In-Kind Income: What It Means and Its Impact on Benefits

Definition & Meaning

In-kind income refers to non-cash support received by individuals, such as food or shelter, which is provided to recipients of Supplemental Security Income (SSI). The value of this support is treated as income, meaning it can affect the amount of cash assistance a recipient receives. Specifically, an SSI recipient's monthly benefit is reduced by the total value of in-kind support received, up to a specified limit. This type of support is also known as in-kind support and maintenance (ISM).

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A person receiving SSI lives with a friend who provides them with free housing. The value of this housing is considered in-kind income and will reduce their SSI benefit accordingly.

Example 2: A recipient receives food from a local charity. The value of the food is counted as in-kind income, affecting the amount of cash assistance they receive from SSI. (hypothetical example)

State-by-state differences

State In-Kind Income Treatment
California Strictly limits the amount of in-kind income that can be excluded from SSI calculations.
Texas Allows for a higher threshold of in-kind support before it impacts SSI benefits.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Cash Income Monetary payments received by an individual. In-kind income is non-cash support, while cash income is direct monetary assistance.
Support and Maintenance General term for assistance provided to individuals. In-kind income specifically refers to the value of non-cash support.

What to do if this term applies to you

If you receive in-kind support, it's important to report this to the Social Security Administration (SSA) to ensure your benefits are calculated correctly. You can use US Legal Forms to find templates that help you manage your SSI reporting obligations. If you find the process overwhelming, consider seeking assistance from a legal professional.

Quick facts

  • In-kind income includes non-cash support like food and shelter.
  • It can reduce SSI benefits dollar for dollar.
  • Limits on the value of in-kind support vary by state.

Key takeaways

Frequently asked questions

In-kind income includes support such as food, shelter, and other non-cash assistance.