SI SF01210.526 Examples

Examples are shown for the following situations:

Example 1 Blind individual with no spouse

Example 2 Eligible couple – only one member is a blind converted recipient

Example 3 Eligible couple – both members are blind converted recipients

Example 4 Blind individual with ineligible spouse (husband) who has income

Example 5 Blind individual with ineligible spouse (wife) who has income

Example 6 Blind individual with ineligible spouse – allocation to meet ineligible spouse’s unmet need.

  

Example 1 – Blind individual with no spouse

Bob Brown, a blind recipient converted in California, is working and earns $900 per month. Using the State plan rules, his work expenses are $200. Using Federal rules, his work expenses are $130.

We use Form A to compute his BCI. Input the BCI computed on Form A as type K income, allowing the system to compare BCI to CI/FR to determine which income to use.

Mr. Brown’s BCI (applying State income rules)

$900.00

Gross earned income

-7.50

General exemption

$892.50

Remainder

-85.00

Earned income exemption

$807.50

Remainder

-403.75

One-half remainder

$403.75

Remainder

-200.00

Work expenses

$203.75

Countable earned income

$204.00

BCI (rounded to nearest dollar)

-215.00

TAN

$-11.00

Grant amount (ignored for SSI purposes)

  

Mr. Brown’s CI/FR (applying Federal income rules)

$900.00

Gross earned income

-85.00

General and earned income exclusions

$815.00

Remainder

-407.50

One-half remainder

$407.50

Remainder

-$130.00

Work expenses

$277.50

Countable earned income (CI/FR)

Since $204.00 is less than $277.50, use $204.00 to determine the payment.

Example 2 – Eligible couple – only one member is a blind converted recipient

Rebecca Bergeron, a blind recipient converted in California, receives a $100 monthly title II payment. She lives with her non-converted disabled spouse, Emile, who receives a $255 monthly title II payment.

We compute Rebecca’s BCI on Form A. We compute Emile’s CI/FR using the Federal income rules for an eligible individual as well as the couple’s CI/FR using the Federal income rules for an eligible couple. In this situation, Mr. and Ms. Bergeron are advantaged by using Rebecca’s BCI and Emile’s CI/FR as an individual instead of the CI/FR as an eligible couple because:

  • we count only Rebecca’s title II actually received, and

  • we apply both the $7.50 State general exemption to Rebecca’s income and the $20 general income exclusion to Emile’s income.

  

Rebecca Bergeron’s BCI (applying State income rules)

$100.00

Title II actually paid

-7.50

General exemption

$92.50

Countable unearned income

  

$93.00

BCI (rounded to nearest dollar)

-215.00

TAN

$122.00

Grant amount (not used to determine payment)

  

Emile Bergeron’s CI/FR (applying Federal income rules for an individual)

$255.00

Title II

-20.00

General income exclusion

$235.00

Countable unearned income (countable income

  

Couple’s CI/FR (applying Federal income rules for a couple)

$100.00

Title II – Rebecca (double-counting not applicable)

+255.00

Title II – Emile

$355.00

Couple’s total (unearned) income

-20.00

General income exclusion

$335.00

Couple’s countable (unearned) income

  

Comparison

$93.00

BCI – Rebecca

+235.00

CI/FR – Emile

$328.00

Couple’s countable income based on Rebecca’s BCI

Since $328 is less than $335 (C/FR using Federal income counting rules for couples), use $328 to determine the payment.

Example 3 – Eligible couple – both members are blind recipients converted in California

Frank Chin, a converted blind individual, receives a $238.60 monthly pension. He lives with his converted blind spouse, Mabel Chin, who receives a monthly title II payment of $58.00. In this month, Mabel also received a $174.00 retroactive payment for benefits previously withheld.

NOTE: Under the State plan, Mabel’s retroactive payment is considered a resource rather than income. See SI SF01210.512I. for lump-sum (nonrecurring) income.

We compute Fran and Mable Chin’s BCI as individuals on Form C. We also compute their CI/FR as though each were an individual as well as compute their CI/FR as an eligible couple.

  

Frank Chin’s BCI (applying State plan income rules)

$238.60

Unearned income

-7.50

General exemption

$231.10

Countable (unearned) income

  

$231.00

BCI (rounded to nearest dollar)

-215.00

TAN

$16.00

Unexpended income (carried over as income in next month)

  

Mabel Chin’s BCI (applying State plan income rules)

$58.00

Title II

-7.50

General exemption

$50.50

Countable (unearned) income

  

$51.00

BCI (rounded to nearest dollar)

-215.00

TAN

-$164.00

Grant amount (ignored for SSI purposes)

  

Frank Chin’s CI/FR (applying Federal income rules for an individual)

Mabel Chin’s CI/FR (applying Federal income rules for an individual)

$238.60

Unearned income

$232.00

-20.00

General income exclusion

-20.00

$218.60

Countable income

$212.00

Couple’s CI/FR (applying Federal income rules for a couple)

$470.60

Unearned income

-20.00

General income exclusion

$450.60

Couple’s countable income

  

Compare BCI and CI/FR for Frank and Mabel as individuals

Frank:      BCI = $231.00

                CI/FR = $218.60

                Use $218.60 countable income for Frank (CI/FR).

Mabel:      BCI = $ 51.00

                 CI/FR = $212.00

                 Use $51.00 countable income for Mabel (BCI).

                 $218.60

                  + 51.00

                  $269.60 Use this amount as the couple’s countable income since it is lower than the CI/FR as a couple.

Example 4 – Blind individual with ineligible spouse (husband) who has income

Annie Mustard lives with her husband, Josiah, and their two ineligible minor children. Annie and the children have no income. Josiah works and earns $800 per month. He also had the roof of their house repaired for $75.00.

Annie’s BCI (applying State income rules)

Ineligible husband’s exemption (Form B-2):

$190.00

Total need for two ineligible children

+ 75.00

Unusual current living expense (see SI SF01210.516B.4.)

$265.00

Exemption

  

$800.00

Earned income

-200.00

Work-related expenses*

$600.00

Countable earned income

-200.00

Spouse’s exemption

$400.00

Remainder

-265.00

Spouse’s other exemption

$135.00

Income allocated to recipient

- 7.50

General exemption

$127.50

Total countable income

  

$128.00

BCI (rounded to nearest dollar)

-215.00

TAN

$-87.00

Grant amount (ignored for SSI purposes)

  

$325.00

FBR for an individual

-128.00

BCI

$197.00

SSI payable

*Use 25 % of $800 because Mr. Mustard does not know the actual amount of his work expenses (SI SF01210.515E.).

  

Annie’s CI/FR (applying Federal income rules)

$800.00

Gross earned income

-326.00

Ineligible children allocation

$424.00

Remainder

-85.00

General and earned income exclusions

$389.00

Remainder

-$194.50

One-half remainder

$194.50

Countable (earned) income

  

$488.00

FBR for a couple

-$194.50

CI/FR

$293.50

SSI payable

Even though BCI is lower than CI/FR, the SSI payment is higher using Federal rules. Therefore, we use CI/FR.

Example 5 – Blind individual with ineligible spouse (wife) who has income

This situation is the same as example 4 except Josiah Mustard is the blind converted recipient and Annie Mustard is the spouse who works and earns $800 per month.

   

Josiah Mustard’s BCI (applying State income rules)

$800.00

Gross earned income

-200.00

Work expenses

$600.00

Countable earned income

  

Annie Mustard’s net income is $600. Using Form B-3, the amount allocated to Josiah is $65.

$65.00

Income allocated from wife

-7.50

General exemption

$57.50

Remainder

  

$58.00

BCI (rounded to nearest dollar)

-215.00

TAN

$-157.00

Grant amount (ignored for SSI purposes)

  

$325.00

FBR for an individual

-58.00

BCI

$267.00

SSI payable

  

Josiah Mustard’s CI/FR (applying Federal income rules)

CI/FR is $194.50

SSI payable is $293.50.

We apply the same rules as shown for Annie Mustard in Example 4.

Even though the BCI is lower than CI/FR, the SSI payment is higher using Federal rules. Therefore, we use CI/FR.

Example 6 – Blind individual with ineligible spouse – allocation to meet ineligible spouse’s unmet need

Thomas Hawk, a blind recipient converted in California, lives with his ineligible spouse, Marion Hawk. Marion has no income. Thomas receives a title II payment of $189.00. Some of Thomas’ income is allocated to his wife to meet her unmet need because she has no income.

  

Thomas Hawk’s BCI (applying State income rules)

$189.00

Title II

-7.50

General exemption

$181.50

Countable unearned income

-90.75

Income of eligible spouse allocated to ineligible spouse*

$90.75

Countable income

  

$91.00

BCI

-215.00

TAN for eligible spouse

$-124.00

Grant amount (ignore for SSI purposes)

  

$325.00

FBR for an individual

-91.00

BCI

$234.00

SSI payable

  
  

*Determining amount allocated to Marion Hawk (ineligible spouse) using Form B-1:

$215.00 Unmet need of ineligible spouse

$181.50 Countable income for eligible spouse

$ 90.75 One-half of countable income

Since $90.75 is less than $215.00, $90.75 is the amount allocated to Marion.

  

Thomas Hawk’s CI/FR (applying Federal income rules)

$189.00

Title II

-20.00

General income exclusion

$169.00

Countable unearned income


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501210526SF
SI SF01210.526 - Examples - 01/29/2018
Batch run: 01/29/2018
Rev:01/29/2018