Your new job your Supplemental Security Income SSI

Your new job & your Supplemental Security Income (SSI) Ambassador Orientation April 8, 2010 Presented by: Karla Bell California Health Incentives Improvement Project San Diego State University Interwork Institute

Overview Tips How earned income affects SSI Calculation Examples l l IRWE SEIE Plan to Achieve Self-Support Earned Income Reporting Resources

Work Incentive Tips Work incentives provide a safety net l To use most work incentives: l l You still have an SSI payment & Medi-Cal (IHSS too!) 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: l l $0 -$645 first 6 months Raising to $0 -$774 $15 x 10 hours/week = $150 x 4. 3 = $645/month

How earnings affect SSI payments SSA counts less than half of your earned income For 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 $639. 66 Your SSI Rate -$344. 50 Total Countable Income $295. 16 Adjusted SSI Payment $774. 00 Gross Wages +$295. 16 SSI $1069. 16 Total Financial Outcome

Impairment Related Work Expenses (IRWE) Social Security deducts IRWE when they figure SSI payment amounts when: l l l 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 workrelated 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 $639. 66 Your SSI Rate -$230. 00 Total Countable Income $409. 66 Adjusted SSI Payment $645. 00 Gross Wages +$409. 66 SSI $1054. 66 Total Financial Outcome

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

Student Earned Income Exclusion (SEIE) Regularly attending school is: l In college or university for at least 8 hours a week l May be approved for less time if it is due to a reason beyond student’s control such as illness or unavailability of transportation

Student Earned Income Exclusion (SEIE) 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

Plan to Achieve Self-Support (PASS) 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 selfemployment, vehicle modifications, job coach, dues & publications for academic or professional purposes

Plan to Achieve Self-Support (PASS) 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 $639. 66 Your SSI Rate -$0. 00 Total Countable Income $639. 66 Adjusted SSI Payment $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 selfemployment 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 10 th 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

Earned Income Reporting As an Independent Contractor you are considered self-employed by 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

Earned Income Reporting 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: Sstover@proindependence. org

Local Resources Disability Rights California-advocacy, appeal rights & assistance http: //www. disabilityrightsca. org/ 800 -776 -5746 TTY 800 -719 -5798

Local Resources Access to Independence San Diego’s Independent Living Center (ILC)advocacy, housing, assistive technology & other resources, information & referral http: //www. a 2 isd. org/ (800) 300 -4326 Voice (800) 959 -9395 TTY/TDD

Resources Talent Knows No Limits http: //www. talentknowsnolimits. info/ Disability Benefits 101 http: //www. disabilitybenefits 101. org/ SSA Red Book-Guide to Work Incentives http: //www. ssa. gov/redbook/ PASS Plan form http: //www. socialsecurity. gov/online/ssa-545. html

Questions You are welcome to contact Karla Bell at 619 -594 -5381 (office) 760 -579 -3474 (cell) karlabella@disabilityskunkworks. com