An SSI recipient resided in an apartment complex where she collected rent from the other tenants on behalf of the property owner. As a result of this arrangement, the property owner reduced her rent from $550 per month to $350 per month. As a condition of receiving this rent reduction, she was required to accept lodging in one of the property owner’s apartments.

When social security learned of the arrangement, they lowered the person’s monthly SSI benefit amount, on the grounds that the $200 per month was rent reduction was in-kind unearned income. She appealed.

After a hearing, the Administrative Law Judge held that the $200 rent reduction was earned income, subject to the exceptions for earned income.

However, the Appeals Council reversed this decision on appeal, holding that because the $200 rent reduction was not wages for Social Security purposes, it did not count as earned income for purposes of the SSI program. Because the $200 value of lodging was in-kind unearned income, the presumed value rule set forth in the regulations applied in calculating the claimant’s monthly SSI benefit amount.

See Social Security Ruling (SSR) 99-4a.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.