Benefits Highlights

Child Support

Whether received in cash, or in-kind, child support from an absent parent is income to a child who is an SSI recipient.

If The Eligible Child Is Under Age 18
The SSA deducts 1/3 of the value of the cash support before using the amount received in the benefit calculation formula.

Example: Fred’s mom receives $300.00 per month in child support. Fred is considered to have $200.00 in unearned income for benefit calculation purposes.

If the eligible child is under age 18, the SSA deducts 1/3 of the value of in-kind support the child receives before using the value in the benefit calculation formula. In-kind support is goods or items other than money that are given to the child or custodial parent to provide food, shelter, or clothing. Note that in-kind support is subject to the Presumed Maximum Value rule.

If The Eligible Child Is Over 18
Then the full value of cash support is considered unearned income to the eligible individual. Even if the support represents arrearages, paid to the parent, and not to the child, and the child has no access to them, they are income to the adult child.

The full value of in-kind support is considered unearned income, subject to the Presumed Maximum Value rule.

Presumed Maximum Value Rule
The presumed Maximum Value is a Cap that the SSA puts on the total value of in-kind support. It is determined by dividing the Federal Benefit Rate by 3, and adding $20.00. If the value of the in-kind goods received is higher than that amount, the SSA will only use the Presumed Maximum Value in the benefit calculation.

Example: Fred’s mom receives $600.00 worth of clothes and food in a month from Fred’s absent father. If the Federal Benefit Rate for the year of the gift were $600.00, the Presumed Maximum Value of the gift would be $220.00, or 1/3 of the FBR + $20.00.

Resources:

• SI 00830.420 - Support Payments (Child Support, Spousal Support, Alimony)
• GN 02410.200 - Garnishment - 04/22/2002
• SI 00835.300 - Presumed Maximum Value Rule
  

Terri Uttermohlen