How Do Living Arrangements Impact SSI Benefits?

Your benefits can be reduced by your living arrangements

Fact checked by Skylar ClarineReviewed by David KindnessFact checked by Skylar ClarineReviewed by David Kindness

When the federal government calculates how much Supplemental Security Income (SSI) you will receive, they take into account your living arrangements.

Here’s the basic math. If you live in a house or apartment that you own and pay your own food and shelter costs, you will get the full SSI benefit. Buying a home will not cause you to lose your SSI. If you live in a place owned by someone else, you’ll still get the maximum amount as long as you pay your own food and shelter costs.

Your SSI benefits may be reduced if your shelter and food costs are paid by someone else who is not a spouse. If you live in another person’s home but pay for shelter and food, your benefits will not be reduced. Depending on how much you pay for shelter and food costs, either nothing or a portion, your SSI benefits could be reduced by a maximum of one-third.

Some other circumstances can impact your SSI benefits, though. In this article, we’ll take a deeper look.

Key Takeaways

• Your living arrangements can greatly impact your level of Supplemental Security Income (SSI) benefit.
• If you live with someone and they pay more than their fair share of food and shelter costs, you may find that your SSI is reduced.
• The Social Security Administration (SSA) will only count one–third of the maximum federal SSI amount payable for a month plus $20. And they can only reduce your SSI by this amount as well.
• You don’t need to have a home to receive SSI benefits. It is possible to receive a state’s maximum SSI benefits if you are homeless.
• If you live in an institution (such as a hospital, nursing home, prison, or jail), this will also affect your SSI benefits. Generally, you will either lose your eligibility for SSI, or it will be limited to $30 a month.

Understanding Living Arrangements and SSI Benefits

In general, your living expenses do not affect the amount of SSI benefit that you receive. Your SSI benefit is based on your income, not on your expenses.

However, money for food or shelter that you receive from another person may reduce your SSI benefit. For example, if you live in a shared accommodation with another person and pay less than half of the rent, this might reduce your SSI benefit. Even if you live in your own accommodation but someone else pays for all or a portion of your housing costs (mortgage or rent) and other living costs, such as food and utilities, then your benefits may be reduced.

There are exceptions to this rule:

• If you are living with a spouse, and they pay for living or food expenses for you, this doesn’t affect your SSI benefit.
• Similarly, parents can provide this for their children without it affecting their child’s SSI benefits.
• If someone buys you items that are neither food nor shelter—such as kitchen appliances—this doesn’t count toward the total.

There are also limitations to this rule. The Social Security Administration (SSA) will count only one-third of the maximum federal SSI amount payable for a month plus $20. And they can only reduce your SSI by this amount as well.

The ABLE National Resource Center (NRC) team also points out another potential benefit of ABLE (Achieving a Better Life Experience) accounts when it comes to your living expenses: When family or friends deposit funds into an ABLE account owned by someone who receives SSI, the funds may be used to help pay for housing, utilities, and food without jeopardizing the SSI benefit.

“In many areas of the country,” the ABLE NRC team points out, “the amount [people receive in] SSI is not enough to cover housing expenses without relying upon other government assistance programs. An ABLE account can help to ensure housing in such cases.”

Important

The SSA will only count one-third of the maximum federal SSI amount payable for a month plus $20. And they can only reduce your SSI by this amount as well.

SSI Benefits If You Live in an Institution

If you live in an institution, even temporarily, this will also affect your SSI benefits. Generally, if you live in a hospital, nursing home, prison, or jail, you will either lose your eligibility for SSI or it will be limited to $30 a month. There are some exceptions, though, and some states supplement this $30 benefit.

This also applies if you are in the hospital or other medical facility for a month or more. If more than half the costs of your medical treatment in the hospital are covered by Medicaid, your benefit will be capped at $30 (plus any additional state payments) if you are in the hospital for the entire month. If you do have additional income during this month, your benefit could be reduced even more.

$1,395.35

The average monthly disability insurance for May 2024.

SSI Benefits If You Are Homeless

You don’t need to have a home to receive SSI benefits. You may receive up to the maximum SSI amount payable in your state if you are homeless. In addition, if you are receiving SSI benefits, then you may be able to receive subsidized housing.

If you live in a public shelter, you can still receive SSI benefits. These can be paid for up to six out of any nine months that you live in the shelter. You also don’t need an address to get SSI benefits—the SSA will make arrangements to pay you once you apply for SSI.

What Can Reduce Supplemental Security Income (SSI)?

Some types of assistance and living situations can reduce your monthly Supplemental Security Income (SSI) benefit. For example, if you live rent-free in a house owned by a relative, the SSA considers this to be in-kind support and maintenance, which they calculate as being worth $334.33 in 2024. Your monthly benefit could be reduced by this amount in some situations, given what assistance you receive for rent, mortgage, food, or utilities.

How Much Money Will You Get From SSI?

For 2024, the maximum possible monthly SSI payment for an individual and a couple is $943 and $1,415, respectively.

How Do I Prove My Living Arrangements?

Sometimes, the Social Security Administration (SSA) will ask you to prove your living arrangements. To do this, send or bring in current rent receipts or lease agreements and utility bills. They must show your address and the amount that you are supposed to pay. If you don’t have bills or receipts, you can use a form to declare this.

The Bottom Line

Your living arrangements can have a big impact on your level of SSI benefit. If you live with someone and they pay more than their fair share of food and shelter costs, you may find your SSI reduced.

There are limitations to this rule. If you live with a spouse and they pay for living or food expenses for you, this doesn’t affect your SSI benefit. Similarly, parents can provide this for their children without it affecting their child’s SSI benefits. If you live in an institution, you might also see your SSI reduced.

Read the original article on Investopedia.