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When does the the one-third reduction apply for SSD benefits?

For some Social Security disability recipients in Florida, their living situation might fluctuate and their circumstances vary. This is why there is what is known as the one-third reduction if the living circumstances meet the necessary criteria. The one-third reduction is known by the acronym VTR for "value of one-third reduction." The VTR will apply if a claimant or a couple spends a month living with another person and is provided with food and shelter without compensating the provider for it.

The federal benefit rate (FBR) will then be reduced by one-third. It equals one-third of the income. If there is an application of VTR, it will apply in full or it will not apply at all. If it does apply, there will be no countable in-kind support or maintenance - also known as ISM - counted in the amount. For the VTR couple rate, it will apply to both members of the couple during the month that they separate. An example would be if a couple that is eligible for VTR chooses to separate, it will still be applicable for the member of the couple who leaves the household, moves into another household, or does not provide contributions to the expenses in the household.

When basing the decision on ISM, the members will be viewed in an individual manner in the month after the month in which they separated. When the VTR is applied, there will be no income exclusions. It is possible that the VTR might be applicable if the person receives a partial amount of food and shelter from the household and a partial amount from outside the household. For VTR to apply, it is not a requirement that the person get food and shelter from the household every day of that month.

Claimants who are seeking or receive SSD benefits will frequently have enough on their mind to deal with considering federal regulations such as VTR and what the requirements are for it to apply. Having help from a lawyer experienced in assisting clients with their disability benefits every step of the way can be helpful.

Source: SSA.gov, "SI 00835.200 The One-Third Reduction Provision," accessed on April 11, 2016

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