Published on: March 17, 2015
The Social Security Administration (SSA) has classification codes as to how they categorize your living arrangements. This may or may not directly affect your Social Security Income (SSI), as there are multiple factors that come into play when determining the SSI payment amount for an individual or a couple.
-
Living Arrangement “A” is living in your own household.
-
Living Arrangement “B” is living in someone else’s household, and getting food and shelter from that household.
-
Living Arrangement “C” is a child equivalent of Arrangement “A.”
-
Living Arrangement “D” means you are currently residing in a medical treatment facility for at least a month, in which Medicaid is paying at least 50% of total costs. In terms of the SSI, The SSI benefit is capped at $30.00.
Which arrangement you are categorized under affects what your benefits are or will be, and whether or not you receive any In-Kind Support and Maintenance (ISM). Also, if you are receiving any money for living expenses from relatives or friends, that amount results in a dollar-for-dollar reduction of your SSI payment amount; it is classified as a form of "unearned income" by Social Security.
ISM Explained
To put it simply, ISM is considered the support you receive if you are living under the care of another, or are receiving free food and shelter; these both count as unearned income. The amount of ISM you receive has the potential to reduce your SSI payment rates significantly. In order to receive the maximum amount of benefits, it’s important you understand these rules and how they function in conjunction with your living situation.
As we’ve mentioned in previous articles, ISM is regulated by two rules – the Value of The One-Third Reduction (VTR) rule and the Presumed Maximum Value (PMV) rule. The VTR rule basically means if you live in someone else’s home for at least one calendar month and have received food and shelter there for free, your SSI benefits will be reduced by one-third.
The PMV rule is what regulates In-Kind Support and Maintenance when the VTR rule isn’t applicable, and can decrease your benefits by one-third as well. Fortunately, both the VTR and PMV rule can’t be applied to decrease your benefits within the same month.
There are exceptions to these rules, depending on where/whom you receive your ISM from, as well as if you are paying for things in your place of residency. Exceptions also apply in the case of temporary adverse living situations or homelessness.
Homelessness and How it Affects Your SSI Benefits
If you are homeless, and are receiving little to no ISM, you are still eligible for your full benefit rate in most cases. Utilizing recognized resources and programs, such as food stamps and nonprofit organizations that provide shelter, does not apply to ISM payment adjustments/deductions.
You can still receive your payment if you don’t have a permanent address by having it personally deposited, or sent to an institution or personnel at a shelter. Unless you are residing somewhere permanent on the first of the month, the possibility that your benefits will be adjusted are slim, in accordance with the First of the Month rule. In determining living circumstances, the SSA goes by what your living circumstances as of the first moment of the month and your payment for that month.
Those that are homeless, and not shown in a permanent residency, don’t have living arrangement deductions considered in their benefit payments unless they are receiving countable ISM during their period of homelessness.
Conclusion
It can be difficult to sum up the intricacies of Living Arrangements when it comes to the SSA. Check out our free guide today to learn more. Thankfully, if you still have questions, you have access to a team of trained professionals who can help you through the mounds of paperwork and eligibility requirements.
