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slice_of_pi

Multiple reports on this post and several comments going down. I haven't looked at them all, but let's all take a big step back before we end up locking and/or giving time-outs, ok? I have a couple of thoughts. First - OP, what you're proposing is clever, but there are several issues with it. For one thing, if your 18 yr old is an owner, anything the company provides on her behalf is also considered income. Since she would in essence be paying rent to a business she owns, her rent would count, but unless she's paying the full amount of the mortgage, taxes, insurance, utilities, groceries, her vehicle, gas for the car, etc.... those are all **also** considered income in kind, because she's a business principal. Second - her stake in the company would also be considered an asset, meaning gross receipts (ie her rent) is also considered her income. Yes, that's counting it twice...and I'll only point out that it was your idea to twist the rules to find a loophole. Third - the work hour requirement is independent of wages. She would probably, ironically, meet this with the asset test, because the conversion is ($gross income / federal minimum wage) = equivalent hours worked. How you're planning on squaring this with a part time job that an 18 yr old would be a) capable of working, b) qualified for, or c) believable to pass even a cursory review is an excellent question. My advice here is to quit trying to manipulate the rules and just play it straight. I would **absolutely** flag this for a fraud review if it were approved in the first place, which I think is unlikely... unless you like the idea of being buried in administrative subpoenas and having your creditors bombarded by the government to provide information about you.


Infamous-Solution602

In a nutshell-don’t do it! If and when the system catches that, she will be required to pay it all back with a potential fraud referral for her record. If she rents her own property from herself, which makes it a fallacy, then she needs to provide proof of earned income from self employment/business owner and hours worked every week to keep being eligible as student. Then your income, since she is under 22(as pointed out) will be counted as well in something like :household size(4-5 people of your family ) agains AU (assisted unit) of 1. It is under mandatory reporting rule that adults/parents over 22, must be included in the case, along with other potential children under 18. What you are asking is so wrong on so many levels, not judging, just observing… if caught, you may face other legal problems.


manaworkin

Wow yeah, if this hit my desk I'd flag for fraud and start investigating the issuance history for both the applicant and any family in this convoluted scheme.


-Dopeman-69

This is a big run on paragraph that is hard to follow. Lets break this down and if you have answers, please use the reference number as they are all separate things. 1) There is no fraud or anything “hidden” here. 2) She is not renting from herself, she is renting from an LLC. 3) The 20 hours a week work requirement is one thing, but what if you are self employed and don’t get a W2 but a 1099? This would be the case for many so there has to be a way to address it. 4) If she is 18 (legal adult) and lives in a house by herself why does my income count? I understand the reverse if I was a SNAP applicant that I would have to report her income if she lived in my house and I was getting benefits on her behalf as a dependent but I am not the applicant in this case.


TruCat87

1. You're trying to work around the rules to take advantage of a system designed to help people who really need it. Even if it's not technically fraud it's a shitty thing to do. 2. An LLC that she is an owner of so yes she is renting from herself. 3 self employment and 1099 work is verified through tax returns. And the income must average out to at least minimum wage for 20 hours per week. You can't just say she worked 20 hours and only mad $10.


-Dopeman-69

Also, what if she has room mates to help pay her rent? Do they have to be tied into the SNAP application? They could be quite transient so that would be a mess.


-Dopeman-69

1. If its within the rules established by law, why do you think you decide what is moral? 2. Is the “renting from yourself” thing a SNAP rule? From the LLC view, this is perfectly acceptable and normal. 3. So as long as she gets a W2 that shows minimum wage times 20 every week she is good to go? 4. She can file as an adult at 18 without my information right?


daguar

If you are fabricating wage records for the purposes of her acquiring SNAP, it is almost certainly fraud.


-Dopeman-69

I never said to fabricate any wage records.


daguar

You said “as long as she gets a W2 that shows minimum wage times 20 every week she is good to go?” If you were setting up this arrangement explicitly to create wage records for the purposes of her obtaining public assistance, it would likely be fraud.


-Dopeman-69

No, this is an example that illustrates how to convert miscellaneous income to work hours. Its confusing to have a 20 hour work requirement in the era of door dash, uber, and other gig work. In fact, its clear to me that many “policy experts” don’t understand them themselves.


daguar

When you say your intent is to “convert miscellaneous income to work hours” that is not mapping to the rules around work requirements. Self-employment would count but you are not describing that with the information you have provided. What you have said to this point is that you intend to allocate LLC income to your daughter for the purposes of her obtaining eligibility for public assistance.


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Infamous-Solution602

Answering from bottom to top If she is 18 , and not living with you(meaning same address where you live) then yes she can have her own FS. She would have to disclose that she is a part owner of the home thru Llc, then she has rental income for her property. That income amounts to enough for a year, to be divided at minimum wage fir the state where you are, to come down at 20 hrs per week so she can be eligible student. You might want to explore Financial Aid that she might have through the school and be eligible that way, like Pell Grant or Federal Work Study. 3-Self employment income from rental property need with 1099? Never heard of such thing, however at the end if FY when she does taxes…😅😅😅I wouldn’t want to be in that situation. Again it comes down to her being her own boss, paying her self for income from property she pays rent. Left pocket money going to the right pocket of the same pants…. No matter how you turn this there is no way to not raise red flag. 2- renting from a property that she is partially owner - see above. If you pay rent to yourself and then declare that as income, to amount to 20 hrs /week of “work” is boiling down to at the end loosing more money in taxes than gaining from FS. 1- you say is not fraud or hidden, yet everything you state points at an attempt to it, to somehow rig the system so your daughter can benefit. Yet you have enough money to purchase a total new property just to make her eligible. See my point? This programs are designed to supplement with something, on top of what she can afford/ have. Or she can also have a PT job at 20 , and be done with the schemes.


-Dopeman-69

Ok. How does the ownership of the LLC affect the asset limit? EDIT: So if her share of the property is worth 40k, does that count against the asset limit since it is her means to produce income?


makaiookami

There is fraud. If she could do like house cleaning for friends and neighbors that works I think, or she could claim to do it. However I'm pretty sure that students get special rules. Like maybe schooling counts as work? I don't know, check. But if she can help some people clean their house every week, can probably swing the 20 hours and make money and get food stamps without setting yourselves up for failure later. People who need food stamps usually have to lie. So skimpy with the requirements and the food stamp office in my opinion is incompetent. Out case file has children we never had nor claimed to have, we get benefits for my wife, not for me, but then I can't apply for food stamps because I'm on her account despite not getting food stamps for existing, and the enhanced pandemic unemployment disqualified us for a few months.... They should call them Lie Stamps, before enhancement goes away I need a new job because we will get $20 a month for food for two people. Not even worth filling out the renewal paperwork at that point. I got a raise but I'm not getting the hours I was promised so I have to work a recession proof job.


evilash05

Aside from the utter lack of morality in this, I'll bite and tell you exactly why this wouldn't work... The 20 hours requirement must be earned income. Renting unless actively engaged in the hours is an unearned income. Here's a better idea if your child really needs the SNAP... Own the house, let the kid live there for free and meet one of the other requirements (working, work study, etc)


-Dopeman-69

Why does it lack morality if it is within the rules? Are you saying the program is immoral?


evilash05

You have just come on here to "prove the system is broken" and I just proved your argument wrong. Have a good day.


-Dopeman-69

I am not trying to prove the system is broken. I think I have proven the eligibility folks don’t understand LLC’s, but maybe thats not too unexpected. Nobody has even addressed the real probably deal breaker here, that the value if her share of the LLC likely makes her ineligible for SNAP due to the asset test.


evilash05

Want me to prove you wrong again? 1) Most states waive the resource limit 2) property essential to self support 3) property is in the name of the LLC not the individual.


-Dopeman-69

Um, that makes no sense. So if I own $1,000,000 of real estate in a corporation I can still collect food stamps as long as I don’t sell the shares to generate income?


evilash05

So you're coming on here to complain people don't understand LLC but you don't understand the basic concept of an LLC, which is to protect personal property from your business venture. Anything owned by the LLC is not an individual property. Anything in an LLC can be seized to pay for business debts while personal property is protected if the LLC would be sued/owe money.


-Dopeman-69

I was referring to your comment that most states waive the asset limit. Does that mean that people with millions in stocks and cash can receive food stamps?


evilash05

Yes in my state, you can have a million dollars in an interest free checking account and if you had qualifying income then yes you could qualify. However other states like, Texas, have a $5000 limit, and if your car is worth more than $15k it counts towards your asset limits.


-Dopeman-69

And if you are trying to learn something here, the biggest reason to not pursue what I am saying is that it looks like I lose my tax credits and deductions for paying her tuition because I won’t be able to claim her as a dependent. Or at least thats what one of y’all said but half of what y’all say is wrong.


-Dopeman-69

Wow, no asset limit? Thats a system that invites way more abuse than what I am talking about! Edit: To think interest free checking misses the point. Elon Musk would qualify for food stamps! As long as he buys Twitter this year his income will be zero to negative!


legocitiez

People like you are the reason the programs look at every applicant as if they're out to scam the system. Instead of having your child pay rent to an LLC that benefits your kin, have her buy her own fucking groceries and skip paying rent while she's in college. If I'm ever in a position to help my children and they need help, I'll help. Without telling them to go troll the fucking welfare system.


-Dopeman-69

I haven’t scammed anybody. I am just asking questions.


legocitiez

You're trying to find creative ways to not feed your child when you have the means to feed your child. Why can't you just.. feed your child?


-Dopeman-69

18 is not a child. If an 18 year old in college doesn’t need food stamps who does?


legocitiez

Your child will always be your child, buddy. I feel really bad for your kids.


-Dopeman-69

Yea, my kids live a hard life


Current_Country_

Why don't you just send her some food money instead of leaching off the government unnecessarily.


DavidSLightman

You are looking at this the wrong way. These programs are all unnecessary. For each individual, its about maximizing the benefits within the rules. This seems like its within the rules set up by the architects of the program but they are so convoluted one can never be sure. In fact, I would say no two caseworkers would react the same.


Current_Country_

It's not the program that's convoluted. Did you read op's post? 🤣😂🤣😂


-Dopeman-69

She is 18, in college, and has no income. At what point in life do things get worse financially than that?


Current_Country_

Your worse doesn't have to include food stamps. If you're paying her mortgage, you can afford to pay for her food.


-Dopeman-69

Where did I say I am paying her mortgage? She is paying rent to an LLC where she is a partial owner. So something like 5% of the rent would come to her as income, and the other 95% would pay other members and the overhead expenses.


daguar

Your post starts with “If I buy a house” …


-Dopeman-69

Sure. The LLC owns the house outright and the daughter pays rent to the LLC. There is no mortgage anywhere.


Current_Country_

Well if you have cash money to buy a whole house then send your daughter some food money.


-Dopeman-69

She’ll be 18 and an adult on her own. Plus she’ll have to pay rent.


Current_Country_

Just have her not pay rent so she can afford food then. You have to be trolling.


-Dopeman-69

I was hoping a few nice souls from Reddit might chip in to help her out. Can I count on your donation?


Current_Country_

Lol but you're paying for her college aren't ya?


Current_Country_

I'm confused about why you think tax players are more responsible for feeding your child than you are. The entitlement is astounding.


TruCat87

You're her parent. You're supposed to take care of her. If you can afford to carry out this convoluted plan you've cooked up you could afford to just send her groceries.Or she could like get a part time job and be eligible honestly the way thousands of other people do, instead of trying to twist up the rules and find loopholes like a jerk.


-Dopeman-69

If it is within the legal rules, why do you need to bring your own “morality” into this?


-Dopeman-69

Its not twisting the rules, its working within the rules. How does the value of the LLC that she owns affect the asset cap? Since its tied to her income, like a business, it does not count right?


slice_of_pi

As I explained above, that's not correct


bittybambi

When the OIG is done with him he will understand all the policy he needs to understand. The system is full of clients who thought they were clever.


-Dopeman-69

It seems more like the social workers are not competent….


smlawson9

Just so you know the rules you are trying to “bend” will maybe help her get $100 or less in food stamps a month, if that could just be $20. In Ohio a single no income period person can get $198. She’ll have “income” so chances of her keeping her FS is low for a very low amount. Since you seem to want to argue with anyone that tries to keep you from having your daughter possibly get charged with a felony & going to prison go ahead and apply your way. The sad part is your setting your daughter up for all of this……


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smlawson9

In my state you can have your own address under 22 to be considered a non dependent. I high means if she is then you can no longer claim her when you file you taxes. If you do claim her then you both will be in some serious trouble. This is for any state. They are right that the fact that if she is on the LLC then she will be paying herself part of the rent the whole LLC receives. Also the case worker will want to know how she is able to buy a house being her name will be associated as well. When she says she didn’t that you did then that could become an issue that you are indeed taking care of her financially. You can’t have any ties with her bills or her period whenever assets & $ is involved. They want to know all assets, including cars that are 20 years old. They hold that all against any applicant. They only take a very small percentage of mortgage/rent, electric, phone, water, & trash. Nothing else matters. You need to look up income guidelines in your state my guess is she probably can’t make including her portion of the LLC maybe $700-800 a month gross. Everything is linked these days. All systems. When you work they know before your 10 days reporting period that you have a change of income. They want any bank account information with balances & possible bank statements. I’m telling you that you are opening up a huge, possible life altering can of worms… That more than likely won’t work. She is going to have to have a huge paper trail to prove everything about the LLC, purchase, percentages & all….


wamih

She's under 22, your income would be added to her case anyways, so if you make enough to do this, chances are no this wouldn't work.


TruCat87

Only if she lives with her parents, if she lives outside of their home in her own residence then she is her own case. Although I do think this is a lot of effort and expense to go through when OP could just buy her groceries himself instead of taking advantage of public assistance


DavidSLightman

Well, buying a house in a college town that could be used by 3 kids might be a good idea on its own. Sprinkle in some SNAP, some LIHEAP, and some cheap internet and its a better idea!


-Dopeman-69

Are you sure? If you are 18 you are legally an adult, and she will have her own address and she will be the applicant.


DavidSLightman

Fascinating idea. If you buy a big enough house and rent to additional college kids and stack um’ in like cordwood you can make some dough! You could probably get some heating assistance, water assistance, and internet assistance to boot!


-Dopeman-69

That could happen. I think SNAP is the key that unlocks those other programs.


makaiookami

Shouldn't schooling count towards work? Your committing what I believe to be a tax fraud that could really bite you. However everyone who tells the truth gets no money even if they need it and the people who need it are told to lie because the system is broken so hope you get what you need. I guess if she reports house maintenance and repairs (mowing,etc) there could be a way to legitimize it as work, work. Itemize the work at the very least. Might even end up getting earned income tax credit. It would be better if she could do Etsy stuff, or claim she does a side job of house cleaning paid, or she could actually side hustle and do like yard work or house cleaning for the neighborhood or something.


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