TN 111 (09-23)

SI 00835.170 Earmarked Sharing

A. Policy for earmarked sharing

An individual is not subject to the value of one-third reduction (VTR) when earmarked sharing exists because they are not receiving both food and shelter from the household in which they reside. Always ask the individual whether they earmark the contribution if no living arrangement (LA) basis higher in the sequence of LA development is alleged.

Earmarked sharing exists when an individual (or at least one member of an eligible couple) designates part or all of their contribution toward household operating expenses for food or shelter and the contribution equals or exceeds the pro rata share of household expenses for food or shelter. Any in-kind support and maintenance (ISM) received is subject to the presumed maximum value (PMV).

REFERENCES:

B. Policy for sequence of living arrangement development

As a step in the sequence of household living arrangement development, consider earmarked sharing when all of the following apply:

  1. 1. 

    The individual lives in a household with at least one person other than their spouse, child (as defined in SI 00501.010), or a person whose income is deemable to the individual;

  2. 2. 

    The individual does not have ownership interest (SI 00835.110) or rental liability (SI 00835.120);

  3. 3. 

    A public assistance household does not exist (SI 00835.130);

  4. 4. 

    The individual (or both members of an eligible couple) does not separately consume their food (SI 00835.140);

  5. 5. 

    The individual (or both members of an eligible couple ) does not separately purchase theirr food (SI 00835.150);

  6. 6. 

    The individual does not contribute within $20 of the pro rata share of household operating expenses for food and shelter (SI 00835.160); and

  7. 7. 

    The individual (or at least one member of an eligible couple) alleges earmarking part or all of their contribution for food or for shelter.

NOTE: 

Prior to October 1, 2021, the tolerance was $5. The eligible individual's contribution had to be within $5 of the pro rata share to make a determination that sharing existed and for the individual to be in FLA/A.

C. Policy for earmarking computations

1. Earmarked sharing computation

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

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

2. Earmarked contribution for shelter

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”.

3. Earmarked contribution for food

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”.

4. Double earmarking

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.

5. Special earmarking situations

a. Eligible couples

If both members of an eligible couple earmark part or all of their contribution for food or shelter, compare their combined pro rata share for food or shelter to their combined earmarked contribution. If their combined earmarked contribution equals or exceeds their combined pro rata share for food or shelter, then the couple meets earmarked sharing.

If only one member of an eligible couple is earmarking their contribution for food or shelter, consider whether that earmarked amount equals or exceeds the couple's combined pro rata share of the item for which the one member is earmarking. If so, earmarked sharing applies to the couple. Do not use only one member's pro rata share to determine earmarked sharing for an eligible couple.

Whether one or both members of the eligible couple are making an earmarked contribution, the AV of ISM received by the couple from within the household is subject to the PMV rule.

To compute the AV of the ISM, follow the instructions in SI 00835.340C “Computation of In-Kind Support and Maintenance from Within a Household”.

b. Eligible individual/child living with an ineligible spouse/parent

An individual may be considered to be earmarking based on the spouse's or parent's contribution. If the spouse's or parent's contribution is earmarked for food or shelter, or both, determine if you may allocate some portion of this contribution to the eligible individual in accordance with SI 00835.210 “The One-Third Reduction Provision and Deeming”. Determine whether this allocated contribution from the spouse or parent, in addition to any earmarked contribution from the individual's own funds, equals or exceeds the pro rata share of the earmarked household operating expense.

If earmarked sharing is met, apply the computations described in SI 00835.340C “Computation of Inside ISM” to compute the AV of ISM the individual receives from within the household.

D. Developing and documenting earmarked sharing

1. General rule

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.

2. Curtailing development of earmarked sharing

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.

NOTE: For PE actions processed outside of CCE on paper forms, document the individual’s statement about earmarking and contributions on an SSA-8006-F4. Fax and store the SSA-8006-F4 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.

3. Posteligibility requirements

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”).


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0500835170
SI 00835.170 - Earmarked Sharing - 09/29/2023
Batch run: 09/29/2023
Rev:09/29/2023