Hey guys,can anyone explain how back pay works for SSI? The whole thing is confusing!
All I really do know for sure is that backpay for SSI is paid in Increments. When a person recieves their approval letter their will anther letter explaining how much benefits you get a month and your date of onset. Then it will show your backpay and how you will be paid. A person who recieves SSDI will recieve their backpay all at once. Anther thing I remember about SSI backpay. Social Security wants the amount spent down , because this is a income based program. you can only have $2000 in assects , so it is not allowed to save this money , you will lose the money if it is too high. That is why SSI is paid in installments. your allowed a certain time to spend down the money. I know for children the parents have to be approved for what they want to use the child's money for. They have change the rules a lot for the kids. Because social security wants to make sure the money is spent for the child's needs only.
Thanks for the info1 They sure do make it hard for people on SSI . I was hoping I'd be able to get a new car with my back pay. So if I'm understanding correctly. I get 2,000 each installment? And have to have it spent before they the next installment?
In 2006, the President signed the Deficit Reduction Act of 2005 which requires that past-due monthly SSI benefits that exceed three times the maximum monthly benefit payable to the individual be paid in up to three installment payments, 6 months apart. The law also limits the amount of the first two installment payments to three times the maximum monthly benefit. All remaining benefits due are to be paid in the third installment 6 months later.
The amounts of the installment payments may be increased in certain cases, such as those in which the individual has outstanding debt relating to food, clothing, or shelter, or has necessary medical needs.