So confused about backpay spending!
 

Okay this is a long and confusing one, but I hope someone can help me here. First of all I know the back pay I get for SSI and SSD, I can do what I want with that it is mine (i.e. bills, paying people back, and current bills, clothing and entertainment - what ever I want to do with it), but my question is about the back pay getting for my son because he is my dependent. I applied for him as my dependent, so now the back pay I got for him had to go into a special bank account according to bank laws and SSA laws. Well I spent a bunch of money on him the other day and that is fine it was for clothes, shelter, and entertainment. I called SSA and I don't understand them and they didn't really answer my questions.

1.) if the atty didn't get his fees out of it (he did my ssd), then do I take the money out myself or do I have to come up with the money from another source? He said he would get a portion of it.

2.) I know about taxes, I am holding a bit back for taxes.

3.) Do you have to write checks for everything or use a debit card for it, or can we use cash? Can't I withdraw cash so we can use cash for purchases and bills? I mean we have receipts. I am not understanding it. The bank I went to, the lady was all in my business about how to spend the money and what I would be taking it out for, etc... Like she would not let me take any out when we need it unless she knows what it is for. Plus she said I should use checks etc...

4.) My child is not disabled (I mean I never applied for disability for him even though he has a tic disorder), but I did not let them know that he has a disability. Anyway, but he does have dr. appts out of town and there are no buses that run where we live for school, so I have to take him and pick up, so can't I use some of the money for transportation - i.e. cheapo car?

5.) Since it is back payment, then all the money I paid for him through out all that time, can't I get get money paid back from it? or pay family back for money they paid out for him for me bc I didn't have the money.

6.) I read that if you have resources by the end of 6 months more than $2000 for all assets including money in bank then you will become ineligible for SSI/SSD. So what the heck? If we've paid up on everything then how are we to use the money? Do we go out and blow it on stuff (the back pay that is). I do not get SSI future only backpay, he gets SSI backpay and future mon. payments. his Monthly payments will be for rent (i.e. shelter) & clothing/ appts. So what do we do there? They tell you to save anything left over, but if it is more than $2000 then we will get his ssi taken away.

Sorry for all the questions, I actually had more but I will post later. Hope someone can shed light on this. I know they will audit me/ him and the money we spent from back pay, (I read that somewhere in booklet I think) and they will want reciepts for everything, won't they? It is a pain in the butt! I am ready to have a nervous break down!

Can you maybe go to the SS office with your list of questions? Or maybe set an appointment with someone there. They need to address your concerns and questions. Here is a link to the SS website.....maybe the answers are there:

www.ssa.gov

wow I didn't know it was that complicated...:eek:

I'm surprised the atty fee wasn't taken out already... they usually make sure to get that - right off the bat.:rolleyes: double check on this before you give atty any money.


I think I would call or email the SSI / SSD and ask them these questions just to be sure you get the best answers.
If you can email then the reply will be your record to look back on and you won't have to take notes like with a phone call.
Or maybe there's a booklet with the details they can send to you.

Why not ask your attorney? They should know.....and you've paid them for their expertise. :)

Hi, they took attorney fee out of the first check for my SSD, but not the SSD for my son and SSI for my back pay. I was so confused and the SSA was making me more confused. I can't use the $ for a car. But I thought my money was for whatever I wanted to use it for such as a car or whatever. I am so stressed.

It's funny you should say that because I did pay them for their expertise, but now that they got their first check, they tell me to call the SSA. Ugh! I could cry! I am more stressed now than before the money came! Then there is the question about how I owe my roomie for the half I was supposed to be paying for the mortgage/ housing, (past pay) yeh they want their money, but are afraid the SSA or whoever will turn them into the IRS and they will have to claim as income. Tech it is not income, it is what I tech borrowed from them to pay it, but instead they paid it for me. Sorry, I hope you get what I am trying to say here. See the $3800 (for housing) pay back, I can take out of the backpay for my son as my dependent, I was told bc it is for a roof over his head. It sucks that the SSD is your money but tech it is the gov'ts money. I mean they tell you there it is your money money that you earned, but ssi is not, so the ssd is whatever you want to spend it on. The girl said they don't ask you for rec'ts but you need to know what you spent the money on. Nice huh, at least it is for the kid, they never said it is that way for me.

Thanks so much!

Do you know how much SSDI paid your lawyer already ? There is a cap on how much the lawyer's cut can be.......$5100 or $5400 plus their office fees. If the lawyer already has that much, maybe you are all set with him. A phone call to his office manager should clear up if there are any outstanding charges.

I'm sorry I don't know much about SSI

he got 5300 for my ssd claim. but now i got a letter stating they r entitled to fee from my ssi backpay and another from my sons bp on my claim. they made it sound like in the beginning like it'd be 5300 for the entire thing.

I think you are confusing SSI retroactive rules with SSDI retroactive rules. SSDI for your child does not have a $2000 resource limit, does not require a special bank account with specific rules about how it is spent.

Also, if the contract with the lawyer limited his/her fee to $5300 max and it was paid from the retroactive SSDI, sounds like the max fee has been paid. It would be paid out of the other retroactive benefits if the max did not get paid from your benefits.

I am not going to comment about the rules about spending retroactive SSDI benefits for children. You can read a great deal about it at socialsecurity.gov. However, I have always found it a bit odd that parents want to be reimbursed for supporting their own children. Although benefits can be used to pay for a child's food and shelter support, I just don't personally believe that your child owes you money for anything you may have spent on them in the past. If you were working, you wouldn't be asking your child for money.

However, I also don't think a minor child should be living a better life than the parent can. So it is a hard question to answer.

Read the web site. Don't confuse programs. Call SSA. There are general guidelines, but you may not find the cut and dried answers you seek.

They told me it was like Child Support, that you use that money to buy clothes, provide shelter for the child. So, in other words, don't buy him any clothes, or buy him any toys/games out of it. Just pay for it out of your own money. He is getting that money as my dependent to help pay for things. I am not getting much at all. As someone else said on this forum somewhere, they applied for thier children and it helps a great deal (obviously for clothes/ shelter). Tech, I didn't have to apply for him, I did it bc ssa said it would help and I'd have that money for that stuff. So in otherwords too, just let the money sit there and don't do anything with it, and don't even buy a car for the child once they are 16 with it either, use my own little bit of money for it?