Supplemental Security Income (SSI) is a critical safety-net program for people with limited income and resources. But qualifying for SSI isn’t just about how much you earn each month—it’s also about what you own. For many applicants and recipients, that includes new and sometimes overlooked assets like cryptocurrency.
Digital assets like Bitcoin, Ethereum, and other cryptocurrencies are countable resources under SSI rules, and misunderstanding how they’re treated can accidentally push you over the strict resource limits and cause you to lose benefits.
Understanding the SSI Resource Limit
To qualify for SSI, you must not exceed the program’s countable resource limits:
- $2,000 for an individual
- $3,000 for a couple
Countable resources include cash, bank accounts, investments—and yes, cryptocurrency. Unlike wages or monthly income, these are assets you own outright, and the SSA will count their fair market value.
How SSA Evaluates Cryptocurrency
SSI treats cryptocurrency holdings as a liquid asset similar to a bank balance or stocks:
- Valuation: The SSA will look at the fair market value (FMV) of your crypto on the first of each month.
- Volatility: Because crypto prices can swing wildly, your eligibility could change month to month even without buying or selling.
Example: You own 0.1 Bitcoin. If Bitcoin’s price jumps from $20,000 to $40,000 per coin, your holdings’ value rises from $2,000 to $4,000. Suddenly, you’re over the resource limit.
Risks of Ignoring Crypto in Your SSI Application
Failing to report cryptocurrency holdings can lead to:
- Overpayment demands: SSA can demand repayment for benefits you received while ineligible.
- Benefit suspension or termination: If they determine you exceeded the resource limit.
- Potential fraud penalties: Intentionally hiding assets is considered fraud and can lead to criminal charges.
Tips for Avoiding Ineligibility Due to Crypto Holdings
To maintain your SSI eligibility while holding cryptocurrency:
1. Know Your Monthly Valuation
- Track the FMV of your cryptocurrency on the first day of each month.
- Document screenshots or transaction histories to show SSA if needed.
2. Consider Liquidating Excess Holdings
- If your crypto pushes you over the limit, you may need to sell and spend down assets before the month begins.
- Qualifying expenditures include rent, debt payments, or essential household items.
3. Report Changes Promptly
- Always notify SSA if your assets increase beyond the limit.
- Better to report proactively than face penalties for failing to disclose.
4. Get Financial Guidance
- A benefits planner or attorney can help you manage your resources carefully.
How PLBH Can Help
At PLBH, we understand that modern assets like cryptocurrency can complicate SSI eligibility. Our team can:
- Help you understand how SSA counts crypto and other digital assets.
- Advise you on legally spending down resources to stay within limits.
- Assist in preparing clear documentation for SSA reviews.
- Represent you in appeals if your benefits are threatened.
Protect Your SSI Benefits
Cryptocurrency can be an exciting investment, but it also carries risks if you rely on SSI. Don’t let a spike in digital asset value unintentionally disqualify you. Get proactive, informed help.
If you have questions about managing cryptocurrency or other assets while on SSI, call PLBH at (800) 435-7542 today. We’re here to help you keep the benefits you need without unexpected surprises.