Understanding Deemed Application

Understanding Deeming in the Social Security System

In the Social Security context, deeming has two distinct meanings, each applying to different areas of Social Security benefits: deeming in relation to filing for your Monthly Income Benefit (MIB) and deeming in relation to Social Security Disability Income allocations. Let’s break down these two concepts:

Deeming and Filing for Your Monthly Income Benefit (MIB)

When you apply for Social Security benefits, deeming refers to a process where applying for one benefit automatically means you’re considered to have applied for another. This primarily applies to retirement and spousal benefits.

How Does Deemed Filing Work?

If you’re eligible for both retirement and spousal benefits, you’re required to apply for both. Social Security will then calculate a combined benefit, which is the higher of the two amounts. Here’s how the process works:

If you qualify for retirement benefits based on your own work history, you will receive that benefit first.
If your spouse’s benefits are higher than your own, you will receive a combination of both benefits, with your spousal benefits making up the difference.

Example:

Let’s say you qualify for:

A monthly retirement benefit of $1,000
A spouse’s benefit of $1,250

With deemed filing, you would receive $1,250 per month, which is the higher of the two amounts.

Deeming Rules for Social Security Disability Income

Deeming is also used in the context of Social Security Disability, particularly when determining eligibility and payment amounts for programs like Supplemental Security Income (SSI).

In this case, deeming involves considering someone else’s income as if it were your own. This is done to assess your eligibility for benefits and determine how much you may be entitled to receive.

How Does Deeming Work in Disability Benefits?

Deeming assumes that individuals who are financially responsible for each other share their income and resources. Specifically, the income and resources of ineligible family members may be counted when determining your eligibility for SSI or other disability benefits.

Deeming rules apply to the total market value of financial investments. However, it is important to note that the actual returns or income generated from those investments are not included in the income assessment.

Who Is Subject to Deeming?

The following individuals may have their income deemed to someone else:

Ineligible Spouse: A spouse who doesn’t qualify for benefits but whose income may be considered in determining the other spouse’s eligibility.
Ineligible Parent: A parent whose income may be deemed to their child, especially if the child is applying for SSI.
Sponsor of an Alien: If you are a sponsored immigrant, the sponsor’s income may be considered.
Essential Person: A person whose income is considered when determining another individual’s eligibility for benefits.

Examples of Deeming:

If you live with a spouse who does not qualify for Social Security benefits, their income may be deemed to you for the purposes of SSI eligibility.
If you are a minor under the age of 18 and your parent is ineligible for Social Security, their income may be deemed to you.

Deeming Exceptions

There are instances where deeming may not apply or may be limited. The Secretary of the Social Security Act has the authority to decide when it would be inequitable to deem certain resources. For example: