SOCIAL SECURITY ADMINISTRATION (SSA) BENEFITS (MAM)

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Retirement, Survivors benefits, and Disability Insurance (SSDI) benefits paid to or on behalf of individuals by the Social Security Administration (SSA).

A gross SSA benefit is the total monthly amount the individual is entitled to receive.

Certain individuals receiving SSA benefits are entitled to enroll in the Medicare Part B Program. These individuals may elect to have their Part B premium subtracted from their gross monthly SSA benefit. If the individual elects to have Part B subtracted from their gross SSA benefit, then the monthly benefit is considered a net SSA benefit.

The amount actually received, either net or gross, is unearned income.

Treatment: Depends upon the type of medical assistance (MA) received and, if receiving MAGI MA, the tax filing status of the individual:

·     Non-MAGI categories of MA: treat SSA benefits as unearned income.

·    MAGI categories of MA: treat SSA benefits as:

- Unearned Income for tax filers. All SSA income of tax filers is counted in MAGI, even those SSA benefits that are not taxable; and

- Unearned income for tax dependents, only if the tax dependent is required to file taxes. The dependent is required to file taxes if one-half of the SSA income plus all other income of the dependent exceeds $25,000. If a dependent child is not required to file a tax return, the child’s SSA income is not included in the MAGI household’s income.

Exception: For individuals who are claimed as a tax dependent by someone other than a parent or a spouse, regardless of whether he or she is required to file taxes, all of the individual’s income, including all Social Security benefits, counts toward his or her eligibility, regardless of whether he or she meets the tax-filing threshold.

References: 42 CFR 435.603(d)