will ppp loan affect my ssi benefits

How a loan, such as a Paycheck Protection Program (PPP) loan, affects your Social Security benefits depends on which kind of loan you take and how and when you use it. The Supplemental Security Income

(SSI) is what you need to watch out for because it has strict eligibility criteria concerning the money you get.

Full Answer

Can I get a PPP loan and SSI at the same time?

It is quite possible to enjoy the cash from a PPP loan and SSI benefits at the same time because the rules that apply to loans and Social Security benefits cut across the board.

Are PPP loan recipients eligible to defer Social Security tax?

Originally, the Act stated that Paycheck Protection Program (“PPP”) loan recipients that received forgiveness of a PPP loan were not eligible to defer payment of the employer’s social security tax. However, the IRS just issued guidance regarding the payroll tax deferrals.

Will a loan affect my SSI benefits?

Loan Effects Social Security clearly states that a loan will not affect your SSI (Supplemental Security Income) benefits. You can borrow cash, food, shelter items or any other item that you fully intend to pay for at a later date.

Will a paycheck protection program loan affect my Social Security benefits?

How a loan, such as a Paycheck Protection Program (PPP) loan, affects your Social Security benefits depends on which kind of loan you take and how and when you use it. The Supplemental Security Income (SSI) is what you need to watch out for because it has strict eligibility criteria concerning the money you get.

Will a SBA loan affect my Social Security benefits?

If you have defaulted on an SBA loan and you are a personal guarantor, the SBA, through the Department of Treasury, can garnish your Social Security benefits. The government calls this an "offset". By way of this offset, the federal government can take a portion of your monthly Social Security benefit.

Can Social Security recipients receive PPP loan?

I'm worried that we just aren't going to get the stimulus money. Social Security and Supplemental Security Income recipients without dependent children will receive their economic impact payments automatically without having to file any additional forms, according to the IRS and Social Security Administration.

Is a loan considered income for SSI?

Since inception of the SSI program, proceeds of a loan have not been considered income to the borrower because of the obligation to repay.

Can a person on disability get a PPP loan?

In most cases, yes. Long-term disability benefits and permanent disability insurance count as income for the purpose of qualifying for a loan.

Who is not eligible for a PPP loan?

First Draw PPP Loan If You Have No Employees (If you are using 2020 to calculate payroll costs and have not yet filed a 2020 return, fill it out and compute the value.) If this amount is over $100,000, reduce it to $100,000. If both your net profit and gross income are zero or less, you are not eligible for a PPP loan.

How much money can you make and still get SSI 2021?

about $1,650/monthSocial Security excludes the first $65 in earnings and one-half of all earnings over $65 in a month. The earned income exclusions mean that in 2021 a person can earn about $1,650/month and still qualify for SSI (though the monthly payment is reduced when you have countable income).

How much money can you have in bank on SSI?

$2,000WHAT IS THE RESOURCE LIMIT? The limit for countable resources is $2,000 for an individual and $3,000 for a couple.

What income reduces Social Security benefits?

If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount. If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $19,560.

How does a loan affect SSI?

HOW DOES A LOAN AFFECT MY SSI BENEFIT? If you enter into a valid loan agreement, the value of the cash or item you receive is not income and does not reduce your Supplement al Security Income (SSI) benefit. However, any funds that you borrow which you do not spend in that month will count toward your SSI resource limit of $2,000 for an individual ...

Do you count interest on a loan as income?

If you lend money to someone else, and we count the loan agreement as a resource, then we do not count the interest you receive as income.

Does a loan affect SSI?

A loan does not necessarily need to be limited to money. It can also include food, shelter or items related to shelter. For people who take out a loan, it is imperative to understand how it affects SSI-related benefits. When a valid loan is taken, its value or the item that was received will not be considered income and will not affect SSI. Though, if the person borrows funds and it is not spent in the month it was taken, it will count as part of the $2,000 resource limit for individuals and $3,000 for a couple in the subsequent month.

Can SSI interest be counted as income?

If there is interest on a loan to someone else, then the loan agreement will be viewed as a resource by the Social Security Administration and the interest will not be income. Understanding how loans can be calculated with SSI benefits is just part of the entire process of getting these benefits.

How does a loan affect SSI?

Generally speaking, if there is a loan, the value of what is received will not be perceived as income by the Social Security Administration and will not reduce the SSI. However, if there are funds that the person borrows and does not spend that month, it will be viewed as income and count toward the limits on resources that all SSI recipients are obligated to adhere to: $2,000 for an individual and $3,000 for a couple. An SSI recipient who loans money to another person might have the amount that is owed counted as a resource, which can affect SSI. Receiving interest on a loan is not considered income.

What is a loan on SSI?

A loan is something that the SSI recipient gets from a person or an institution that is to be paid back later. There are no rules for the loan details being in writing or by oral agreement other than that it must be an agreement that can be enforced under the law. A loan can range from cash, food, shelter, or something that is used as part of the shelter, like paying utility bills.

When are PPP loans due?

The CARES Act permits employers to defer the deposit and payment of the employer’s portion of social security taxes that otherwise would be due between March 27, 2020, and Dec. 31, 2020.

When will PPP be deferred?

Half of these deferred payments can be made by the end of 2021, the other half by the end of 2022. Originally, the Act stated that Paycheck Protection Program (“PPP”) loan recipients that received forgiveness of a PPP loan were not eligible to defer payment of the employer’s social security tax.

When will the IRS issue deferred deposits?

The IRS will issue additional information about how employers should reflect deferred deposits and payments after March 27, 2020 for the first quarter of 2020 (i.e. January through March of 2020).

What is the maximum SSI payment for 2021?

The maximum federal SSI payment for an individual in 2021 is $794 a month. Taking into account the various exclusions, the 2021 income caps are $1,673 a month if you receive earnings only from work and $814 a month if your income is from other sources.

How many people will receive Social Security in 2021?

About 7.8 million people were receiving monthly SSI benefits as of July 2021, 2.3 million of them 65 and older.

Is all income countable for SSI?

Not all income, however, is "countable” for SSI purposes. The SSA exempts a share of earnings from employment and some types of government aid. These exclusions now include the $1,200, $600 and $1,400 payments delivered to most Americans as part of the three economic-relief packages Congress approved during the coronavirus pandemic.

What is the number to call for Social Security benefits?

If you have questions about your benefit status or about applying for SSI, call your local Social Security office or the SSA's national help line at 800-772-1213.

Will stimulus checks be counted as income in 2021?

No. The Social Security Administration (SSA) announced in August 2021 that pandemic-related economic impact payments, popularly known as stimulus checks, will no longer be counted as income in determining eligibility or calculating benefit amounts for Supplemental Security Income (SSI).

Can I get SSI if I am above the limit?

The rules encompass both work earnings and money from other sources, such as government benefits or help from family members. If you are above the limit, you cannot get SSI in most cases. If you're below, you may qualify for SSI, but your monthly payment may be reduced by a portion of your income.

Did the SSA review the stimulus checks?

The SSA says it is reviewing records going back to the start of the pandemic to identify SSI beneficiaries whose payments were reduced or terminated because they received stimulus checks. If this is your situation, you should not have to take any action. The agency will notify you by mail when it has restored your benefits or claim status or if it needs information from you to do so.

How long after SSI change can I report?

Report any changes that may affect your SSI as soon as possible and no later than 10 days after the end of the month in which the change occurred.

Can you be underpaid and not receive benefits?

You may be underpaid and not receive the benefits due to you, as quickly as you otherwise could, if you do not report changes on time.