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How much is SSI reduced for every $2 earned after a $65 disregard?

  1. $0

  2. $1

  3. $2

  4. $3

The correct answer is: $1

When it comes to Supplemental Security Income (SSI), the rules regarding earned income dictate that recipients can keep a certain amount of money before their benefits begin to decrease. Specifically, recipients can disregard the first $65 of earned income each month. After this disregard, for every additional $2 earned, SSI benefits are reduced by $1. This means that if an individual earns more than the disregarded amount, their SSI benefits will be cut by half of the earnings that exceed the $65 threshold. For each $2 earned beyond that disregard, the financial impact on SSI is a $1 reduction. This system is designed to encourage individuals to seek employment and increase their earnings while still providing some financial support via SSI benefits.