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  1. #1

    Question Receiving a Payment of Money While Receiving Disability Benefits

    Question about California SSIDI:

    If someone is receiving monthly SSIDI payments, but is going to receive around a few thousand dollars as part of an unrelated small claims award, can that person receive the money and put it in his or her bank account (exceeding $2000) and spend it without losing benefits? How would one ever earn something like a one-time settlement that isn't enough to support the person, without losing benefits? What is Social Security likely to do if a person receives a few thousand dollars, spends it, and then reports the income and expenditure to Social Security within the allotted 10 days? What happens if the person keeps the money in his or her bank account without spending it quickly?

    Thank you!

  2. #2
    Join Date
    Sep 2010
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    Default Re: Receiving Unrelated Large Payment and Ssidi

    First you have to tell us if you're really getting SSI or SSDI. There's no such thing as SSIDI. If you are getting SSI, you very much need to disclose that. Whether you bank it or spend it, your SSI will be (temporarily) reduced. If you don't report it, it is fraud. You can lose your benefits, be ordered to repay benefits you were not entitled, and even criminally prosecuted.

  3. #3
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    Oct 2006
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    Default Re: Receiving Unrelated Large Payment and Ssidi

    Quote Quoting flyingron
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    First you have to tell us if you're really getting SSI or SSDI. There's no such thing as SSIDI. If you are getting SSI, you very much need to disclose that. Whether you bank it or spend it, your SSI will be (temporarily) reduced. If you don't report it, it is fraud. You can lose your benefits, be ordered to repay benefits you were not entitled, and even criminally prosecuted.
    Since its a small claims award there might be some exception there, depending upon the nature of the award.

  4. #4
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    Default Re: Receiving Unrelated Large Payment and Ssidi

    You still need to report it. Certain cases might be excluded though I'm not sure how a small claims action would qualify. It's partially excludable anyhow.

  5. #5
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    Default Re: Receiving Unrelated Large Payment and Ssidi

    Quote Quoting flyingron
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    You still need to report it. Certain cases might be excluded though I'm not sure how a small claims action would qualify. It's partially excludable anyhow.
    Example: A person receiving SSI is allowed to own a car. Lets say that the car was in an accident, it was the other person's fault but the other person had no insurance and the SSI recipient had to sue in small claim court for the value of the damage. The money goes to replace the car or repair the damage.

  6. #6
    Join Date
    Jan 2009
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    California
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    Default Re: Receiving Unrelated Large Payment and Ssidi

    The SSI recipient does not get to decide if the money received is excludable or not. It needs to be reported and SSA decides if it is countable or excluded.

    And most of these kinds of income leave a paper trail that is reported to the IRS and six to twelve months it is reported to SSA and if the SSI recipient made the wrong guess on whether or not it should be counted, there can be a large overpayment assessed or checks stopped for failure to provide necessary evidence.

  7. #7

    Default Re: Receiving Unrelated Large Payment and Ssidi

    Thank you for mentioning this. The small claim actually relates to care received while under care for disability. The caregivers were required by licensing law to provide meals, yet did not for three years. The client had to spend his only available hundred dollars of SSI money on groceries even though the caregivers took money out of his check for food. SSA may permit the settlement award to not affect disability payment?

    - - - Updated - - -

    Quote Quoting flyingron
    View Post
    First you have to tell us if you're really getting SSI or SSDI. There's no such thing as SSIDI. If you are getting SSI, you very much need to disclose that. Whether you bank it or spend it, your SSI will be (temporarily) reduced. If you don't report it, it is fraud. You can lose your benefits, be ordered to repay benefits you were not entitled, and even criminally prosecuted.
    Even though the person has been on disability for years, he does not know what he receives because when he asked SSA, they told him he is on SSIDI. He asked, "you mean SSDI?" and SSA replied no. Also replied no to SSI. So what benefit is this person receiving? He had work credits when becoming disabled.

  8. #8
    Join Date
    Apr 2009
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    Default Re: Receiving Unrelated Large Payment and Ssidi

    If he had enough qualifying credits, he's on SSDI. If not, he's on SSI, that's a means-tested benefit where all income must be reported.

    Who are you in the equation.
    An intelligent hell would be better than a stupid paradise - Victor Hugo

    Do not microwave grapes

  9. #9
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    Sep 2010
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    Default Re: Receiving Unrelated Large Payment and Ssidi

    I suspect Mr. Disabled is confused. He should report the income. If he is on SSI they'll adjust his payments as the law requires. If he is on SSDI they won't. The only other thing that can be done is that you can find him a lawyer who can go over his paperwork and figure out what is going on . There is neither a federal nor California program called SSIDI.

  10. #10

    Default Re: Receiving Unrelated Large Payment and Ssidi

    Quote Quoting flyingron
    View Post
    I suspect Mr. Disabled is confused. He should report the income. If he is on SSI they'll adjust his payments as the law requires. If he is on SSDI they won't. The only other thing that can be done is that you can find him a lawyer who can go over his paperwork and figure out what is going on . There is neither a federal nor California program called SSIDI.
    Confused? Not only did the SSA administration tell him specifically that he was on SSIDI (which apparently does not exist), not SSI, not SSDI, but also the ExpertLaw policy above the create a post section says to phrase questions anonymously. Mr. Disabled was following both the SSA instruction and the ExpertLaw instruction.

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