TN 43 (02-98)

SI 00835.340 Computation of In-Kind Support and Maintenance from Within a Household

A. Introduction

The purpose of this in-kind support and maintenance (ISM) computation is to determine the actual value (AV) of food and/or shelter that other household members provide to an individual when the value of the one-third reduction (VTR) does not apply. There are two computations for ISM from within a household: individual only and eligible couple.

B. Procedure — inside ISM development

1. When development is required

After the living arrangement (LA) basis has been determined, develop inside ISM valued under the presumed maximum value (PMV) rule whenever the individual is:

  • the householder and lives with someone other than a spouse, child (as defined in SI 00501.010.) or someone whose income may be deemed to him or her, and the other household members contribute to household operating expenses;

  • separately consuming or purchasing food;

  • earmarking his or her share of food or shelter; or

  • a child living with a parent and another (non-parental) adult.

Inside ISM may also have to be developed if the individual lives with children who have income. See SI 00835.340B.2.

2. When development is not required

a. Individual lives only with children (or a spouse and children)

If the individual lives only with children (as defined in SI 00501.010) or with a spouse and children, assume that there is no ISM received from within the household unless:

  • the children have income (e.g., title II); and

  • the household is not a public assistance household
    (SI 00835.130); and

  • there is either an indicator of unstated income (SI 00810.035) or in the claims representative's judgment there is a probability of inside ISM.

b. Individual Lives in a Public Assistance Household

If an individual lives in a public assistance household, assume that there is no ISM received from within the household.

Development of inside ISM is not required when the only members of a household who do not receive public income maintenance payments are children subject to an Aid to Families With Dependent Children (AFDC) or Temporary Assistance for Needy Families (TANF) payment cap.

A payment cap exists when an AFDC or TANF grant will not be increased when a new child is born in the assistance household. Presume that each household member pays his/her pro rata share of the household operating expenses. Use the same presumption in a household receiving Bureau of Indian Affairs General Assistance (BIAGA) if you become aware that a payment cap has been applied.

See SI 00830.400 (AFDC), SI 00830.403 (TANF) and SI 00830.800 (BIAGA).

EXAMPLE: The only member of a household who does not receive public assistance is a 3-month-old child who was born after her mother became eligible for TANF. The State where they reside does not pay additional TANF benefits to a child born after TANF eligibility begins. Although technically this is not a public assistance household, presume that sharing exists. It is not necessary to develop for inside ISM.

(See SI 00835.350 if a public assistance household receives ISM from outside the household or SI 00835.400 if the individual receives ISM benefiting one person from someone outside the household.)

c. Claimant alleges a loan of ISM — loan amount unspecified

If, on an initial SSI application or a request for reinstatement, the claimant alleges a loan of food and/or shelter from one or more household members, but the amount of the loan is undetermined, it is not necessary to develop inside ISM at the initial application or request for reinstatement. Apply the developmental tolerance in SI 00835.482E, when applicable.

d. Alien lives with sponsor/sponsor’s spouse

When an alien subject to sponsor-to-alien deeming lives in the sponsor’s household, the alien cannot receive inside ISM. See SI 01320.150.

3. Who is a household member

Consistent with the definition of “household” in SI 00835.020, household members do not include persons who live under the same roof but who are not members of the individual's economic unit.

To be a household member a person must reside in the household as of the first moment of the month unless temporarily absent. An individual may have joint ownership or rental liability with a household member who is not a claimant or recipient. For purposes of computation of ISM from within a household, treat this other member (except someone whose income is deemable to the individual) the same as any other household member.

4. Cash income from household members

When the individual is the householder (SI 00835.020), consider cash income from the contributions of others in the household. If the sum of contributions from all household members (including the individual) is greater than household operating expenses and the household is not a public assistance household, the individual may be receiving cash income. See SI 00835.450 for the computation of cash income (“S” income) to that individual.

5. Multiple sources of ISM

If an individual receives ISM subject to the PMV from both within and outside the household, the sum of the AV's of ISM from within, ISM from outside a household (SI 00835.350), and ISM benefiting only one person (SI 00835.400) is subject to the PMV.

C. Procedure — computation of inside ISM

Follow the procedure below to compute inside ISM.

1. Convert household expenses

Convert household operating expenses, if applicable, in accordance with SI 00835.470 before computing inside ISM.

If an individual consumes all meals outside the household or purchases food separately, use only shelter expenses instead of total household operating expenses (SI 00835.020) when computing inside ISM.

If the individual's LA basis is earmarked sharing, use total household operating expenses (food and shelter) to compute ISM from within the household (SI 00835.170).

Assume all other members of the household share in the food unless information is obtained which contradicts this. If another member of the household does not share in the food and the individual does, then determine separate pro rata shares for food and shelter and add them together to determine the individual's pro rata share.

2. Determine contributions

Determine contributions following the instructions in SI 00835.480. For instructions on contributions by an eligible child with an ineligible parent(s), eligible individual with an ineligible spouse, and an eligible individual with an essential person, see SI 00835.210.

After determining the individuals' contributions, use the computation in SI 00835.340C.3. to compute the value of ISM from within the household.

3. Compute ISM - individual only

Enter Total Household Operating Expenses
      

Divide by Number of Household Members
÷       

Individual's Pro Rata Share
=       

Deduct Individual's Contribution
-      

Actual Value
=       

 

Compare the AV to the PMV for an individual. The lesser amount is “H” income if the inside ISM is the only ISM received. Note that there is no $5 tolerance applicable to ISM subject to the PMV rule; even if the AV is less than $5, such ISM is chargeable.

4. Compute ISM - eligible couple

a. Standard computation

Enter Total Household Operating Expenses
      

Divide by Number of Household Members
÷       

Pro Rata Share of Each Member of Couple
      

Multiplied by 2
x    2   

Combined Pro Rata Shares of Couple
=       

Deduct Couple's Combined Contribution
-       

Actual Value
=       

 

Compare the AV to the PMV for a couple. The lesser amount is “H” income to the couple if no other ISM is received. Note that there is no $5 tolerance applicable to ISM subject to the PMV rule; even if the AV is less than $5, such ISM is chargeable.

b. One member of the couple separately consumes or separately purchases food

For purposes of computing the AV of food and shelter received by the couple when one member either separately consumes or separately purchases food, use the following procedure.

  • Determine the couple's combined pro rata shares for shelter.

  • Determine the pro rata share of food for the member who takes meals in the household; exclude the other member of the couple from household composition when computing this pro rata share of the food.

  • Add the couple's combined pro rata shares for shelter to the pro rata share of food consumed by the member who takes meals in the household.

  • Deduct the couple's combined contribution to the household expenses. The difference is the AV of food and shelter received by the couple from within the household.

  • Add the result to the AV of any other ISM received by the couple and compare to the PMV for a couple.

NOTE: The VTR cannot apply to the couple when separate purchase exists. See SI 00835.150.

EXAMPLE: One Member of Eligible Couple Separately Purchases Food

Mr. and Mrs. Binder, an eligible couple, live with their son and his family in a house the son owns. There are five household members. Mr. Binder has a special diet and buys all his own food. The FO finds that Mr. Binder is separately purchasing his food, and therefore the VTR cannot apply to the couple. Mr. and Mrs. Binder have income of $325 a month from which they give their son a general contribution of $175 a month.

The household operating expenses for the son's house are $960, consisting of $360 for food and $600 for shelter. When Mr. Binder elects to rebut the PMV, the FO determines the AV of ISM received by the couple.

The FO computes the pro rata share of shelter:

 

Household Operating Expenses for Shelter$600
Divided by 5 Household Members÷ 5
Pro Rata Share of Shelter$120
 × 2
Combined Pro Rata Share of Couple$240
Next, the FO computes Mrs. Binder's pro rata share of food: 
Household Expense for Food$360
Divided by 4 Household Members (exclude Mr. Binder)÷ 4
 $ 90
Finally, the FO computes the AV of food and shelter received by the couple: 
Pro Rata Share of Food$ 90
Combined Pro Rata Share of Shelter+240
Total$ 330
Less Contribution- 175
AV$ 155

 

Compare the AV to the PMV for an eligible couple and charge the lesser as income to the couple.

D. Procedure — inside ISM documentation

1. When documentation is required

Document the issue of inside ISM valued under the PMV rule when development is required by SI 00835.340B.1.

2. Obtaining an SSA-8006-F4

Document the individual's allegation regarding the receipt of inside ISM on the SSA-8006-F4 taken either alone or in conjunction with an application or redetermination form.

EXCEPTION: If the individual is the householder and the others in the household contribute nothing, the claimant's allegation on the SSA-8000-BK or SSA-8203-BK is sufficient documentation to show no ISM exists from within the household.

See SI 00835.600D. for when Part II of the SSA-8006 is required.

3. When further evidence is not required

Do not document the file beyond the individual's signed statement when:

  • The individual is the householder. See SI 00835.340D.5.c. below when others in the household contribute towards the householder's expenses. See SI 00835.480D.3. for an exception when the individual makes a prepaid contribution.

  • The individual is determined to be separately consuming (SI 00835.140) or purchasing food (SI 00835.150) and makes a contribution which is at least $20 more than his pro rata share of the shelter expenses. (Charge no ISM).

  • The alleged AV of the ISM is greater than the PMV. (Charge ISM at the PMV).

4. When further evidence is required

Obtain evidence as described in 5. below if the individual:

  • is not the householder; and

  • alleges an AV of ISM less than the PMV or does not know the AV; and

  • elects to rebut the PMV.

See SI 00835.320 for an explanation of the rebuttal rule.

5. Evidence of AV of ISM from within a household

The factors which determine the AV of ISM from within the household are household operating expenses, household composition and contributions.

a. Household operating expenses

The household operating expenses and contribution alleged by the eligible individual are listed on the LOHH screen in MSSICS. Verify the eligible individual’s statement with the householder or other knowledgeable adult member of the household (other than the individual’s spouse) on a report of contact (DROC) screen.

b. Household composition

Document the eligible individual's statement of the household composition on the LHHC screen in MSSICS. No further evidence is required, see SI 00835.485.

c. Contributions

See SI 00835.480 for additional information regarding contributions.

  • Individual's Contribution

    Verify and document the householder or other knowledgeable adult member of the household (other than the individual's spouse) statement regarding the amount of the individual's contribution on a DROC screen.

  • Deemor's Contribution

    If a deemor's contribution is material to the determination (see SI 00835.210), and the deemor is not the householder, document a knowledgeable adult member of the household (other than the individual's deemor) statement regarding the amount of the contribution on a DROC screen.

  • Contributions of Other Household Members

    The contributions of other household members are material if the individual is the householder. If the individual alleges contributions from others such that he or she derives cash income from within the household (SI 00835.450), corroborate and document the contributions with the contributing members on a DROC screen. Document the total contribution amount on the LXHP screen.

d. Documenting expenses and contributions for non-MSSICS cases

For actions processed outside of MSSICS, use the :

  • SSA-8006-F4 to record the individual’s allegation, see SI 00835.600; and

  • SSA-8011-F3 for the verification by the householder, see SI 00835.625.

    Document both by faxing the paper forms into the appropriate electronic folder and then, dispose of the paper form. For more information on storing forms electronically, refer to GN 00301.322.

6. Posteligibility requirements

Evaluate a previously undeveloped breakpoint when it is reported to determine whether it affects the receipt of inside ISM. See SI 00835.510 C. for instructions on evaluating breakpoints.

If the breakpoint might affect the ISM, complete an SSA-8006-F4 to determine if the value of the ISM has changed. See SI 00835.600 for information on form SSA-8006-F4. Follow the documentation rules in 1.-5. above depending on the answers received. Any change in ISM is effective with the breakpoint effective month (SI 00835.510B.4.).

In connection with a redetermination requiring completion of the SSA-8006-F4 (SI 00835.520), reevaluate the existence and amount of inside ISM as of the month the redetermination is initiated. When there has been no allegation of change, check to see if the ISM has changed due to the gradual effects of usage (e.g., the household now uses more electricity than at the last review) or inflation/deflation (e.g., the utility company now charges higher rates for power during the day, and lower rates for off-peak periods). Also redevelop the ISM charged if an individual requests a reevaluation of the household operating expenses and contributions (and no breakpoint has occurred).

See SI 00835.515 for an explanation of gradual ISM changes and the effective month of these changes. Document the file according to the rules in 1.-5. above depending on the answers received.

E. Reference

See SI 04070.001 for instructions regarding reopening under the rules of administrative finality.