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Recommendation: Paying for your own Food or Rent may be Advantageous

You have indicated that you do not live independently and your SSI check is (or would be) reduced because you receive in-kind support from others.

If any of these things are incorrect, go back to the input screen and correct your answers by clicking on an answer and changing it to the correct value.

Because you are (or would like to become) an SSI recipient who does not live alone, SSA determines whether you receive in-kind support from the people you live with. You reported that you do, and in your situation the one-third reduction rule applies to your SSI benefit. The assumption under this rule is that you do not pay for your share of your food or rent costs, and therefore your SSI benefit is reduced by one-third.

This topic contains two separate recommendations as alternatives to the one-third rule. The first involves paying for a portion of your food or rent, and the second involves paying for all of your food and rent. Both recommendations include the possibility of increasing your monthly SSI benefit amount.

Paying for a portion of your food or rent

If you contributed your share of either your food or rent, you could become subject to a different SSI reduction rule called Presumed Maximum Value (PMV). Under this rule, SSA counts up to one-third of the Federal Benefit Rate (FBR) plus $20 as unearned income, and your SSI benefit is reduced accordingly. However, if you can show that the actual value of the food or shelter you receive from others is less due to your contribution, the PMV amount can be lowered. You will need to contact your SSA Claims Representative and discuss your exact situation to agree upon the actual amount of the PMV reduction.

Being subject to the PMV rule rather than the one-third rule may be advantageous for several reasons. You could receive a higher SSI benefit than under the one-third rule. Additionally, your actual SSI benefit amount could be increased up to the full amount of the PMV reduction, if you use that money to pursue an approved occupational goal through a Plan for Achieving Self-Support (PASS).

WorkWORLD can help you understand what the effect on your benefits would be under the PMV rule. You can begin to do this by following this procedure:

"WHAT-IF?" STEPS

1.           Create a New Situation by clicking the New Situation icon on the Toolbar or choosing Situation, New from the Main Menu.

2.           If you have only entered one situation, the new situation will be based on it. Otherwise, choose the column containing this recommendation as the column on which to base the new situation. (The new column will contain the same answers as the chosen column until you make changes.)

3.           Go to the top of the new column. Enter a situation label such as "Use PMV Rule".

4.           Under In-Kind Support in the Personal & Household Information section, change your answer to No for the "1/3rd Reduction Rule: Is this In-Kind Support considered Full, that is, is it figured using the 1/3rd Reduction Rule?" question.

5.           Then, in the "PMV Rule: How much In-Kind Support are you considered by SSA to receive? (Default is the Presumed Maximum Value or PMV.)" question that follows, accept the default amount unless you think you would actually be receiving less than the default after your contribution. Use the estimate button to indicate this amount is your best guess, unless you have a firm agreement with your SSA Claims Representative.

6.           Finally, review the numeric and graph outputs for changes to your net income and benefits, and the text outputs for additional recommendations specific to your actual situation.

Paying for all of your food or rent

If you pay for all of your food and rent, you will receive the full SSI benefit amount with no in-kind support reduction. This may or may not be advantageous, depending on your costs for these items and other benefits you may receive.

WorkWORLD can help you understand what the effect on your benefits would be with no in-kind support. You can begin to do this by following this procedure:

"WHAT-IF?" STEPS

1.           Create a New Situation by clicking the New Situation icon on the Toolbar or choosing Situation, New from the Main Menu.

2.           If you have only entered one situation, the new situation will be based on it. Otherwise, choose the column containing this recommendation as the column on which to base the new situation. (The new column will contain the same answers as the chosen column until you make changes.)

3.           Go to the top of the new column. Enter a situation label such as "No In-Kind Support".

4.           Under In-Kind Support in the Personal & Household Information section, change your answer to No for the "In-Kind Support: Is your SSI check reduced because of In-Kind Support from others in your household?" question.

5.           Finally, review the numeric and graph outputs for changes to your net income and benefits, and the text outputs for additional recommendations specific to your actual situation.

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