Your new job & your Supplemental Security Income (SSI)

1. 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

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

3. Work Incentive Tips • Work incentives provide a safety net • You still have an SSI payment & Medi-Cal (IHSS too!) • To use most work incentives: • 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

4. Ambassador Pay Rate • $15/hour for first 6 months • If goals are met increase to $18/hour • Maximum of 10 hours/week • Monthly: • $0-$645 first 6 months • Raising to $0-$774 • $15 x 10 hours/week = $150 • $150 x 4.3 = $645/month

5. 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

6. 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

7. 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

8. Impairment Related Work Expenses (IRWE) Social Security deducts IRWE when they figure SSI payment amounts when: • 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

9. 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 work-related equipment

10. 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

11. 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)

12. 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

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

14. 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

15. 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

16. 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

17. Remember the Asset Limit! • SSI has a $2000 asset limit • So be careful when saving money in a checking or savings account

18. 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

19. 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 self-employment, vehicle modifications, job coach, dues & publications for academic or professional purposes

20. 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

21. 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

22. Earned Income Reporting • Report all wages & net earnings from self-employment • 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 10th 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

23. Earned Income Reporting • As an Independent Contractor you are considered self-employed by SSA • 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

24. 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

25. Reporting Check In • Have you contacted your SSI Claims Representative yet? • How did it go? • Any questions?

26. 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

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

28. Local Resources Access to Independence San Diego’s Independent Living Center (ILC)-advocacy, housing, assistive technology & other resources, information & referral http://www.a2isd.org/ • (800) 300-4326 Voice(800) 959-9395 TTY/TDD

29. Resources • Talent Knows No Limits http://www.talentknowsnolimits.info/ • Disability Benefits 101 http://www.disabilitybenefits101.org/ • SSA Red Book-Guide to Work Incentives http://www.ssa.gov/redbook/ • PASS Plan form http://www.socialsecurity.gov/online/ssa-545.html

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