A claimant, who is the householder, may receive cash income as well as ISM from other members of their household. Also, a claimant 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.

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 claimant's contribution when the claimant lives with a deemor.)

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

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

 The FO charges Philip with $30 cash income.

In the SSI Claims System, on the SSI Claims Household Expenses and Contributions page, the CS would input $225 as the AMOUNT CLAIMANT CONTRIBUTES, and input $480 as the AMOUNT OTHERS CONTRIBUTE. The SSI Claims System 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 their two adult children in a home that Sarah owns. The monthly household expenses average $450. Sarah contributes $155 in cash; therefore, Sarah meets their pro rata share. One adult child contributes $165; the other contributes $140. Cash income to Mrs. North is computed as follows:

The FO credits Sarah with their excess contribution and thereby charges Sarah with $5 cash income.

In the SSI Claims System, on the Household Expenses and Contributions page, the CS would input $155 as the AMOUNT CLAIMANT CONTRIBUTES, and input $305 as the AMOUNT OTHERS CONTRIBUTE. The SSI Claims System 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 the SSI Claims System, on the Household Expenses and Contributions page, the CS would input $100 as the AMOUNT CLAIMANT CONTRIBUTES, and input $130 as the AMOUNT OTHERS CONTRIBUTE. The SSI Claims System 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

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

The ineligible spouse's excess contribution of $300 ($500 minus their $200 pro rata share) is added to Jameson's $0 contribution resulting in an excess contribution of $100 for Jameson ($300 minus the $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 Jameson and their ineligible spouse is then divided by two and only Jameson is charged with $25 cash income.

In SSI Claims System, on the Household Expenses and Contributions page, the CS would input $0 as the AMOUNT CLAIMANT CONTRIBUTES, input $500 as the AMOUNT DEEMOR CONTRIBUTES, and input $450 in the AMOUNT OTHERS CONTRIBUTE. The SSI Claim System computes the amount of cash income.

Cash payments received by the claimant from outside the 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 claimant's share of the payment is also included in the claimant's contribution to the household expenses. This is true even if the payments are given directly to the householder (or other agent) on the claimant's behalf.

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 claimant.

If the claimant is included in the payment, obtain a statement (signed or on a Report of Contact page) from the claimant regarding the amount and intended beneficiaries of the payment.

EXAMPLE 1: Claimant's Contribution Equals Their Pro Rata Share

The claimant, John Smith lives with their 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' sibling, Mabel White, sends $200 to Edward each month to help out with expenses. John indicates that Mabel's contribution is for both John and Edward.

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

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

In the SSI Claims System, on the Household of Another page, the CS would input $300 as the CLAIMANT'S CONTRIBUTION, and $100 of “OTHER” income on the Other Income page.

EXAMPLE 2: Claimant's Contribution Does Not Equal Their Pro Rata Share

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

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

In the SSI Claims System, on the Household of Another page, the CS would input $200 as the CLAIMANT'S CONTRIBUTION, and $100 of “OTHER” income on the Other Income page. The SSI Claims System would determine FLA/B (VTR) and count $100 of cash income.

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  The One-Third Reduction and deeming, SI 00835.210

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  Computing inside ISM, SI 00835.340

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  Computing outside ISM, SI 00835.350

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  Third Party Vendor Payments, SI 00835.360

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  ISM that is remuneration for work, SI 00835.390

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  ISM only to the Claimant, SI 00835.400

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  Cash from within a household (Household Expenses and Contributions page), MS 08110.013