Rescinded 1980
SSR 77-30: Section 1612(a)(2)(A) (42 U.S.C. 1382(a)(2)(A))—Supplemental Security Income—Unearned Income—Support and Maintenance
20 CFR 416.1125
SSR 77-30
The Claimant, a recipient of Supplemental Security Income based on his disability condition, had his payment reduced by one-third as it was determined by the Social Security Administration that he was "living in the household of another." The claimant contended he was not receiving support and maintenance from his father, with whom he was living,since he made regular payments of $25.00 each month for room and board. Held, even though the claimant does pay some amount of his room and board, his payment is insufficient to cover the current market value of what he receives, therefore, inasmuch as he is living in the household of another from whom he receives in-kind support and maintenance, the one-third reduction in the payment standard does apply in accordance with Regulations No. 16, section 416.1125(b).
A question is raised as to whether the claimant has countable income which diminishes the amount of his Supplemental Security Income benefits. While he has no earned or unearned cash income, the question is raised as to whether he has unearned income through support and maintenance in-kind received from his father.
The claimant lives in his father's house trailer, with his father and his father's housekeeper. His Supplemental Security Income checks are made out payable to him, and he cashes the checks at the bank. He pays his father $25.00 a month for room and board, and previously paid $50.00 a month. He uses the remainder of the money to buy clothes, and to buy lunch at the school which he attends. He handles his own money.
Section 416.1125, Social Security Regulations, provides, in pertinent part, as follows:
(a) General. Unearned income includes support and maintenance furnished in cash or in-kind. Support and maintenance in-kind may generally be defined as room and board, and would also include other incidentals, such as clothing necessary to an individual's normal sustenance. Unless otherwise specified herein, the value of in-kind support and maintenance refers to its current market value.
(b) One-third reduction for individual living in another person's household.
(1) In the case of an eligible individual (or eligible individual and eligible spouse) who lives in another person's household and receives support and maintenance in-kind from such person, the payment standard for such eligible individual (or eligible individual and eligible spouse) will be reduced by one-third in lieu of including the value of such support and maintenance as unearned income to the eligible individual (or eligible individual and eligible spouse). The one-third reduction in the payment standard will apply only for months wholly spent in the household of another person. Thus, the reduction is made beginning with the first full calendar month in which an eligible individual (or eligible individual and eligible spouse lives in another person's household and ends with the last such full calendar month. The one-third reduction will apply regardless of whether the individual (or eligible individual and eligible spouse) is making any payment for support and maintenance (room and board) to the person in whose household he is living.
(2) When the one-third reduction applies, any additional support or maintenance or both support maintenance, received in-kind from a source other than the person in whose household the eligible individual (or eligible individual and eligible spouse) lives is not counted as income.
(3) For purposes of this section, "another person's" household refers to the household of a private individual. It does not include a commercial establishment (e.g., rooming or boarding house) or an institution.
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The evidence clearly shows that the claimant lives in the household of his father, and thus is living in the household of another within the purview of Section 1612(a)(2)(A) of the Social Security Act, and the above cited Regulations. Further, the evidence shows that he receives room and board, and thus is receiving support and maintenance from his father within the meaning of these sections. While the claimant does use his own money to buy clothes and other items, the fact that his basic room and board is furnished by his father mandates a finding that he is receiving support and maintenance from his father. Under section 416.1125, the Supplemental Security Income payment standard will be reduced by one-third per month for a person living in the household of another and receiving support and maintenance from such person, and further provides that the one-third reduction applies regardless of whether the individual is making any payment for support and maintenance. Accordingly, even though the claimant does pay some amount for his room and board, it can only be concluded that this amount is insufficient to cover the current market value of what he receives and that his benefit standard must be reduced by one-third because he lives in the household of his father.