Marriage is a significant milestone, but for those receiving Supplemental Security Income (SSI), it can come with unexpected financial consequences. The SSI marriage penalty can reduce or even eliminate benefits due to the way Social Security evaluates income and resources for married couples.
This guide explains how getting married affects SSI benefits, strategies to minimize financial impact, and alternative options for couples.
1. What Is the SSI Marriage Penalty?
The SSI marriage penalty refers to how the Social Security Administration (SSA) adjusts benefits when two SSI recipients get married or when an SSI recipient marries someone without a disability. This happens because SSI is a needs-based program with strict income and resource limits.
A. Lower SSI Benefit for Married Couples
The maximum SSI benefit for an individual in 2025 is $967 per month.
The maximum SSI benefit for a married couple in 2025 is $1,450 per month.
This means a married couple receives $484 less per month than two unmarried individuals receiving SSI separately.
B. Deeming of Spousal Income
When an SSI recipient marries someone who does not receive SSI, part of the spouse’s income may be “deemed” to the SSI recipient, reducing or eliminating their benefit.
SSA counts the spouse’s income and assets when determining SSI eligibility.
If the non-disabled spouse earns more than $457 per month, some of that income is deducted from the SSI recipient’s benefit.
C. Resource Limits for Married Couples
The asset limit for an individual on SSI is $2,000.
The asset limit for a married couple is $3,000.
This means a married couple can only keep $1,000 more in total assets, making it harder to save money.
2. How Marriage Can Affect Medicaid Eligibility
Many people on SSI also rely on Medicaid for healthcare coverage. Since Medicaid eligibility is tied to SSI, a reduction or loss of SSI benefits could mean losing Medicaid as well.
If an SSI recipient’s income increases due to marriage, they may no longer qualify for automatic Medicaid coverage.
Some states offer Medically Needy Medicaid programs that allow individuals to keep coverage even if their income is slightly above the limit.
3. Strategies to Minimize the SSI Marriage Penalty
While the SSI marriage penalty is difficult to avoid, there are strategies couples can use to reduce its impact.
A. Use an ABLE Account to Protect Savings
An ABLE account allows individuals with disabilities to save up to $18,000 per year (2025 limit) without affecting SSI eligibility.
Funds in an ABLE account do not count toward the SSI resource limit (up to $100,000).
This is a good option for saving money as a married couple while keeping SSI benefits.
B. Consider a Special Needs Trust (SNT)
A Special Needs Trust allows family members to provide financial support without affecting SSI eligibility.
Third-party SNTs can be used for expenses like medical care, education, and assistive technology.
C. Understand State Medicaid Programs
Some states allow continued Medicaid eligibility even if SSI is lost.
Medicaid spend-down programs allow individuals to qualify by deducting medical expenses from their income.
4. Alternatives to Marriage for SSI Recipients
Some couples choose alternative legal arrangements to avoid the SSI marriage penalty.
A. Remain Unmarried but Use Legal Protections
Some couples choose not to legally marry to maintain SSI benefits.
Powers of attorney, joint ownership agreements, and healthcare proxies can provide similar legal protections as marriage.
B. Domestic Partnership Agreements
Some states recognize domestic partnerships, which may allow couples to retain benefits while receiving legal rights similar to marriage.
C. Consult a Disability Benefits Planner
A financial planner or disability attorney can provide guidance on structuring finances to minimize benefit reductions.
5. Plan Your Financial Future with Purple
Navigating the SSI marriage penalty can be complex, but careful planning can help protect your benefits. Purple helps you track income, manage savings, and plan for major life changes.
Get started with Purple today and take control of your financial future.