Does the SFC Stipend Affect SSI, SNAP or Medicaid?

The SFC stipend is the caregiver's income, not your loved one's, so it usually does not count against the Medicaid member's own SSI or Medicaid. It can still affect benefits the caregiver gets. It can also affect SNAP (food stamps) for a household that buys and cooks food together.

Each program has its own income rules. Social Security, Georgia DFCS and the IRS each look at the same payment in a different way. This guide walks through SSI, SNAP and Medicaid one at a time. It also shows what to report, and when, so a new stipend does not cause a surprise later.

If you are new to the program, start with our guide to how Structured Family Caregiving works in Georgia.

SFC stipend and benefits at a glance

• Who the stipend belongs to: the family caregiver who lives with the Medicaid member, not the member
• Loved one's SSI: Social Security treats in-home care payments as income of the person who gives the care
• Caregiver's SSI: pay for work is earned income, and part of it is ignored before SSI is reduced
• SNAP: counts all household income unless a federal rule excludes it, so report the stipend to DFCS
• Medicaid: depends on which Medicaid group a person is in; older and disabled groups use SSI-style rules
• Taxes: IRS Notice 2014-7 is a tax rule; it does not decide your SSI, SNAP or Medicaid

Does the SFC stipend affect my loved one's SSI or Medicaid eligibility?

In most cases, no. Structured Family Caregiving is a service inside Georgia's Elderly and Disabled Waiver. Georgia DCH added SFC to the waiver as a way to support a live-in family caregiver. The stipend goes to that caregiver for the work they do. It is not paid to the Medicaid member.

Social Security's own manual backs this up. When a government program pays a spouse or parent for in-home care, SSA counts that money as the caregiver's income. It is not counted as income of the person receiving care. The same manual says these payments are left out when SSA deems a spouse's or parent's income to the person on SSI.

Medicaid for older adults and people with disabilities follows SSI-style income rules, as federal Medicaid rules set out. So the same logic usually carries over. Your loved one's own income and resources are what DFCS reviews for their Medicaid.

Does SFC pay count as income for the caregiver's SSI?

Yes, if the caregiver gets SSI. SSA treats in-home care payments as income of the person who gives the care. When the caregiver is paid for work, SSI counts it as earned income.

Earned income is treated more gently than other income. SSA ignores part of your monthly earnings before it reduces your SSI. Then it counts only some of what is left. You can see the current amounts on SSA's earned income exclusion page. Your check may go down, but it does not usually drop by the full amount you earn.

When do I report SFC pay to Social Security?

SSI recipients must report monthly wages by the sixth day of the month after they are paid. You can report through SSA's online tool, the SSA Mobile Wage Reporting app, or the automated phone line. Keep every pay record from A1-GA so the numbers you report match.

Can a spouse be the paid SFC caregiver?

No. The Georgia Council on Developmental Disabilities explains that legally responsible people, such as spouses and legal guardians, cannot be paid SFC caregivers. So SFC pay does not flow between spouses. Another adult relative who lives in the home is usually the SFC caregiver. Read more about whether a spouse can be paid as a caregiver in Georgia.

Does the SFC stipend count for SNAP (food stamps) in Georgia?

It can. Federal SNAP rules say household income includes all income from any source, except items on a set list of exclusions. Pay for work is listed as earned income. Do not assume the stipend is ignored for SNAP because of how it may be treated for taxes. SNAP uses its own rules.

Two details help many families:

• Earned income deduction: SNAP subtracts a share of earned income before it works out benefits. So not every dollar of the stipend counts the same way.
• Who is in the household: a SNAP household is people who live together and usually buy and cook food together. If you buy and cook separately, you may be separate SNAP households.

There is also a special rule for older adults. A person aged 60 or older who cannot buy and cook their own meals because of a permanent disability may be treated as a separate household. This only works if the income of the others in the home stays under a federal limit. DFCS decides whether it applies.

How do I report the stipend to Georgia SNAP?

Georgia's SNAP Periodic Report Form 528 asks about changes in income, including someone starting work. You can return it by mail, in person at your county DFCS office, or online through Georgia Gateway. Send proof of income with it, such as recent pay records.

Can SFC pay affect the caregiver's own Medicaid?

It depends on which Medicaid group the caregiver is in. Federal rules split Medicaid into two kinds of income test.

• Tax-based groups (MAGI): most Medicaid groups that do not depend on age, blindness, disability or long-term care. Income is figured with federal tax rules.
• Older and disabled groups: people 65 or older, people who qualify through a disability, and people seeking long-term care. These groups use SSI-style rules instead.

If the caregiver is in a tax-based group, how the stipend is treated for taxes may matter. If the caregiver is in an older or disabled group, SSI-style rules apply, and the stipend counts as their income. In both cases, report the stipend to DFCS. Ask your caseworker how it will be counted.

How does IRS Notice 2014-7 fit in?

IRS Notice 2014-7 says certain Medicaid waiver payments to a live-in care provider may be left out of gross income for federal tax. It applies when the person receiving care lives in the caregiver's home. It is a tax rule only. It does not tell SSA or DFCS how to count the payment.

The same IRS guidance lets some caregivers choose to count these payments as earned income for the Earned Income Credit. That choice can change your tax picture. Talk to a qualified tax professional before you file.

What should you do before and after SFC pay starts?

1. 1

   List every benefit

   Write down who in the home gets SSI, SNAP or Medicaid. Note whose name each benefit is in.

2. 2

   Ask about pay records

   Ask A1-GA how you will receive pay records so you can share them with agencies.

3. 3

   Report to SSA

   If the caregiver gets SSI, report pay by the sixth day of the next month.

4. 4

   Report to DFCS

   Tell DFCS about the new income for SNAP and Medicaid, with proof.

5. 5

   Read every notice

   Open letters from SSA and DFCS right away. Ask questions before any deadline.

Keep a simple folder. These records make reporting quicker:

• Pay records for each pay period
• Your SSA and DFCS case numbers
• Copies of reports you send, with the date sent
• Any notice that changes a benefit amount
• Tax forms you receive for the year

How A1-GA Healthcare Agency helps

A1-GA Healthcare Agency is a Georgia DCH-approved Medicaid home care provider in Norcross. We have provided in-home care since 2008. Through Structured Family Caregiving, we support live-in family caregivers across metro Atlanta. SFC caregivers are paid by direct deposit every two weeks; the amount is set by the loved one's assessed level of care. Read how SFC pay is set in Georgia.

We can explain how pay is issued and help you get the pay records SSA and DFCS ask for. We cannot decide how an agency counts income, but we can help you know what to ask. Call 678-446-1832, Monday to Friday, 8am to 6pm. You can also check your eligibility online.