Income and Asset Limits for State Disability Assistance (SDA)

The State Disability Assistance Program (SDA) provides cash assistance. You could be eligible if you are an adult with a disability. You may also be eligible if you are 65 or older or if you take care of a person with a disability. To be eligible for SDA you must meet certain requirements. Two important requirements are the income and asset limits.

To learn more about the other requirements, read An Overview of the State Disability Assistance Program (SDA).

The Income Limit

Income is money you and everyone in your household gets, no matter where it is from. It is still income even if you do not pay taxes on it. You have to report all sources and amounts of income to the Michigan Department of Health and Human Services (MDHHS), even though some of it will not be counted. If you think MDHHS is counting your income wrong, you have the right to ask for a hearing. You can use the Do-It-Yourself MDHHS Hearing Request tool to fill out the form you need to ask for a hearing. Make a copy of the form to keep for your records.

Here are some examples of income that is counted:

• Wages

• Self-employment earnings

• Rental income

• Child support

• Social Security

• Veterans benefits

Not all income is counted. Here are some examples of income that is not counted:

• Educational income, such as scholarships, grants, loans, work-study, assistantships, and fellowships

• Income earned by a household member who is under 18, and going to elementary, middle, or high school, or is going to classes to get a GED, and living with someone who provides care and supervision

The Asset Limit

Assets are things you own. Here are some examples of assets that are counted:

• Cash you have on your person and at home

• Money in checking and savings accounts

• Investments

• Retirement plans

• Some trusts

• Real property, such as a house or land

The asset limit for cash, retirement plans, and investments is $15,000. The asset limit for real property is $200,000.

Some assets are not counted, like your car and personal belongings. If you think MDHHS is counting your assets wrong, you can request a hearing. You can use the Do-It-Yourself MDHHS Hearing Request tool to complete your request. Make a copy of the form to keep for your records.

The asset limit only applies to available assets. “Available” means that someone in your household has a right to use, sell, or get rid of the asset. MDHHS will assume any asset is available unless you have proof that it is not. If MDHHS says you have an available asset but you disagree, you can ask for a hearing.

Jointly Owned Assets

Assets owned by more than one person are jointly owned. These assets could be considered “unavailable” and not counted. If you jointly own something, it will not count if:

• You can’t sell or spend your share without the other owner’s consent, and

• The other owner is not part of your household for SDA purposes, and

• The other owner does not agree to let you sell or spend your share of the assets.

If you have questions about being eligible, contact your local MDHHS office. Your local legal services office may also be able to help you. Use the Guide to Legal Help to see if you qualify for a free lawyer from your local legal services office. Even if they are not able to represent you, they could still offer you advice and other help.