Just a few SSI questions - loopholes?

[Draga]

1. I am thinking about having a friend live with me as a caregiver, but she has no job. Currently my family is considering supplying her with the money necessary for rent, but not for food.

If I list her as a dependent even though we are not related or in any legally bound relationship, would my benefits increase beyond the 710 monthly limit? And would her income from my family count against any benefits I might receive?

2. In the case of a legally bound relationship, such as engagement, would her receiving assistance that is applied directly for rent weigh against my increased income from the engagement (assuming engagement as with marriage, or in this case a civil union, would actually increase benefits)?

PS the above question is not a loophole request. I almost proposed last year but ended up not since I wasn't sure if my income would suffer as she had a job, despite living apart.

3. I have a loan to pay off. If I get a job, can I have the employer pay directly into the loan account with the routing number to prevent payment reductions in my usual paycheck? I pay nearly 500 for rent and cannot afford to find a part time job if it will harm my 710 SSI income. If not, what is the maximum income I can earn from a part time job before my payments suffer the time-and-a-half penalty?

[MSer102]

You can find the answers to your questions on the Social Security website, www.ssa.gov.

There are no loopholes for SSI.

If anyone pays to cover part or all of your rent, your "needs" go down and your SSI payment can be reduced accordingly. If your family pays to cover rent for your friend, or even if your friend pays part of your rent, your own obligation ultimately goes down and your SSI payment can be reduced.

You cannot simply claim someone as a dependent. Even if you could, SSI payments apply only to the individual. There are no additional payments for relatives or dependents.

Engagement is not a legally binding relationship.

Marriage and civil unions - which are legally binding - can reduce the amount of benefits received because the spouse's income/assets are included in total assets. Marriage can reduce your "need" and reduce your benefit. There are no increased benefits for a spouse under SSI.

Any scheme to try to hide income from a job is fraud. An employer has to file all legally required documentation for your wages so there isn't any way to hide your income. Even if you could convince an employer to pay directly into a loan account for you, it doesn't undo the fact that the money is from wages or wipe out the paper trail. If you were to try that, you would have to pay back any overpayment and you might be legally prosecuted for defrauding the system as well.

The SSA website has the formula for how much your benefits will be reduced to offset income from a job.

The exception is the trial work period or Ticket to Work trial. The information for that is on the SSA website also.

The SSA website answers all of your questions.

[Rich Feingold]

Hello, Draga and MSer102. Draga - you are asking questions regarding your specific circumstance, wanting legal advice. I suggest that you meet with an attorney to discuss your plan because I cannot advise you regarding your specific situation. Based upon what you have expressed here, I would be very concerned about what you are thinking of doing.

FYi - the trial work period applies to Disability Insurance claims, not SSI claims. For SSI claims, the general rule is that after the first $85 of earnings, for every two dollars earned, one's benefits are reduced by a dollar.

Rich