Why Was My SSI Payment Reduced This Month?

If your Supplemental Security Income (SSI) payment was reduced this month, it is likely due to changes in your income, living situation, or financial resources. The Social Security Administration (SSA) regularly reviews recipient eligibility and adjusts payments accordingly. Even small financial or household changes can impact the amount you receive.

Understanding why your SSI benefits were reduced can help you determine if the adjustment was correct or if you need to take action. Consulting with a South Carolina Social Security Disability lawyers can help you further understand your rights and the benefits you are entitled to. 

Common Reasons for a Reduced SSI Payment

Several factors can cause the SSA to lower your SSI payment. The most common include changes in income, living arrangements, or financial assistance from others.

1. Increased Income

SSI is a needs-based program, meaning your monthly benefit depends on your financial situation. If your income increases, your payment may decrease. Income includes:

• Earnings from work: If you started a job, received a raise, or worked more hours, SSA may adjust your payment.
• Other benefits: If you receive Social Security Disability Insurance (SSDI), veterans’ benefits, or workers’ compensation, your SSI payment may be reduced.
• Financial help from family or friends: If someone provides money for food, rent, or other living expenses, SSA may count this as income.

Many SSI recipients do not realize that even a small increase in earnings can impact their benefits. If your SSI payment changed unexpectedly, Pilzer Klein can review your case and determine whether the adjustment was correct.

2. Changes in Living Arrangements

Where and with whom you live affects your SSI eligibility. If SSA determines that your living expenses have decreased, they may reduce your payment. This includes:

• Moving in with someone who provides financial support: If a friend or family member pays part of your rent or bills, SSA may reduce your benefits.
• Living rent-free:  If you no longer pay rent or utilities, SSA may consider this support as unearned income, leading to a lower SSI payment.
• Hospitalization or institutionalization: If you stay in a hospital, nursing home, or other facility where Medicaid pays for your care, SSA may lower or suspend your payment.

If your payment was reduced due to a change in your living situation, our attorneys at Pilzer Klein can assess whether SSA’s determination was correct and help you take the necessary steps to restore your full benefits.

3. Changes in Financial Resources

SSI recipients must keep their countable resources under $2,000 for individuals or $3,000 for couples. If SSA determines that your assets exceed these limits, your payment may be reduced or stopped. Countable resources include:

• Bank account balances
• Stocks, bonds, or other investments
• Property other than your primary home
• Vehicles (except one primary vehicle)

If you received an inheritance, settlement, or other financial windfall, SSA might adjust your benefits. However, not all resources should count against you. If you believe SSA incorrectly calculated your assets, we can help you challenge their determination.

4. Government Benefits or Other Assistance

If you receive state assistance, housing subsidies, or food assistance, SSA may adjust your payment. Some forms of government aid, such as Supplemental Nutrition Assistance Program (SNAP) benefits, do not count against your SSI, but others may affect your eligibility.

5. Overpayments From SSA

If SSA overpaid you in a previous month, they may reduce your current payment to recover the excess funds. Overpayments can happen if SSA miscalculated your income, resources, or living situation. If you receive a Notice of Overpayment, you may be able to appeal or request a payment plan.

6. Cost-of-Living Adjustments (COLA) and State Supplements

While annual COLA increases typically raise Social Security benefits, some state-administered SSI supplements fluctuate based on budget changes. If your state provides additional SSI payments, reductions in state funding could lower your total benefit amount.

What to Do if Your SSI Payment Was Reduced

If your SSI payment is lower than expected, you should first review your Notice of Change from SSA. This letter explains why your payment was adjusted. If you did not receive a notice or believe the reduction was incorrect, follow these steps:

1. Check your SSA account: Log in to your Social Security account to view your payment details and any recent updates.
2. Review your financial records: Ensure SSA has the correct information about your income, living situation, and resources.
3. Contact SSA: Call SSA at 1-800-772-1213 or visit your local office to ask about the payment change.
4. Request an appeal: If you believe the reduction was made in error, you have 60 days to appeal SSA’s decision.

Many individuals struggle with the appeals process, which requires specific documentation and strict deadlines. Our team provides legal representation for those disputing SSI payment reductions, ensuring their appeals are handled correctly.

Can You Prevent Future Reductions?

While some reductions are unavoidable, you can take steps to prevent unexpected decreases in your SSI payment:

• Report changes promptly: Notify SSA as soon as your income, living situation, or resources change to avoid overpayments or incorrect reductions.
• Keep financial records updated: Regularly check your SSI payment statements and ensure SSA has accurate information.
• Understand income exclusions: Some earnings and benefits do not count toward SSI eligibility. For example, SSA excludes the first $20 of unearned income and the first $65 of earned income each month.

When to Get Legal Help

If your SSI payment was reduced and you do not understand why—or if SSA made an incorrect adjustment—you may need legal assistance. An attorney can help:

• Determine whether SSA made a mistake in reducing your benefits
• File an appeal if your payment was reduced unfairly
• Advise you on strategies to maintain your eligibility

Our team has extensive experience handling SSI-related cases. If your benefits were cut unfairly, contact Pilzer Klein to discuss your case and explore your legal options. We are committed to helping you receive the benefits you deserve.