Briefing Paper, Vol. 3.1 -- 1
What is Deeming .............. 1
Why is Deeming
Important .......................... 1
Frequently Asked
Questions ......................... 5
Resources and
Websites ........................... 7
Virginia Commonwealth
University
Rehabilitation Research
& Training Center
on Workplace Supports
INTRODUCTION & OVERVIEW OF
DEEMING
WHAT IS DEEMING?
Briefing Paper
Vol. 3.1 March, 2002
Virginia Commonwealth University’s
Benefits
Assistance
Resource Center
“Deeming” is the term the SSA uses to describe the process of considering
another person’s income and/or resources to be available for meeting an
SSI claimant’s (or recipient’s) basic need for food, clothing, and shelter. The
concept of deeming is based on the notion that, in some situations, those
who have a responsibility for others share their income and resources for the
benefit of these persons. These situations would include the parental relationship
to a minor child, a spouse-to-spouse relationship, and the relationship
between a sponsor and a legal alien. In these situations, SSA determines
that a certain amount of the responsible party’s income and/or resources
are “deemed” available for the welfare of the SSI claimant or recipient.
This “deemed” income and/or resources is considered when someone
first applies for SSI, and in figuring the SSI payment amount for individuals
already found eligible.
WHY IS DEEMING IMPORTANT?
1. Deemed income and/or resources can cause an SSI claimant who meets
all other SSI eligibility criteria to be found ineligible. This may occur at
the time of initial application, or at any other point at which a recipient
becomes subject to deeming rules (i.e. when a recipient marries). In such
situations an SSI recipient may clearly be eligible for SSI based on her/his
own personal income and resources, yet could be determined ineligible
for SSI due to the deemed income or resources from individuals responsible
for her/his welfare.
2. Deemed income that causes ineligibility for SSI cash payments may also
cause loss of Medicaid.
Vol. 3.1
March, 2002
2
In what situations would deeming be likely to occur?
3. The onset of deeming or changes in the amount of deemed income will affect
an SSI recipient’s payment amount. Deemed income is considered to be a
form of unearned income for SSI purposes and is applied to all SSI calculations
as such. This topic is discussed in greater detail in the VCU-BARC Briefing
Papers series on Deeming.
4. Deemed income must be considered by Benefits Specialists when performing
benefits analysis and advisement because it is part of the overall benefit status
of the consumer. As a form of income, deemed income must be considered
when calculating the effect of employment on benefits status.
PARENT-TO-CHILD DEEMING:
Parent-to-child deeming only applies to deeming of income and resources
from an ineligible parent (or parents) to an SSI eligible child below the
age of 18. Once the child reaches age 18, deeming of income and
resources from her/his parent(s) no longer applies. Generally, the child
needs to be living with her/his parent(s), but there are some exceptions
to living outside of a parent’s home when parent-to-child deeming could
apply. There are also several very limited situations in which SSA may
waive parental income and resource deeming. This is described in greater
detail in the VCU-BARC Briefing Paper on Parent-to-Child Deeming.
SPOUSE-TO-SPOUSE DEEMING:
Spouse-to-spouse deeming only applies to the deeming of income and
resources from a spouse that is not eligible for SSI to a spouse that is
eligible for SSI. If both members of a married couple are SSI eligible,
another set of rules would apply. Generally, spouse-to-spouse deeming
applies only when the two spouses live together in the same household,
but there are some exceptions. In some situations, individuals who are
not legally married may be treated as a married couple for the purposes
of deeming. See the VCU-BARC briefing Paper on Spouse-to-Spouse
deeming for more information.
SPONSOR-TO-ALIEN DEEMING:
Sponsor-to-alien deeming only applies to deeming the income and/or
resources of an ineligible individual (and the individual’s ineligible spouse
if the individual is married) who sponsors an alien’s legal entry into the
United States. Deeming applies whether or not the alien lives with the
sponsor.
OTHER DEEMING SITUATIONS:
Deeming is one of the most complex components of the SSI program.
In addition to the three common deeming situations described above,
there are also situations SSA refers to as multiple deeming, essential
person deeming, and special deeming. Multiple deeming is the most
Briefing Paper
Briefing Paper, Vol. 3.1 -- 3
In general, how does deeming work?
1. For deeming to apply, the household must contain at least one of each
category of individuals described below:
2. Deeming may begin and end at any time. It does not just apply at time of
initial application. Deeming will be applied whenever a claimant falls under
the deeming rules, and will stop whenever that person no longer is subject
to deeming.
3. The potential for and the amount of deemed income is examined during the
annual SSI re-determination process (or at any time changes in deemed
income are reported) and the SSI payment is adjusted accordingly. Deeming
may be applied retroactively in the same manner that SSA retroactively
considers all other forms of unearned or earned income. Failure to report
changes in deemed income may result in overpayment.
_ At least one “ineligible” person responsible
for the SSI recipient’s welfare who is subject
to deeming income and/or resources
to the SSI recipient. SSI broadly defines “ineligible”
as someone who is not eligible for
SSI. An SSI recipient cannot deem income
or resources to another SSI recipient. In
some deeming situations, SSA also uses the
term “ineligible” to refer to other people involved
in applications of deeming, but who
are not eligible for SSI, such as brothers and
sisters of an “eligible” SSI recipient below
the age of 18.
_ At least one “eligible” or potentially “eligible”
SSI recipient, who is currently medically
qualified to receive SSI and is also receiving
deemed income and/or resources from an
ineligible person or persons. SSI broadly
defines “eligible” as someone who is currently
receiving SSI or could be eligible for
SSI.
common and it involves situations in which multiple SSI eligible claimants
reside in a household. For example, multiple deeming would occur
if an SSI recipient were married to an ineligible spouse, and had an SSI
eligible child in the household. This situation would involve both parentto-
child and spouse-to-spouse deeming. Essential person and special
deeming are historical and dated at this point in time. Although Benefits
Specialists may encounter isolated instances of these deeming rules,
coverage of these situations is not considered useful in this document,
other than to reference the POMS section SI 01300.000.
Vol. 3.1
March, 2002
4
4. SSA does not count all income and resources of the ineligible parent(s),
spouse, or sponsor when calculating the amount of deemed income. Certain
types of income and resources are specifically excluded from deeming
determinations. These exclusions from income used in the deeming computation
do not always correspond to exclusions of an SSI recipient’s own
income. The list of exclusions is lengthy and complex. The other papers in
this series will mention the most common exclusions in each category, but
Benefits Specialists are advised to consult the POMS for specific questions.
5. SSA also applies various deductions or allocations to further reduce countable
income for deeming purposes. An allocation is a certain portion of
an ineligible parent’s or spouse’s income used to provide for the ineligible
parent’s or spouse’s own living expenses and those of any ineligible child or
children living in the household. Allocations are applied for:
6. Deemed income is treated as a form of unearned income. In deeming
situations, this income is added to any other countable earned or unearned
income attributable to the SSI recipient.
_ Ineligible parents;
_ Ineligible children in the household;
_ Sponsors of SSI eligible aliens; and
_ Dependents of sponsors of SSI eligible aliens.
How does deeming apply to Benefits Planning
Assistance and Outreach (BPAO) activities?
Deemed income calculations are extremely complex and may only be performed
by the SSA Claims Representative. Benefits Specialists should never attempt to
make deeming calculations without assistance from Social Security personnel.
Yet, it is important for Benefits Specialist to understand the basic operations of
deeming, including situations in which deeming would apply and how deemed
income is determined.
Benefits Specialist must be aware of when deemed income is at play because it
will interact with other forms of unearned income and earned income. Consideration
of deemed income must be integrated into all benefits analysis and
advisement.
Keep in mind that as a form of unearned income, deemed income may be set
aside in a Plan for Achieving Self-Support (PASS). There is no rule prohibiting
deemed income from use in a PASS. This can be a powerful tool for Benefits
Specialists to use in helping an individual to achieve career goals, while easing
the transition from dependence upon SSI to self-support. Use of deemed income
in PASS is explained in greater detail in the other VCU-BARC Briefing
Papers series on Deeming.
Briefing Paper
Briefing Paper, Vol. 3.1 -- 5
What are SSI recipients required
to report to the SSA
related to deeming?
FREQUENTLY ASKED QUESTIONS
Deeming increases the reporting responsibilities
to include all others involved in the
deeming equation. The recipient will need
to report any changes involving:
_ Address or living arrangement;
_ Household changes such as birth,
death, adoption, or other circumstance;
_ Marital status such as marriage, divorce,
separation, and resumption of
living together after a separation or divorce;
_ Attainment of age 18 by an eligible or
ineligible child in the household;
_ Attainment of age 22 by an eligible student
child or age 21 by an ineligible
student child;
_ Student status of an eligible child under
age 22 and an ineligible child under
age 21;
_ Income of all those involved in the
deeming equation including ineligible
parent(s), ineligible children in the
household, ineligible spouse, and sponsors
of aliens and their living arrangements
with spouses;
_ Resources of ineligible spouses, parents,
sponsors of aliens and their living-with
a spouse.
Does deeming apply to Social
Security Disability Insurance
(SSDI) beneficiaries
also, or are there separate
deeming rules for SSDI beneficiaries?
No, deeming does not apply to SSDI beneficiaries
and there are no separate rules
for deeming for SSDI. SSDI has no deeming
rules associated with it.
Vol. 3.1
March, 2002
6
If an SSI recipient has a representative
payee and/or
guardian is she/he subject
to deeming due to SSI’s terminology
that “Deeming is
based on the concept that,
in some situations, those who
have a responsibility for one
another share their income
and resources.”
No, the presence of a representative payee
and/or guardian for someone on SSI does
not mean that SSI recipient receives deemed
income or resources from her/his payee or
guardian. Many SSI recipients have either
or both representative payees and guardians
yet are not subject to deeming. For instance,
once a child reaches the age of 18,
regardless of whether her/his parent is the
18-year-old youth’s representative payee or
guardian, parent-to-child deeming ends at
age 18.
If an SSI recipient, receiving
deemed income from a parent,
sponsor or spouse,
chooses to go to work will
SSI and Medicaid eligibility
cease when the SSI recipient’s
check is reduced to
$0.00 due to the SSI
recipient’s wages?
No, the SSI recipient will continue to be Medicaid
and SSI “eligible” if the only reason
her/his SSI check was reduced to “$0.00”
was due to earned income at this point
under the 1619(b) work incentive provision.
Also, in this situation it’s important to note
that the Medicaid threshold earnings limit
will only be based on the SSI recipient’s
wages. The deemed income will not be included
in determining if the recipient is working
at the state threshold earnings limit. For
example, if the state threshold is $18,000
per year, and the SSI recipient is earning
$17,900 per year in gross wages plus receiving
$400 per month ($4,800 per year)
in deemed income from a spouse, the
$4,800 in deemed income is not included
in determining if the person is earning at
the state limit of $18,000. Therefore, the
person has $17,900 in earned income and
$4,800 in deemed income, for a total of
$22,700. However, he/she is still below
the state threshold because only the
$17,900 is counted for threshold determination
purposes.
Does deeming still apply if
the responsible party really
does NOT contribute to the
welfare to the claimant/recipient
by providing assistance
with food, clothing and
shelter?
Yes, it does not matter if money is actually
provided to the SSI claimant/recipient for
deeming to apply.
Briefing Paper
Briefing Paper, Vol. 3.1 -- 7
RESOURCES AND WEBSITES
Social Security’s Program
Operations Manual System
(POMS)
Section SI 01300.000 covers SSI’s day
to day operating polices for deeming
applications at the following web
address:
http://policy.ssa.gov/poms.nsf/
36f3b2ee954f0075852568c100630558/
521b907c70ac19a785256a5f000b6c7f?
OpenDocument
Code of Federal Regulations
(CFR’s):
PART 416—SUPPLEMENTAL SECURITY
INCOME FOR THE AGED,
BLIND, AND DISABLED
http://www.ssa.gov/OP_Home/cfr20/
416/416-0000.htm
§416.1160 What is deeming of
income.
http://www.ssa.gov/OP_Home/cfr20/
416/416-1160.htm
Social Security Handbook
2001:
Chapter 21 Supplemental Security
Income.
http://www.ssa.gov/OP_Home/
handbook/handbook.21/handbooktoc21.
html
2167. Deeming of income and
resources.
http://www.ssa.gov/OP_Home/
handbook/handbook.21/handbook-
2167.html
SSA BPAO Manual On-Line: http://www.ilr.cornell.edu/ped/
ssa_curriculum/
Vol. 3.1
March, 2002
8
Virginia Commonwealth University, School of Education and Department of Physical Medicine and Rehabilitation
is an equal opportunity/affirmative action institution and does not discriminate on the basis of race, gender, age,
religion, ethnic origin, or disability. If special accommodations are needed, please contact Vicki Brooke at (804)
828-1851 VOICE or (804) 828-2494 TTY. This activity is funded through a contract (#0600-00-51200) with Social
Security Administration.
Virginia Commonwealth University’s
Benefits
Assistance
Resource Center
Give us a call or e-mail us....We are the answer to your Social
Security Work Incentives questions!!!
Virginia Commonwealth University
Benefits Assistance Resource Center
P.O. Box 842011
1314 W. Main St.
Richmond, VA 23284-2011
(804) 828-1851 VOICE -- (804) 828-2494 TTY -- (804) 828-2193
FAX
http://www.vcu-barc.org
©2002 , VCU-RRTC on Workplace Supports -- Permission to Reprint
Work Incentive and Work/
Supported Employment Related
Organizations:
Virginia Commonwealth
University
http://www.ced.wvu.edu/Programs/
Community/BPAO/index.htm
http://www.worksupport.com
http://www.vcu-barc.org
http://www.vcu.edu/rrtcweb/witn/
ssi.htm
http://www.spiconnect.org
http://www.vcu.edu/rrtcweb/sec/
University of Missouri
http://www.rcep7.org/ssa/
Cornell University
http://www.ilr.cornell.edu/ped
University of Montana-Rural
Institute
http://www.ruralinstitute.umt.edu
Institute for Community Inclusion
http://wwwchildrenshospital.org/ici
Griffin-Hammis Associates, LLC
http://www.griffinhammis.com