Income & Resources
Case Studies
Case Study 1: Josiah’s Job Offer
Josiah receives SSI payments of $943 per month. He has been offered a job where he will earn $865 gross per month, but he isn’t sure if he will lose his SSI if he takes it.
Think about it. What needs to happen?
Josiah accepts this job offer and keeps SSI. His wages will reduce his SSI to $553 per month. However, between his wages and his SSI he will have more money when he works.
|
Explanation |
Calculation |
|---|---|
|
Josiah’s gross earnings |
$865 |
|
Subtract the $20 General Income Exclusion |
$865 – $20 = $845 |
|
Subtract the Earned Income Exclusion |
$845 – $65 = $780 |
|
Divide by two to take the additional 50% exclusion and learn Josiah’s Countable Earned Income |
$780/2 = $390 |
|
Subtract Josiah’s Countable Earned Income from the monthly SSI Rate (this example ignores any State Supplement) to determine his SSI payment |
$943 – $390 = $553 |
Josiah’s total disposable income is now $1,418 ($865 gross earnings plus the $553 SSI payment), less any tax withholding. This means Josiah has up to $475 more per month to save or pay for other things.
The takeaway
As Josiah’s earnings increase, his SSI payment will go down by $1 for every additional $2 of gross earnings. Additionally, he will keep his Medicaid eligibility in most states.