What counts as income?

July 21, 2011 10:10 AM

YANML, YANMSocialWorker [it takes 5 weeks to get an appointment with her]: Is a housing benefit "income"?

I receive Social Security disability, but have always worked to the extent that I am able (usually 10-25 hrs per week), though have never managed to hit the cap for potentially losing benefits.

I've just been offered a live-in position, though it's still a part-time, low wage, unskilled job. Will the value of the housing+utilities be added to my modest wages (same as my last position) as "income" from this job with regards to calculating whether or not my benefits level will change?

posted by anonymous to law & government (4 answers total)

The Social Security Handbook indicates that Meals and lodging do not count as wages when they are provided to you at work for your employer's convenience (to the extent it is excluded under IRC section 119).

(IRC 119 provides that on-business-premises lodging that the employee is required to accept, for the convenience of the employer, is not gross income for tax purposes.)

So if the lodging is required as a condition of your employment - you're on call for the premises 24/7, say - then it seems like its value wouldn't count as income for SSDI.

IANYL, TINLA

Good luck and congrats on the job offer!
posted by Signed Sealed Delivered at 10:24 AM on July 21, 2011

You need a lawyer; I am not one. You could contact SSA, but I wouldn't necessarily trust their answer.

But, I believe that Signed Sealed Delivered is referencing a definition of wages for taxation purposes, not for the definition of earnings for determining whether you are engaging in "substantial gainful activity." It appears to me that the relevant rule is in 20 CFR 404.429, which states:

"Wages are defined in subpart K of this part, except that we also include the following types of wages that are excluded in subpart K:

...

Remuneration, cash and non-cash, for service as a home worker even though the cash remuneration you received is less than the amount stipulated in §404.1058(a) in a calendar year;"

which suggests that it would be included.

Three very important points:
1) I have no idea if I'm reading this correctly.
2) There are additional provisions that adjust for support that you need because of your disability. If the housing and utilities are being provided to you in part or completely because of your disability (for example because you would not be able to commute because of your disability), you should be able to exclude them.
3) Even if the total value is above the current SGA amount, still consider taking the job. You wouldn't immediately lose benefits, and might well be able to keep them for a long time. See Working While Disabled—How We Can Help, especially the section on "Social Security work incentives at a glance."

Good luck!
posted by Mr.Know-it-some at 10:48 AM on July 21, 2011

Just to be clear, the section of the Handbook referenced above is describing wages for the purpose of calculating FICA taxes. When talking about benefits, wages (or earnings) and income are two different things.

It sounds as if you are receiving only SSDI benefits based on your earnings prior to becoming disabled. In that case, the housing arrangement should not be counted against your earnings limit.

If you're receiving SSI payments (alone or in conjunction with SSDI) the housing arrangement would be considered when determining your eligibility and payment amounts for SSI.

Your social worker or a claims rep at your local SSA office should be able to answer this question over the phone; you shouldn't need to wait 5 weeks for an appointment.
posted by weebil at 10:57 AM on July 21, 2011

I'm familiar with resource located in the State of Washington, so your mileage may very on location, but the #1 resource for case managers with SSDI benefits questions around these parts is the SHIBA (Statewide Health Insurance Benefits Advisors) Program at the Insurance Commission. You can contact them directly at 1-800-562-6900 (one of those numbers I keep in my pocket all the time). I've never had a question they can't answer.
posted by unique_id at 1:37 PM on July 21, 2011