Does room and board reduce SSI benefits? Tax filing status impact?

Yes, free room and board counts as "in-kind support and maintenance" (ISM) in SSI rules, which can reduce her benefit by up to 1/3 of the Federal Benefit Rate. For 2025, that's a reduction of about $314 from the maximum $943 payment, meaning she could receive around $629/month instead. Regarding taxes, SSI recipients can still be claimed as dependents if they meet the other IRS requirements (you provide more than half their support, they live with you, etc.). You can maintain your Head of Household status as long as you provide more than half the cost of keeping up the home and your daughter qualifies as your dependent. I recommend documenting all expenses you cover for her support (medical, clothing, food portion, etc.) to demonstrate you provide over half her support for tax purposes.

When my son started getting SSI, we went through the same thing. What helped us was creating a rental agreement where he paid us a fair market rent from his SSI. That way, the SSA doesn't count it as free room and board, and he gets the full benefit amount. He pays us $600/month, and we even had the agreement notarized to make it official. For taxes, we haven't been able to claim him as a dependent anymore since he gets SSI and uses that money for his own support. We did lose Head of Household, which stinks, but at least he gets his full SSI payment.

i heard from my cousin that if u charge rent it has to be ACTUAL market rate not fake rent. SSA will check if ur charging way below normal rent for ur area. also they look at ultities too not just the rent part

If your daughter receives SSI, she needs to report her living arrangement to SSA. There are several ways room and board can affect SSI: 1. If she gets everything free (full ISM), her benefit is reduced by 1/3 2. If she pays for food OR shelter but not both, there's a different calculation 3. If she pays her fair share of household expenses, there's no reduction For the tax question - yes, you can potentially still claim her as a dependent AND keep head of household status IF she meets the qualifying relative tests. SSI benefits don't count toward the gross income test for dependency. The most important factor is whether you provide more than half her total support. I highly recommend scheduling an appointment with SSA to discuss the specific situation and documenting everything carefully. Work out all the numbers before making arrangements.

Getting through to SSA to figure this out is IMPOSSIBLE!!! I've been trying for 2 weeks to talk to someone about my son's ISM calculation and keep getting disconnected after waiting for hours. The online resources don't explain the specific situations clearly either. This system is designed to fail vulnerable people, I swear.

Thanks everyone for the advice! I'm going to look into creating a formal rental agreement at market rate and see if that makes more financial sense. I'll also need to calculate whether I still provide more than half her support once she starts receiving SSI. I'll definitely need to talk to someone at SSA to make sure we're doing everything correctly. I appreciate all the insights - this is much clearer now!

u should also ask about SNAP benefits!! my sister gets SSI and food stamps too even tho she lives with my parents

My daughter got her benefits reduced because of living with us AND THEN they said we owed back $4,500 because we didn't report the living situation right away!!! Make sure you document EVERYTHING from day 1!!!!

we got it reduced to $2800 but still had to pay it back in monthly installments taken from her check. just be super careful and report EVERYTHING. they don't tell you all the rules up front.

As someone new to navigating SSI, this thread has been incredibly helpful! I'm in a similar situation with my adult son who may be eligible for benefits. The rental agreement idea sounds smart, but I'm wondering - does SSA require any specific language or format for these agreements? And for those who've done this, do you actually deposit the rent payments in a separate account or just keep records of the transactions? I want to make sure everything looks legitimate if they ever audit the arrangement. Also, has anyone dealt with state disability services alongside SSI? I'm trying to figure out how all these programs interact.

Just wanted to add another perspective as someone who went through this process recently. One thing that really helped us was getting everything in writing from SSA about the living arrangement rules BEFORE my daughter moved in. We scheduled an in-person appointment at our local SSA office and brought a list of specific questions about ISM calculations, rental agreements, and reporting requirements. The caseworker was able to walk us through exactly how different scenarios would affect her benefits, and we got a written summary of what was discussed. This prevented any surprises later and gave us documentation if there were ever any disputes about what we were told. Also, regarding the tax situation - we consulted with a tax professional who specializes in disability benefits. It was worth the cost because the rules around SSI, dependency claims, and Head of Household status can be really complex when combined. They helped us understand exactly what documentation we'd need to keep for both SSA and IRS purposes. The whole process feels overwhelming at first, but having everything properly documented from the start makes it much smoother. Good luck with your daughter's transition to SSI!

As someone who's been helping families navigate SSI for over 10 years, I want to emphasize a few critical points that haven't been fully covered yet: 1. **Timing is everything** - You need to report the living arrangement change to SSA within 10 days of when your daughter moves in, or you risk overpayment issues like others mentioned. 2. **The "presumed maximum value" rule** - If SSA can't determine the exact value of the room and board you're providing, they'll automatically apply the full 1/3 reduction ($314 in 2025). This is why documentation is so crucial. 3. **Consider the "household goods and personal effects" exception** - Items like furniture, clothing, and personal care items that you provide don't count as ISM, so don't worry about documenting every small expense. 4. **State supplement programs** - Many states provide additional payments on top of federal SSI. These can have different rules about living arrangements, so check with your state agency too. The rental agreement approach others mentioned works, but make sure it covers ALL household expenses proportionally (utilities, internet, property taxes, maintenance) - not just rent. SSA looks at the total picture of what constitutes "fair share." Also, keep copies of EVERYTHING you submit to SSA. Their record-keeping isn't always perfect, and having your own documentation has saved many families from lengthy appeals processes.