Citations : Social Security Act, as amended, sections 1612(a)(2)(E) Meaning of Income and 1612(b)(9) Exclusions From Income; 20 Code of Federal Regulations 416.1121(b) Alimony and support payments and 416.1124(c)(11) Other unearned income we do not count.
A child support payment is a payment from a parent to meet the child's needs for food and shelter. Child support can be in cash or in-kind; it can be voluntary or court ordered.
An absent parent is a parent whose parental rights are not legally severed or is a stepparent currently married to a parent of the child who does not live in the same household as the child. We determine household status on the first of the month. If the periods of living together are brief and the child remains independent or under the care and control of another person, agency, institution, or is living in the home of another, usually consider the parent absent unless such parent retains parental responsibility and control. Do not consider a parent absent if such parent is away due to employment, intends to resume living with the child, and retains parental control and responsibility. Do not consider an “absent” military deemor “absent” for purposes of the child support exclusion. For more information on deeming from an “absent” military deemor, see SI 01310.170. Do not consider a child (or parent) who is a boarding student in an educational facility absent. NOTE : This definition of an absent parent does not apply when determining “temporary absence” for deeming purposes. When determining temporary absence from a deeming household, refer to SI 01310.165.
under age 22 and a student regularly attending school, college, or training that is designed to prepare for a paying job.
For more information on SSI child status, see SI 00501.010.
A student is a child who is under age 22 and regularly attending school. For more information on SSI student child status, see SI 00501.020.
An adult child is a number holder’s son or daughter who no longer meets the definition of a child (e.g., is now head of a household). For more information on SSI child status, see SI 00501.010.
A custodial parent is a parent who has care, guardianship, or custody of the child.
An “other person” is an individual, other than a parent who has care, guardianship, or custody of the child.
A child support arrearage payment is a payment that was due, but not paid in a timely manner for the appropriate period. The payment is paid to comply with an unfulfilled past obligation to support the child.
To treat child support payments made on behalf of an SSI child:
When an eligible child receives child support payments (including arrearage payments), the payments are unearned income to the child. For information on an SSI child, see SI 00501.010. NOTE : Child support continues to be unearned income to the child in situations where the child and the parent, to whom the support is paid to, no longer live in the same household.
When an absent parent makes a child support payment for an eligible child, exclude one-third of the amount. This exclusion does not apply when determining the income of ineligible children in a deeming computation.
For information on the ineligible child allocation, see SI 01310.110D.
To treat child-support payments made on behalf of a deceased SSI child:
Child support payments (including arrearage payments) made on behalf of a deceased SSI child are unearned income to the parent or other person who receives them.
The one-third child support exclusion does not apply.Exclude one-third of the amount of child support that an eligible child receives in the form of food or shelter from an absent parent as income. The remaining two-thirds are in-kind support and maintenance (ISM) subject to the presumed maximum value (PMV).
For more information on computing ISM from outside a household, see SI 00835.350C.
EXAMPLE: Absent parent provides ISM to child: Joe Smith's father provides all Joe’s food as part of the child support agreement. In November 2011, Joe's father gives food with a value of $600.
Exclude $200 of that amount from income. The remaining $400 is subject to the 2011 PMV, which is $224.66. Charge (the lesser of the two) $224.66 to Joe as ISM in the month of November.
Any in-kind child-support payment that is not for food or shelter (e.g., for health insurance) is not income to the child. However, deduct court-ordered support payments made for any purpose (e.g., for health insurance) from the deemor's income.
Exclude the income used by an ineligible spouse, ineligible parent, ineligible child, or eligible alien to make court-ordered or Title IV-D support payments. Deduct the court-ordered or Title IV-D support payments from the parent's income prior to deeming by selecting deductions on the parent’s applicable Income Selection page (e.g., Child Support page) and enter the amount of the support on the page. The system deducts the support amount from the ineligible parent’s countable income.
For more information on excluding the income used by specific deemors to make support payments, see SI 01320.145.
The child may leave the home of the custodial parent, or begin living with an absent parent, or the absent parent may begin living in the household of the child and custodial parent. For purposes of deeming, change of status is effective with the month following the month the change occurs. For more information on deeming policies when a child’s household changes, see SI 01320.550.
If the child lives in a household and receives child support payments from a parent in that same household, do not consider the parent absent. The support is unearned income (type “SS”) to the child. The one-third exclusion does not apply to these payments because the one-third child support exclusion only applies to payments from an absent parent. On the SSI Claims System Child Support page, “Court ordered-parent in household” and the system does not apply the one-third child support exclusion.
EXAMPLE 1: A parent who was absent moves into household with eligible child and custodial parent
A mother who was absent moves into the same household with the father and their children. She continues to give the father a child support payment each week as required by the court order.
The payments are type “SS” unearned income to the children. The one-third exclusion does not apply to these payments. On the Child Support page, select “Court ordered-parent in household” as the “Type” of income the person receives from the drop-down list. Begin deeming the mother's income in the month following the month the parent and children begin living in the same household. Deduct the court-ordered child support from the mother’s income prior to deeming by selecting deductions on the mother’s applicable income page and enter the amount of the court-ordered child support on the Child Support page. The system does not include the amount of the court-ordered child support in the deeming computation.
EXAMPLE 2: Child lives with both parents and father contributes to household
Both parents and their children live in the same household. The father works and gives the mother a money each week to help run the household and pay for the family's needs.
Do not charge income to the mother or children due to this exchange of money. However, include the support amount in the father's deemed income.
EXAMPLE 3: Child lives with both parents and mother contributes to household
Both parents and the child live in the same household. The mother works and uses her income to pay the rent, utilities, other bills, and provide for her family's other needs.
The amount of money the mother spends to support her family is included in her income that is subject to deeming. Do not charge the mother’s contribution as support income to the father or child.
When a child is in the custody of the State (i.e., in foster care), and the State collects child support and keeps the money, the support payment from the parent is not income to the child. Consider the support payment a reimbursement to the State for the foster care payment. Also, child support collected and retained by the State, as reimbursement for prior Temporary Assistance for Needy Families (TANF) payments, is not income to the child.
A custodial parent or other person may ask the child support enforcement agency to collect child support payments from the absent parent, and the child support agency may give the custodial parent or other person the support they collect. Treat the support the same as if the non-custodial parent sends the support payment directly to the custodial parent or other person.
For more information on the treatment of child support as income, see SI 00830.420B.1. in this section.
When a parent or other person receives current child support payments for an adult child after the adult child stops meeting the definition of a child, the income belongs to the adult child. The support payments are income to the adult child even if he or she does not live with or receive any of the child support payment from the parent or other person. Such support payments are not subject to the SSI one-third child support exclusion.
When a parent or other person receives current child support payments on behalf of a deceased SSI adult child, consider it income to the parent or other person who receives the payments. Support payments are not subject to the SSI one-third child support exclusion.
Child support arrearage payments received on behalf of an adult child are not subject to the SSI one-third child support exclusion. The policy on the treatment of child support arrearage payments made on behalf of an adult child changed as a result of a court-approved settlement agreement. Effective June 1, 2002, when a parent or other person receives a child support arrearage payment on behalf of an adult child:
Any amount of that payment that the parent or other person receives and does not give to the adult child is unearned income to the parent or other person in the month they receive it. The portion of the arrearage payment the parent or other person retains is not income to the adult child and does not affect the adult child's SSI eligibility or payment.
Any amount of that payment that the parent or other person gives to the adult child is unearned income to the adult child in the month given, not income to the parent or other person.
Any payment that a parent or other person receives on behalf of a deceased SSI adult child is unearned income to the parent or other person in the month they receive the payment.
Any child support arrearage payment an adult child receives directly from the absent parent is unearned income to the adult child.
EXAMPLE: Child support paid for an adult child
A non-custodial father pays child support on behalf of his 19-year old disabled son who lives in his own apartment. Consider the son an adult child. The former custodial mother receives a $100 child support payment. The $100 child support payment consists of both a current payment of $75 and $25 to pay for an arrearage. The mother keeps the child support arrearage payment of $25, and gives her son his current $75 child support payment.
If the mother is SSI eligible or a deemor, the arrearage payment is her income. The current child support payment of $75 is type “SS” unearned income to the adult child. The one-third child support exclusion does not apply.
Prior to June 1, 2002, if a parent or other person received child support arrearage payments on behalf of an adult child, the income belongs to the adult child. The support payments are income to the child even if he or she does not live with or receive any of the child support payment from the parent or other person.
Child support arrearage payments are not subject to the one-third exclusion.