Re: attn: Theresa Varnet

[Guest guest]

The questions you raise are complex and of concern to alot of folks. I'll do my

best to give you answers but many times the answers vary depending on the

circumstances. With that said, I'll offer you a general response but remember

" one size does not fit all "

1) Generally, the money your child contributes for food and shelter in your home

does not create a tax liability for the parent. Even if you included it as

rental income on your tax return the income would be offset by the actual

expenses. Unless you are making a profit (which few parents are) on your

child's payments toward food and shelter, there is no income tax liability.

2) If your child is paying for food and shelter in your home or if buying her

food separately, the most she can receive is $674. As most adult children eat

their meals with their family and eat a similar diet as other family members, it

is difficult to keep track of what foods are bought for the adult child alone.

If an adult child is on a special diet, keeping track of separate food purchases

may be easier but generally the food bill is simply split among all family

members with adult child paying fair share or making general contribution toward

food and shelter. The latter is often simpler for all.

3) Generally persons who live at home with other family members are not eligible

for the Link card unless the rest of the family meets the SNAP poverty

guidelines. If your daughter shares meals with the family, they look into

income/resources of other family/household members. If your child is

considered a household of one, and eats all of her meals separate from the

family, she may qualify for a Link card.

I hope that answers your questions. Terrie Varnet

________________________________

From: Lori on <llr1221@...>

IPADDUnite

Sent: Wed, April 13, 2011 1:01:53 AM

Subject: attn: Theresa Varnet

Hi Terrie,

First, let me take this opportunity to thank you for taking the time to respond

to so many of our questions.

I am really struggling with trying to figure out this whole charging rent, fair

share, or room and board issue. What I find so interesting (and frustrating) is

that I know for certain that some families have been able to retain their entire

SSI money despite the fact that they are not charging their loved one " rent " .

Some have slid through calling it " shared expenses " (despite not having to show

proof of fair share) or some were able to call it " room and board " . I do

understand the 1/3 reduction due to voluntary in-kind support. My daughter

initially had the 1/3 reduction until I informed SSI that we were charging her

rent.

You wrote:

> When you pay yourself rent from SSI funds, you are simply using part of your

>child's SSI to reimburse yourself for fair share of household expenses so it

>isn't considered rental income 'per se', merely shared living expenses.

>

I have a few questions:

1) Why do we have to claim the money we collect for " rent " on our taxes? My

husband and I don't really consider it income as the entire amount collected is

spent on other needs for my daughter.

2) My daughter's Redetermination for SSI states that she does NOT buy her food

separately from other household members. This is incorrect ... I have been

purchasing her food separately (with a monthly average total of $300 for food).

Does this matter? Should I contact SSI and show proof that she does purchase

her food separately and hope to get an increase in SSI while declining the rent

money? I'd rather not charge her rent, but want to figure out a way to retain

the full SSI check.

3) Also, if we do continue to charge my daughter " rent " would she still

qualify for the Link card via the SNAP program? I contacted them directly and

was told that because my daughter was over the age of 22 that she would qualify

for the Link card, but then I read that she would not qualify if she was a

boarder. Is that the same as someone who pays rent?

I hope that my questions made sense. I truly appreciate any response(s) you

might have.

Thank you~

Lori

On Apr 12, 2011, at 7:49 AM, Theresa Varnet wrote:

> is correct. For example if your child received a Section 8 voucher and

>each month HUD sends you a check for rent, then you would receive a 1099 for

the

>total rent rec'd. When you pay yourself rent from SSI funds, you are simply

>using part of your child's SSI to reimburse yourself for fair share of

household

>expenses so it isn't considered rental income 'per se', merely shared living

>expenses.

>

> I was out of town and didn't have time to respond to an earlier email where

>someone asked about paying for summer camp. While camp is an allowable

expense,

>if your child spends all of their SSI check on camp and doesn't save enough to

>contribute to household expenses, s/he will not get the full SSI check. So pay

>rent or fair share expense first and then use whatever is left for goods and

>services that benefit the SSI recipient. You can supplement the cost of camp

>out of your own pocket but if you supplement total food and shelter expenses,

>this will be deemed as 'inkind support' and result in a 1/3rd loss of SSI. So

>instead of receiving $674, your child will only receive $450 per month. The

>rationale being if your child is receiving inkind support, s/he does not need

>the full check because they are getting 'free' or subsidized housing from the

>parent or other relative.

>

>

> Terrie Varnet

>

>

>

> From: cmfinato <cmfinato@...>

> Subject: Re: Sheri or / re: 1099 for Rent

> IPADDUnite

> Date: Monday, April 11, 2011, 7:13 PM

>

>

>

> Lori,

>

> 1099's are issued by businesses. Social Security would not issue them. SSA is

>not paying you rent, so they would not be issuing it. 1099-Misc for rent would

>have to be issued by a business to someone (person or business) they are paying

>rent to.

>

>

>

>

>

> >

>

> > Good Afternoon Sheri and ,

>

> >

>

> > I am wondering if either of you could answer a question I have regarding the

>1099 Tax Form.

>

> >

>

> > Why doesn't Social Security issue a 1099-Misc Form (for other income or

rent)

>to those of us parents charging our disabled adults rent?

>

> >

>

> > Thanks for your help

>

> > Lori

>

> >

>

>