How to Keep Disability Benefits Safe During the Season of Giving

December 10, 2025
Jennie Dopp
Benefits

The holidays are all about connection and generosity. But when someone receives SSI, certain gifts can accidentally affect their benefits. The most confusing part for families is usually gift cards, cash, and anything that meets food or shelter needs.

First, a quick note about SSDI vs SSI

Holiday gifts do not affect SSDI (also called DIB or Social Security Disability Insurance). SSDI is based on your work history. Gifts, gift cards, and cash do not reduce SSDI checks.

SSI works differently. SSI is a needs based program, and some gifts can affect eligibility or reduce payments. This post focuses on SSI.

How SSI sees gifts

A gift can affect SSI in two ways.

1. Income in the month it is received
2. A resource if it is still around the next month

SSI has a two thousand dollar resource limit for individuals and a three thousand dollar limit for couples. If someone goes over the limit, they lose their SSI for that month until resources drop below the threshold again.

Gift cards and why they can be counted

They are treated as income if they
• can be used to buy food or shelter
• can be converted to cash
• can be resold

SSA claims reps are instructed to assume a gift card can be resold unless there is clear evidence that resale is prohibited.

So most major retailer cards are considered countable income.

Examples of gift cards that usually count against SSI
• Visa or Mastercard gift cards
• Target, Walmart, or grocery store cards
• Amazon or big box store cards
• Any card that can be sold or used for food or shelter

Examples that are generally safer
• Clothing stores
• Entertainment and activity venues
• Stores that do not sell groceries or basic household items
• Membership-based or single-use passes
• Cards clearly marked as non-transferable or non-resellable

Even safe gift cards should be used, not saved long-term, to avoid resource limit issues.

Cash gifts and digital payments

Cash, checks, Venmo, CashApp, or bank transfers are all treated as income during the month received. If saved past the first of the next month, they count as a resource.

In kind support and maintenance (ISM)

ISM is another area where families may be surprised.

SSI counts help with food or shelter as income, even if the person never receives money directly.

ISM includes
• paying rent
• covering utilities
• buying groceries
• paying for hotel stays
• paying for household bills

Because SSI is designed to cover food and shelter, the program reduces benefits when someone else provides those needs.

How gifts can create resource problems

If someone already has savings close to the resource limit, a holiday gift can accidentally push them over the two-thousand-dollar limit.

Example
Someone has 1,600 dollars saved.
They receive a 500 dollar gift and save it.
On the first of the next month, they have 2,100 dollars.
This is over the resource limit, so they become ineligible for SSI for that month.

Using or spending the gift appropriately within the month can prevent this.

Safer ways for family to give

Families can still give meaningful, practical gifts that do not affect benefits.

Item based gifts
Clothes, sensory tools, electronics, toys, books, art supplies, weighted blankets.

Experiences
Movie tickets, museum passes, classes, local activity passes.

ABLE account contributions
Gifts into an ABLE account do not count as income and do not count toward the resource limit. This is one of the safest ways to give money.

Special needs trust contributions
Family can gift to the trust. The trustee can then purchase items in a way that protects SSI.

Simple scripts for relatives

• “To keep benefits safe, we’re doing item-based gifts instead of cash this year.”
• “If you want to give money, the ABLE account is the safest option. I can send the link.”
• “Gift cards work only if they cannot be used for food or shelter. Clothing and entertainment cards are recommended.”

A Quick Checklist Before Giving a Gift

• Does this gift meet a food or shelter need
• Is it cash or something that acts like cash
• Would an ABLE contribution be simpler
• If there’s a trust, should the trustee make the purchase
• Will this reduce the person’s SSI next month

Holiday giving should feel joyful, not stressful. Families just need a little clarity around how SSI treats gift cards, cash, and in kind support. With a bit of planning, you can protect SSI and still enjoy the generosity and connection that make this season special.

Resources / Reference List

SI 00830.520 Gifts — Social Security’s rules for gifts to SSI recipients. SSA – POMS: SI 00830.520 – Gifts – 06/01/2009
SI 00830.521 Gifts of Travel Tickets — Treatment of gifted domestic or non-domestic travel tickets. SSA – POMS: SI 00830.521 – Gifts of Travel Tickets – 09/16/2024

Disclaimer

This post is for general informational purposes only. It is not legal advice and should not be used as a substitute for professional guidance. Families should speak with a qualified attorney or benefits specialist about their specific situation.