Today TaxMama® hears from Susan in the TaxQuips Forum with a well-reasoned question. “This concerns a mentally disabled 20-year-old living at home. She just started receiving money from her father’s pension, instead of Social Security Disability. At what point does contributing to the household become income. I contend that as long as you are the SS representative payee and can show that the funds are for their benefit or household expenses then it is not income.
Let me be clear on your question.
Are you talking about a member of the household (the young disabled girl) contributing her share of living costs to the household? And you are asking if the parents should pick it up as income?
Of course not.
She’s not a tenant or a roommate.
She is their daughter.
She is not paying rent, per se, she is paying her share of the groceries, utilities, and, perhaps, the special costs of her own care.
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