How do I report rental income from a California property to avoid jeopardizing my SSI eligibility?

To report rental income and protect your SSI, you must calculate your net rental income after expenses and report that figure to the Social Security Administration (SSA) every month. Here is how to do this correctly: Step 1: Calculate Your Net Rental Income Each month, subtract your business expenses from the total rent you received. Allowable expenses include property taxes, insurance, interest on a mortgage, utilities you pay for the tenant, and costs for repairs and upkeep. For example, if you receive $1,000 in rent but paid $400 in property taxes and repairs, your net rental income is $600. Step 2: Report Your Net Income to the SSA You must report your net rental income to the SSA by the 10th day of the month after you receive it. For example, report May's income by June 10th. You can report by calling the SSA at 1-800-772-1213, by visiting your local Social Security office, or by using the "my Social Security" online portal. Clearly state that you are reporting net rental income. Step 3: Keep Detailed Records Maintain a clear ledger of all rental income received and all expenses paid. Keep every receipt for repairs, property taxes, insurance bills, and any other costs. These documents are your proof if the SSA ever questions your calculations. Step 4: Understand the SSI Calculation The SSA will count your net rental income as "unearned income." They disregard the first $20 of most unearned income per month. Every dollar of countable income above that $20 will reduce your SSI payment by one dollar. Important Details and Nuances: The property you are renting out may be counted as a resource. If the value of the property, combined with your other countable resources, exceeds the SSI resource limit ($2,000 for an individual or $3,000 for a couple), you could become ineligible for SSI. There are complex exceptions, such as for property essential to self-support, that may apply. Warnings and Limitations: Failure to report income is a serious violation that can lead to benefit termination, penalties, and a requirement to repay past benefits. Reporting your gross rent instead of your net income will cause a much larger, and incorrect, reduction in your SSI payment. This is general information and does not constitute legal advice. For complex situations, especially concerning whether the property itself is a countable resource, consult with a qualified California attorney specializing in public benefits.