Hello and thank you for using Just Answer,You are correct that SSI is not taxable if that is the only income received. The SSI received by children are also not included on a parent's or grandparent's tax return.I believe the issue is what HUD perceives to be income when they offer assistance.
I will need to look into HUD regulations about SSI payments.
A list of the Part 5 income "inclusions" and "exclusions" is published in the Code of Federal Regulations at 24 CFR 5.609.
This table presents the Part 5 income inclusions as stated in the Code of Federal Regulations.
As you can see (hopefully) under #4 above The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in number 14 of Income Exclusions).
Could you put this into layman's language for me?
You should have included the SS payments in the applicatuion
Even though they are not taxable for income taxes the amounts are used to determine the assistance by HUD
So, what you are saying is that HUD can charge them more money for the home based on their SSI "income," even though Federal and State laws say they don't have to declare this as income?
They do not have to report the amounts received for income tax purposes but yes, unfortunately HUD requires the information to calculate the amount. Here is a link to the page for HUD that shows what is considered as income (not for taxes but for the program)http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/affordablehousing/training/web/calculator/definitions/part5#whose
Thank you. I will look at it now.
You are most welcome
Perhaps they can pay back in installments
So, if I understand this correctly, HUD can fine them for not disclosing the SSI income? They are poor; they barely make it. Isn't there another law that says children being cared for by a parent that is on SSDI (being cared for by disabled caregiver) fall into a different category (Auxiliary SSI I think it is called). Would that even make a difference in this case.
The rules for the members of the family in the HUD program do not change. there are exclusions to income that would not be used but you must not confuse the tax laws for income with the HUD requirements for income.
Just because the income is not taxable does not mean it is excluded for HUD purposes.
Interesting. You would think all government agencies would have to abide by the same rules/laws. This family is basically screwed! Thank you for your help.
Income tax is totally different.
Your positive rating is always thanks enough.
I see that.