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In-Kind Support | |
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At a Glance
In-kind support and maintenance is unearned income
in the form of food, clothing, or shelter that is given or received
because someone else pays for it. Whether living expenses are paid
in full or just in part by someone else has a bearing on the amount
of SSI cash benefits individuals receive when using the PASS work
incentive.
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In-kind
support and maintenance is unearned income in the form of food, clothing, or
shelter that is given or received because someone else pays for it. Whether
living expenses are paid in full or just in part by someone else has a bearing
on the amount of SSI cash benefits individuals receive when using the PASS work
incentive.
Full In-kind Support
Individuals who live in someone else's household and contribute no money for
their food and shelter expenses are considered to be receiving full in-kind
support. In SSA lingo this is referred to as the Value of the One-Third Reduction
(VTR). Individuals falling into this category will have their SSI cash benefit
reduced by one-third of the amount of the FBR. In 2006, this translates into
a reduction of $201.00 (for a single person living alone).
This reduction comes right off the top of their monthly benefit checks. The
maximum amount of SSI that can be received by individuals who have a full in-kind
support reduction is $402.00 ($603.00 - $201.00). A PASS will not help these
individuals to increase their benefit to $603 (the SSI maximum benefit). The
one-third reduction will be taken off the top of their SSI cash benefit regardless
of whether or not a PASS is used.
Partial In-kind Support
While some individuals may not be capable of paying for the full amount
of their living expenses, they may be able to pay for a portion of their expenses,
such as their monthly food bill. They are considered to be receiving partial
in-kind support known by SSA as the Presumed Maximum Value (PMV). The SSA presumes
that the maximum value of their remaining living expenses are no more than $221.00.
They arrive at this figure by adding $20 to the one-third reduction amount of
$201.00. After subtracting a $20 general exclusion from the PMV, the reduction
in the SSI check is $201.00. Individuals who have a partial in-kind support
reduction and initiate a PASS are able to subtract the PASS expense from the
PMV, making it possible to increase their SSI cash benefit amount to $603 (the
maximum SSI payment amount). For individuals with a full in-kind support reduction
(VTR) who are initiating a PASS, it may be in their best interest to begin contributing
a portion of their food and shelter expenses. Doing this will help them to recoup
a greater amount of their PASS expenses through an increase in their SSI.
