Why are so many people getting two-thirds of the maximum SSI amount?

One of the most common solutions I’m asked to share is how to get Social Security to pay for full SSI amount to an individual.

Most often, the issue is very straight forward. And it all depends on how the employee at Social Security asks the questions during the initial SSI application interview.

Of course, the day before an individuals turns 18, they are a child and part of the family household.

And the next day they are a legal adult and a household of one. But they might be a household with $0.

So the question is “who is paying for them to have housing on that first day of their 18th year?”

Unless the parents kicked them out, they are the default source of housing and the free housing seen as a resource (aka income) for the individual.

Social Security shows an example of how they see this here. If someone is getting $627 of $941 (2023 SSI max), then their living situation has been documented if they are getting free food and housing.

The next scenarios described by Social Security may or may not effect the benefits. In this case, Social Security asks for lots of household info – who all lives in the house, who much is the food, shelter, and utilities. Then they divide these costs equally.

• If the individual receiving SSI is paying their fair share, then they aren’t getting any resources for free. SSI will not be reduced.
• If the individual receiving SSI is paying less than their fair share, then they are getting the portion they are not paying for free = it is seen as a resource and their SSI will be adjusted by this “income”.

Instead of letting Social Security determine your resource and delve into the extended household finances, the simplest solution is a rental agreement. Put in writing how much the individual will pay to live in the household, just as you would for anyone who rented property that you own. This assigns a value that the individual can afford to a specific location, and is not intertwined with the finances of the property as a whole or the other property tenants.

Providing a written document to Social Security is always the best way to ensure the correct information is on file, and not up to interpretation based on verbal communication.

Here’s a sample rental agreement.