SSI Deeming: Parent to Child

When determining whether an individual is financially eligible for Supplemental Security Income (SSI) and the amount of the monthly SSI benefit, the Social Security Administration (SSA) considers the income and resources of the applicant. There are four situations in which SSA will consider the income and resources of other individuals for purposes of determining whether the applicant qualifies for SSI; they are (1) from an ineligible spouse to an eligible spouse; (2) from a sponsor to an alien; (3) from an essential person to an eligible qualified individual; and (4) from a parent to a child under the age of 18. Considering the income and resources of another individual for purposes of determining the applicant’s eligibility is known as deeming.

In the case of deeming from a parent to a child, on which this article will focus, SSA will likely consider the income and resources of those responsible for providing care to the child so long as he is under the age of 18, not married, and lives with his parents who do not receive SSI. Those responsible for providing care to the child include natural and adoptive parents, and may also include a stepparent if the child is living with a natural/adoptive parent and a stepparent. However, if a child applicant resides only with a stepparent due to the death or divorce of the natural parent, the stepparent is not considered a parent for deeming purposes.

With respect to resources, any resources excluded for an eligible individual are also excluded for an ineligible parent for purposes of deeming; in addition, pension funds, defined as funds held in Individual Retirement Accounts and work-related pension plans, owned by an ineligible parent or spouse of a parent are excluded from resources for deeming purposes. Currently, the balance of countable resources more than $2,000 in the case of one parent, or $3,000 in the case of two parents (or one parent and the parent’s spouse), is deemed to the child.

Additionally, SSA excludes certain types of income from being deemed from a parent to a child. The income exclusions include, but are not limited to, (a) any portion of a grant, scholarship, fellowship, or gift used to pay tuition or fees; (b) the value of food stamps; (c) tax refunds on income, real property, or food purchased by the family; (d) certain home energy and support and maintenance assistance; (e) income received infrequently or irregularly; and (f) earned income of a student under the age of 22 and regularly attending school. The regulations often refer to individuals as eligible or ineligible, which references the individual’s eligibility for SSI.

For purposes of deeming income to a child, SSA considers several factors, including whether income is earned or unearned, whether the household has one or two parents, and the number of other children who do not qualify for SSI in the household. With respect to deeming income from a parent to a child under the age of 18, SSA has provided the following deeming chart, which serves only as a guideline:

If the gross monthly income of a household exceeds the amount listed above based upon the specific criteria, the child will no longer be eligible for SSI.

Please note the above chart should not be used if:

• There is more than one child with a disability applying for or receiving SSI benefits.
• The parent(s) receives both earned income (for example, wages or net earnings from self-employment) and unearned income (for example, Social Security benefits, pensions, unemployment compensation, interest income, and State disability).
• The parent(s) receives a public income maintenance payment such as Temporary Assistance for Needy Families (TANF), or a needs–based pension from the Department of Veterans Affairs.
• The parent pays court-ordered support payments.
• The eligible child has income of his or her own.
• Any ineligible child has income of his or her own, marries, or leaves the home.

Having a loved one with special needs can be challenging. Providing care can require a great deal of time and, when coupled with the difficulty of navigating the various public benefits, their rules and requirements, families are oftentimes left overwhelmed, confused, and unaware of the criteria that are used to determine a loved one’s eligibility and/or monthly benefit. It is critical to take proper planning steps to insure eligibility for SSI benefits. Additionally, it is important to contact an attorney to assist with planning regarding this benefit as well as others that may be available, to ensure that your loved one is receiving the maximum monthly benefits, to which he or she may be entitled.