To determine whether a disabled child is eligible for SSI benefits and how much the child is entitled to receive, the Social Security Administration (SSA) must consider all sources of income available to the child. The SSA assumes that the disabled child shares in the parents’ income. The allocation of a portion of the parent’s income to a child is called “deeming” income. The outcome of the deeming process is important because it may make some children ineligible for payments.
What type of income is counted in the deeming process?
Social Security considers the following sources of income to determine a disabled child’s eligibility and SSI payment amounts:
The parent’s income, the parent’s unearned income, and the parent’s other resources (assets); and
the earned and unearned income and resources of the stepparent, if the child lives with the stepparent and the natural or adoptive parent.
Income is money earned from a job. Unearned income is money that comes from sources such as investments or unemployment. The SSA considers both earned and unearned income when calculating the parent’s total income.
What type of income is not counted in the deeming process?
The SSA does not consider all income and resources in the deeming process. For example, the SSA does not consider welfare or Public Income Maintenance (PIM) payments such as Temporary Assistance to Needy Families (TANF) or VA pension for veterans as long as the public income payment was originally calculated based on the family’s income.
There are also other sources of money that SSA will exclude from the deeming process. Here are some examples:
foster care payments
food stamps
disaster relief
tax refunds on real estate; and
domestic products for personal consumption.
Allocations for living expenses of a family member.
Before assessing the parents’ income, SSA makes adjustments to the parents’ income amounts to account for living expenses for both the parents and any other children living in the home. These are called “allocations. “These allocations reduce the amount of a parent’s income that applies to the disabled child. These allocations apply only to disabled children whose parents do not have a disability.
Allocation for other children. The SSA establishes an allocation for living expenses for nondisabled children-this amount is not considered part of the parent’s educable income. In 2020, the amount allocated to each nondisabled child in the family is $392 (this is the difference between the SSI rate for an individual and the SSI rate for a couple). If the nondisabled child has his or her own income or if the child receives public assistance, the allocation amount may be reduced.
Parental housing allowance. The SSA also reduces the amount of income a child is entitled to for a parental allowance. The amount of the parental allowance depends on how many parents are in the disabled child’s home (including stepparents and adoptive parents). The parenting allowance for one parent is $783 (the Federal SSI Benefit Rate); For two parents, the allowance is $1,175. (This allowance is not paid to parents receiving public assistance).
The SSA subtracts the allowances for nondisabled children from the parents’ income, then subtracts certain amounts from the parents’ income, and then subtracts the parents’ living expenses to determine the amount of income that applies to the disabled child.
Example
Teddy receives SSI for autism spectrum disorder. He lives with his mother and a non-disabled brother. Teddy’s mother has monthly income of $3,000 from work and no unearned income. Social Security deducts $392 from Teddy’s mother’s income for his brother. From the remaining $2,608, Social Security subtracts $85 (the $20 and $65 deductions) and divides the remainder in half to arrive at $1,261, 50 of countable income. Since Teddy lives with a parent, Social Security reduces this amount by the individual SSI rate of $783 as living expenses for his mother. Thus, the amount of parental income is $478.50 per month.
When does the SSA use deeming?
The SSA uses the process of” deeming ” parent income when the disabled child:
is under 18 years of age
is unmarried, and
Is living at home with parents who are not SSI recipients.
When deeming stops.
SSA will stop deeming the parent’s income:
when the child turns 18
when the child marries, or
when the child stops living with the parents.
Deeming can also stop for a number of other reasons.
Changes in life circumstances
If there is a change in status or family structure, the assessment may be affected; therefore, you need to keep the SSA up to date if any of these changes occur in your family.
Parent stops receiving SSI. If a parent who was receiving SSI stops qualifying for benefits, the parent’s income will apply to the child in the month he or she stops qualifying for benefits.
Parent becomes eligible for SSI. Deeming from the parent’s income to the child stops when the parent becomes eligible for an SSI payment.
Death of parent. When a parent dies, the deceased parent’s income stops the month after the parent’s death.
Child moves to a treatment facility. When a child moves to a medical treatment facility, deeming stops; In addition, the child may no longer be eligible for SSI.
Child turns 18 years old. Deeming stops the month after the child turns 18. After that, the child’s own income is used to determine eligibility for SSI.
Parent and child stop living together. If parent and child no longer live in the same household, parent’s income is disregarded beginning the month after they separate.
Child begins living with stepparent only. If the biological or adoptive parent leaves the child with a stepparent, the appreciation stops. SSA considers only the child’s own income to determine eligibility for SSI.
Temporary absences.
When a separation between parent and child is temporary, the assessment is not affected. SSA looks at several factors to decide whether to stop devaluing the parent’s income.
Intent. SSA examines how long the parent and child should be separated and how long they have actually been separated to determine whether the separation is permanent.
School. If an eligible child is away from home for school but occasionally comes home for weekend visits, vacations, or vacations, the assessment continues regardless of how long the child has been away from home. The exception to this is when the parent no longer has “parental control” of the child (e.g., parental control has been terminated by court order).
Private nonmedical facility. If a child is living in a private non-medical institution that does not provide the child with educational or vocational training, the separation from the parent is generally considered permanent; This means that the parent’s income does not apply to the child.
Exception for institutionalized children
Deeming does not apply if all of the following criteria are met:
the child lives in a medical institution
is receiving reduced SSI payments
the child is eligible for Medicare under a state home care plan, and
that would make the child ineligible for SSI.
Contact Social Security for assistance.
The deeming process is complex and considers many factors in deciding what is and is not income. The outcome is critical in determining whether a disabled child is eligible for SSI and the amount of SSI payments the child may be entitled to. You should contact SSA to discuss how the assessment process will affect your child’s eligibility for benefits.