How You Could Lose Your Social Security Benefits

Applying for Social Security benefits isn’t a walk in the park—it can take up to eight months and requires meticulous paperwork. This process is the same whether you’re applying for Social Security, Social Security Disability Insurance (SSDI), or Supplemental Security Income (SSI).

Imagine finally getting your benefits after all that effort, only to have them taken away due to something you did. While not all reasons for losing benefits are negative, knowing what can cause this can save you a lot of trouble. So, let’s cut into the main reasons why you might lose your Social Security benefits.

Earning Too Much Money

This might seem like a good problem to have—after all, it means you’re doing well financially. The goal is to have a job that can provide for your family, right? However, different benefits have varying income thresholds, and it’s crucial to understand these limits.

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SSI (Supplemental Security Income)

For SSI, the income limit is $1,971 per month. If this amount isn’t enough for your family, other resources like SNAP or state assistance programs might help. When you work while receiving SSI, your payment is reduced by $1 for every $2 you earn. In 2024, the maximum monthly amount is $943 for an individual and $1,415 for a couple.

SSDI (Social Security Disability Insurance)

If you’re unsure whether you can work with your disability, the Social Security Administration offers a nine-month trial period where you can receive benefits alongside your income. If you decide to continue working and earn more than $1,550 per month, your benefits will be suspended during a 36-month re-entitlement period. This means if your income falls below $1,550 per month during this period, your benefits can be reinstated without reapplying. After 36 consecutive months of earnings above $1,550, your benefits will end.

Incarceration

Being incarcerated can significantly impact your benefits. If you’re in jail or prison for more than 30 days, your Social Security and SSI benefits can be suspended and won’t be automatically reinstated upon release.

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Social Security/SSDI

For these benefits, they can be reinstated the month after your release. However, any relatives receiving benefits based on your record, such as a spouse or children, will continue to receive them during your incarceration, provided they remain eligible.

SSI

For sentences shorter than 12 months, you can resume receiving benefits immediately after release, with partial payments for the month of release. If your sentence exceeds 12 months, you’ll need to reapply for benefits upon release.

Divorce

Divorce can affect your benefits, especially if they are tied to your spouse. To ensure your benefits continue, you need to meet certain conditions:

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1. Marriage Duration: You must have been married to your ex-spouse for at least 10 years.
2. Remarriage: If you’re remarried, you can’t collect benefits on your former spouse unless your current marriage ends in annulment, divorce, or death.
3. Own Benefits: If you’re entitled to benefits based on your own record and they are higher than those from your ex-spouse, you’ll receive your own benefits instead.

Losing Social Security benefits can be a significant setback, but knowing the rules and regulations can help you avoid these pitfalls. Staying informed and planning accordingly will ensure you continue to receive the support you need.

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