Social Security provides crucial financial support to millions of Americans through various programs, including retirement benefits, disability assistance, and aid for survivors. However, certain circumstances can reduce or even eliminate these benefits. One common reason for losing Social Security benefits is earning income above certain limits.
While you can receive Social Security benefits and still work, earning more than the established income threshold could reduce or lose your monthly benefits. To qualify for Supplemental Security Income (SSI), your monthly income typically needs to be below $1,971 if you are an individual. The income limit is slightly higher for couples.
Additionally, for every $2 you earn from work, your payment will be reduced by $1. Any job you hold counts toward this income threshold, and you must promptly report any changes in your monthly income or living situation. Social Security Disability Insurance (SSDI) beneficiaries have more flexibility.
You can work for up to nine months in a “work trial period” while receiving benefits. For 2024, if your gross monthly earnings exceed $1,110, that month will count toward your nine-month trial period. These nine months do not have to be consecutive but must occur within a five-year rolling period.
After this period, a 36-month “extended period of eligibility” allows for benefits to continue if earnings exceed specific limits ($1,550 per month in 2024, or $2,590 if you are blind). However, earnings above this limit after the extended period ends will result in discontinued benefits.
Income limits reducing Social Security benefits
SSI eligibility is also determined by resources, defined as anything you own that could be converted into cash and used to cover food or shelter. To qualify, your resources must fall below $2,000 if you are single or $3,000 if you are married. Specific resources, such as your home, one vehicle, household goods, personal effects, and small life insurance policies, do not count toward this limit.
Approximately 70,000 beneficiaries lose their benefits annually due to exceeding this resource limit. Marital status changes can influence your Social Security benefits, particularly in divorce cases. For example, you may not be able to collect benefits based on your ex-spouse’s earnings if your marriage lasted less than 10 years or if you remarry.
However, if your subsequent marriage ends, you may again be eligible to collect benefits based on your previous spouse’s record. Being incarcerated can significantly affect your Social Security benefits. If imprisoned for over 30 days, the SSA may suspend your Social Security and SSI benefits.
If your benefits are suspended due to incarceration, you can request their reinstatement the month after your release. Even if your benefits are suspended, your spouse or children may continue to receive them if they remain eligible. SSI benefits are also suspended during incarceration.
However, payments can resume immediately upon your release, although the amount may depend on the specific release date and might only be a partial payment. If you are incarcerated for more than 12 consecutive months, your SSI benefits will be terminated, and you will need to file a new application after your release.
