There are three major benefit programs that change rules when you turn 18. One of them is Supplemental Security Income (SSI). It’s a benefit program run by the Social Security Administration
that pays a monthly check to people who have low income and are aged, blind, or disabled. The check is to help pay for basic needs like food and rent. SSI considers most people under 18 as children, and those 18 and over as adults. To get SSI, you have to meet their rules about income, resources, and disability. Most of these eligibility rules are the same for adults and children, but the definition of disability for children is less strict than the adult definition. To learn more about the basics of the program and how to apply, see DB101’s program description. Read on for an explanation of SSI issues specific to youth in transition.
SSI bases the amount of the monthly check on how much they think you’ll need to pay for basic needs. Since people in different situations have different needs, SSI has a number of maximum benefit amounts. For example, according to SSI, disabled children in California who live in their parents’ house need $756 a month (2008). Since children and adults who are blind often have higher expenses, their maximum benefit amount is higher ($935 in 2008). To see a full list of situations and payments in California, click here. Note that these figures change annually.
If SSI thinks that you and your family don’t have any other money to spend on your basic needs, they’ll send your parent or guardian the maximum amount each month so that they can pay for your expenses. (Almost all children under 18 have benefits sent to the parent or guardian. This person is called a representative payee). If SSI determines that you have money that you can spend on your basic needs, they’ll deduct that amount from your benefit.
Example
SSI figures out that you have $200 a month that you can spend on your basic needs. They’ll then decrease your benefit check by that amount, so you’ll get a benefit of $556 a month. You’ll have the $200, plus $556 from SSI, which means that you still have $756 to spend on basic needs.
How does SSI figure out how much money you have to spend on these needs? In other words, how would they arrive at that $200 figure in the above example? Basically, they look at the amount of money you have each month, and decide how much of that can be spent on basic needs. The rules for determining this amount depend on where the money comes from, how you spend it, and specifics about your life:
1. Money from your parents: Your parents or guardians might have income from a job or another source. SSI assumes that they will use some portion of that income to pay for your basic needs. This is called parent-to-child deeming and the income that SSI assumes parents use for your basic needs is called “deemed income”. It doesn’t matter whether or not they are actually giving you money. Instead, SSI uses a set formula to figure out how much of their income your parents can use for your basic needs. This formula takes in to consideration things like the number of children in the family, whether or not other family members are receiving benefits, and other factors. The important thing to realize here is that SSI does not think that your parents can use all of their income on your basic needs. SSI subtracts deemed income from the benefit amount you’re eligible for.
Example:
Your parents make $5,000 a month, and SSI figures out that they could spend $2,000 on your basic needs. They have “deemed” $2,000 of your parents’ income to you. You wouldn’t get a benefit, because $2,000 is more than the maximum benefit amount available.
If the amount of deemed income is higher than the maximum benefit amount, that’s the same as saying that SSI thinks that your parents are able to pay for ALL of your basic needs, so you won’t receive an SSI benefit.
Example:
Your parents make $5,000 a month, and SSI figures out that they could spend $2,000 on your basic needs. They have “deemed” $2,000 of your parents’ income to you. You wouldn’t get a benefit, because $2,000 is more than the maximum benefit amount available.
Deeming also applies to some of your parents or guardians’ resources. For more information on this and other types of deeming, see Virginia Commonwealth University’s Introduction & Overview of Deeming.
2. Income from a job: Does SSI expect you to spend money from a job on things like food and shelter? If you’re a student, the answer is no, unless you’re making a lot of money. When SSI doesn’t count certain income, it’s called an exclusion. This one is called the Student Earned Income Exclusion (SEIE). For it to apply you have to be under 22 and “regularly attending school”. “Regular attendance” is generally more than:
- 8 hours a week for college students
- 12 hours a week for grades 7-12
- 12-15 hours a week for employment training, (depending on if it includes shop practice)
If there are special circumstances, you may have lesser requirements.
The SEIE only applies to wages less than $1,550 per month, with an annual cap of $6,100 in 2008. Even after you reach this cap, there are more income exclusions. These exclusions also apply if you don’t qualify for the SEIE, but still have earned income.
Example:
You have a summer job where you earn $1,600 a month. The limit for the SEIE is $1,550 of income each month, so $1,550 won’t count. You still have $50 of earned income ($1,600 - $1,550 = $50). There are other income exclusions that apply to that $50, so it’s possible that your benefit won’t decrease.
Usually, the SEIE allows students to work without a decrease in benefits. Note that if you drop out of school, you will no longer get the SEIE, and you will get a smaller benefit than you would if you stayed in school.
3. Money from Child Support: If you receive child support, SSI will not count all of that money. There are different rules for child support in the form of cash, and child support in the form of food or rent. SSI assumes that 2/3 of the amount of cash support can go towards basic needs, so they’ll subtract that amount from your maximum benefit.
Example:
If you get $300 in cash from child support, SSI only counts 2/3 of that. Two-thirds of $300 is $200, so your benefit decreases by $200.
If you’re getting child support in the form of food or shelter, SSI will first figure out the value of it. Then they’ll subtract 2/3 of that value, just like if it were cash. The difference is that there’s a maximum amount they can subtract, called the Presumed Maximum Value (PMV). For 2008, the PMV is $232.33 for unmarried children under 18.
Example:
If you get $999 in child support in the form of food each month, SSI only counts 2/3 of that. Two-thirds of $999 is $666. The PMV rule says that the maximum amount they can count is the PMV, which is $232 in 2008. Since $666 is greater than $232.33, your benefit will only decrease by $232.33.
4. Money you’re saving for a career goal: SSI does not think that you should have to spend money that you’re saving for a career goal on basic needs. They have a program called a Plan for Achieving Self Support (PASS), which allows you to set aside money for a work or career goal. First, you choose your goal. It could be something like “becoming a 2nd grade teacher”, for example. Next, you plan out the steps you would need to achieve that goal. A teacher, for example, might need to go to college, get a teaching credential, and then go on a job search. Finally, you list all of the expenses related to that work goal. To go to college, for example, your expenses could be tuition, books, and transportation.
If SSI approves your PASS, they will not count the money that you save towards these expenses. For a PASS, you must have a source of income or resources besides your SSI benefit to set aside for these expenses. For general information about PASS, see DB101’s program description.
There are four aspects of PASS that are specifically important for youth:
a. Parental Deemed Incomecan be set aside in a PASS:
Example:
You have a maximum benefit of $756. SSI deems $100 of your parents’ income to you.
Without a PASS: Your benefit decreases by $100 to $656.
With a PASS: If you save that $100 for a PASS related expense, your benefit will remain at $756 and you’ll have $100 in the bank to save for your PASS goal.
b. Having a PASS can allow you to save money above the SSI limits: Setting aside income for a PASS causes your benefit to increase, as shown in the above example. In that case, the “income” was from parental deeming. If that $100 was income from a job, you might think that you could set that money aside for a PASS, and have your benefit increase. That’s usually not the case. SSI doesn’t count most income you earn as a student because of the SEIE. You can’t take that $100, have the SEIE apply, then set it aside in a PASS and have your benefit increase again! In this case, a PASS can help you have resources over the SSI limit. Resources are things like money in a bank account. Usually, you can only have less than $2,000 in resources to be eligible for SSI. Resources set aside for a PASS, though, don’t count.
Example:
You’re a student who earns $1,400 a month for 2 months over the summer. Say you want to save money for college so that you can eventually become a teacher, and you put all of that $1,400 in a bank account
Without a PASS: Since $1,400 is less than the maximum amount for the SEIE, your SSI benefit won’t change. After 2 months of saving money, you have $2,800 in the bank, which is over the $2,000 resource limit. You are no longer eligible for SSI.
With a PASS: You’ll have the same benefit amount and the same amount in the bank as you do in the above example. But, since you have a PASS, and are saving the money in the account for PASS related expenses, SSI doesn’t count that money as a resource. You’ll have $2,800 in the bank and keep your SSI.
c. Having a PASS can protect your SSI: If you are using a PASS, you can keep your SSI even if you are found to no longer be disabled when you turn 18. See the information on Section 301 below.
d. A PASS can help you become eligible for an SSI benefit: If you meet SSI’s definition of disability, but have income or resources over the limit, a PASS can make you eligible for a benefit.
Example:
SSI deems $1,000 of your parents’ income to you.
Without a PASS: Since $1,000 is greater than the maximum SSI benefit, you aren’t eligible for a check.
With a PASS: If you get a PASS, and set that $1,000 aside for PASS related expenses, SSI won’t count that money and you’ll be eligible for a benefit.
A summary of the SSI situation before you turn 18:
- Maximum benefit depends on your disability and living situation. For non-blind, disabled children who live in their parents’ home, it’s $756 a month.
- SSI assumes that you pay for basic needs with some income, such as income:
- SSI assumes that not all income can pay for basic needs:
- They use detailed formulas to figure out what portion of your parents’ income is deemed to you.
- Only 2/3 of the child support counts, with a limit of $232.33 (2008) if it’s in the form of rent or food.
- The SEIE means that most income you earn as a student won’t reduce your benefit
- SSI will also allow you to set aside some income and resources to pay for a work goal if you have a PASS.
What Happens to Your SSI Benefit When You Turn 18:
Turning 18 causes a number of changes in SSI rules. The most important is that SSI uses a stricter definition of disability for people over 18. When you turn 18, you have to meet the definition of disability for an adult, which focuses more on your ability to work than on your physical or mental limitation. Within a year of your 18th birthday, SSI automatically checks to see if you meet the stricter rules. This process is known as the age-18 redetermination. For redeterminations, it’s important to realize that there’s no Substantial Gainful Activity (SGA) test, which means that you can be earning more than $940 a month (2008). They will take your work and school record into consideration to see if you are likely to be able to work in the future. They may call teachers, counselors, or employers to help them make this evaluation. If they find that you don’t meet the adult definition, you will no longer be eligible for SSI. There’s a two month grace period during which you’ll continue to receive benefits.
If your SSI benefit ends because SSI determines that you are no longer disabled, there are two possible options. The first is that you can appeal the decision. SSI will send you a letter telling you that your benefit is ending. If you request an appeal within 10 days of getting that letter, you can ask that SSI continue your benefit until they make a decision about your appeal. The Social Security Administration has a webpage on the appeals process. Secondly, it’s important to know that there’s a rule that allows some people to keep their benefits. This rule, known as Section 301, applies to people who have been participating in an employment support program. This could be a vocational rehabilitation program, part of an Individualized Education Plan (IEP), a PASS, or any other program that Social Security approves of. The test Social Security uses to see if Section 301 applies is whether or not they think that the program will increase your likelihood of not needing benefits in the future. If you’re a student between 18 and 21 who is participating in an IEP or a Youth Transition Demonstration Project, you automatically meet this test. Others have their situations evaluated on a case-by-case basis. If they find that you’re eligible, you will generally keep your benefit until you finish the program or you drop out of it.
If SSI finds that you are still disabled, there are five major changes to your benefit:
- You may be eligible for a higher benefit. Like the maximum benefit amounts for children, your benefit amount will depend on your living situation and disability. If you’re disabled but not blind, live on your own, and are over 18, the maximum benefit amount in 2008 is $870 a month. Click here to see a list of other benefit amounts.
- Parent-to-Child deeming stops. This means that your benefits might go up. If you weren’t eligible for SSI before you turned 18 because your parents’ income was too high, you can apply after you turn 18. Your parents’ income will no longer count. Unlike people being redetermined for SSI, people applying for a first-time benefit will have to meet the SGA test.
- Child Support rules change. The amount of the child support is no longer reduced by a third. This is true for cash support and support in the form of food or shelter. Like the rules for those under 18, support in the form of food or shelter can only be counted up to the PMV ($232.33 in 2008).
- In-Kind Support and Maintenance Rules Change. “In-Kind Support” is just another way of saying that you are getting something for free. If you continue to live at home after your 18th birthday, and you don’t pay your fair share of both your rent and food, the federal portion of your benefit amount will be decreased by 1/3. This is called a Value Third Reduction (VTR)
The VTR:
In California and many other states, your SSI benefit is actually a combination of a
Federal Benefit Rate (FBR) and a
State Supplemental Payment (SSP). For example, the $870 benefit is a combination of a federal benefit of $637 and a state supplement of $233. If you’re living in someone else’s house and getting free room
and board, that $637 will be reduced by 1/3 to $424.67 (1/3 of $637 is $212.33, and $637-$212.33 is $424.67). In California, the SSP goes up slightly to $234, giving you a total benefit of $658.67 ($424.67 + $234).
If you don’t get free room and board, but you do receive some In-Kind Support, your benefit will be decreased by the value of that support, but only up to the PMV.
Example:
If you’re getting $500 of free food, SSI will only count $232.33 of that, and your benefit will be $870 - $232.33 = $637.67.
SSI uses either the PMV or the VTR. They decide which one applies based on your living arrangement.
- You may no longer have a representative payee. When you turn 18 you can request to have benefits sent directly to you, or to a different person. The Social Security office will make a determination as to what they think will be in your best interests. Note that this is totally separate from legal adulthood. You become a legal adult when you turn 18. Being a legal adult has certain rights that come with it, like voting, for example. A representative payee only has control over your Social Security benefits. No matter who is responsible for you benefits, it’s very important to report any changes in earnings or income to Social Security. If you don’t, SSI may pay you more than you’re eligible for. This is called an overpayment, and you will have to pay it back. For more information, see the Social Security webpage on reporting requirements.
