SSDI payment cut by 1/3 after SSA discovered my living arrangement - can I appeal?

I think there's some confusion here. SSDI (Social Security Disability Insurance) payments don't typically get reduced based on living arrangements - that's an SSI (Supplemental Security Income) rule. SSI has the "in-kind support and maintenance" reduction when someone lives with family and doesn't pay market value rent. Are you sure your sister isn't receiving SSI instead of or in addition to SSDI?

Def sounds like SSI not SSDI. SSI has all those living arrangement rules, SSDI doesn't care who u live with. I went thru something similar with my brother last year. They cut his check when he moved in with me even tho he was paying me $400/month because they said market rent in our area was $850.

This is definitely an SSI issue, not SSDI. When someone receives both benefits (which is common), it can be confusing. Here's what's happening: The SSI portion of her benefits is being reduced because she's receiving what SSA calls "in-kind support and maintenance" (ISM) - basically free or reduced-cost food and shelter from your mother. This triggers up to a 1/3 reduction in the SSI portion. Your options are: 1. Appeal within 60 days (Request for Reconsideration) 2. Have your sister pay her fair share of household expenses and document it 3. Establish a formal rental agreement with your mother at fair market value Option 2 is usually easiest. Calculate total household expenses (rent/mortgage, utilities, food) and divide by number of people in household. If she pays that amount, the ISM reduction should be removed.

My cousin had the exact same problem!! SSA are RIDICULOUS about this stuff. They actually asked for bank statements to prove she was paying her share. And they kept hanging up on us when we called to explain. So frustrating!!!!!

To answer your follow-up question - yes, payments by check, bank transfer, or money order provide better documentation. Cash payments are harder to verify. Keep a written rental agreement (doesn't need to be fancy) and receipts for all payments. The SSA uses the "presumed maximum value" (PMV) rule for ISM, which in 2025 results in a maximum reduction of about $333 for individual SSI recipients when they receive both food and shelter for free. If your sister only receives partial support (just free shelter but pays for her own food, for example), the reduction might be less.

Yes, if she moved out and paid her own way completely, her SSI would return to the full amount. But that might cost more overall than staying with mom and accepting the reduction. And you're right about SSA's approach - the SSI program is designed with the assumption that people receiving benefits should be putting their benefits toward their basic needs (food and shelter). When someone else provides those needs for free or at a discount, SSA reduces the benefit because they view that as the recipient not needing that portion of the benefit. It's frustrating for families trying to help each other, but that's the program design.

I went through this exact nightmare last year. The key is DOCUMENTATION. My son's SSI was cut when he moved back home after college (he has severe autism). What worked for us was: 1. Written rental agreement signed by both parties 2. Monthly checks with "rent payment" in memo line 3. Monthly utilities split equally and documented 4. Separate food purchases (we literally kept receipts) After 3 months of this documentation and an appeal meeting, they restored his full benefit AND gave back pay. Don't give up!

No court needed! We requested a reconsideration (form SSA-561) and then had an informal meeting at the local SSA office with our documentation. The caseworker could see we had everything in order and approved it right there. Just be super organized with all your paperwork!

I tried callin SSA for 2 weeks straight about my disability review and kept getting hung up on after waiting for HOURS. system is totally broken!!!

We didn't need the agreement notarized - just signed by both parties with the date. As for taxes, my accountant had me report it as rental income, but there were offsetting expenses (utilities, home repairs, etc.) so it didn't affect our tax situation much. Your mom should probably consult with a tax professional about her specific situation, though.