Deducting Wages from SSI Payments

Q An applicant to our site claims that she works and collects SSI. Because of her wages, the SSI payment is reduced. SSI lists the “maximum allowable” payment as $637, but then deducts $249.50 because of her wages, making her net monthly benefit $387.50. Should we deduct the $249.50 from the $637?

A Although the guidance provided by the HUD Occupancy Handbook 4350.3, REV-1, CHG-2, doesn't specifically address this question, it comes close enough to help out here, says affordable housing consultant Elizabeth Moreland. The Handbook says that you should count the full amount received [Exhibit 5-1]. It also says that if an agency is reducing a family's benefits to adjust for a prior overpayment (such as Social Security, SSI, TANF, or unemployment benefits), you must count the amount that's actually provided after the adjustment [Income Inclusions and Exclusions, p. 5-81]. So you should count the amount the applicant actually receives ($637) less the wage deduction ($249.50), for a balance of $387.50.

Insider Source

Elizabeth Moreland: Elizabeth Moreland Consulting Services LLC, 6907 University Ave., Ste. 196, Middleton, WI 53562; (800) 644-0390; elizabeth@taxcredit.com; http://www.housingcreditcollege.com.