Social Security benefits are crucial for many Americans, offering vital income for retirees, people with disabilities, and survivors. But there are situations where your Social Security payments might be reduced, delayed, or even stopped.
As we enter 2024, it’s important to be aware of the risks that could affect your Social Security payments.
This article looks at three main scenarios that could cause you to lose your Social Security check in 2024 and provides helpful tips to avoid these issues.
1. Earning Too Much Income While on Disability
How Income Limits Affect SSDI Recipients
Social Security Disability Insurance (SSDI) helps people who can’t work because of a disability. But if you start making too much money, you might lose your SSDI benefits.
For 2024, the Social Security Administration (SSA) says you can earn up to $1,470 a month if you’re not blind, or up to $2,460 a month if you are blind, without losing your SSDI benefits. If you earn more than these amounts, the SSA might decide you’re not disabled anymore and stop your benefits.
The Trial Work Period
SSDI recipients have a Trial Work Period (TWP) that allows them to test working while keeping their benefits. This period gives you nine months within a 60-month span to earn more than the SGA limit without losing your benefits.
After the TWP ends, earning above the SGA limit might lead to losing your SSDI benefits.
Managing Your Earnings
To keep your SSDI benefits, stay below the SGA limit or carefully track your earnings during the TWP.
It’s a good idea to talk to a financial advisor or benefits counselor who can help you understand these rules and make the most of your income while keeping your benefits.
2. Failing to Report Changes in Life Circumstances
If you get Supplemental Security Income (SSI), you need to let the Social Security Administration (SSA) know about any changes in your life that might affect your benefits. SSI helps people who are elderly, blind, or disabled with little income or resources.
Here’s what you must report:
- Income Changes: If you earn more money or get extra money from other sources, you must inform the SSA. This could lower your SSI benefits or even make you ineligible.
- Living Situation: If you move, your household changes, or if you start living with someone who helps you financially, you need to report this.
- Marital Status: If you get married, divorced, or if your spouse passes away, it can affect your benefits, so let the SSA know right away.
- Resources: If you receive new resources like an inheritance, win money, or buy significant assets, you must report it. If your resources go over the allowed limit, it might affect your SSI eligibility.
What Happens If You Don’t Report
Not reporting these changes can lead to getting too much money in benefits, which you will have to pay back. In some cases, it might even lead to losing your benefits. To avoid problems, always report changes to the SSA as soon as they happen.
3. Being Incarcerated
Incarceration affects Social Security benefits, including both SSDI (Social Security Disability Insurance) and SSI (Supplemental Security Income). The Social Security Administration (SSA) will suspend benefits if you are in jail, prison, or a similar place for more than 30 consecutive days due to a criminal conviction.
SSDI Benefits and Incarceration
If you are receiving SSDI benefits and get incarcerated, your benefits will be put on hold after 30 days. If you stay in prison for more than 12 months, your SSDI benefits will be terminated, and you will need to reapply for them once you are released.
SSI Benefits and Incarceration
SSI benefits are also suspended after 30 days in incarceration. Unlike SSDI, SSI benefits are not automatically terminated after 12 months. Instead, they will stay suspended while you are in prison but can be reinstated when you are released and meet the eligibility requirements.
Reinstating Benefits After Release
After you are released, you can have your benefits reinstated by showing proof of your release and other necessary documents to the SSA. It is important to inform the SSA as soon as you are released to avoid delays in getting your benefits back.
Summary of Scenarios Leading to Loss of Social Security Benefits
| Scenario | Impact on Benefits | How to Avoid Loss of Benefits |
|---|---|---|
| Earning Too Much Income While on SSDI | SSDI benefits may be terminated if earnings exceed the SGA limit after TWP. | Monitor earnings and consult with a financial advisor. |
| Failing to Report Life Changes | SSI benefits may be reduced, suspended, or terminated due to unreported life changes. | Report any changes in income, living situation, or marital status. |
| Incarceration | Social Security benefits are suspended after 30 days of incarceration. | Notify the SSA of your release to reinstate benefits. |
Conclusion
Understanding the risks that could cause you to lose your Social Security check in 2024 is important for keeping your finances secure. Issues like how much income you have while on disability, reporting any life changes, or the impact of incarceration can affect your benefits.
To protect your benefits, it’s a good idea to get advice from a financial expert or benefits counselor if you face any situations that might threaten your Social Security payments.
What if I earn too much on SSDI?
Earnings above the SSA limit may stop SSDI benefits. Track your income and consult a financial advisor.
What changes must I report for SSI?
Report changes in income, living situation, marital status, and resources to avoid benefit issues.
How does incarceration affect benefits?
SSDI and SSI benefits are suspended after 30 days in jail. SSDI may terminate after 12 months, while SSI is suspended but not terminated.
What to do after release from prison?
Inform the SSA and provide proof of release to reinstate your benefits.