Q: My moms selling her house and iam getting a portion. Would this be considered earned income and do I have to report ssi
I live with my mom we will be selling our house. I will get a portion of the money Do I need to report this to ssi and will this be considered earned income?
A: Yes, the income you receive from the sale of your mom's house is considered to be unearned income and it must be reported to Social Security. Since SSI is a needs-based program, the more countable income you have the less your SSI check will be and when it is over the allowable limit, you cannot receive SSI benefits. The limit for countable resources is $2,000 for an individual and $3,000 for a couple. If the value of your countable resources is over the allowable limit at the beginning of the month, you cannot receive SSI for that month. You could take the portion of the money you will be receiving and immediately purchase an item that Social Security does not count as a resource, such as a home you live in or one vehicle you use for transportation. See https://www.ssa.gov/ssi/text-resources-ussi.htm.
Other options are for you to set up a Achieving a Better Life Experience Act (ABLE) savings account if you meet the qualifications, or to set up an irrevocable Special Needs Trust. You may want to consult with a disability lawyer before taking action on any of these options. If you do any of these options, make sure to have documentation to report to Social Security.
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