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lev-tax
lev-tax, Tax Advisor
Category: Social Security
Satisfied Customers: 29511
Experience:  Taxes, Immigration, Labor Relations
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My nephew lives in Delaware and made $100 in January. He got

Customer Question

My nephew lives in Delaware and made $100 in January. He got a letter from SSI yesterday stating they were reducing his benefits for March, April and May to $655 from $735. Why did they do this
JA: These retirement benefits are supposed to help us but they can be so complicated! The Retirement Expert will help you get the most benefits propertly. Is there anything else the Retirement Accountant should be aware of?
Customer: My nephew also worked for about 2 months in 2016 but it didn't affect his benefits. Unfortunately he was unable to keep working. Why are they now reducing his benefits because he made $100 in January 2017
Submitted: 2 months ago.
Category: Social Security
Expert:  lev-tax replied 2 months ago.

I assuming that your nephew is getting Supplemental Security income (SSI) that is based on his needs rather on his working history.

The maximum benefits he may get is $735.

As that amount is based on his needs as determined by the SSA - any income he gets might potentially affect the amount of SSI he receives.

Expert:  lev-tax replied 2 months ago.

The general rule is that Social Security reduces the amount of your monthly SSI benefit by the amount of recipient's monthly income.
The SSA does not count the first $65 of earned income plus one–half of the amount over $65. Therefore, they reduce SSI benefits only $1 for every $2 earned over $65.
In your situation out of $100 - the first $65 are not counted. and out of next $35 - SSI benefits are reduced by $17.5
That means your nephew should have reduction $735 - $17.5 = $717.5
I suggest to visit the SSA office and provide all required documents regarding your nephew's income - and they will adjust reduction.