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If you receive Social Security benefits, you could see an increase starting in 2025 to help with inflation. However, these payments aren’t guaranteed. According to a June 8 NPR report, around 70,000 Social Security recipients have their benefits revoked each year.
Whether you’re receiving Social Security, Social Security Disability Insurance, or Supplemental Security Income, there are certain events that could lead to losing your monthly benefits, some of which might be out of your control. In some situations, like increased income, it might be beneficial to lose your benefits if it means earning more money. The type of benefits you receive also plays a role, which we’ll explain below.
Continue reading to learn how you might lose your Social Security benefits. For additional information, see what to do if your Social Security payment is late and what to expect for the future of your benefits.
1. You start making too much money
Getting a new job while receiving benefits might impact your monthly Social Security payments. Here’s what you need to know.
SSI:
According to the Social Security Administration, getting a job could potentially end your SSI benefits, depending on your income. Generally, SSI eligibility is for individuals earning $1,971 or less per month. If your income exceeds this amount, you will no longer qualify for benefits.
Keep in mind that if you’re working, your payment will be reduced by $1 for every $2 you earn. In 2024, the maximum monthly amount you could receive is $943, or $1,415 for a couple.
SSDI
For SSDI beneficiaries, you can work for up to nine months without losing your benefits, known as the SSA’s nine-month trial work period. After this period, if you earn $1,550 or more per month, the SSA will consider this substantial gainful activity. Consequently, your benefits will be suspended for any months your earnings exceed this amount during the 36-month reentitlement period following the trial work period.
If your earnings drop below the substantial amount within the 36-month window, your benefits can be reinstated. However, if your earnings remain above the substantial amount after the 36-month reentitlement period ends, your benefits will be terminated.
2. You go to jail or prison
If you are in jail or prison for more than 30 days, your Social Security and SSI benefits can be suspended. Once you’re released, your benefits aren’t automatically reinstated. Here’s how it works:
Social Security/SSDI:
If your benefits were suspended due to incarceration, they can be reinstated starting the month after your release. For instance, if you are released in May, your benefits could resume in June.
Note: Benefits your spouse or children receive will continue as long as they remain eligible.
SSI
If you receive SSI, your benefits will be suspended while you’re in prison. Once you’re released, payments can resume the same month, unlike Social Security benefits. The amount you’ll receive that month will be partial, based on your release date.
There’s a caveat: if your incarceration extends beyond 12 consecutive months, your SSI benefits will be terminated. After your release, you’ll need to contact the Social Security Administration at 800-772-1213 to file a new application.
3. You become divorced
If you’re recently divorced or planning to be soon, there are a few provisions that would stop you from getting your ex-spouse’s Social Security benefits.
- You weren’t married to your ex-spouse for 10 years or longer.
- You’re married to a different person now, so you can’t collect benefits on your former spouse anymore. This changes if your current marriage ends due to annulment, divorce or death.
- You’re entitled to benefits on your own behalf, and your benefit amount is more than what your ex-spouse’s benefits are.
For more details, check out this Social Security guide to all your benefits. You can also find out how much Social Security money you could receive when you retire here.
Source:
70,000 People Lose Their Social Security Benefits Each Year for These Reasons https://t.co/jV4lgI7BVC
— CNET (@CNET) June 13, 2024
