Social Security is a federal program that provides financial support to people with disabilities, as well as those who have reached retirement age. The program is divided into two parts: Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).

SSI is a needs-based program that provides monthly payments to individuals who are disabled, blind, or over the age of 65, and who have limited income and resources. In contrast, SSDI is a program that provides benefits to individuals who have paid into the Social Security system through payroll taxes, and who become disabled before reaching retirement age.

Calculating Entitlement to SSI Benefits:

The calculation of SSI benefits is based on the individual's income, resources, and living arrangements. To qualify for SSI benefits, an individual must have limited income and resources. Social Security uses a complex formula to determine the amount of SSI benefits that an individual is entitled to receive, which takes into account the individual's living arrangements and other factors.

The maximum monthly SSI payment for an individual is $914, as of 2023. However, the actual payment amount may be less, depending on the individual's income and resources. Social Security may also reduce the amount of SSI benefits if the individual is receiving other forms of assistance, such as food stamps.

Offsetting Past-Due Benefits for SSDI:

When an individual is approved for SSDI benefits, they may be entitled to past-due benefits that accumulated between the date they became disabled and the date their application was approved. However, Social Security may offset the payment of past-due benefits by any SSI benefits that the individual received during the same period.

This offset is known as the "windfall offset" provision. The windfall offset provision is designed to prevent individuals from receiving both SSI and SSDI benefits for the same period of time, which could result in an overpayment of benefits.

To calculate the offset, Social Security subtracts the amount of SSI benefits that the individual received during the same period from the total amount of past-due SSDI benefits that they are entitled to receive. The individual receives the remaining balance of past-due benefits.

In conclusion, Social Security calculates entitlement to SSI benefits based on an individual's income, resources, and living arrangements, and uses a complex formula to determine the payment amount. Social Security may also offset the payment of past-due SSDI benefits by any SSI benefits that the individual received during the same period, using the windfall offset provision. These calculations and offsets can be complex, and it's important to consult with a qualified Social Security representative if you have questions or concerns about your entitlement to benefits.