What is the difference between title 2 and title 16 disability

In 1972, Congress passed Title XVI of the Social Security Act. This federalized state programs for people who were aged, blind or disabled, and poor.

Table of Contents Show

Definition of Disability - Child
Overview: Payments
Living Arrangements
Income Eligibility
Unearned Income Examples
Unearned Income Exclusions
In-kind Income
Earned Income Eligibility
Suspense vs. Termination
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What is a Title 2 benefit?
What are Title XVI benefits?
What is a Title 2 claim?
What is Step 2 of disability?

To be eligible for SSI benefits, an individual must be disabled, blind, or at least 65 years old and have "limited" income and resources.
SSI benefits are not based on prior work or a family member's prior work.
SSI is financed by general funds of the U.S. Treasury. Social Security taxes withheld under the Federal Insurance Contributions Act (FICA) do not fund the SSI program.
SSI benefits are paid on the first of the month for the entire month.
In addition, to be eligible for SSI benefits, an individual must:
- be a resident of the United States, and
- not be absent from the country for more than 30 days; and
- be either a U.S. citizen or national, or in one of certain categories of eligible non-citizens

Definition of Disability - Child

A child may be eligible for SSI disability benefits beginning as early as the date of birth; there is no minimum age requirement.
To be eligible for SSI benefits, a child must be either blind or disabled.
An individual under age 18 is "disabled" if he or she has a medically determinable physical or mental impairment, which:
- results in marked and severe functional limitations; and
- can be expected to result in death; or
- has lasted or can be expected to last for a continuous period of not less than 12 months.

Overview: Payments

The SSI payment for any individual may vary by a number of factors, including:
- the maximum amount payable in the state;
- the person's living arrangement;
- the person's category of eligibility;
- other income the person may have;
- whether the income of another counts toward the person's eligibility.

Living Arrangements

Benefit amounts may vary depending on where a person lives:
- In his/her own home; or
- In someone else's household; or
- In a group care or board and care facility; or
- In a medical treatment facility; or
- In a public institution.

20 CFR 416.211, .401-.435, POMS SI 00835.100 - .170, SI 01400.000 et. seq.

Income Eligibility

Income is defined as “anything you receive in cash or in kind that you can use to meet your needs for food and shelter.”
- Income can be earned or unearned.
- Income can be in-kind in the form of shelter or food received free or at reduced cost.
- Income can be deemed from a spouse, parent, or sponsor (of an alien).
Income is counted in the month it's received for SSI income eligibility purposes.

20 CFR 416.1100 - .1147

Unearned Income Examples

Annuities, pensions and other periodic payments (such as SSDI and Unemployment)
Alimony, child support
Dividends, interest
Gifts, prizes
Rental income
Inheritances
In kind support, maintenance

20 CFR 416.1121

Unearned Income Exclusions

$20 general income exclusion.
Certain types of unearned income carry their own exclusions, e.g.:
- Gross rental income is reduced by expenses associated with that income.
- Deemed income is reduced by deductions contained within the deeming formulas.
- 1/3 child support for minors is excluded.
Examples of unearned income exclusions:
- Medical care and services
- Assistance provided in cash, or in kind, under a state, federal, local providing medical care or services (including VR.
- Income used to replace a resource (e.g. insurance proceeds)
- Income tax refunds
- Proceeds of a loan
- Bills paid for the recipient - if paid directly to the vendor (for non-shelter/food items)
- Replacement of income that was lost, stolen or destroyed
- Housing assistance such as public housing or a Section 8 voucher
- Food Stamps

20 CFR 416.1123, .1124

In-kind Income

Food or shelter-related items provided for free or at reduced cost to an SSI recipient count as in-kind income.
Shelter-related items are rent or mortgage, property taxes, heating fuel, gas, electricity, water, sewer, and garbage removal.

POMS SI 00835.465.

The One-Third Reduction (VTR)

The applicable FBR is reduced by one-third when an individual/couple lives throughout a month in another person's household and receives both food and shelter from others living in the household.

20 CFR 416.1131

The VTR applies in full or not at all.
When the VTR applies, no additional In Kind Support and Maintenance (ISM) is chargeable.

POMS SI 00835.200

The Presumed Maximum Value Rule: Countable In-Kind Income

Applies when the VTR does not apply, i.e., when recipient receives free or reduced cost food or shelter related items. 20 CFR 416.1140
Countable in-kind income is the lesser of:
- The actual value of the in-kind items; or
- 1/3 of the SSI Federal Benefit Rate plus $20. Amounts to $253.66 in 2012.

20 CFR 416.1130 - .1147

Deeming

The process of considering another person's income and/or resources to be available for meeting an SSI claimant's (or recipient's) basic need for food and shelter

Parent-to-Child Deeming
Spouse-to-Spouse Deeming
Sponsor-to-Alien Deeming
Limited to legal support obligations:
- Parent to minor child (when living together).
- Spouse to spouse (must live together).
- Sponsor to sponsored immigrant (regardless of whether living together).

20 CFR 416.1160 - .1166a

Earned Income Eligibility

Income from work, including:
- wages
- self-employment net income
- in-kind payment (e.g., free rent for work)
- royalties and honoraria
- treated much more favorably than unearned income

20 CFR 416.1110 - .1111

Basic Earned Income Deduction - Basic Formula

Gross Earned Income
- Less $65 earned income exclusion
- Less unused portion $20 general exclusion
- Divided by 2
- Equals SSI Countable earned income

20 CFR 416.1112

Resources

SSI limits the amount of countable resources that an SSI recipient can own.
Must both own and have legal access to resource or it's not countable.
An individual recipient can hold only $2000 in countable resources.
A married couple can hold only $3000 in countable resources.
A resource is cash or any other liquid asset, real estate, or personal property of the individual (or spouse) that could be converted to cash and used to meet basic needs.
Income remaining as of the 1st of the month after the month received becomes a resource.

20 CFR 416.1201 - .1266

SSI Excluded Resources

Some examples of resources that are not counted as a matter of policy:
- The home that the individual lives in.
- Household goods and personal effects.
- One automobile of any value.
- Life insurance (face value up to $1500).
- Burial funds (up to $1500); burial spaces.
- Retroactive SSI and SSDI benefit payments (excluded for 9 months from receipt).
- Resources in an SSA approved Plan for Achieving Self-Support (PASS).
- Income producing property essential to self-support .
- Earned Income Tax Credit received after 3/2/04 (excluded for 9 months).

20 CFR 416.1210

SSI Transfer of Assets Penalty

Any resource that is transferred for less than fair market value will result in a “transfer of assets penalty” causing ineligibility for a maximum of 36 months.
Spending resources to buy goods or services for yourself, at fair market value, does not cause a transfer penalty.
Individuals must keep good records when spending down to show when excess funds were spent and on what.

POMS SI 01150.000 et seq

Suspense vs. Termination

SSI ineligibility for a nondisability reason (e.g., income or resources) does not immediately result in eligibility termination; it results in suspense of benefits instead.
Suspense for 12 consecutive months results in termination.

20 CFR 416.1335

The difference is that a termination requires a reapplication to regain eligibility.

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What is a Title 2 benefit?

1. Title II benefits refers most often to two types of benefits administered by the Social Security Administration: Social Security Disability Insurance (SSDI) and Childhood Disability Benefits (CDB). CDB is also referred to as Social Security Disabled Adult Child (SSDAC) or simply “DAC”. •

What are Title XVI benefits?

Title XVI provides SSI payments to disabled individuals (including children under age 18) who have limited income and resources.

What is a Title 2 claim?

Also called Title II or Title 2 disability, the amount you receive is determined by the amount you paid in during your lifetime of employment before you were disabled. People aged 18 or over with a terminal or long-lasting medical condition and with a demonstrated work history may qualify for SSDI benefits.

What is Step 2 of disability?

Step 2: A medical screen to deny applicants without a severe impairment. The DDS denies a child applicant at step 2 if he or she does not have a medically determinable impairment or if his or her impairment(s) is considered not severe.