TN 71 (01-15)

Citations:

Regulations 20 CFR 416.1218

The SSA Digital Library (has a link to the National Auto Dealers Association (NADA) Online for verification of the value of cars (SSI resources).

A. Background of automobile exclusion

Based on a change in the regulations effective March 9, 2005, the resource exclusion for automobiles changed. For resource determinations beginning April 2005, we exclude completely one automobile per household regardless of value if the recipient or couple or a member of the recipient's or couple's household uses it for transportation.

B. Definitions for automobile exclusion

1. Automobile

For Supplemental Security Income (SSI) purposes, “automobile” means any registered or unregistered vehicle used for transportation. Vehicles used for transportation include but are not limited to cars, trucks, motorcycles, boats, snowmobiles, animal-drawn vehicles, and even animals.

A temporarily broken down vehicle normally used for transportation meets the definition of an automobile. For more on inoperable automobiles see SI 01130.200E.3.

2. Current Market Value (CMV)

The CMV of an automobile is the average price an automobile of that particular year, make, model and condition will sell for on the open market (to a private recipient) in the particular geographic area involved.

3. Equity Value (EV)

The EV of an automobile is the price it can sell for on the open market (to a private recipient) in the particular geographic area involved, minus any encumbrances. For the definition of an encumbrance see SI 01110.400A.1.c. and to determine equity value see SI 01140.042.

C. Automobile exclusion policy beginning April 2005

1. Exclusion of one automobile regardless of value

Exclude one automobile per household, regardless of the value, if the eligible recipient or couple or a member of the eligible recipient's or couple's household uses the automobile for transportation.

ASSUMPTION: Assume someone in the household uses the automobile for transportation, absent evidence to the contrary.

2. How to apply the exclusion when a recipient and/or deemor owns more than one automobile

When a recipient or deemor own more than one automobile, apply the exclusion as follows:

1. Apply the exclusion in the manner most advantageous to the recipient.

2. Apply the total exclusion to the automobile with the greatest equity value if the eligible recipient or couple or deemors own more than one automobile used for transportation of the eligible recipient/couple or a member of the eligible recipient's or /couple's household.

3. The equity value of any automobile, other than the one wholly excluded per SI 01130.200C.1., is a resource when:

   • An eligible recipient, couple or deemor owns it; and

   • You cannot exclude it under another provision (for example, property essential to self-support, plan to achieve self-support) or conditional benefits do not apply.

3. Vehicles that do not meet the definition of an automobile

The following vehicles do not meet the definition of an automobile:

• A vehicle that has been junked; and

• A vehicle used only as a recreational vehicle (for example, a boat used on weekends for pleasure).

The equity value of the vehicle is a resource.

NOTE: The personal effects exclusion does not apply to such vehicles. For more on personal effects see SI 01130.430.

D. Automobile exclusion policy before April 2005

1. Exclusion regardless of value

Exclude one automobile regardless of value if for the recipient or a member of the recipient's household it is:

• necessary for employment;

• necessary for the treatment of a specific or regular medical problem;

• modified for operation by, or the transportation of, a handicapped person; or

• necessary because of climate, terrain, distance or similar factors, for the performance of essential daily activities.

2. Alternate automobile exclusion up to $4,500 of CMV

One automobile maybe excluded based on its CMV rather than its use.

• If you did not exclude an automobile per SI 01130.200D.1., exclude up to $4,500 of the CMV of one automobile.

• If the CMV exceeds $4,500, count the excess as a resource unless you can exclude the automobile under some other provision (for example, property essential to self-support or a plan to achieve self-support, or conditional benefits).

NOTE: Equity value is not a consideration for purposes of this exclusion.

3. Other automobiles

Any automobile a recipient/couple owns is a resource in the amount of its equity value if:

• It is owned in addition to the one wholly or partly excluded per SI 01130.200D.1. or SI 01130.200D.2.; and

• It is not excludable under another provision (for example, property essential to self-support, a plan to achieve self-support) or conditional benefits are not applicable.

4. Application of the exclusion

The exclusion applies in the manner most advantageous to the recipient.

5. Examples

a. Totally excluding one of two cars

If it is possible to exclude one of two cars as necessary for medical treatment, and the other will be a countable resource, apply the exclusion to the car with the greatest equity value regardless of which car the recipient uses to obtain medical treatment.

b. Not totally excluding either car, but excluding one up to $4,500 of CMV

The recipient owns two cars. One has a CMV of $8,000 and an equity value of $500. The other paid off car has a CMV and equity value of $2,500. Neither car is totally excludable based on use. Applying the $4,500 exclusion to the car with the $8,000 CMV would leave $3,500 of the CMV of that car as a countable resource. It also would leave the $2,500 equity value of the other car as a countable resource.

Applying the $4,500 exclusion to the car with the $2,500 CMV excludes that car entirely, leaving only the $500 equity value of the other car to be included in countable resources. Therefore, the exclusion applies to the car with the $2,500 CMV.

6. Vehicles that do not meet the definition of an automobile

The following vehicles do not meet the definition of an automobile:

• A vehicle that has been junked; and

• A vehicle used only as a recreational vehicle (for example, a boat used on weekends for pleasure).

The equity value of such a vehicle is a resource.

NOTE: The personal effects exclusion does not apply to such vehicles. For more on excluding personal effects see SI 01130.430.

E. Procedure for applying the automobile exclusion during initial claims for months beginning April 2005

April 2005 is the first month for which the policy change affects the resource determination because resources are determined as of the first moment of the month.

NOTE: The March 2005 resource determination is based on the prior rules as described in SI 01130.200D.

1. MSSICS claim

a. Recipient owns and uses one automobile for transportation

Exclude the total value of the automobile. Complete the Vehicle (RVEH) page in Modernized Supplemental Security Income Claims System (MSSICS) following the instructions in MSOM INTRANETSSI 013.007.

b. Recipient owns but does not use one automobile for transportation

Charge the equity value of the automobile as a resource unless the automobile falls under the provisions for property essential to self-support or plan to achieve self-support, or unless conditional benefits apply. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

REMINDER: A temporarily broken down vehicle normally used for transportation meets the definition of an automobile. For more on inoperable automobiles see SI 01130.200E.3.

c. Recipient owns two or more automobiles

When a recipient owns two or more automobiles, apply the following rules:

• If the recipient uses one automobile for transportation, totally exclude the value of that automobile. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

• If the recipient uses more than one automobile for transportation, totally exclude the automobile with the greatest equity value. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

• If you cannot exclude an automobile for transportation reasons, consider excluding it under the provisions for property essential to self-support or plan to achieve self-support, or consider if conditional benefits apply.

• If the automobile does not qualify for exclusion, count the equity value of the automobile(s) as a resource. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

2. Non-MSSICS claims

a. Recipient owns and uses one automobile for transportation

Exclude the total value of the automobile. Complete the paper application as follows:

• SSA-8000-BK (Application for Supplemental Security Income) Completion

  Question 40(a) – Answer “yes.”

  Question 40(b)

• Fill in the owner's name and description of the automobile. Insert “TRANSPORTATION” in the “USED FOR” block.

• Cross through the blocks entitled “CURRENT MARKET VALUE” and “AMOUNT OWED.”

• SSA-8010-BK Completion

  Question 7(a) – Answer “yes.”

  Question 7(b)

• Fill in the owner's name and description of the automobile.

• Insert “TRANSPORTATION” in the “USED FOR” block.

• Cross through blocks entitled “EQUIPPED FOR HANDICAPPED,” “CURRENT MARKET VALUE,” and “AMOUNT OWED.”

• SSA-8001-BK Completion

  Question 26(a)

• Cross through the block entitled “Dollar Value You Own” and “Dollar Value Spouse or Parents Own.”

• Complete the rest of the question.

b. Recipient owns but does not use one automobile for transportation

Charge the equity value of the automobile as a resource if you are not excluding it under the provisions for property essential to self-support or plan to achieve self-support, or unless conditional benefits apply.

REMINDER: A temporarily broken down vehicle normally used for transportation meets the definition of an automobile. For more on inoperable automobiles see SI 01130.200E.3.

Complete the paper forms as follows:

• SSA-8000-BK Completion

  Question 40(a) – Answer “yes.”

  Question 40(b)

• Fill in the owner's name and description of the automobile.

• Insert “OTHER” in the block entitled “USED FOR.”

• Complete the blocks for “CURRENT MARKET VALUE” and “AMOUNT OWED” and determine the equity value of the automobile.

• SSA-8010-BK Completion

  Question 7(a) – Answer “yes.”

  Question 7(b)

• Fill in the owner's name and description of the automobile.

• Insert “OTHER” in the block “USED FOR” and cross through “EQUIPPED FOR HANDICAPPED.”

• Complete the blocks for “CURRENT MARKET VALUE” and “AMOUNT OWED” and determine the equity value of the automobile.

• SSA 8001-BK Completion – Complete Question 26(a) in its entirety.

c. Recipient owns two or more automobiles

When a recipient owns two or more automobiles, apply the following rules:

• If only one automobile is used for transportation, totally exclude the value of that automobile. Follow the form completion instructions in SI 01130.200E.2.a for the excluded automobile.

• If a recipient is using more than one automobile for transportation, totally exclude the automobile with the greatest equity value. Follow the form completion instructions in SI 01130.200E.2.a for the excluded automobile.

• If you cannot exclude any automobile for transportation reasons, consider excluding it under the provisions for property essential to self-support, plan to achieve self-support, or consider if conditional benefits apply.

• If the automobile does not qualify for the exclusion, count the equity value of the automobile(s) as a resource. For any non-excluded automobile follow the form completion instructions in SI 01130.200E.2.b.

3. Automobile is temporarily inoperable

If a recipient, who owns an automobile that is temporarily inoperable (for example, needs repairs), alleges:

a. He or she will use the automobile for transportation

• Within 12 calendar months after the month of adjudication, exclude the total value of the automobile. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

Example of use within 12 months:

The month of adjudication is January, and the recipient alleges the automobile will be in use for transportation by the following January. Exclude the total value of the automobile.

NOTE: It is not necessary to recontact the recipient to determine if the automobile became operable within the 12-month period. Assume the automobile did become operable.

• More than 12 calendar months after the month of adjudication, count the equity value of the automobile as a resource. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

b. He or she will not use the automobile for transportation

Charge the equity value of the automobile as a resource. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

F. Procedure for applying the automobile exclusion during posteligibility for months beginning April 2005

For months beginning April 2005:

• Apply the automobile exclusion the same as for initial claims, as stated in SI 01130.200E.

• Do not redevelop the exclusion of an automobile that has already been determined to be totally excluded based on usage unless you become aware of a change relating to the automobile exclusion (for example, the recipient uses a different automobile for transportation, the recipient purchases or disposes of an automobile).

• For the period prior to April 2005, do not redevelop the CMV of an automobile up to $4,500 of its CMV unless the CMV in excess of $4,500 affects eligibility.

• If you excluded an automobile up to $4,500 of its CMV prior to April 2005, it will be necessary to redevelop the automobile beginning April 2005 to determine if it is totally excludable under the “used for transportation” exclusion. If the automobile cannot be totally excluded based on its use, the equity value must be developed because the “$4,500 of CMV” exclusion does not exist beginning in April 2005.

EXCEPTION: For an antique or collectible automobile you previously excluded up to $4,500 of CMV, always redevelop the collector value.

1. MSSICS redeterminations

a. Recipient owns and uses one automobile for transportation

Exclude the total value of the automobile. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

b. Recipient owns but does not use the one automobile for transportation

Charge the equity value of the automobile as a resource unless you can exclude it under the provisions for property essential to self-support or plan to achieve self-support, or unless conditional benefits apply. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

REMINDER: A temporarily broken down vehicle normally used for transportation meets the definition of an automobile. For more on inoperable automobiles see SI 01130.200E.3.

c. Recipient owns two or more automobiles

Apply the following rules when the recipient owns more than one automobile:

• If a recipient uses only one automobile for transportation, totally exclude the value of that automobile. For the excluded automobile complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

• If a recipient uses more than one automobile for transportation, totally exclude the automobile with the greatest equity value. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007. If a recipient has an automobile that is not excludable for transportation reasons, consider excluding it under the provisions for property essential to self-support or a plan to achieve self-support, or consider if conditional benefits apply.

• If the automobile does not qualify for exclusion, count the equity value of the automobile(s) as a resource. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007 for any non-excluded automobile(s).

2. Non-MSSICS redeterminations

If you are using a paper redetermination form, take the following action when completing the redetermination.

a. Recipient owns and uses one automobile for transportation

Exclude the total value of the automobile.

1. SSA-8203-BK (Statement for Determining Continuing Eligibility for Supplemental Security Income Payments) Completion - Question 18

   • Complete the blocks entitled “OWNER'S NAME,” “YEAR OF VEHICLE,” and “MAKE AND MODEL.”

   • Cross through the blocks entitled “CURRENT MARKET VALUE” and “HOW MUCH IS OWED ON VEHICLE(S).”

   • List “transportation” as the main purpose for using the vehicle.

2. SSA-8010-BK (enter name of form here) Completion

   Follow the same form completion instructions in SI 01130.200E.2.

b. Recipient owns but does not use the one automobile for transportation

Consider the possibility of excluding the automobile under the provisions for property essential to self-support or a plan to achieve self-support, or consider if conditional benefits apply. If you cannot exclude the automobile under any of these provisions, count the equity value of the automobile as a resource.

REMINDER: temporarily broken down vehicle normally used for transportation meets the definition of an automobile. For more on inoperable automobiles see SI 01130.200E.3.

1. SSA-8203-BK Completion - Question 18

   • Complete the “OWNER'S NAME,” “YEAR OF VEHICLE,” and “MAKE AND MODEL.”

   • Complete the “CURRENT MARKET VALUE” block, the “HOW MUCH IS OWED ON THE VEHICLE” block, and the “MAIN PURPOSE FOR WHICH THE VEHICLE(S) IS USED” block, and then determine the equity value.

   • List “not used for transportation” as the main purpose for using vehicle.

2. SSA-8010-BK (enter name of form here) Completion

   Follow the same form completion instructions in SI 01130.200E.2.

c. Recipient owns two or more automobiles

Follow the instructions in SI 01130.200E.2.c. for the treatment of multiple automobiles and document each vehicle on the paper form as appropriate.

G. Procedure for determining ownership and value of an automobile

1. How to establish ownership of an automobile

To establish ownership of an automobile:

• Accept the recipient's allegation of sole or joint ownership of an automobile and his or her proportionate share of joint ownership, absent evidence to the contrary.

• Resolve any questions by examining the title, the current year's registration, or the bill of sale.

• For non-MSSICS cases, record the document examined on the EVID or the relevant facts on a report of contact.

• For MSSICS cases, record the document examined on the EVID or the relevant facts on the File Documentation Notes portion of the Vehicle page.

2. How to determine the CMV of an automobile using N.A.D.A. Online

If you have to develop the value of an automobile, get a description of the automobile that is complete enough to enable you to find it on N.A.D.A. Online (for example, 1992 Chevrolet Nova, four cylinder, two door).

The Average Trade-In Value provided by N.A.D.A. Online is the CMV used for resource determinations. If the Trade-In Value is unavailable from the site, obtain the Trade-In Value from a disinterested knowledgeable source. For additional information on SSA Purchase of Evidence, see GN 00301.210.

NOTE: If the automobile is more than 20 but less than 25 years old, use the value shown for it at 20 years old.

NOTE: Do not use N.A.D.A. Online Rough Trade-In Value or Clean Trade-In Value as the CMV for resource determinations unless the recipient presents clear evidence indicating consideration in one of those categories.

3. N.A.D.A. Online

Only use N.A.D.A. Online guide available through the SSA Digital Library site to determine the CMV of an automobile.

To access N.A.D.A. Online in MSSICS, select the N.A.D.A. link above the monthly values table in the Vehicle page. For non-MSSICS cases, access N.A.D.A. Online on the SSA Digital Library by following these steps:

4. How to rebut the N.A.D.A. Online value

a. When a rebuttal applies

If the N.A.D.A. Online Trade-In Value affects eligibility and the recipient disagrees with it, give him or her the opportunity to rebut it.

b. What is acceptable rebuttal evidence

An example of rebuttal evidence can be a written appraisal of an automobile's CMV obtained by the recipient at his or her own cost from a disinterested knowledgeable source, such as a used car or truck dealer or an automobile insurance company.

5. When you cannot use N.A.D.A. Online

Do not use the N.A.D.A. Online when:

• N.A.D.A. Online does not list the make or model of the vehicle.

• N.A.D.A. Online does not show a value for the listed make and/or model of the vehicle.

• The vehicle is a car or truck that is 25 or more years old.

NOTE: Do not use N.A.D.A. Online when the vehicle is a non-motorized vehicle (for example, an animal or animal-drawn vehicle).

6. How to determine the CMV of an automobile when use of N.A.D.A. Online is not appropriate

When use of N.A.D.A. Online is not appropriate:

• Obtain a CMV estimate from a disinterested knowledgeable source, when one of the situations in SI 01130.200G.5. exists or other circumstances make use of N.A.D.A. Online inappropriate. Purchasing an estimate at SSA's expense is approvable per GN 00301.210 and GN 00301.215.

• Provide the contact with a complete description of the vehicle, including year, make, model, number of doors, equipment, etc. Assume the vehicle is in average condition, absent evidence to the contrary (i.e., the vehicle is damaged or is in mint condition).

• Inform the contact that the estimate should show what the vehicle would sell for on the open market in the geographic area covered by local media.

Obtain an estimate by telephone and document the file as follows:

• In MSSICS cases, input the estimate as the verified value on the Vehicles page) and document the pertinent facts of the estimate on the EVID screen or on the Vehicles page File Documentation notes. (For documentation on the Vehicle page see MSOM INTRANETSSI 013.007. For more information on the EVID screen see MSOM EVID 001.003)

• In non-MSSICS cases, document the estimate on the Evidence Screen per MSOM EVID 001.003 or a Form SSA-5002 (Report of Contact) showing all the pertinent facts.

H. References for automobile exclusion

GN 00301.210 SSA Purchase of Evidence

GN 00301.286 Electronic Evidence Documentation and Retention

SI 00870.001 Plans to Achieve Self-Support – Overview

SI 01110.400 What Values Apply to Resources

SI 01130.430 Household Goods, Personal Effects and Other Personal Property

SI 01130.500 Property Essential to Self-Support – Overview

SI 01140.042 Determining Equity Value

SI 01150.200 Conditional Benefits in General

MSOM INTRANETSSI 013.007 Vehicle