Social Security is a program designed to provide financial assistance to those who have retired, become disabled, or lost a spouse. Unfortunately, there are times when Social Security benefits are stopped. This can be due to various reasons, and it can be a confusing and daunting experience.
In this article, we will look at why Social Security may stop your benefits and what you can do if it happens to you.
SSDI Benefits And SSI Benefits
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are two different types of benefits offered by the Social Security Administration (SSA).
SSDI is a type of insurance program funded by Social Security taxes. For eligibility, an individual must have paid into Social Security for the last five years of their working lives. The benefits an individual receives from SSDI are based on the amount of Social Security taxes paid into the system.
On the other hand, SSI is a needs-based program designed to provide financial assistance to individuals who are disabled and have limited income or resources. Unlike SSDI, there is no requirement to have worked and paid into Social Security. The amount of benefits an individual receives from SSI is based on the individual’s financial needs.
What Can Cause SSDI Benefits To Stop?
Disability Insurance (SSDI) benefits are a vital source of income for individuals who are disabled or ill and cannot work. However, there are certain situations where SSDI benefits can be stopped or reduced. Here are five common scenarios that can cause SSDI benefits to stop.
1. Returning To Work
First, if you return to work and earn more than $1,170 per month, your SSDI benefits will stop. This is because the Social Security Administration (SSA) believes that you are no longer disabled and can work if you can make this much money.
It’s important to note that the SSA does not consider any income you make from investments, such as stocks or bonds, as earnings.
2. Reaching Retirement Age
SSDI benefits stop when a recipient reaches full retirement age, which is currently 66 years old. SSDI benefits will no longer be available to recipients at this point, and they will instead receive their Social Security Retirement benefits.
3. Being Incarcerated Or Institutionalized
An SSDI recipient will lose their benefits if incarcerated or institutionalized for a felony. The SSA also has the right to stop benefits if a recipient is institutionalized for mental health reasons.
4. Changing Living Arrangements
SSDI recipients can lose their benefits if they move out of the country or change their living arrangements. The SSA requires all recipients to live in the United States to receive benefits.
5. Getting Married
Finally, getting married can also cause SSDI benefits to stop. The SSA considers a recipient’s spouse’s income when determining their benefits. If a recipient’s spouse has a high income, their benefits may be reduced or stopped altogether.
What Can Cause SSI Benefits To Stop?
As a recipient of Supplemental Security Income (SSI) benefits, it’s important to understand the factors that can lead to your benefits being stopped. Here are some of the possible reasons why.
1. Turning 18 Years Old
One common scenario that can lead to SSI benefits being stopped is when a child receiving benefits turns 18 years old. Generally, when a child turns 18, they are no longer eligible to receive SSI benefits for children, although there are some exceptions. If the child is still in school and under 22, they may still be eligible.
2. Changing Living Situations
Another reason why SSI benefits may be stopped is if your living situation changes significantly. If you move to a new home or are no longer living with the same family or friends, you must report this change to the Social Security Administration. If you fail to report a change in your living situation, your benefits may be stopped.
3. Going Above The Income And Asset Limits
In addition to changes in living situation, having too much income or too many assets can also lead to SSI benefits being stopped. The Social Security Administration has strict guidelines regarding income and assets, and if you exceed these limits, your benefits may be discontinued.
4. Returning To Work
Finally, returning to work can also lead to SSI benefits being stopped. If you can work and earn an income, the Social Security Administration may decide that you no longer need SSI benefits. SSI benefits may still be available to you if you work, but you will need to report your income to SSA.
Knowing the scenarios that can lead to SSDI and SSI benefits being stopped can help you comply with their regulations and ensure that your benefits are taken away with a warning. It’s important to stay informed of the regulations and make sure that you report any changes in your living situation, income, or assets to the Social Security Administration.
For more information on Social Security, check out the rest of Disability Help. You can start with our guide on how SSDI benefits are calculated.