An AARP article talks about the situation where a parent is on SSI and moves in with their child. Whether you are living with your child, another family member or a friend, if you are receiving housing and not [paying rent to this person, Social Security will reduce your SSI benefit. The reason for the reduction is that if someone else is partially or fully covering these expenses for you, the Social Security Administration may consider that in-kind income — and income to you can reduce the benefits you receive.

Further Social Security can reduce and possibly eliminate the monthly payment based on how much you earn from work or receive in cash or direct support from other sources, such as government programs, relatives or friends. Social Security does not factor all income in calculating this benefit deduction. For example, the first $20 of most income you receive each month from any source is exempt. So is the first $65 of work earnings each month and half of any earnings over $65.

Social Security also caps the amount your SSI payment can be cut if someone provides you with food and shelter, using one of two methods: the one-third reduction provision or the presumed maximum value (PMV) rule. 

For the purposes of this calculation, shelter costs can include:

• Mortgage, including property insurance required by the mortgage holder
• Real property taxes, less any tax rebate or credit
• Rent
• Trash pickup
• Utilities (that is, heating, gas, electricity, water and sewer)

Neither the one-third provision nor the PMV rule applies if the person paying your food and shelter expenses is a spouse you live with. The same goes for a child beneficiary living with one or both parents. In these situations, the spouse’s or parent’s income could affect benefits via the SSA’s “deeming” rules, but living expenses are not a factor.  Further, none of this applies if you are on SSDI rather than SSI.

The AARP article includes illustrations of how these rules work:

Say you are an SSI beneficiary receiving the maximum monthly individual benefit of $841. On April 1, 2022, you move in with your daughter, her spouse and their two children, and you do not pay toward household expenses or bills. The one-third reduction provision applies, and Social Security cuts your benefit by $280.

In May you contribute some money toward food and shelter, but it’s less than your pro rata share — one-fifth of those costs in a five-person household. The SSA again cuts your benefit by $280.

In June you pay no shelter costs but buy all your own food. The one-third provision does not apply, so Social Security uses PMV to figure the benefit reduction. Your SSI benefit will be reduced by $300 ($280 if you have no other income), unless you can show that the value of the shelter you received was less than that.

In July you’re able to pay your full one-fifth share of food and shelter expenses. There is no benefit reduction for in-kind support.

In mid-August you move out of your daughter’s house and get your own place. The one-third provision does not apply because you were not there the entire month. But you are subject to the PMV rule for August’s food and shelter costs. The benefit reduction will be calculated as if you had lived there the whole month.

These are basic examples for illustration; real-world determinations of in-kind support can involve a great many variables about where you live, whom you live with and what they pay for. Contact Social Security to talk with an SSI specialist about how your specific situation may affect your benefit.

If you have filed for benefits or plan to file for benefits, call my office. We can guide you through the system and go to court with you to make sure you get the benefits you deserve. We help people in Louisiana, Texas and Mississippi, from our offices in Shreveport and Baton Rouge. Call us at 225-281-7715 to talk about your claim.