The little things that may affect your Social Security Benefits AFTER you win your case
Watch out dere now! It’s PARTY TIME! You’ve applied for disability benefits. Now, after several months or several years of forms, doctor’s appointments, questions/answers, and waiting, you have FINALLY been approved. YAAAAY!! It’s amazing how people are so dedicated to doing what it takes to get their benefits. After a long and stressful process, you have finally arrived.
Now here the comes the song you’ve been waiting for, “MONEY, MONEY, MONEY!!!”.
However……………………….
Here’s the part of the process that usually throws people off. People don’t realize that there are ALOT of ‘little things’ that may effect not only HOW MUCH money you will get but it may also effect if you get any AT ALL!!!
Before you get ‘Coo Coo for Cocoa Puffs” and start counting all that “CHEDDAR” you THINK you’re going to get from the Disability process and all of that back pay, here’s a few things that you need to remember so you don’t get your feelings hurt:
1) WARRANTS. Most people know that if you’re in jail or incarcerated, you’re not entitled to benefits. What most people don’t know is that if there is a WARRANT for your arrest, this warrant has the same effect as if you were arrested. So what does that mean? That means if there is a warrant for your arrest, the Social Security Administration may not administer your benefits until you get that Warrant resolved. Get it fixed or no money for you.
2) CHILD SUPPORT. Please don’t sit over and think that just because you are disabled, you are exempt from paying your child support. Even more so, if you owe BACK child support, most states have arrangements through their Department of Revenue and the Social Security Administration to garnish some of your back pay. So if you’re thinking you’re going to get a JAMMING back pay check but you owe child support, your check may be smaller than you think.
3) WORKERS COMPENSATION. Workers Compensation cases and Social Security Administration cases tend to go hand and hand. However, in some instances, if the combined amount of mothly amount of your WC benefits and your SSA benefits is greater than 80% of your Average Current Earnings, you may see a REDUCTION in your benefits to compensate for the difference.
4) VETERANS BENEFITS. Veterans benefits fall into two separate categories: Service Connected and Non Service Connected. If you are receiving Service Connected benefits, you may not see an impact on your Disability Insurance Benefits (SSI is totally different. Go to Bullet 15 for a discussion). However, if the benefits of the VA are NON service connected, these benefits may possibly reduce the amount of DIB benefits you’re entitled to receive.
5) LONG TERM / SHORT TERM DISABILITY BENEFITS. This portion is usually very tricky because every Long Term / Short Term Disability policy is different. It’s important to ask your disability carrier what impact receiving SSA benefits will have on your LTD/STD policy. For some policies, it’s a one to one reimbursement. This reimbursements means if they were paying you during months when SSA should have been paying you, they want their money back for that period. So, for instance, if your LTD/STD carrier was paying you $1000 a month from Jan. 2008 to Jan. 2009 and you get SSA benefits retroactive from Jan. 2008 in the amount of $1200, your carrier MIGHT require a reimbursement for the same time period. Check your carrier just to make sure.
6) WORK & SSA don’t always mix. I always have at least one or two people who want to be slick and try to draw a disability check and work a little bit at the same time. The SSA does allow for what is called “A trial work period” (Please comment if you want me to discuss that in greater detail). However, after a certain period of time, SSA may wonder if you are REALLY disabled or not.
7) MEDICARE. If you’re getting Social Security Disability, you may be entitled to receive MEDICARE. Medicare is NOT free. A small portion of money is taken out of your check every month in order to pay for your medicare. If you choose to NOT take it and ask for it later, you may face a penalty.
CDR. For those of you who don’t recognize this acronmym, it’s called a CONTINUING DISABILITY REVIEW. It’s like this, Social Security doesn’t expect you to be disabled FOREVER so they are going to come back at some point in time (Usually more than once) to determine if you are STILL disabled. If you’ve gotten better, your check may STOP!
9) FEDERAL DEBTS. Recognize, if you OWE the federal government some money, they gonna GET their money. Don’t think that the government will totally excuse your debt because you’re on disability.
10) SOCIAL SECURITY FRAUD. Most people bust their butts in order to properly demonstrate that they are disabled. However, there are a FEW people out there who are trying to get their HUSTLE on! Recognize that Social Security has a department dedicated to investigating fraud. As such, if you are attempting to defraud Social Security, don’t think you won’t get caught.
11) WINFALL. Now, this particular point really applies more to Supplemental Security Income. A WINFALL is when you get a big lump sum of money unexpectantly. This money could be an inheritance, a settlement, or even the lottery. Now, you’re sitting there with a monthly check and a big sum of money and you’re thinking, BOOM, I’ll just live on my monthly SSI check and ride out with my money in the bank. Unless you have your LUMP SUM of money in some type of special needs trust, that money will be counted against your SSI. What does that mean? THis means until you spend the money down to a particular amount, SSI won’t pay you a DIME!
12) SUSPENSION / TERMINATION. Some of the things that I am addressing may result in your disability benefits being temporarily discontinued. This process is called SUSPENSION. SSA may suspend paying your benefits until you have resolved whatever issue that is effecting your case. However, this suspension is not permanent. If you have not resolved your siutation after a certain period of time, SSA may terminate your benefits. What does that mean? You have to start over!
13) REPRESENTATIVE PAYEE. This portion doesn’t have to focus so much on how much you get paid as much it focuses on WHO is responsible for your money. If you’ve had issues with money in the past, or some psychological issues, or some cognitive issues due to significant pain medications, or you’ve had problems with drugs and alcohol, SSA may determine that someone else needs to handle your money.
14) DEDICATED ACCOUNTS. These accounts are typically utilized in kids ‘ cases. These accounts are tricky because if SSA determines you need to set one up, the requirements for maintaining these accounts are very detailed. You have to be very careful as to what you spend the money.
15) SSI & everything. Most people don’t realize that SSI is a “NEED BASED PROGRAM”. In other words, if you have money coming from other sources, you don’t NEED the money from SSI (and this includes other SSA disability programs).
16) LUMP SUM MAY NOT BE LUMP SUM. Ok, here’s the tricky part. Most people don’t realize that even though you may win your case, you may not get as MUCH money as you think. Here’s an example. Say, you applied for SSI benefits on Jan. 1, 2009 for the first time but you said you had been disabled since Jan. 1, 2005. So SSA approves you. So you think you’re getting all the way back to Jan. 1, 2005, right? WRONG! SSI only pays from the date of the application so your lump sum would be from Jan. 1, 2009 to the present. Let’s use the same example but you applied under DIB. Under the DIB program, you’re entitled to go back before the date of the application. So you think you’re getting all the way back to Jan. 1, 2006, right? WRONG!! DIB only pays up to one year before the application so at best, you’re going to get money from Jan. 1, 2008 to present.
17) COUNTY REIMBURSEMENT. Some Counties, in an attempt to work with those persons who are unable to work, have arrangements with the Social Security Administration. As a result, if you find yourself receiving some type of housing assistance, SSA may automatically deduct money from your benefits (typically the SSI benefits) in order to ensure the County is reimbursed.
18) JAILS / PRISONS. As I stated above (Bullet #1), if you’re incarcerated, you are not entitled to receive SSA benefits. This point gets tricky if you find yourself being arrested because you may not have time to notify SSA. It’s important that your loved ones notify SSA as soon as possible because if you come out and you are still getting benefits, you may owe the government for the time you were incarcerated.
19) APPEALS OF PARTIALLY FAVORABLE DECISIONS. Partially Favorable Decisions or PFD are decisions by the Social Security Administration. These decisions are the governments way of saying that you are disabled but not for the length of time or time period that YOU think you are. You have the right to appeal this decision if you don’t agree. If you do, 3 things can happen. One, you can win and get the entire period you asked for in the beginning. Two, you can lose and SSA and social security will leave your benefits the way they are. Three, SSA can determine that they were wrong and that you were never entitled to benefits. This part is really tricky because if SSA thinks you should have been awarded benefits to begin with, you may have to reimburse SSA for everything they gave you.
I know I covered alot of information but I spend alot of times explaining to people why their benefits are impacted after they’ve gone through a lengthy process to get them. I hope this helps you.
Comments
16 Responses to “The little things that may affect your Social Security Benefits AFTER you win your case”
Leave a Reply
IF YOUR DAD OR MOM IS ON DISABLITY AND THEY APPLY FOR SOCIAL SECURITY DISABLITY IS THE MONEY FOR THEM AND YOUR CHILD OR JUST FOR THE PERSON THAT IS ON DISABILTY IF YES IF MOM OR DAD MOVES OUT OF THE HOUSE WILL THE MONEY BE TURNED OVER TO THERE KIDS OR THE PERSON THAT THEY ARE LIVING WITH THAT HAVE THE RIGHT OVER THE CHILD…………
First, we have to clarify what is meant by ‘dad or mom is on disability’. Disability benefits may be awarded for different disability programs. If a person is entitled to disability benefits, Social Security may award a “Family Allowance” that is provided when the individual who has been awarded has kids. Typically, this money follows the child until the child reaches the age of majority. The adult who has responsibility of the minor child is responsible for receiving the money has responsibility of ensuring that the Social Security Administration is aware of the location of the child to ensure the benefits are properly received on behalf of the child.
My mother has a SSI Hearing in Sept. How long does it generally take to make a decision? How long does it generally take to recieve the settlement? Thank you.
Vicki, that’s an awesome question and I’m going to address it tomorrow in my post in detail.
If you are recieving SSD or SSI For a mental illness, and you come into an inheretance from deceased parents, proprety, and such, will you lose your Benefits?
I HAVE A QUESTION.. IF THE FATHER OF MY CHILD IS RECEIVING SSI IS HE EXEMPT FROM PAYING CHILD SUPPORT? I KNOW THAT THEY CANT GARNISH FROM THOSE WAGES BUT DOES THAT EXEMPT HIM FROM PAYING ANY CHILD SUPPORT AT ALL? ANOTHER QUESTION, IS IT AGAINST THE LAW FOR MY DAUGHTERS FATHER, WHO IS DRAWING SSI, TO PAY CHILD SUPPORT WITH THAT MONEY?
My mom passed, I sold her home gave $ to my son, as she requested, he is 23 and does not live in our home. I rec’d $ from her IRA acct used all the $ to repay a family mbr for a debt. I did not keep any of the $ from the sale of the home or the IRA will this affect my husbands ssi ?
Thank you for your time.
This question is a fairly common one. People get asked how windfalls will affect their SSI. I’m going to address this question this week in detail and I hope this helps you.
I took out a long term disability insurance at my job. I ended up having to have surgery & received long term disability from that plan for a few months. I’m now on Social Security disability……can that LTD insurance company garnish my government check?
Every Long Term Disability policy is different. One of the things that I strongly encourage persons to do is to review the provisions of your plan to check to see if you agreed to any provisions that may impact your Social Security Disability. Alot of times, people don’t take the time to review these provisions which is why they surprised when they see the effect of their LTD benefits and their SSA benefits.
I receive SSI benefits, and I also am a payee for my nephew because my sister has been in jail and they said she could not receive his check. She is out now and his check goes direct deposit and when it is there I give the money to her. Will this effect my ssi ? I do not even see the money..it goes to her immediately
I settled a debt with a credit card and IRS recognizes it as income ( amount forgiven).
Will that effect my social security benefits?
The key to whether any SSI benefits are effected when a person is acting as the representative payee is whether the Social Security Administration recognizes the individual as the representative payee. As long as the person is recognized by the SSA as a rep payee, the money should not have an effect on the individual’s disability status.
Anytime an individual receives any type of lump sum or satisfies any type of debt, these monies may have an effect on the person’s benefits. The easiest thing to do when you have any doubt is to:
1) Keep documentations of all actions that may have affected your social security benefits
2) Contact SSA as soon as the debt or monies have been addressed.
The smartest move is to contact SSA directly so there is no confusion.
I never expected to get SSI, let alone SSDI, now I have SSDI. I am as much mentality ill as physically ill, but I had started working using my wrists recently, because my HUD landlord said I had to work more, in order to satisfy my housing requirements. My wrist pain and use was part of my disability decision.
I cannot continue and told my landlord I can’t; my pain is too great. I am going to the doctor tomorrow, because I have Medicaid now, to get cortisone shots. I want to give notice… I can’t do this job. But what if there already is a case to take away benefits? I feel trapped!
I am really paranoid. I think SSI is watching me and proving I can do what I cannot. I have already told my boss before I got the news about the award that I cannot use my wrists and began doing less, but I just can’t do the job at all. My paranoia is going to put me back into a hospital. Should I talk to Social Security? Would they even know there was a case pending?
One of the toughest parts of the social security process is the fact that people worry when they decide they have to work. SSA gets alerts whenever individuals are working based on the earnings reported by the employer. If a person is applying for SS benefits or if the person is receiving benefits, SSA should be notified in order to keep them aware of any changes in circumstances that may affect the person’s abilities to receive benefits.