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Understanding Deemed Income for SSI

If you live with a spouse or parent, their income may affect your SSI payment through "deeming." Understanding how this works helps you plan and avoid surprises.

In this article, we'll cover:

  1. What deemed income is
  2. Spousal deeming
  3. Parental deeming
  4. Calculations and exclusions

1. What Deemed Income Is

Definition: Deeming is when SSA counts part of someone else's income as if it were yours for SSI purposes.

Why it exists:

  • SSI is need-based
  • Family should support you first
  • Shared household resources
  • Reduces SSI accordingly

Who is affected:

  • SSI recipients living with spouse
  • SSI children living with parents
  • Not just your income matters
  • Household income counts

When it applies:

  • Living together
  • Specific relationships only
  • Spouse or parent
  • Not roommates or other relatives

2. Spousal Deeming

When it applies:

  • You're on SSI
  • Living with your spouse
  • Spouse not on SSI
  • Their income counts toward you

Basic process:

  1. Start with spouse's total income
  2. Subtract certain exclusions
  3. Subtract allocation for spouse's living expenses
  4. Remaining is "deemed" to you
  5. Reduces your SSI

Exclusions from spouse's income:

  • $65 of earned income (plus $20)
  • Work expenses
  • Income used for certain purposes
  • Some types of income excluded

Allocation for spouse:

  • Amount set aside for spouse's own needs
  • Based on FBR difference
  • Remainder is deemed to you
  • Protects some of spouse's income

Important: Only income above spouse's own needs is deemed to you. Not their entire income.

3. Parental Deeming

When it applies:

  • Child under 18 on SSI
  • Living with parent(s)
  • Parent not on SSI
  • Their income counts toward child

Basic process:

  1. Parents' total income
  2. Subtract exclusions
  3. Subtract allocation for parents
  4. Subtract allocation for other children
  5. Remainder deemed to child

Allocations:

  • Amount for parents' needs
  • Amount for each non-SSI child
  • Protects family's basic needs
  • Only excess is deemed

When it ends:

  • Child turns 18
  • Moves out of parents' home
  • Parental rights terminated
  • Different living arrangements

4. Calculations and Exclusions

Income exclusions (not deemed):

  • SNAP benefits
  • Housing assistance
  • Need-based assistance
  • Some other specific types

For earned income:

  • $65 plus $20 general exclusion
  • For the person whose income is deemed
  • Reduces countable amount
  • Then deeming calculated

Example (spousal deeming):

  • Spouse earns $2,000/month
  • Minus $65 + $20 = $1,915
  • Minus allocation (~$967) = $948
  • $948 deemed to SSI spouse
  • SSI reduced by $948

Example (parental deeming):

  • Parents earn $3,000/month combined
  • After exclusions: $2,915
  • Parent allocation: $1,450
  • Remaining: $1,465
  • Allocation for non-SSI child: $484
  • Deemed to SSI child: $981

These are simplified examples:

  • Actual calculations more complex
  • Many variables
  • Contact SSA for your specific situation
  • Or use benefits calculator

Reducing Deeming Impact

What you can do:

  • Understand the calculation
  • Maximize exclusions
  • Document all deductions
  • Report accurately

Cannot avoid:

  • Living with spouse/parent
  • Deeming applies if you do
  • Only way to avoid is separate households
  • Consider costs vs. benefits

ABLE accounts:

  • Contributions don't count as income
  • May help with family planning
  • Won't affect deeming directly
  • But helps with resources

What Doesn't Count as Deeming

Not subject to deeming:

  • Roommate's income
  • Sibling's income (if adults)
  • Other relatives
  • Friends you live with

These count differently:

  • May be In-Kind Support instead
  • Different calculation
  • Not "deeming" per se
  • Still affects SSI possibly

How Purple Helps

  • See all income clearly
  • Understand your payments
  • Track changes
  • Plan around deeming
  • Simple financial management

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