An earmarked sharing computation is similar to a sharing computation (see

SI 00835.160C. “Sharing”). However, no $20 tolerance applies for earmarked sharing.

If the individual's contribution is earmarked for shelter, determine the individual's pro rata share of shelter expenses. If the earmarked contribution equals or exceeds the pro rata share for shelter, earmarked sharing exists. The ISM received by the individual from within the household is in the form of food and is valued under the PMV rule (SI 00835.300). To compute the actual value (AV) of ISM from within the household, follow the instructions in SI 00835.340C “Computation of In-Kind Support and Maintenance from Within a Household”.

If the individual's contribution is earmarked for food, determine the individual's pro rata share of food expenses. If the earmarked contribution equals or exceeds the pro rata share of food expenses, earmarked sharing exists. The ISM received by the individual from within the household is in the form of shelter and is valued under the PMV rule. To compute the actual value (AV) of ISM from within the household, follow the instructions in SI 00835.340C “Computation of In-Kind Support and Maintenance from Within a Household”.

When an individual earmarks a specific portion of their contribution for food and another specific portion for shelter, it is called double earmarking. Compute the individual's pro rata share of food expenses and compare it to the portion of the contribution earmarked for food.

Compute the individual's pro rata share of shelter expenses and compare it to the portion of the contribution earmarked for shelter.

If either earmarked contribution equals or exceeds a pro rata share of the item for which it is earmarked, earmarked sharing exists. The individual is receiving ISM in the form of the item for which they are not earmarking. This ISM is valued under the PMV rule. To compute the actual value (AV) of ISM from within the household, follow the instructions in SI 00835.340C “Computation of In-Kind Support and Maintenance from Within a Household”.

EXAMPLE: Determining if double earmarking applies

Kathleen Daly applies for SSI as an aged individual. For the past three years, Kathleen has been living with a nephew and the nephew's family in an apartment for which the nephew has rental liability.

Kathleen alleges a contribution of $150 per month and says it is supposed to be half for food and half for shelter. Kathleen does not allege anything higher in the LA sequence than sharing.

When the claims representative (CR) explains sharing to Kathleen and asks if Kathleen believes that their contribution meets their pro rata share of household operating expenses (one-fifth, in this case), Kathleen replies that $150 is likely nowhere near their pro rata share. Because the CR identifies this as a token contribution, the CR documents the token contribution on the Householder of Another page (See SI 00835.160D.2. “Sharing – Token Contribution”).

Although the CR can curtail development of sharing, the CR must consider earmarked sharing. The CR asks if Kathleen's $75 contribution equals or exceeds their share of the shelter expenses. Kathleen says “no”, because the rent alone is $450 per month.

The CR asks whether the $75 food contribution meets their share of food expenses. Kathleen is unsure because the household receives food stamps. Kathleen estimates the food expenses to be $400 per month. The CR must obtain evidence of earmarking because the alleged earmarked contribution of $75 is within $20 of the alleged food share of $80 ($400 ÷ 5).

The CR informs Kathleen that a statement from their nephew or the nephews spouse (knowledgeable adults in the household) regarding the earmarked contribution and the household food expense is needed for verification.

The CR would obtain a signed statement on an SSA-8011-F3 or use a Report of contact page to document the nephew’s or the nephew's spouse's statement regarding the earmarked contribution and the household food expense made by Ms. Daly.

The CR would then update the appropriate Household of Another page within the Consolidated Claims Experience (CCE), documenting verification of the earmarked contribution. This type of documentation is needed because chargeable ISM in the form of shelter is also a consideration; evidence of the shelter expense is required.

Kathleen submits the requested statement (SSA-8011-F3) that shows the food expenses are $450 per month and shelter expenses are $600 per month.

The statement verifies Kathleen allegations about their contribution ($75 for food and $75 for shelter).

Because Kathleen is not paying their earmarked share for food, $90 ($450 ÷ 5), the CR determines that Kathleen is subject to the VTR, as Kathleen is receiving food and shelter throughout the month from the household in which they reside.

If the individual contributes, document the contribution on the Household of Another page.

Unless a developmental curtailment described in this section at SI 00835.170D.2. applies, obtain a signed statement (SSA-8011-F3) or a Report of Contact page from a knowledgeable adult member of the household other than the individual's spouse. This statement should confirm the amount of the earmarked contribution, as well as the household operating expenses for food or shelter, or both, if these expenses were not obtained for a sharing determination (see Sharing SI 00835.160). If evidence of household operating expenses and the earmarked contributions cannot be obtained, charge the VTR.

For more information about using the SSA-8011-F3 to document sharing, see SI 00835.625B “SSA-8011—Statement of Household Expenses and Contributions”.

Fax and store the SSA-8011-F3 in either eView or the Non-Disability Repository for Evidentiary Documents (NDRED) using the Evidence Portal (EP). You can access the Evidence Portal (EP) at View Evidence - Evidence Portal. Once the documentation is stored and viewed for content in either eView or NDRED by using the Evidence Portal (EP) there is no need to retain the documents.

You may curtail development based on the individual's statements when:

1. a. 

   The individual agrees that the earmarked contribution does not equal the pro rata share of food or shelter expenses (i.e., makes only a token contribution). Record this information on the Household of Another page; or

2. b. 

   The individual provides information on the Household of Another page that establishes that the alleged pro rata share of food or shelter expenses exceed the alleged earmarked contribution by $20 or more.

In these situations, earmarked sharing does not exist. Assume that the household operating expenses include both food and shelter. Charge the VTR unless the file shows that the household operating expenses do not include both food and shelter. The individual’s answers on the Household of Another page are sufficient documentation that earmarked sharing does not apply.

Develop earmarked sharing whenever the individual alleges earmarking in connection with an undeveloped breakpoint event or a redetermination (see SI 00835.510 “Breakpoints” and SI 00835.520 “Redetermination Guidelines – LA and ISM”).