Eastern Montana Graduate to Work Social Security Resources

$ 0.00
-20.00
$ 0.00

John’s SSI is now $246.50 instead of the $579. ($579.00 – $332.50 = $246.50)

With a PASS
With a PASS, John could use half of his wages from step three to cover expenses needed to pursue his job goal, keep half of those wages for himself and still get his full SSI check. (Follow steps one-three; continue with steps four and five.)

2. Example of a person who uses some of her SSDI to pay for PASS expenses so that she now qualifies for SSI:
(Note: If a person’s 2005 SSDI benefit is $599 or more per month they do not qualify for SSI. However, if they use enough of their SSDI to pay for PASS expenses, they can become eligible for SSI (and Medicaid) during the life of their PASS.) Cindy receives SSDI of 620.00 a month. This is her total income. She said she just starting working with Vocational Rehabilitation (VR) to pursue an occupational goal and they will be helping her obtain an education so she can go to work. They will pay for her tuition, books and fees.

She could use help in purchasing reliable transportation in order to go to school and later to work. VR cannot pay for her to get a car. (Remember: PASS cannot be used to pay for expenses that another third party can pay for.) But VR helps her write a PASS that says she will use $600 per month of her SSDI check to save up for and buy a reliable car. If she did not have a PASS she would not qualify for SSI at all.

Without a Pass

$600.00 exceeds SSI limit of $579.00, so Cindy is not eligible for SSI & Medicaid.

With a PASS
With a PASS, Cindy could set aside the full amount of her countable income (if that’s what she needed) from step three to cover expenses needed to pursue her job goal. (Follow steps one-three, but continue with steps four and five.)

Cindy would have her $620 in SSDI, $379.00 in SSI (and Medicaid), and must use $400 per month to pay for her PASS expenses.

3. Example of someone who receives both SSI and SSDI, then works – which reduces his SSI cash to zero:
Brett begins to earn $495 a month and still receives an SSDI check of $400. His SSI check drops to zero but because he still is medically disabled his Medicaid continues under section 1619b. Brett plans to continue his education so he can get a higher paying job and eventually eliminate his dependency on SSDI and SSI. He is working with Vocational Rehabilitation Services now and they develop a PASS which will need $595 per month to pay for expenses.

Without a PASS

$595.00 exceeds the SSI limit of $579.00, so Brett’s SSI is reduced to zero. As long as he’s otherwise eligible for SSI, his Medicaid will continue until he earns over the state’s Medicaid threshold (this is called section 1619b).

With a PASS
With a PASS, Brett could set aside the full amount of his countable income from step four to cover expenses needed to pursue his job goal. (Follow steps one-four, and then continue with steps five and six.)

4. Example of a child, under age 18, whose parent’s income is too high for him to qualify for SSI (but he will qualify, with a PASS!):
James is 17 and will be starting a vocational school in one year, once he graduates from high school, to pursue an occupational goal. He works with VR and they develop a PASS plan that will require James to save $1200 per month until he’s age 18 to use for vocational school costs.

Without a PASS

$ 1,200.00 exceeds the SSI limit of $579.00, so James is not eligible for SSI as long as he’s under age 18. Once he’s 18, only his own income and assets count.

With a PASS
With a PASS, James could set aside the full amount of his parent’s countable income from step four to cover expenses needed to pursue his occupational goal. He could save the funds until he begins school and needs money. (Follow steps one-four and continue with steps five and six). He also gets Medicaid during the life of the PASS. Once James is 18, only his own income/assets count.

5. Example of a student using the “Student Earned Income Exclusion” and the PASS:
A non-married (nor head-of-household) student under age 22 who is regularly attending school is allowed to earn some wages that will not count against her SSI. This is called the Student Earned Income Exclusion. We will not count up to $1,410 per month – with a limit on the year of $5670. They also get the regular $65 per month in exclusions from earned income.

Using the PASS when the Student Exclusion runs out and to save for college or another large purchase…
Joe, age16, is a high school student who wants to go to college. He needs to save money. In January, he gets a job delivering pizza and earns $1000 gross per month. Under the Student Earned Income Exclusion, we will not count his wages for January through June and some of July. Starting with July his SSI would have been reduced because the yearly limit ($5670.00) for the exclusion would have been used.

However, he has a PASS that details that he is going to save $457.50 per month for future college needs. If he had not had the PASS his SSI would have been lowered by $457.50. He also would have become ineligible for SSI and Medicaid once he had saved over $2000 in resources.

Without Student Earned Income Exclusion or PASS

With Student Earned Income Exclusion and PASS
January through June:

Also, Joe can save over $2000 and still be eligible for cash and Medicaid!

With Student Earned Income Exclusion but with no PASS
The Student Exclusion was exhausted in July. Here’s the payment from August forward:

SSI lowers by $457.50 starting with August.

6. Example of a PASS when someone receives assets such as an inheritance or settlement:
Charlotte is on SSI and received a $6000 insurance settlement which caused her SSI to be suspended due to excess resources. (For SSI, your resources cannot be over $2,000 for an individual or $3,000 for a couple.) She wants to use the money to return to school so she can pursue an occupational goal. She works with a rehabilitation professional and they develop a PASS to achieve this goal. Her PASS requires that she save everything over $2000 to use in her PASS. Her only income is SSI.

Without a PASS

With a PASS
Charlotte could set aside the amount of her assets that are over $2000 into a PASS to be used to pay expenses needed to pursue her occupational goal. (Follow the steps above but continue with step five.)