TN 2 (05-95)

Citations:

Regulation - 20 CFR 416.1103(g)

A. Policy

Payment of an individual's bills (including supplementary medical insurance under title XVIII or other medical insurance premiums) by a third party directly to the supplier is not income. However, anything received in kind as a result of the payment is income if it is food or shelter.

B. Examples

1. Third party payment results in ISM

The daughter of Mrs. Harper, an SSI recipient, pays the grocer for food delivered to her mother. Although the payment to the grocer is not income, Mrs. Harper receives ISM in the form of food, subject to the PMV (SI 00835.300).

2. Third party payment does not result in income

Joshua Hall, an SSI recipient, is unable to pay his phone bill so his sister pays the phone company with her own money. Neither the payment to the phone company nor the telephone service received as a result of the payment is income because it is not food or shelter.

C. References

• Gifts received as a result of another's payment of bills, SI 00830.520.

• Rules on when and how to count in-kind support and maintenance (ISM) received as a result of vendor payments by a third party, SI 00835.360.

• Instructions on vendor payments which are a form of certain home energy assistance or support and maintenance assistance, SI 00830.605.