TN 46 (03-99)

SI 00835.450 Cash Income from Within and from Outside Households

A. Background

An eligible individual who is the householder may receive cash income as well as ISM from other members of his/her household. Also, an individual may receive cash income as well as ISM from sources outside the household. The following section provides instructions for distinguishing between ISM and cash income and for calculating the amount of cash income.

B. Policy — cash income from within households

1. What is Cash Income

When an individual is the householder, household members' cash contributions that exceed the household's total operating expenses result in cash income to the individual.

Cash payments for the support and maintenance of an SSI recipient are unearned income for SSI purposes, unless excluded by law or regulations (SI 00830.600 ff.). Cash income is never subject to the presumed maximum value (PMV) rule (SI 00835.300).

When a recipient is the householder and funds are pooled to share household expenses, he/she derives cash income from the excess contributions of the other members to the extent that the pooled funds plus direct bill payments exceed total household operating expenses. (See SI 00835.340 for a discussion of excess contributions which assist a recipient in meeting his/her pro rata share of household operating expenses.)

NOTE: Funds are considered pooled when at least one other member of the household, other than the householder's spouse, makes a cash contribution to the householder (or pays a personal expense of the householder in lieu of a cash contribution). Pooling is in contrast to each person paying particular bills directly.

2. What Is Not Cash Income

Cash contributions from within the household that help an individual to meet his/her pro rata share of household operating expenses are counted as inside ISM.

When a recipient is not the householder, he/she can receive only ISM from the other household members' contributions. In such cases, no cash income is derived from the other members' contributions toward household operating expenses. Charge the VTR if the individual receives both food and shelter from within the household.

In a public assistance household (see SI 00835.130), it is assumed that no excess cash contribution for support and maintenance is received from within the household.

Persons appointed by SSA to be representative payees do not derive unearned cash income because of the fiduciary role they perform for beneficiaries and recipients.

EXCEPTION: Cash income may be derived when a fee for services as payee is received or there has been a misuse of funds. In addition, a representative payee who is also an SSI recipient may receive ISM because of these funds (i.e., the funds are used as contributions toward household expenses). (See SI 00810.120.)

C. Procedures — cash from within households

Determine whether a recipient, who is the householder, receives cash income from within a household by comparing the household's operating expenses to the household's cash contributions (i.e., cash contributions from all household members including the recipient). Use only the household costs listed in SI 00835.465D.1. when computing household operating expenses.

Determine the amount of cash income a recipient receives in the following manner:

AMOUNT OF RECIPIENT'S CASH CONTRIBUTIONS    

(NOTE: This includes the excess contribution, if any, of a deemor. This also includes the contributions of both members of an eligible couple.)

MINUS AMOUNT OF RECIPIENT'S PRO RATA SHARE OF EXPENSES    

BALANCE EQUALS RECIPIENT'S “EXCESS” CASH CONTRIBUTION    

TOTAL HOUSEHOLD CASH CONTRIBUTIONS (INCLUDING RECIPIENT'S)    

MINUS RECIPIENT'S “EXCESS” CASH
CONTRIBUTION    

BALANCE OF HOUSEHOLD CASH CONTRIBUTIONS    

MINUS TOTAL HOUSEHOLD OPERATING
EXPENSES    

CASH INCOME TO RECIPIENT    

(Follow the development instructions in SI 00835.340 and SI 00835.465-SI 00835.485 when determining pro rata share of expenses and contributions. Follow SI 00835.210B. to determine the amount of the individual's contribution when the individual lives with a deemor.)

NOTE: The reduction of the household's total cash contributions by the amount of excess cash contributed by the recipient is an essential step in the computation. This step eliminates the possibility of charging the recipient with unearned income because of an excess contribution that the recipient may have made. If the recipient has an ineligible spouse, determine whether the ineligible spouse has any excess contribution which can be applied to those involved in the deeming computation before figuring the recipient's “excess” contribution.

If there is more than one owner or person liable for the rent, divide the cash income by the number of persons in the household who own or rent to determine the amount of the eligible individual's cash income. If the eligible individual lives with a spouse, consider that spouse an “owner” or “renter” if the eligible individual owns or rents. However, only the eligible individual is charged with cash income.

D. Examples — cash from within households

EXAMPLE 1: Cash Income Received — Recipient Contributes Pro Rata Share

Philip Beck, an SSI recipient, lives in an apartment and has rental liability. He shares the apartment with two friends; neither receives public assistance payments. Mr. Beck states that all three share the household expenses. Household operating expenses average $675 a month. Mr. Beck contributes $225 in cash each month. The other two each contribute $240 in cash. Mr. Beck meets his pro rata share of expenses; therefore, no ISM is charged to him. The cash income to Mr. Beck is computed as follows:

   
Amount of Mr. Beck's Cash Contribution$225 
Minus Amount of Mr. Beck's Pro Rata Share of Expenses -225 
Balance Equals Mr. Beck's “Excess” Cash Contributions$ 0Total
Total Household Cash Contributions$705 
Minus Mr. Beck's “Excess” Contribution   0 
Balance of Household Cash Contributions$705 
Minus Total Household Operating Expenses - 675 
Cash Income to Mr. Beck$ 30 

 The FO charges Mr. Beck with $30 cash income.

In MSSICS, on the LXHP screen, the CR would input $225 as the AMOUNT CLAIMANT CONTRIBUTES, and input $480 as the AMOUNT OTHERS CONTRIBUTE. MSSICS computes the amount of cash income.

EXAMPLE 2: Cash Income Received—Recipient Contributes More than Pro Rata Share

Sarah North, an aged recipient, lives with her two adult daughters in a home that she owns. The monthly household expenses average $450. Mrs. North contributes $155 in cash; therefore, she meets her pro rata share. One daughter contributes $165; the other contributes $140. Cash income to Mrs. North is computed as follows:

   
Amount of Mrs. North's Cash Contribution$155 
Minus Mrs. North's Pro Rata Share of Expenses -150 
Balance Equals Mrs. North's “Excess” Cash Contribution$ 5 
   
Total Household Cash Contributions$460 
Minus Mrs. North's “Excess” Contribution - 5  
Balance of Household Cash Contributions$455 
Minus Total Household Operating Expenses -450  
Cash Income to Mrs. North$ 5 

The FO credits Mrs. North with her excess contribution and thereby charges her with $5 cash income.

In MSSICS, on the LXHP screen, the CR would input $155 as the AMOUNT CLAIMANT CONTRIBUTES, and input $305 as the AMOUNT OTHERS CONTRIBUTE. MSSICS computes the amount of cash income.

EXAMPLE 3: Cash Income Received—Couple Does Not Meet Pro Rata Share

Jerry and Jamie Johnson, an aged couple, live in their own house with their adult son, Bob. They contribute $100 towards household expenses each month. Bob contributes $130 in cash per month to “pay for my expenses.” Total household expenses are $210. Total household contributions are $230. Pro rata share of expenses is $70.

Part of Bob's contribution pays the $40 difference between the parents' contribution ($100) and their pro rata share ($140), so $40 is counted as ISM to the couple ($40 is used since it is less than the couple's PMV). The couple does not meet their pro rata share of expenses, so there is no excess contribution on their part. The difference between total household expenses and total household contributions is $20, which is the cash income to the couple. ($10 each).

In MSSICS, on the LXHP screen, the CR would input $100 as the AMOUNT CLAIMANT CONTRIBUTES, and input $130 as the AMOUNT OTHERS CONTRIBUTE. MSSICS knows this is a couple's claim and compares the AMOUNT CLAIMANT CONTRIBUTES against twice the pro rata share.

EXAMPLE 4: Ineligible Spouse's Contribution Exceeds the Pro Rata Share for the Couple

Mr. Jameson, an SSI recipient, lives with his ineligible wife in their own home. Their two adult sons live with them. Mrs. Jameson contributes $500 a month towards household expenses, but Mr. Jameson contributes nothing. The sons contribute a total of $450 a month. The total household operating expenses are $800 a month.

His wife's excess contribution of $300 ($500 minus her $200 pro rata share) is added to Mr. Jameson's $0 contribution resulting in an excess contribution of $100 for Mr. Jameson ($300 minus his $200 pro rata share). This $100 excess is subtracted from the total household cash contributions of $950. Household cash contributions exceed total household operating expenses by $50 ($850 minus $800). This cash income to Mr. and Mrs. Jameson is then divided by two and only Mr. Jameson is charged with $25 cash income.

In MSSICS, on the LXHP screen, the CR would input $0 as the AMOUNT CLAIMANT CONTRIBUTES, input $500 as the AMOUNT DEEMOR CONTRIBUTES, and input $450 in the AMOUNT OTHERS CONTRIBUTE. MSSICS computes the amount of cash income.

E. Policy — cash income from outside the household

Cash payments received by the individual from outsidethe household for household operating expenses are treated as cash income, not ISM.

Cash payments to a member of the household may be intended for the use of that member only, or for a few members, or for all members of the household.

If the cash payment from outside the household is for household expenses, the individual's share of the payment is also included in the individual's contribution to the household expenses. This is true even if the payments are given directly to the householder (or other agent) on the individual's behalf.

NOTE: Payments for household operating expenses made directly to a vendor (third-party vendor payments) do not result in cash income to the individual. (See SI 00835.360 for when to charge ISM from third party vendor payments).

F. Procedure — cash income from outside the household

When an allegation of cash payments for household operating expenses from outside the household is made, determine for whose use the payment is intended.

Divide the cash payment by the number of beneficiaries of the payment to determine the amount attributable to the individual.

If the individual is included in the payment, obtain a statement (signed or on DROC) from the eligible individual regarding the amount and intended beneficiaries of the payment.

G. Examples — cash income from outside the household

EXAMPLE 1: Eligible Individual's Contribution Equals His Pro Rata Share

The eligible individual, John Smith lives with his brother, Edward Smith, in a house that Edward is buying. The household operating expenses are $600 per month. John Smith's pro rata share is $300. Each brother pays $200 towards the household expenses. The Smiths' sister, Mabel White, sends $200 to Edward each month to help out with expenses. John indicates that her contribution is for both him and Edward.

Although Ms. White's contribution is used to pay for household operating expenses, it is counted as cash income, not ISM.

Ms. White's $200 contribution is split equally between the two brothers. John Smith's contribution toward his pro rata share is $300 ($200 from his own funds plus $100 received from Ms. White). The $100 dollar contribution from Ms. White is counted as cash income. However, since his contribution equals his pro rata share, he receives no ISM.

In MSSICS, on the LOHH screen, the CR would input $300 as the CLAIMANT'S CONTRIBUTION, and $100 of “OTHER” income on the IOTH income screen.

EXAMPLE 2: Eligible Individual's Contribution Does Not Equal His Pro Rata Share

The case facts are the same as Example 1 except that the eligible individual, John Smith, contributes only $100 toward the household operating expenses from his own funds.

John Smith contributes $200 ($100 from his own funds plus $100 received from his sister). The $100 contribution from Ms. White is counted as cash income. However, since Mr. Smith's total contribution is only $200 and his pro rata share is $300, he is also subject to the one-third reduction (VTR).

In MSSICS, on the LOHH screen, the CR would input $200 as the CLAIMANT'S CONTRIBUTION, and $100 of “OTHER” income on the IOTH income screen. MSSICS would determine FLA/B (VTR) and count $100 of cash income.

H. References


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0500835450
SI 00835.450 - Cash Income from Within and from Outside Households - 08/08/2017
Batch run: 08/08/2017
Rev:08/08/2017