At age 66, Linda found herself in a difficult financial position. Even though she received Supplemental Security Income (SSI), she did not have enough money to support herself and had to give up her apartment. Linda’s friend, Kate, was doing well financially and lived in a nice home. To make things easier for Linda, she moved in with Kate. At that point, Linda had never heard of the SSI One-Third Reduction Provision.
What is SSI?
It’s a program offered by the Social Security Administration (SSA) to qualified individuals. SSI is the abbreviation for Supplemental Security Income. This program pays cash benefits to applicants who:
- Have limited income,
- Have limited resources, and
- Are blind, disabled, or at least age 65.
During the application process, SSA caseworkers will review the applicant’s income and resources. Where the applicant lives also is a deciding factor.
What is the SSI One-Third Reduction Provision, and Why Does it Matter?
When an SSI beneficiary lives with another person, benefits may change. The SSI One-Third Reduction Provision allows the SSA to reduce a beneficiary’s SSI payment by one third if:
- The beneficiary lives in another person’s household throughout the month, and
- The beneficiary did not pay for the food and shelter received while living in the household.
For example, Linda is living with her friend, Kate. Although Linda receives SSI benefits, she does not give Kate any money to cover her room and board. The SSA may use the one-third reduction provision to lower Linda’s benefits.
However, note that the one-third reduction will not apply if you:
- Live in another person’s house but pay for your expenses, or
- Live in your own home and pay for your food and shelter.
For example, Linda is still living with Kate. However, Linda pays Kate a reasonable amount each month to cover part of the rent and her food costs. The SSA likely will not reduce Linda’s benefits because she does not meet the provisions of the one-third reduction provision.
Learn More About the SSI One-Third Reduction Provision When You Apply for Benefits
Talk to an attorney about your eligibility Supplemental Security Income, Social Security Disability Insurance, or California disability benefits.
The attorneys at The Law Offices of Martin Taller have more than 50 years’ legal experience, much of it involving Social Security Disability Insurance claims. We can help you with your application and any appeals that might be needed.
Call us at 714-385-8100 for a free consultation. Though our office is located in Anaheim, we assist clients throughout Southern California.