TN 80 (04-99)

Citations:

Social Security Act, as amended, sections 1612(a)(2) and 1612(b)(2)(A);

20 CFR 416.1124(c)(12)

A. Definition

Income based on need (IBON) is assistance:

1. provided under a program which uses income as a factor of eligibility; and

2. funded wholly or partially by the Federal government or a nongovernmental agency (e.g., Catholic Charities or the Salvation Army, the funds are provided specifically for a formalized program whose general purpose is similar to that of the SSI program).

EXCEPTION: State supplementary payments (as defined in SI 01401.001 ff. made to refugees are not IBON (see SI 00830.175), despite involvement of Federal funds.

B. Policy Principle

Income based on need is counted as income dollar for dollar, unless it is totally excluded by statute (e.g., food stamps) or excluded under a PASS (SI 00870.001 ff.). The $20 general income exclusion (SI 00810.420) does not apply to IBON.

NOTE: If a nongovernmental agency is involved, consider whether the assistance qualifies for exclusion as HEA/SMA (SI 00830.605) or meets the definition of a social service (SI 00815.050).

C. Operating Procedures

NOTE: These instructions apply when there are no separate instructions pertaining specifically to the program in question. Check both national and regional instructions first.

1. Verify with the administering agency personnel and/or program descriptions that the assistance meets the definition of income based on need. A field office precedent established within the preceding year, or a precedent established by regional instructions may be used.

2. Verify the amount of the assistance for each month with the administering agency or through documents in the individual's possession.

3. If income based on need is paid to or on behalf of a group of people, determine one individual's income by the incremental method (i.e., the individual's income is the difference between the amount paid and the amount which would have been paid had the individual not been included).

4. Document the file with copies of the original evidence, an RC, or mention that a local precedent exists.