Question:
Is going to a church for free food in-kind income for purposes of SSI?
Response:
Technically, yes, until September 30, 2024.
Beneficiaries of Supplemental Security Income (SSI) are required to report any income they receive, including gifts. Their monthly SSI benefit is reduced by a dollar for every dollar they receive. In addition, gifts of food and shelter are considered to be in-kind income or, in Social Security language “in-kind support and maintenance (ISM).” As a beneficiary, you are supposed to report the monetary value of any in-kind income you receive with the same reduction of your monthly benefit amount. Fortunately, there’s a cap on the reduction for in-kind income known as the Presumed Maximum Value, which for an individual SSI beneficiary is $334 a month (in 2024). So, even if someone were paying your rent of $1,500 a month, your benefit would only be reduced by this amount.
Fortunately, the Social Security Administration is dropping the inclusion of food as in-kind support beginning October 2024. So after that, just housing will cause a reduction in the monthly SSI benefit. For those interested in history, this is part of a trend. In the past, clothing was also considered part of ISM, so that gift of a sweater at Christmas technically was supposed to have been reported to the Social Security Administration.
These are the rules on paper. In practice, however, I’ve never seen food from a food bank or church reported. On the other hand, if an SSI beneficiary is living with a family member who is providing his room and board, that must be reported.
Related Articles:
Administering Special Needs Trusts and Preserving Public Benefits
