Today we will be addressing a question that came to us through our interactive disability forum. If you have a question regarding any part of the Social Security Disability application process, leave it in the comment section below so that we can answer it in a future blog post. Today’s question is:
How should a representative payee spend a child's SSI benefits?
As the representative payee for your child’s Supplemental Security Income (SSI) payments, you are responsible for using the funds appropriately and for keeping accurate records of how the payments are spent.
Standard monthly benefit payments can be managed and used in certain ways, while significant back payments of retroactive benefits must be handled differently.
Dedicated Accounts for SSI Back Payments
If your child has recently been approved for SSI and is due a large back payment of benefits, then you will be required to open a dedicated bank account for the funds and the use of those funds will be subject to very specific restrictions.
- The dedicated account must be a separate checking, savings, or money market account from the one that is used for standard monthly SSI benefits.
- The funds in the account must be maintained separately from all other funds, including monthly benefit deposits from SSI.
- The back payment funds cannot be used to purchase stocks, bonds, CDs, or any other form of secured or unsecured investment.
- The account must be registered showing your child as the owner of the funds and any and all interest that may be accrued on the account.
Funds from your child’s dedicated account can be spent only on the following:
- medical treatment and related expenses
- educational expenses, including job and skills training costs
- special equipment, skilled nursing assistance, home modification costs, and rehab or therapy expenses
Legal fees due to the attorney that assisted in your child’s SSI claim can also be paid from this account.
Regular Monthly Benefit Payments
Your child’s regular monthly SSI payments can be deposited into your standard savings, checking, or money market account, but you will still need to accurately track the manner in which those funds are spent and report that information to the SSA as required.
Monthly benefit payments can be spent on everyday living expenses and daily support needs. These can include any and all of the items listed under the authorized Dedicated Account spending, as well as the following:
- food
- clothing
- shelter
- insurance costs
- medical care
- child care expenses
- furnishing
- personal comfort items
Keep in mind that the above listed items can only be used for the child earning the benefits.
Any monthly benefits that are not needed to pay for your child’s current-month expenses must be saved for future use. Many people find the easiest method for keeping track of their child’s benefit balance and spending details is to have a separate checking and/or savings account specifically for monthly SSI payments.
Periodic Spending Checks
The SSA conducts periodic checks on the spending practices of representative payees. Typically these reviews happen once a year. However, the SSA may require reporting as often as every three months for the duration of your child’s SSI eligibility.
If you aren’t sure if you are spending your child’s benefit payments correctly, you should contact the SSA representative who handles his or her claim. If a child’s payments are spent incorrectly, the representative payee may be required to reimburse any funds that were misused.
Please leave any Social Security Disability questions in the comment section below so that we can answer them in a future blog post!
Blog comments
My son gets disability pay. I
My son gets disability pay. I was wondering if he gets a say on what he wants to spend the money on. For example, a monitor for his computer or can I say no and spend money on things like bills or food?
In reply to My son gets disability pay. I by Jarod (not verified)
Hi Jarod,
Hi Jarod,
It's really up to you how much say your child has in making decisions with his benefit money, however you may want to take a look at this pamphlet regarding the guidelines for payees:
http://www.ssa.gov/pubs/EN-05-10076.pdf
In reply to My son gets disability pay. I by Jarod (not verified)
Hi Jarod,
Hi Jarod,
It's really up to you how much say your child has in making decisions with his benefit money, however you may want to take a look at this pamphlet regarding the guidelines for payees:
http://www.ssa.gov/pubs/EN-05-10076.pdf
Someone was helping me good
Someone was helping me good and clothing, medical supplies and whatever else that was needed with the understanding that if and when my son SSI was approved I would repay my debt to them. Can some of the back pay be used to repay that debit
In reply to Someone was helping me good by Anonymous (not verified)
Hi there,
Hi there,
While you may be able to do so, it may be a good idea to contact your local SSA office regarding what you may pay back regarding SSI benefits. You can find some guidelines regarding use of child SSI benefit funds here:
http://www.ssa.gov/pubs/EN-05-10076.pdf
My 20 year old autistic
My 20 year old autistic daughter who lives with us received her first monthly SSI payment today. The payment amount says it is $735 minus $245 for the value of food and shelter for a total payment of $490 per month. I'm confused - we are providing the food and shelter why is it considered her income? Also if it is considered the value of food and shelter should set up a monthly withdrawal to our account for food and shelter or basically room and board payments to us as parents? $245 seems low for monthly room and board.
In reply to My 20 year old autistic by John (not verified)
Hi John,
Hi John,
The SSA can reduce benefits in part for food and shelter provided to a beneficiary with $264.33 being the maximum reduction. However you may not be able to to reimburse yourself from your daughter's check for providing food and shelter.
My oldest son is autostic and
My oldest son is autostic and is now getting ssi. He is getting back pay of about $5,000. We currently live in an apartment that doesn't have a yard, or a place for him to play. We are wanting to buy a home, to give him a better life. My question is, can we use a portion of the back pay as a down payment, and also purchase a camera security system (he's a wonderer and have issues with him unlocking doors even with the guardian locks and getting outside in the middle of the night.)
In reply to My oldest son is autostic and by Curious Dad (not verified)
Hello,
Hello,
Funds from your child’s dedicated account can be spent only on the following:
-Medical treatment and related expenses
-Educational expenses, including job and skills training costs
-Special equipment, skilled nursing assistance, home modification costs, and rehab or therapy expenses
You can use your child's monthly benefit payments can be spent on everyday living expenses and daily support needs. The security system may qualify for that and the down payment for the house may also qualify for that.
Best Wishes,
Eric
I need help i have my
I need help i have my disabled child have fir a year the mother is his ssi payee she has not had him or seen him but will not send him abpenny spends it on drugs her boyfried jail visit what can i do about it can i have her arrested
In reply to I need help i have my by Bryan rowland (not verified)
Hi Bryan,
Hi Bryan,
You should go to your local SSA office ASAP to get the benefits switched to your bank account.
what should I do if I know
what should I do if I know that a Mother is spending her daughters Social Security Disability on getting herself new Tattoo's and not cheap work ,I am talking 2 to 300 dollar Tattoos and also on makeup, hair dyes and other things and only getting the bare needs of her daughter.
In reply to what should I do if I know by Caren Robinson (not verified)
Hi Caren,
Hi Caren,
I am very sorry to hear that. You can report this as fraud to the SSA.
TY for this site. My daughter
TY for this site. My daughter is 6 In kindergarten in Moore County NC. ( She has special needs Been in ITP and Now in IEP)She has has A.D.H.D & Anxiety since she was 2, Also been in 3 Daycare's and kicked out of 2. She has been on medication and seeing a DR since age 2. I am her mom age 30 and I have P.T.S.D , A.D.H.D & Severe anxiety. Her Father passed in his sleep on the morning of our wedding I woke up to find he was not breathing ( I was 2 months pregnant ). Ever since that day life has been Hard to deal with. I have an appointment over the phone tomorrow with SSA to try and get her benefits. I also am in need of S.S.D.I . Can't keep a Job and provide for my family. I'm embarrased and I don't know if I can apply for myself because we both have special needs. Since 2010 Ive saw a Psyciatrist every month and been to 2 psycologist for half of that time. thankyou for any information and help. If U need more info please ask me. I'm anxiuos about this interview and I didn't want to have to do this but We need help can't pay bills , Sometimes I don't eat si she can. I don't have transpotation and we live In a place that ia all country. Lord help
In reply to TY for this site. My daughter by Gabrielle (not verified)
Hi Gabrielle,
Hi Gabrielle,
I am very sorry to hear that. She might qualify for SSI! You may as well. You can learn more and potentially schedule an appointment to apply by calling the SSA toll-free at 1-800-772-1213.
I will be receiving a large
I will be receiving a large amount of money for my son, whose father is on disability. Can I use the back pay to cover the expenses that I already paid for and the father was supposed to help pay for, such as braces, driving school, etc.? If this is to take the place of back child support can I also use it as back payment for the last four years of arrears to cover all that I have paid for my child if I have receipts to prove it?
In reply to I will be receiving a large by Aly (not verified)
Hi Aly,
Hi Aly,
You may be able to use a child's back pay to reimburse yourself for approved purchases, however it may be best to contact the SSA regarding this, you can do so by calling 1-800-772-1213 or by going to www.ssa.gov
I have two kids that live
I have two kids that live with me full time, there father( lives in another state) is on disability so my children receive a monthly SS payment. Is that payment able to purchase a car for one of my sons?
In reply to I have two kids that live by Julie (not verified)
Hi Julie,
Hi Julie,
If your children are receiving that benefit because their father is receiving SSDI benefits based on his work record, you may be able to.
I have questions about the
I have questions about the retro payments for my son. He just got his first check this month after being awarded his SSI. I however SSI is still working on his retro but in the mean time he needed a new bed, a dresser and we needed another washer&dryer ( both were not working ). I used our income tax to buy these things for him because he was in need. Am I able to use some of the retro payment to get that money back? Also, he attends a school where I have to pay for his bus ride to and from school. Am I able to use his retro to re-coupe what I have already spent for this bus expenses? I know what his monthly money goes for, its the retro that is tricky. And 1 more question, will he get penalized for having that money every month just sitting there not being used because of the strict stipulations on where its being spent?
If my son receives ssi
If my son receives ssi payments am I allowed to spend it on his birthday party?
In reply to If my son receives ssi by Moses (not verified)
Hi Moses,
Hi Moses,
It may. However, if you are unsure about a specific question regarding your representative payee you should consider contacting your local SSA office https://secure.ssa.gov/ICON/main.jsp
Best Wishes,
Eric
My daughter just started
My daughter just started receiving SSI two months ago. Check should be here soon. We had to buy her a mattress during these two months. Can I reimburse myself for the cost of the mattress that we had to buy her? Also, can ssi money be used for vacation for her specifically? Is this considered recreaction? Also gas $ to pick her up and bring her home? Thank you
In reply to My daughter just started by Donna (not verified)
Hi Donna,
Hi Donna,
The mattress may be able to reimburse yourself for those items. However, if you are unsure about a specific question regarding your representative payee you should consider contacting your local SSA office https://secure.ssa.gov/ICON/main.jsp
Best Wishes,
Eric
Just wondered if the list
Just wondered if the list above was the total list for spending monthly ssi checks on child
In reply to Just wondered if the list by Cecilia (not verified)
Hi Cecilia,
Hi Cecilia,
For more comprehensive information regarding representative payees for a child can be found here:https://www.ssa.gov/pubs/EN-05-10076.pdf
Best Wishes,
Eric
hi can the benefits be used
hi can the benefits be used to purchase an airline ticket for a child to visit with in laws? parents will be spending our own money for our tickets but for the child can we use her money to purchase her ticket?
In reply to hi can the benefits be used by candice (not verified)
Hi Candice,
Hi Candice,
That may be an approved use of funds, however you may want to consult with your local SSA office if you're unsure whether a purchase would be an approved use of finds.
Hi I need some help on what I
Hi I need some help on what I can do.. My son has back pay n his account.. I'm trying to have the special ed teacher write something up.. I want to get my son a computer with ABC mouse and other things. We'll the school is not waiting to do that.. What other choices I have I can do to get so I can take to ssi saying a computer will help him
In reply to Hi I need some help on what I by Anonymous (not verified)
Hi there,
Hi there,
You may want to contact your local SSA office regarding this, they may be able to help you with your case. You can find a listing of them here:
http://www.disability-benefits-help.org/social-security-disability-loca…
My brother's 3 children
My brother's 3 children are receiving SS benefits due to my Brother's disability. My brother and his wife are separated (he lives with me) and the children's funds are direct deposited into an account that only his ex-wife can access. Do the children need to have a representative payee or does being a parent automatically give her the rights of a payee?
In reply to My brother's 3 children by Kim (not verified)
Hi Kim,
Hi Kim,
It appears that the ex-wife has been assigned as a payee, they generally assign it to the custodial parent.
Can I spend dedicated funds
Can I spend dedicated funds on home improvement like putting a flooring floor has rotted out anytime the frig going to fall through for safety issues
In reply to Can I spend dedicated funds by brenda (not verified)
Hi Brenda,
Hi Brenda,
You may be able to use those funds in that way, however if you're ever unsure you may want to contact your local SSA office for guidance about what would be an approved use of funds.
Hi I have a question, My
Hi I have a question, My daughter was born with a life long disability and her mom left 5 years ago, I have always had the majority of custody and have been my daughters representative payee, but a few weeks ago, the courts granted her 50/50 because she claim she missed them which I didn't really care because I felt it was about time she spend and took some Responsibility's but today she called me saying to be ready because now that she has 50/50 she will be asking for my daughters benefits, I always take her to her tharapist ,I am always the one showing up to her IEP meetings, I'm involve in her girl scouts, I'm pretty much have been her primary taker since day one, my question is CAN SHE GET AWAY WITH THIS ??? And what are my options...
In reply to Hi I have a question, My by Hector (not verified)
Hi Hector,
Hi Hector,
Your daughter's mother may not be able to do so, however you may be subject to any agreements that you had made with your daughter's mother.
My husband is on disability .
My husband is on disability . We received a check for our daughter.She turned 18 last November but she is still in highschool so she continued to receive a check but it started coming in her name . Can we still use this to provide a home for her or is that check for her to do whatever she wants ?
In reply to My husband is on disability . by Tina (not verified)
Hi Tina,
Hi Tina,
I really could not say as those benefits were received through your husband's work record and are intended for the benefit of the worker's dependents, however there are not as many restrictions on this as there are for SSI benefits. You may have to decide that on your own.
My daughter requires a van,
My daughter requires a van, she is in a wheelchair. Can her monthly check be used to pay for the van?
In reply to My daughter requires a van, by Shari Winebarger (not verified)
Hi Shari,
Hi Shari,
You may be able to use those funds to buy a van for your child, however you may want to contact the SSA regarding any purchases that you are unsure of.
My mother uses the social
My mother uses the social security money on all bills n personal use for her self like buy new laptop her phone but its for me due to my father passing but doesn't use it on me an she takes it out my account is that aloud.
In reply to My mother uses the social by Kev (not verified)
Hi Kev,
Hi Kev,
Your mom may not be able to do that. I would contact a SSA representative to double check though.
Best Wishes,
Eric
my son is 7 soon to be 8 in
my son is 7 soon to be 8 in june. i used to live with his mom, we had a family and all lived together. however, the relationship crumbled. i then moved out when my son was 3 and he has been living with me ever since.
it will be 5 yrs this august that he has been living with me and his mother has been recieving his check. i can count on one had how many times she has giving me anything from it. since i moved my son and i have been living with a relative. he's growing and will be 8 soon and i would like to get a place of my own. his funds would help maintain shelter for him. has this been fraud or misuse by his mother as his payee? i should be getting his funds because im the parent who has been raising him and dealing with his dissability all the while she is getting his funds and not giving me anything from it. also, will i have a difficult time being appointed his payee since he's been with me close to 5 yrs now?
My son, who is receiving SSI
My son, who is receiving SSI due to a developmental disability was removed from my care by the State of Florida. He was in foster care and DCF was the representative payee. They kept the money in a Master Trust and, although they took out the cost of his care, some money was accruing for my son's extra needs such as an electronic learning tool.
Last August they moved my son to a "non-relative" placement so he could be closer to me. I now keep my son from when he wakes up in the morning until I put him to bed at night. I take care of all his needs and the "non-relative" only lets him sleep in his extra room.
I thought DCF was continuing as the representative payee, but this man went to the SSA office and got the SSI check sent to him directly. He spends all the money, none of it on my son. DCF and Medicaid pay for all his medical and therapeutic services and I pay for all his food and transportation. The court said this man and his wife were my son's "custodian" but did not give him guardianship. How can I get my son's SSI check to be set aside for his needs and not be spent on whatever this "non-relative" wants?? I want the money to go back into his Master Trust and be managed by DCF.
In reply to My son, who is receiving SSI by FV (not verified)
Hi there,
Hi there,
You may be able to contact the SSA regarding this and have your child's payee changed as the people who are receiving it do not use it for the child, you can find a listing of local offices here:
http://www.disability-benefits-help.org/content/social-security-disabil…
I have a question can I pay
I have a question can I pay for auto insurance with my son's SSI?
In reply to I have a question can I pay by Sheyla (not verified)
Hi Shayla,
Hi Shayla,
You may be able to use those funds for car insurance, however you may want to contact the SSA regarding any purchases that you are unsure of.
Best Wishes,
Eric
Are they allowed to received
Are they allowed to received spending money out of their benefit money?
In reply to Are they allowed to received by Barbara (not verified)
Hi Barbara,
Hi Barbara,
You may want to contact your local SSA office regarding this, they may be able to give you specific information based on your particular case.
Can some one help me out..
Can some one help me out.. My son got back pay and I'm trying to get him a computer to have these software installed to help him with his disability .. Ssi is giving me a hard time
Pagination
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