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
In reply to Can some one help me out.. by Renessa (not verified)
Hi Renessa,
Hi Renessa,
You may need to bring in some information about the software and why it would help your child with his disability, the SSA representative may be able to work with you and find something that would be an approved purchase.
Hi I have a question I have a
Hi I have a question I have a friend who her husband is disabled and her two kids get SSI she has a separate account for them and is trying to save as much of that money for their college even if she struggles a little with her check only. Is this okay?
In reply to Hi I have a question I have a by Maria (not verified)
Hi Maria,
Hi Maria,
I can't say for sure but the SSA says If you receive benefits from Social Security, you have a legal obligation to report changes, which could affect Supplemental Security Income (SSI) benefits.
Best Wishes,
Eric
Hi my son recieves SSI and
Hi my son recieves SSI and his father spends on his house payment. Is this legal? We have joint custody but he spends the majority of the time living with me. He only has him on weekends.
In reply to Hi my son recieves SSI and by Shannon (not verified)
HI Shannon,
HI Shannon,
You may want to contact your local SSA office, as that may be a misuse of funds. They may re-assign your child's representative payee. Here's a listing of local offices:
http://www.disability-benefits-help.org/content/social-security-disabil…
I don't understand why
I don't understand why can't I spend so much of his money on clothes and toys and medical care he is 3 years at this point I can't really buy anything for him!!! But he/we need a vehicle to get him back and forth to appointments cus Medicare transportation is not reliable!!! He has missed many appointments because of them!!! Not coming at all or showing up an half hour late from the schedule pick it time!!! Now I talked to a ssa representative and see said if I find a car for 3500$ they will give me 800$ on it but we not doing car payments well what do u think it's going to be with only 800$ down!!!! This is crazy I can buy my 3 year old a computer but not clothes and other items that he can use
My 13 year old is receiving
My 13 year old is receiving SSI due to his father is disabled. We put the backpay into a savings account. My question is this - he was recently picked to play in 2 all-star football games that cost money - can he use his money to pay the registration fees?
In reply to My 13 year old is receiving by Candy (not verified)
Hi Candy,
Hi Candy,
If your child is receiving benefits based on his father's work record, then your child may not be receiving SSI benefits, they may be receiving auxiliary SSDI benefits- these benefits have less restrictions on them than SSI benefits, and you may be able to use that money to pay the registration fees.
In reply to Hi Candy, by Bryan
It's auxiliary ssi when
It's auxiliary ssi when his dad is on full disability? Not short term from work - he can no longer work.
In reply to It's auxiliary ssi when by Candy (not verified)
Hi Candy,
Hi Candy,
SSI and SSDI are two different programs, SSDI is based on work record and does include benefits for dependents, and SSI is income based and does not include benefits for dependents.
In reply to Hi Candy, by Bryan
Thank you for clarifying - he
Thank you for clarifying - he's on SSDI, so you think he would be able to use his money he gets monthly for his registration? His lump sum is in a savings and he doesn't use that. Anything he needs - he uses his checking account that has the monthly payments go in
In reply to Thank you for clarifying - he by Candy (not verified)
Hi Candy
Hi Candy
SSDI has fewer restrictions than SSI benefits, so he may be able to. You may want to contact the SSA at 1-800-772-1213 of you are unsure if you are using his benefits in a sanctioned way.
My son is 17 and I work but
My son is 17 and I work but my husband is currently on ss disability so my son is fixing to receive a back pay check and start receiving monthly payment. My question is i work for the state of fl I pay my son insurance through my job so are they saying he can't buy like a vehicle or go on a trip with his money
In reply to My son is 17 and I work but by michelle (not verified)
Hi Michelle,
Hi Michelle,
If your son is receiving benefits based off of his father's SSDI benefits, then your son would not be receiving SSI benefits. SSDI benefits have fewer restrictions so you may be able to use that money in the ways that you described.
hey i am 17 years old and my
hey i am 17 years old and my mother gets my ssi income every month, and claims it always goes to "rent" every month, but i do not think all the money goes to rent, i would like to know how i can get my monthly ssi money to buy my personal needs/care
In reply to hey i am 17 years old and my by tony (not verified)
Hi Tony,
Hi Tony,
YOu may want to contact the SSA regarding this, they can have your representative payee re-assigned if your mother is not using the funds in accordance to the SSA's rules and regulations.
Recently stsrted receiving s
Recently stsrted receiving s benefitd for my daughter because her dad is disabled. We are no longer together either. Do i still pay my half of childs expenses that gets paid. Gor the child. Also in iowa is there a percentage for housing per child that gets benefits to go toward
In reply to Recently stsrted receiving s by Anonymous (not verified)
Hi there,
Hi there,
I really could not say as that may be affected by your state's laws, any custody or alimony agreements that you may have.
Can I be penalize if I use
Can I be penalize if I use back pay money for my son to purchase clothes and shoes that were destroyed due to my roof cave in from hurricane Matthew? I also purchase a bed because his air bed was destroyed.
In reply to Can I be penalize if I use by Joye (not verified)
Hi Joye,
Hi Joye,
I am very sorry to hear that. That is a very unique circumstance, so I would recommend speaking to a SSA representative:1-800-772-1213
Best of Luck,
Eric
My daughters dr wants her to
My daughters dr wants her to start gardening...he said it would be good therapy for her...he even stated he would write out a prescription for it... Is this something the back pay can be used for? .. She only has 3 months worth..
In reply to My daughters dr wants her to by Shannon (not verified)
Hi Shannon,
Hi Shannon,
You may be able to use it, however it is always best to double check with the SSA to be sure:1-800-772-1213
Best of Luck,
Eric
I don't have the money
I don't have the money to buy a push mower when we moved in is it ok if my daughter can buy one with her check
In reply to I don't have the money by Sissy (not verified)
Hi Sissy,
Hi Sissy,
I'm not positive that would qualify, but I would double check with the SSA just be sure:1-800-772-1213
Best of Luck,
Eric
can we use the funds to pay
can we use the funds to pay for home utilities (gas, water, trash), would it count under "shelter"?
In reply to can we use the funds to pay by Ana (not verified)
Hi Ana,
Hi Ana,
Yes, that would fall under that category.
Best of Luck,
Eric
Hello, my son who is autistic
Hello, my son who is autistic is receiving SSI benefits, can a portion of that be saved for his future (eg. college)?
In reply to Hello, my son who is autistic by Savings (not verified)
Hello,
Hello,
You may be able to use his SSI benefits for his future savings, but I would double check with the SSA just to be sure:1-800-772-1213
Best Of Luck,
Eric
In reply to Hello, my son who is autistic by Savings (not verified)
Hi, my name is autistic, we
Hi, my name is autistic, we got his backpayments funds,can I use it to buy these things
*Car,and a car seat, I don't have a car, it's nightmare taking public transit.
*bed for me(parent) cz hes so attached to me, he doesn't sleep in his bed, he jump into my bed every night, I'm thinking of a big bed for us.
* potty training stuff, he's still on diapers
* tv, cz he damaged the tv and couldn't afford a new one.
Thanks in advance.
( these things will improve and help him !!)
In reply to Hi, my name is autistic, we by xo (not verified)
HI there,
HI there,
While those may be considered approved purchases, you may want to contact your local SSA office regarding them if you're unsure about that, you can find a listing of them here:
http://www.disability-benefits-help.org/content/social-security-disabil…
Hi, if I know someone who is
Hi, if I know someone who is using the beneficiary checks to pay all the bills in their house. And only giving a little bit of the money to the child can I report that? The child also is a mother now and has no support but the little bit of money the payee gives her
In reply to Hi, if I know someone who is by Simone (not verified)
Hi Simone,
Hi Simone,
If you suspect fraud you can call the SSA and leave a report:1-800-772-1213
Best of Luck,
Eric
I'm 19 and my mother is
I'm 19 and my mother is my rep. payee. When I ask for some of my money, she makes excuses: I'm immature, she uses some of my money for the family rent, she buys food for the family, my cap & gown I paid for (I always thought the parents were suppose to do that) (just to name a few). By the end of the month, all I receive is $20.00 out of my check. What are my options ?
In reply to I'm 19 and my mother is by Destiny (not verified)
Hi Destiny,
Hi Destiny,
I am sorry to hear that. You can call the SSA if you wish to change your rep. payee 1-800-772-1213
Best of Luck,
Eric
I know someone who's
I know someone who's lights have been out for a month now. But they used their childs disabitlty benefits to buy a new car, for drugs and alcohol and things for their entertainment. They spend the kids money every month on drugs and alcihol , and maybe buy the kids 1 or 2 things. What can be done about this?
In reply to I know someone who's by Concerned (not verified)
Hello,
Hello,
You may want to contact the SSA regarding this and file a report. The number is 1-800-772-1213.
Best Wishes,
Eric
Can I use my sons back pay to
Can I use my sons back pay to fix the family car an to get a bigger place IG the home is to small
In reply to Can I use my sons back pay to by Charles (not verified)
Hi Charles,
Hi Charles,
You may be able to do that, but it's always best to double check with the SSA before if you are unsure of anything.
Best of Luck,
Eric
I have a 16 year brother in
I have a 16 year brother in law who is currently staying with me my wife and 2 kids. He gets social security from his dad dieing years ago. However I'm struggling to make ends meet could I possibly use some of his ssi to help with water gas etc...?
In reply to I have a 16 year brother in by Eric (not verified)
Hi Eric,
Hi Eric,
I'm sorry to hear about that! Unfortunately the SSA may not offer benefits for housing someone receiving Social Security benefits.
I receive supplemental ssi
I receive supplemental ssi for my son who is thirteen..i live in housing authority which is low income housing HUD..should his check be calculated in with my income to determine my rent?
In reply to I receive supplemental ssi by Donnie smith (not verified)
Hi Donnie,
Hi Donnie,
You may want to contact the housing authority about this, they would know the criteria that they use to determine your rent.
Does a representative payee
Does a representative payee have the right to spend money out of the beneficiary's account without the consent of the child? In this case, the "child" is over the age of 14.
In reply to Does a representative payee by Ellie (not verified)
Hi Ellie,
Hi Ellie,
You may be able to do so, however if you're ever in doubt as to how you can use those funds, you may want to contact your local SSA office, you can find a listing of them here:
http://www.disability-benefits-help.org/content/social-security-disabil…
I was wondering, is it ok for
I was wondering, is it ok for an entire family to live off the ssi benefits of a child? It is the only income being brought into the house and is used for everyone. The mother could get a job but hasn't looked. I'm not even understanding how the son gets the benefits since he can take care of himself
In reply to I was wondering, is it ok for by Belinda (not verified)
Hi Belinda,
Hi Belinda,
Child SSI benefits are expressly intended to be used for the child's upkeep and maintenance.
Can i use some of my sons ssi
Can i use some of my sons ssi back pay on a down payment for a vehicle to get him back fordwards to the Docter and threpy. Its so hard to get rides and i cant use the medical transportation bus because i have 4 other kids and only the parent and patient can ride. Then i have to pay 50 a week to get him to school in back.
In reply to Can i use some of my sons ssi by Alisha (not verified)
Hi Alisha,
Hi Alisha,
You may be able to do so, but it's probably a good idea to contact your local SSA office regarding this. You can find a listing of them here:
http://www.disability-benefits-help.org/content/social-security-disabil…
Hey, my child recently got
Hey, my child recently got approved for SSI and me and my wife are currently going through a divorce. The custody arrangement is 50/50 but she is the beneficiary on this account. Not only has she hidden he fact that this became approved, she has a terrible problem with money management and being less than honest with spending. How can I go about receiving a part of this, to cover my child when he is with me half of the time, for his expenses? Is it something I'll have to take to the courts since there is no child support order? Plus I have a daughter in the pre stages if approvement as well.
In reply to Hey, my child recently got by James (not verified)
Hi James,
Hi James,
I would recommend speaking to a SSA representative regarding your matter. 1-800-772-1213
Best Wishes,
Eric
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