I am an artist who gets SSI. How does the money I receive for my artwork count when you figure my SSI?
It depends on the nature of your work in the arts. If you work as someone’s employee to produce artwork, the money counts as wages. If you have a small business, the money counts as earnings from self-employment. If you are neither employed nor self-employed as an artist, any money you get for your artwork counts as unearned income in the month you get it. (It is called “unearned” income because you don’t get the money from employment or self-employment.)
Although we may need to reduce your SSI when you receive other income, we don’t count all of your income. So, often, you end up with much more money.
How do wages affect
my SSI?
When you have wages, we look at your gross monthly amount. From that amount:
· We subtract the first $65.
· We then subtract one-half of what’s left.
Other deductions may also apply:
· If your earnings are the only income you have (other than SSI), we subtract $20 per month from your earnings.
· If you are an unmarried student under the age of 22, we usually can subtract some or all of your earnings, subject to monthly and annual limits.
· If you are disabled but not blind, we subtract expenses you have because of your disability that enable you to work (wheelchair, prosthesis, medicines, etc.).
· If you are blind, we subtract all of your work expenses (taxes, lunches, transportation, etc.).
· If you have an approved plan for achieving self-support (PASS), we subtract any of your income that goes to meet your approved work goal.
After subtracting these amounts, the remaining wages reduce your SSI. But, since we always count less than half of your wages, you end up with more money.
How do earnings from
self-employment affect my SSI?
You deduct your business expenses on Schedule C of your Federal income tax return. You then calculate your “net earnings from self-employment” on Schedule SE. We divide those net earnings equally among the months in your taxable year. For each month, we subtract the same deductions that apply to wages. The remaining amount of your net earnings reduces your SSI. But, since we always count less than half of your net earnings, you end up with more money.
If I start making too much from my artwork to get SSI any more, will I lose my Medicaid coverage?
Not necessarily. If your art income is from wages or self-employment, your Medicaid coverage usually continues for as long as you are unable to afford similar coverage. Also, if your earnings later drop, you may be able to get SSI again without filing a new application.
How does unearned
income affect my SSI?
We look at the gross amount you received. We then subtract any costs you had in producing the income (art supplies, paper, etc.). We call these costs your “expenses of obtaining income.” We also deduct $20 from your total income each month. The remaining income reduces your SSI.
Most of the deductions listed above that apply to wages and earnings from self-employment don’t apply to unearned income. So usually unearned income causes a bigger reduction in your SSI. But, most of the time, you still end up with more money.
Does an award I get
for artistic achievement affect my SSI?
Under the law, awards of any kind are unearned income in the month you get them. If you spend the money in the month you get it, then your SSI usually is affected only in that month. But any money you keep after the month you get it counts as a “resource” for SSI purposes as long as you have it. The SSI limit on resources is $2,000 ($3,000 if you have a spouse). If your resources exceed the limit in any month, you are not eligible for SSI.
Do apprenticeship
grants and fellowship grants affect my SSI?
If you receive a grant to help train an artist, and training artists is part of your business as a self-employed person, then the grant counts as part of your earnings from self-employment. Otherwise, the money (less any necessary expenses) counts as your unearned income in the month you receive it.
Do the supplies and other property I need to produce my artwork count as a resource?
Probably not. In most cases, property that you use to help support yourself does not count, subject to certain limits. We call it “property essential to self-support.”
How can I avoid being overpaid by SSI when I make money from my artwork or get an award or study grant?
The best way to avoid trouble is to talk to us as soon as you know you may receive the money. We can explain to you how the rules work and how to avoid or minimize the amount of an overpayment. You can call us at 1-800-772-1213. Ask if there is an employment support representative in your area. If not, ask to speak to a claims representative.
You must tell us right away whenever your income changes. If you don’t, we may pay you too much SSI, and you may have to pay it back.
Remember to keep track of your expenses when you produce your art. If we don’t know about your expenses, we can’t deduct them from your income.
Can Social Security help me to develop my ability to make money from my artwork?
Unfortunately, we can’t give you grants or loans for training or supplies. But, if you already have some income in addition to your SSI, we may be able to give you more SSI if you use your other income to develop as an artist or to start a business. See the SSI Spotlight on Plans for Achieving Self-Support (PASS).
Are there other SSI
Spotlights that I should read?
Yes. There are SSI Spotlights on a number of the topics discussed in this spotlight:
· SSI Spotlight on Continued Medicaid Eligibility for People Who Work
· SSI Spotlight on Impairment-Related Work Expenses
· SSI Spotlight on Plans for Achieving Self-Support
· SSI Spotlight on Property You Need for Self-Support
· SSI Spotlight on Resources
· SSI Spotlight on Special SSI Rule for Blind People Who Work
· SSI Spotlight on Student Earned Income Exclusion
These spotlights are available from any social security office and on SSA’s web site at http://www.ssa.gov/pubs/faxindx1.html. Or, you can ask them to fax them to you by calling a toll-free number, 1-888-475-7000, from a touch-tone phone.
There's a new tool to help people who are planning to file for disability
benefits. When an adult applies for disability benefits, they complete a Disability Report (SSA-3368). The form helps
SS obtain information about an applicant's condition, and is the key to obtaining medical records.
You can get tips over the Internet on how to best complete the 3368. Just click on any section of the form and you'll get a "plain language" explanation of what
they're looking for, why they need the information, and how your answers help
them decide if you can get disability benefits. This tool is your key to having the Disability Report completed before your appointment. To take a look, visit
http://www.ssa.gov/disabilityformhelp/
THIS INFORMATION ON THIS PAGE IS GENERAL. TO FIND OUT MORE, YOU MAY CALL THE TOLL-FREE NUMBER (1-800-772-1213) OR YOU MAY VISIT OR WRITE ANY SOCIAL SECURITY OFFICE.