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What is the Break Even Point (BEP)?

One part of a Benefits Specialists’ job is to help people understand when their benefits might end. Calculating the break-even point is a way to do this for SSI recipients. The BEP may be different for each person because it is based on unearned income. For SSI recipients who have no unearned income, the break-even point is determined by reversing the countable income calculations. Thus, instead of subtracting $20, $65, and dividing wages by two, you would take the Federal Benefit Rate (FBR), multiply it by two, and add the $65 and $20.00 exclusions. For example, in 2004, the FBR is $564.00 for a self-supporting individual.

The break-even point would be $(579.00 * 2) + $65 +$20 or $1243.00.

It is essential to note that the break-even point changes if the person has any unearned income, including deemed income or in-kind support and maintenance. A person would “break-even” at a lower amount in these circumstances.

Example:

Louis receives $200 in Childhood Disability Benefits. He also receives SSI, and lives on his own. To calculate Louis’ BEP, first calculate his benefit not considering his earnings:

To calculate Louis’ BEP, multiply this total by 2, and add $65.00. The $20.00 exclusion was not added because it was used on his unearned income. Thus Louis’ BEP would be $(399 *2) + $65.00, or $863.00.

FAQ Disclaimer: The VCU-BARC FAQ Pages are general information provided as a public service. The contents do not necessarily represent the policy, interpretations or opinion of the Social Security Administration (SSA). The information contained here is intended to inform readers of issues that may affect Social Security and/or other public assistance benefits. Because individual circumstances differ, the reader should not rely on any information here as being specifically applicable to an individual's situation.