TN 82 (09-24)

SI 00810.035 Unstated Income

CITATIONS:

Social Security Act, as amended, section
1612(a);

A. Definition of unstated income

Unstated income is income not reported or otherwise known to the Social Security Administration (SSA) but determined to exist because an individual’s (or couple’s) living expenses exceed income from known sources. Claimants, recipients, and deemors may be found to receive unstated income.

B. Policy for developing unstated income

REMEMBER: Income is anything received in cash or in kind that can be used to meet an individual’s needs for food or shelter.

1. Amount of unstated income

The amount of unstated income to be charged is the difference between stated (or known) monthly income and monthly living expenses.

2. When to consider unstated income

Develop the existence of unstated income whenever the information in file, including statements of the claimant/recipient, deemor, or third parties, creates questions as to how living expenses are met. Adjudicators are responsible for deciding whether the information in file creates such questions and to what extent unstated income must be explored.

C. Procedure for developing unstated income

1. Unstated income indicators

Failure to disclose income may be due to a lack of understanding of reporting responsibilities and types of income that affect Supplemental Security Income (SSI) eligibility and payment amounts. Misunderstandings may arise when income is received in kind, including in-kind income derived from third-party payments on behalf of the individual. There also may be a reasonable explanation for a discrepancy between income and living expenses, for example:

  • Savings are being used,

  • Work ended recently,

  • Debts have been incurred, and

  • Outstanding bills have not been paid.

a. Situations pointing to unstated income

Common situations pointing to unstated income:

  • Stated income is insufficient to pay costs normally associated with resources owned (gas, maintenance, insurance, and licensing of an automobile);

  • Stated income is insufficient to provide for known living expenses; or

  • No income is alleged and the individual (or couple) does not live in a setting in which food and shelter are provided (such as a public institution or the household of another).

b. No indication of unstated income

If, based on the allegations and other information available at the time of the interview, there is no reason to believe that unstated income exists, no further development or documentation is required. In evaluating the case facts, do not make assumptions that are not supported by those facts.

c. Possible indication of unstated income

If insufficient or conflicting evidence exists, question the individual or deemor about possible unstated income and allow the individual or deemor the opportunity to explain how expenses are met.

REMEMBER: There may be a reasonable explanation for a discrepancy between income and living expenses. Careful interviewing is needed to ascertain if the person is receiving help from a local church, food bank, community service center, or other sources.

If a satisfactory explanation is provided, obtain the explanation on a Form SSA-5002 (Report of Contact or Report of Contact page) or other form (e.g., the “Remarks” section of the SSI application, redetermination form, Modernized Supplemental Security Income Claims System (MSSICS) screens).

If the explanation is inadequate, query the Office of Child Support Enforcement’s National Directory of New Hires (NDNH) database to determine if the individual has earned wages or has received unemployment compensation they did not report. For instructions on using the National Directory of New Hires (NDNH) query, see SI 00810.550. If the query does not show any undisclosed income, obtain the explanation of how expenses are met over the individual’s or deemor’s signature, and determine the amount of unstated income per SI 00810.035C.2. in this section. If fraud is suspected, see GN 04101.000 through GN 04101.010. If the query indicates the individual or deemor may have undisclosed income, see SI 00810.550C.

2. Determining chargeable unstated income

Once unstated income is found to exist, determine the amount by comparing usual monthly living expenses with total monthly income. Be aware of the tendency to overlook expenses, but do not assume expenses that may not exist.

Obtain a signed allegation of usual monthly living expenses for the following items:

  • Rent or mortgage, including property tax;

  • Food;

  • Clothing;

  • Utilities;

  • Miscellaneous household expenses;

  • Insurance;

  • Medical and dental care;

  • Automobile and other transportation expenses;

  • Other expenses (such as newspapers, barber, toilet articles);

  • Installment loans; or

  • Illegal drugs, if the file shows that the individual uses them.

Whenever possible, obtain evidence of alleged expenses, using receipts, payment stubs, canceled checks, or contacts with knowledgeable sources.

Document the file with a Report of Contact showing the comparison of living expenses with income (including any income detected by querying the NDNH). Charge the difference as unstated income. For SSI Consolidated Claims Experience (CCE) cases, use the Other Income (IOTH) page to enter unstated income. For non-MSSICS cases, enter the amount as type “S” income in the UM field of the SSA-1719B (Supplemental Security Income Posteligibility Input) or SSA-450SI (SSI Data Input and Determination). Enter the word “UNSTATED” in the “Claim or ID No.” portion of the field. Suppress the automated notice and prepare a manual notice (see SI 00810.035C.3. in this section).

NOTE: 

Never input unstated income as type “H” income (in-kind support and maintenance).

3. Notices for unstated income

NOTE: If the individual is blind or visually impaired, see instructions at NL 01001.010 for more information on the special blind or visually impaired notice options.

The SSI system is unable to issue an automated notice that explains unstated income. Therefore, the automated notice must be suppressed and a manual notice issued. Sample notice paragraphs for the most common situations involving unstated income are located in NL 00804.175. However, field offices may expand upon the paragraphs to fit the particular circumstances of the case. The paragraphs may be used in an initial award or denial notice, or in any posteligibility notice.

D. Examples of unstated income

1. Satisfactory explanation received — no unstated income charged

Janet Anderson, who lives alone, applies for SSI. Janet alleges monthly rent of $300 and an income of $400 per month plus Supplemental Nutrition Assistance Program (SNAP) benefits. Janet also reports owning a current model car, which is excluded from resources. Janet happens to mention during the interview that Janet's mother pays the lender for all Janet's car payments. Therefore, the claims specialist (CS), finds no reason to believe that unstated income exists. No further development of unstated income is needed, and proof of the mother’s payments on the car is not required to resolve the unstated income issue. Document the file with the explanation.

If, on the other hand, Janet did not mention during the regular interview that their mother paid the lender for Janet's car payments, the CS might wonder how Janet could pay for the car and its expenses along with $300 rent and other living expenses. If the CS determined that unstated income should be explored, the CS would ask Janet to explain how Janet was meeting their expenses. Janet’s satisfactory explanation, coming in response to questions about unstated income, would need to be recorded on a Form SSA-5002 (Report of Contact or Report of Contact page) or other form.

2. Inadequate explanation received — unstated income charged

Today, Cynthia filed for SSI payments after stopping work seven months ago due to a disabling condition. Cynthia reported only receiving a $410 monthly disability check from their former employer. Cynthia lives with their ineligible spouse, who is unemployed, and their three young children, none of whom has any income. The family receives SNAP benefits worth $150 each month.

The couple has no bank accounts and they own their own home. Their monthly mortgage payment is $575.

The CS asks how Cynthia meets their expenses on an income of $410 per month plus SNAP benefits. Cynthia replied, “I pay one bill now and another bill later, but have not been able to keep the mortgage and utilities up-to-date." The CS asks Cynthia for proof of past due bills to substantiate the unpaid bills or that the bills are paid from time to time. However, Cynthia does not provide additional proof of their bills. Finding the explanation unsatisfactory and with no proof of bills, the CS queries the NDNH database. The query uncovered no additional sources of income. Failing to uncover another source of income or support, the CS treats the income or support received as unstated income.

The CS completes an SSA-795 (Statement of Claimant or Other Person) or Person Statement page with Cynthia, containing their explanation of how expenses are met and listing the household's usual monthly expenses, which total $1210. The CS determines that the couple has monthly unstated income of $800 ($1210 expenses minus $410 stated income), making Cynthia non-medically eligible for SSI. After determining, the portion of chargeable unstated income allocated to Cynthia and her spouse each month, which is $400 ($800 divided by two), the CS prepares a Report of Contact comparing expenses with income and explaining the determination of chargeable unstated income.

THE FOLLOWING EXAMPLE IS BASED ON THE 2024 FEDERAL BENEFIT RATE (FBR) DOLLAR AMOUNTS:

SSI FBR with Cynthia's monthly disability check from her employer:

Total monthly disability check from Cynthia's employer = $410. Cynthia's unstated income = $400

1. $810

    -20 (Not counted due to the $20 general exclusion)

   =$790 (Countable income)

2. $943 (SSI Federal Benefit Rate)

    -790 (Countable income)

   =$153 (SSI Federal Benefit)

The CS then inputs the $410 disability check amount Cynthia receives monthly from their former employer on the Sick Pay (Unearned) page. The CS also inputs $400 unstated income on both, Cynthia and the spouse’s IOTH pages in CCE.

For non-SSI Claims System cases, the CS would input this as type “S” income, coding it as “UNSTATED,” suppress the automated notice and issue a manual denial notice.

E. References

  • MS INTRANETSSI 014.003 Income Selection

  • MS INTRANETSSI 014.037 Sick Pay (Unearned) List

  • MS INTRANETSSI 014.038 Sick Pay (Unearned)


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0500810035
SI 00810.035 - Unstated Income - 09/03/2024
Batch run: 09/03/2024
Rev:09/03/2024