)-one on one benefits planning

Steve Stover, Community Work Incentives Coordinator

619-840-6616 Email:

[email protected]

Local Resources

Disability Rights California-advocacy, appeal rights & assistance

http://www.disabilityrightsca.org/

800-776-5746

TTY 800-719-5798

Local Resources

Access to IndependenceSan Diego’s Independent Living Center (ILC)-

advocacy, housing, assistive technology & other resources, information & referral

http://www.a2isd.org/

(800) 300-4326 Voice(800) 959-9395 TTY/TDD

Resources

Talent Knows No Limits

http://www.talentknowsnolimits.info/

Disability Benefits 101

http://www.disabilitybenefits101.org/

SSA Red Book-Guide to Work Incentives

http://www.ssa.gov/redbook/

PASS Plan formhttp://www.socialsecurity.gov/online/ssa-545.html

Questions

You are welcome to contact Karla Bell at619-594-5381 (office)760-579-3474 (cell)

[email protected]

Your new job & your Supplemental Security Income (SSI)

Documents

Transcript of Your new job & your Supplemental Security Income (SSI)