Understanding the SSI 'Marriage Penalty' Concept
Jennifer Updike and Lewis Fredette, from Auburn, New York, both autism spectrum individuals relying on Supplemental Security Income (SSI), found themselves in a conundrum when they decided to get married. The marriage would result in a $300/month reduction to their combined income, an occurrence termed as the marriage penalty imposed by the National Council on Disability. Furthermore, SSI resource limits would also restrict their combined savings to $3,000, $1,000 less than what they can have individually.
This predicament is not exclusive to Updike and Fredette. As per 2022 data from the Social Security Administration (SSA), over 6.5 million SSI recipients over the age of 18 were affected in the same way. A further 2021 report using U.S. Census Bureau data from 2017 found that the majority of working-age SSI recipients were not currently nor had they ever been married.
There exist strategies to circumnavigate these penalties. For instance, SSI benefits approval gives automatic eligibility for Medicaid but exceeding SSI resource or income limits could result in losing insurance. This can be devastating for SSI recipients. Additionally, the SSA may categorize a couple as married based on actions that demonstrate marriage, and this can shift their benefits. They define resources as anything easily converted into cash, like bank accounts, personal property, and vehicles.
However, the SSA lists a number of exceptions to these limits. Items exempted would include land and the home on it, household vehicles and goods, wedding rings, burial funds/plots up to $1,500 and life insurance policies up to $1,500. SSI recipients can also create savings plans to extend resource limits, and these won’t count toward SSI eligibility. For instance, funds can be set aside for a Plan to Achieve Self-Support or an Achieving a Better Life Experience account.
Those with more concerns or needing further information can get through to EDD by going to the website, eddcaller.com. Here, the user can find multiple reliable resources and options to reach out to the Employment Development Department for assistance. Whether it’s regarding questions about disabilities, SSI benefits or any other topics, eddcaller.com provides effective ways to contact EDD with ease and convenience.