Understanding what SSA counts as income is essential for SSI recipients. The wrong assumption could lead to overpayments or missed reporting requirements.
In this article, we'll cover:
- Types of income SSA counts
- What doesn't count as income
- How income affects your SSI payment
- Income exclusions that help you
- How to report income correctly
1. Types of Income SSA Counts
SSA divides income into categories:
Earned income:
- Wages from a job
- Net self-employment income
- Tips and bonuses
- Sick pay
Unearned income:
- Social Security benefits (SSDI, retirement)
- Pensions
- Unemployment benefits
- Interest and dividends
- Gifts and prizes
- Rental income
- Support from family (in some cases)
In-kind income:
- Free food provided to you
- Free shelter or reduced rent
- Anything given instead of cash
Deemed income:
- Spouse's income (if living together)
- Parent's income (for children on SSI)
2. What Doesn't Count as Income
Some money is excluded:
First $20 of any income:
- Called the "general income exclusion"
- Applied to unearned income first
First $65 of earned income:
- Plus half of remaining earnings
- Major benefit for workers
Certain payments:
- Tax refunds
- SNAP benefits
- Housing assistance (Section 8)
- Most needs-based assistance
- Loans (money you must repay)
- Certain disaster assistance
One-time exclusions:
- Irregular income under $20/month
- Infrequent income under $60/quarter
3. How Income Affects Your SSI Payment
SSI uses a formula to reduce benefits based on income:
Basic calculation:
- Start with your total income
- Subtract exclusions ($20 general, $65 earned)
- Divide remaining earned income by 2
- Add unearned income (after $20 exclusion)
- Subtract result from federal benefit rate ($967 in 2026)
Example with wages:
- You earn $600/month from a job
- Subtract $65 = $535
- Subtract $20 (if not used elsewhere) = $515
- Divide by 2 = $257.50 countable income
- SSI is reduced by $257.50
- You keep $967 - $257.50 = $709.50 SSI
- Total income: $600 + $709.50 = $1,309.50
Important: Working almost always increases your total income, even though SSI is reduced. Don't avoid work just to keep full SSI.
4. Income Exclusions That Help You
Several programs provide additional exclusions:
PASS (Plan to Achieve Self-Support):
- Set aside income/resources for a work goal
- That money doesn't count for SSI
IRWE (Impairment-Related Work Expenses):
- Disability-related work costs are excluded
- Wheelchair maintenance, special transportation, etc.
Student Earned Income Exclusion:
- Students under 22 can exclude up to $2,290/month (2026)
- Maximum $9,230/year
Blind Work Expenses:
- If legally blind, more work expenses are excluded
5. How to Report Income Correctly
What to report:
- All income before exclusions
- SSA calculates what's countable
- Report gross wages, not net
When to report:
- Within 10 days of receiving income
- Or changes in income
How to report:
- my Social Security account online
- SSA phone: 1-800-772-1213
- Wage reporting phone line
- Local Social Security office
Keep records:
- Pay stubs
- Documentation of any income
- Dates income was received
How Purple Helps
- See all deposits in one place
- Track wages over time
- Keep records for SSA
- Stay organized for reporting