Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are both government assistance programs that seek to help you maintain your quality of life through monthly benefit payments. However, these two programs vary greatly when it comes to determining how profitable activity affects your eligibility for each program, like in the instance of selling your home.
Key Terms:
Social Security Disability Insurance (SSDI): A government program that provides disability benefits to individuals who have accumulated the necessary work credits through their employment and need financial assistance due to a long-term disability.
Supplemental Security Income (SSI): A government program that provides supplemental income to individuals with limited income who are disabled, blind, elderly, or otherwise unable to work, regardless of their work history.
Substantial Gainful Activity (SGA): Substantial Gainful Activity, or SGA, refers to the maximum monthly income an individual can earn outside of their disability payments without losing access to their existing SSDI or SSI benefits. It is crucial to know the SGA limits as earning above the SGA limit can result in the loss of your Social Security disability benefits.
Means-tested: Usually in reference to eligibility for government assistance programs; means-tested translates to your current financial situation, specifically your assets and income.
How Selling Your Home Can Affect Your SSDI Benefit Payments
Social Security Disability Insurance (SSDI) uses earned income and Substantial Gainful Activity (SGA) for determining your eligibility. SSDI is not means-tested. Therefore, your income and assets are only counted if you are actively working or participating in generating these forms of income.
In short, the profits received from selling your home should not disqualify you or put you in jeopardy of losing your SSDI payment benefits.
How Selling Your Home Can Affect Your SSI Benefit Payments
In this matter, Supplemental Security Income (SSI) is the polar opposite of SSDI. Supplemental Security Income (SSI) is a means-tested program; this means your countable resources play a critical role in eligibility.
While the home you live in (and the land it sits on) is not usually counted toward the resource limit, the proceeds from the sale of your home become countable unless you reinvest them in a replacement home that you will occupy within three months (90 days) of receipt. If you do not purchase a replacement home within that time frame, the cash proceeds will be added to your countable resources. If your total countable resources then exceed $2,000 (for an individual) or $3,000 (for a couple), you risk losing SSI eligibility.
It Is Critical To Get Accurate Information In Order To Understand How The Selling Of Your Home Can Affect Your SSD Benefit Payments
- Social Security Administration (SSA): The best, free resource you can use to determine your eligibility for SSDI or SSI if you are selling your home and are concerned about how the sale’s profits may affect you. You can use ssa.gov or their toll-free number 1-800-772-1213.
- Social Security Disability Attorney: A bar-licensed legal professional can help you determine if the profits from selling your home will affect your Social Security disability benefit payments.
- Financial Advisor or Certified Public Accountant: While these two resources will most likely have ample experience dealing with this situation, the first two options above should be explored before using this avenue.