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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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My daughter is on SSI. She just got married. Her spouse is

Customer Question

My daughter is on SSI. She just got married. Her spouse is currently unemployed. His father pays his bills directly for him and gives him a small allowance of $600 a month. I know all about deeming on a monthly basis. However, I just learned that on an annual basis his father files an annual tax return for his son and characterizes all this money as rental income. His father does this to reduce his own taxes from rental income. Can I ignore this annual return and calculate the deeming based on the monthly payments made to and on behalf of the son.
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

Yes - that is what we need to do.

For tax purposes - we are using total income received during the tax year.

However - for SSI purposes - income is determined on the monthly basis.

When income received equally during the year - that makes no difference - and we simply divide annual income by 12 months.

But if income is not received evenly - then - we would need to keep track on income separately for each month.

Customer: replied 9 months ago.
This doesn't answer my question. If the father makes payments directly to vendors, it is not income. for SSI purposes. Does it matter that these payments are characterized as rental income tothe son on an annual basis?
Expert:  Lev replied 9 months ago.

If the father makes payments directly to vendors, it is not income. for SSI purposes.

That is not correct interpretation.

If the father makes rent payments directly to the landlord for the son - these payments are deemed as made to the son.

Expert:  Lev replied 9 months ago.

Moreover - if the father provides rent free dwelling for the son without any payments - that is treated as providing support as a fair rental value and that must be disclosed on teh SSI application .

That is for SSI eligibility purposes.

That is not "rental income" for the son - but that is a tax free support the son receives.

.

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