Does moving to another state affect SSD or SSI benefits?
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Does moving to another state affect SSD or SSI benefits?

On Behalf of | Jun 24, 2021 | Social Security Disability (SSD)

Indiana and Kentucky residents who receive Social Security Disability benefits sometimes wonder if moving to another state could affect the amount of their monthly payments. This is not something that should be worried about because both Social Security retirement and disability benefits are based on the recipient’s lifetime earnings and not where they live. However, moving to a different state could affect benefits paid by the Social Security Administration’s Supplemental Security Income program.

SSI benefits

These benefits are paid to help disabled, blind and elderly people with low incomes and limited financial resources make ends meet. The maximum amount paid by the federal government to SSI benefit recipients changes each year and has been set at $794 for individuals and $1,191 for couples in 2021. This figure will not change if recipients move to a different part of the country, but most states increase this figure. In states where the cost of living is high, the amount states add to SSI benefits can be hundreds of dollars each month.

State SSI restrictions

Some states also place restrictions on who can receive additional SSI benefits. These restrictions range from not providing additional funds to all SSI benefit recipients to only paying extra benefits to the residents of nursing homes or residential care facilities. In 35 states, local officials and not the SSA administer the SSI program. Recipients who move to one of these states will have to submit new applications to receive the additional benefits. Taxation is another issue to consider. While the amount of SSD benefits paid by the federal government is not affected by an interstate move, the amount of money recipients can actually use could be reduced if they move to one of the 13 states that tax Social Security benefits.

Help with SSD and SSI questions

If you are thinking about moving to another state and wish to apply for SSD or SSI benefits or are already receiving benefits, an attorney with experience in this area could explain the way the programs work and how your move could affect the amount you receive each month. An attorney could also assist you with your claim and advocate on your behalf if it is denied.