Identification Number:
SI 00835 TN 89
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Living Arrangements and In-Kind Support and Maintenance
Type:POMS Transmittals
Program:Title XVI (SSI)
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part SI – Supplemental Security Income
Chapter 008 – Income
Subchapter 35 – Living Arrangements and In-Kind Support and Maintenance
Transmittal No. 89, 07/26/2019

Audience

FO/TSC: CS, CS TXVI, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OISP

Effective Date

Upon Receipt

Background

This is a Quick Action Transmittal. These revisions do not change or introduce new policy or procedure.

Summary of Changes

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

SI 00835.340B.2.a. - Under "EXAMPLE" changed "Supplmental" to "Supplemental" to correct spelling.

SI 00835.340C.3. - Changed "individual" to "claimant" to reflect the update made throughout the POMS section.

SI 00835.340D.4.a. - Changed "individual" to "claimant" to reflect the update made throughout the POMS sections.

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

A. Introduction to computing In-Kind Support and Maintenance within a household

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

B. Procedure for 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 claimant is:

  • the householder and lives with someone other than a spouse, child (as defined in SI 00501.010A) 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.

If an adult claimant lives with children who have income, inside ISM may need to be developed, following instructions in SI 00835.340B.3 in this section.

2. When inside ISM development is not required

a. Child (claimant) lives only with parent(s) or with parent(s) and other children

If the child claimant lives only with parent(s) and children (as defined in SI 00501.010A), assume there is no ISM received from within the household even if other children have income. SSA does not develop inside ISM from one child to another, regardless of the other child's income. NOTE: If a non-deemor adult also resides in the household, ISM development is required, per SI 00835.340B.1 in this section.

EXAMPLE: A child, applying for Supplemental Security Income (SSI), lives with her mother and two siblings. One sibling receives SSI and the other sibling receives child support. All the children in the household are under 18 years of age. SSA does not develop inside ISM from one child to another regardless of the other child's income. Therefore, inside ISM development is not required.

b. Claimant Lives in a Public Assistance Household

If the claimant lives in a public assistance household, as defined in SI 00835.130B, assume 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 or her pro rata share of the household operating expenses. If a payment cap applies, use the same presumption in a household receiving Bureau of Indian Affairs General Assistance (BIAGA). 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. (If a public assistance household receives ISM from outside of the household, see SI 00835.350. If the claimant receives ISM benefiting one person from someone outside the household, see SI 00835.400).

c. Claimant alleges a loan of ISM and the loan amount is unspecified

If, on an initial SSI application or a request for reinstatement, the claimant alleges a loan of food, shelter, or both 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 (unless we take a full application) or request for reinstatement. Develop the loan of ISM when the Claim Specialist (CS) adjudicates the claim or during reinstatement. Determine if the claimant receives inside ISM following instructions in SI 00835.482E.

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. For more information on deeming, see SI 01320.150.

3. When inside ISM development may be required

Adult claimant lives only with children (or spouse and children)

If the householder lives only with children or with spouse and children, assume there is no ISM received from within the household unless:

  • the children have income (e.g., Title II, child support); and

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

Develop ISM when the claimant does not have income to cover his or her pro rata share, and the child (children) in the home has income. This could also be an indicator of unstated income, according to SI 00810.035. Do not use the SSI received by the child living within the household, to calculate the ISM.

EXAMPLE 1: Ann, an eligible claimant, lives in a rented apartment. During her initial claim, she states that her rent is $500 per month. She and each of her three children receive $100 per month in Social Security survivor’s benefits. Ann’s own income is clearly insufficient to meet her share of the rent. The CS correctly determines whether her children’s checks are providing her with ISM from within the household as well as other sources of unstated income.

EXAMPLE 2: Jane is applying for SSI. Jane lives with her three children, who are all under the age of 18 years old. Two of her children receive SSI. The third child receives no income. During the interview, the CS determines that Jane uses the children's SSI benefit to cover household expenses. Inside ISM development is not required.

4. Definition of a household member

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

5. Cash income from household members

When the claimant is the householder, as defined in 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 claimant) is greater than household operating expenses and the household is not a public assistance household, the claimant may be receiving cash income. For the computation of cash income to the claimant, see SI 00835.450.

6. Multiple sources of ISM

If a claimant 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 the claimant (SI 00835.400) is subject to the PMV.

C. Procedure for computing inside ISM

Follow the procedure in this section 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 the claimant consumes all meals outside the household or purchases food separately, use only shelter expenses instead of total household operating expenses when computing inside ISM following instructions in SI 00835.020.

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

Assume all other members of the household share in the food unless we obtain information that contradicts this. If another member of the household does not share in the food and the claimant does, then determine separate pro rata shares for food and shelter and add them together to determine the claimant'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 claimant with an ineligible spouse, and an eligible claimant with an essential person, see SI 00835.210. After determining the claimant's contributions, use the computation in SI 00835.340C.3 to compute the value of ISM from within the household.

3. Computation of ISM for a claimant only

Enter Total Household Operating Expenses
      

Divide by Number of Household Members
÷       

Claimant's Pro Rata Share
=       

Deduct Claimant's Contribution
-      

Actual Value
=       

Compare the AV to the PMV for the claimant. The lesser amount is “H” income if the inside ISM is the only ISM received. NOTE: 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. Computation of ISM for an 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 the couple. The lesser amount is “H” income to the couple if no other ISM is received. NOTE: 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 using the computation in SI 00835.340C.4.a. in this section.

  • 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 of food exists. For information on separate purchase of food, 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 for documenting inside ISM

1. When documentation is required

Document the issue of inside ISM valued under the PMV rule when development is required by SI 00835.340B in this section. Document the claimant's allegation regarding the receipt of inside ISM within the SSI Claims System (i.e., SSI Claims and report of contact (DROC) screen). EXCEPTION: If the claimant is the householder and the others in the household contribute nothing, the claimant's allegation documented within the SSI Claims System showing no ISM exist from within the household is sufficient documentation. For non-SSI Claims System cases, see SI 00835.600D, for when Part II of the SSA-8006 is required.

2. When further evidence is not required

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

  • The claimant is the householder. When others in the household contribute towards the householder's expenses, see SI 00835.340D.5.c in this section. For an exception when the claimant makes a prepaid contribution, see SI 00835.480D.3

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

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

3. When further evidence is required

Obtain evidence as described in SI 00835.340D.5 in this section, if the claimant:

  • 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

For an explanation of rebuttal rule, see SI 00835.320.

4. Evidence of AV of ISM from within a household

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

a. Household operating expenses

Document the claimant's allegation of household operating expenses and contribution on the Household Expenses and Contributions page in the SSI Claims System. Verify the claimant's statement with the householder or other knowledgeable adult member of the household (other than the claimant's spouse) on a DROC screen.

b. Household composition

Document the claimant's statement of the household composition on the Household Composition page in the SSI Claims System. No further evidence is required. For more information regarding household composition, see SI 00835.485.

c. Contributions

For additional information regarding contributions, see SI 00835.480.

Claimant Contribution

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

Deemor's Contribution

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

Contributions of Other Household Members

The contributions of other household member are material if the claimant is the householder. If the claimant 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 an DROC screen. Document the total contribution amount on the Household of Another page.

d. Documenting expenses and contributions for non-SSI Claims System cases

For actions processed outside of the SSI Claims System, use the:

  • SSA-8006-F4 to record the claimant's allegation, following instructions in SI 00835.600; and

  • SSA-8011-F3 for the verification by the householder, following instructions in 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.

5. Posteligibility requirements for developing inside ISM

a. When a breakpoint affects ISM

At the time of the report, determine whether an undeveloped breakpoint affects the receipt of inside ISM. For instructions on evaluating breakpoints, see SI 00835.510C. If the breakpoint affects the ISM, develop the breakpoint following instructions in SI 00835.510 to determine if the value of the ISM has changed. Any change in ISM is effective with the breakpoint effective month. For more information on the effective month of breakpoints, see SI 00835.510B.4.

NOTE: If an claimant requests a reevaluation of the household operation expenses and contribution (and no breakpoint has occurred), redevelop the ISM changed.

b. Evaluate inside ISM during a Redetermination

Within the SSI Claims System, reevaluate the existence and amount of inside ISM as of the month the redetermination is initiated. NOTE: For non-MSSICS cases, complete the SSA-8006-F4, following instructions in SI 00835.520.

c. When gradual ISM changes occur

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). For an explanation of gradual ISM changes and the effective month of changes, see SI 00835.515.

E. Reference

  • SI 04070.001 - Title XVI Administrative Finality - Background


SI 00835 TN 89 - Living Arrangements and In-Kind Support and Maintenance - 7/26/2019