How do my SSI benefits get recalculated if I start receiving other income, like CalWORKs, in California?

When you start receiving CalWORKs, your SSI benefit will be reduced because CalWORKs is considered unearned income by the Social Security Administration (SSA). You must report this new income promptly to ensure your benefits are calculated correctly and to avoid an overpayment. Here is how the recalculation process works: Step 1: Report Your New Income Immediately You are legally required to report any change in your income to the SSA. You must do this within 10 days after the end of the month in which you receive your first CalWORKs payment. You can report by calling the SSA at 1-800-772-1213, visiting your local Social Security office, or using your online "My Social Security" account. Step 2: Provide Your CalWORKs Award Letter When you report the change, have your CalWORKs Notice of Action (the official award letter) with you. This document proves the amount of your grant and the date it started. The SSA will need this information to perform the calculation. Step 3: Understand How the SSA Calculates Your "Countable Income" The SSA does not count all of your CalWORKs grant against you. First, they will apply a $20 general income exclusion. For example, if your CalWORKs grant is $600 per month, the SSA will subtract $20, leaving $580. This $580 is what the SSA considers your "countable unearned income." Step 4: Receive Your Adjusted SSI Payment The SSA will subtract your countable income from the maximum federal SSI benefit rate. The result will be your new, lower monthly SSI payment. Your California State Supplementary Payment (SSP) may also be adjusted based on this new income information. Step 5: Review the SSA's Notice of Change After you report your new income, the SSA will mail you an official notice explaining the change to your benefit amount. Review this letter carefully to make sure the CalWORKs amount and the new calculation are correct. If you believe there is an error, you have 60 days to file an appeal. Important details and nuances: Failure to report income changes on time can cause an overpayment. If the SSA overpays you, they will require you to pay it back, often by withholding a portion of your future benefits. Always keep copies of all documents you submit to the SSA and any notices you receive. Warnings and limitations: SSA's income-counting rules are complex, and this is a simplified overview. The portion of the CalWORKs grant considered to be for the SSI recipient can vary depending on the family's situation, which may affect the calculation. This is general information and does not constitute legal advice. For complex situations, or if you receive an overpayment notice, you should consult with a qualified California attorney or a legal aid organization specializing in public benefits.