Aged, Blind, Disabled (ABD): UpdatedCountable In-Kind Income

317:35-5-42(b)(8) and (8)(D)

If someone other than the client or the client’s spouse provides food and/or shelter or pays for them, it is considered countable unearned income. If someone who isn’t the client or client’s spouse provides or pays for anything else (medical bills, transportation, concert tickets, etc.), it is not considered countable income.

Is there an employee/employer relationship? (Does the person paying for or providing food or shelter consider the client to be an employee?). If there is, the value of the in-kind support is treated as earned income with all applicable deductions. Refer to article ABD: Computation of Earned Income).

For information regarding in-kind income and the Child Care & SNAP program, refer to policy 340:40-7-12 and 340:50-7-22.

For every one receiving any amount of SSI

Count the in-kind income that SSI counts. If SSI doesn’t count it, DHS doesn’t count it either. [317:35-5-42(b)(8)(D)(iii)] If the in-kind income is 2-3 months old or less, so SSI hasn’t had a chance to start counting it, report the in-kind income to SSI, then adjust the SS on the case per article ABD: Income – Adjusting SSI for New or Increased Income

For everyone who is not receiving SSI

Sources of support and maintenance exempted in 317:35-5-42(c), (d), (e), and (f) are excluded.

Besides food, someone other than the client or the client’s spouse paying for or providing any of the following is considered countable income:

  • Room
  • Rent
  • Mortgage
  • Real property taxes
  • Heating fuel (such as propane, etc.)
  • Gas
  • Electricity
  • Water
  • Sewage
  • Garbage collection

A signed statement from the client and at least one other household member that the client buys food separately is enough to establish that food is not being provided. [SI 00835.150.B]

The countable income is the presumed value of what is provided or paid for. The presumed value is 1/3 of the Federal Benefit Rate [see Appendix C-1, Schedule VIII.C] minus the $20 general income exemption.

This $20 is a part of this formula. The $20 general income exclusion is separate and still available to be used, if applicable.

If the bills for food or shelter expenses are not monthly, the billed amounts are converted to monthly. If there is more than one household member for whom an expense is covered, the billed amount is divided by the number of household members and the client’s share is considered for the client’s eligibility.

Example 1

Charles Haskell is receiving RSDI of $650. His father is paying the rent for his utilities included apartment. The presumed value of $265 is applied as unearned income. $650 + $265 = $915. The countable is over for the SSP but under for QMBP.

Example 2

Lillian Gallup, who receives $700 in RSDI, is paying her rent but a friend is paying her electric bill. She provides three months of electric bills since she thinks she pays less than the presumed value. The average of the three months is $112.

Example 3

James Robertson lives in his own apartment and was recently approved for a DDS (Developmental Disability Services) benefit. His income includes: $1200 in RSDI and $1008 countable earned income. His mother buys his food to ensure he has healthy food to eat and says she will not stop doing it. They agree to have the presumed value applies to James’s eligibility. The presumed value is $794/3 = $265.

$1200(RSDI) + $1008(countable earned) + $265 = $2473

His income is over the LTC standard shown on Appendix C-1, Schedule VIII.B.1 but under the maximum for a MIPT so he can eligible as long as he funds a MIPT at $91 a month. ($2473-$2382).


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