SSR 77-30: Rescinded 1980

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:

rity 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.

n 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.

* * * * * *

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

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.