DISABLED CHILDREN and SSI, Part 1

 

Win Your Benefits! How to Get – and Hang ON to – Your SSI and Social Security Disability Payments!
By Angela Allen

IdeAbility, Inc., and
Nationwide Disability Claim Services
640 S. Hebron Ave., Evansville IN 47714
angela@winyourbenefits.com

Sorry for the tardiness of this column – the Shutdown has been front and center.  It seems for all the world like our government is in the losing car that challenged James Dean in the “chicken” scene in the movie, “Rebel Without a Cause.”  Here’s hoping our government’s sleeve isn’t caught on the door handle (and that we don’t default on Thursday).  The only silver lining to something as insane as a default?  Former Commissioner Astrue was interviewed by David Kestenbaum, last Thursday.  He writes, “if the U.S. does have to pay higher interest on its debt, it could help another big bondholder: the Social Security administration. The entire Social Security trust fund — over $2 trillion — is invested in Treasury bonds. This is required by law. If the new Treasury bonds Social Security buys pay interest at a higher rate, that would mean more income for Social Security.” (Kestenbaum, NPRorg, October 10, 2013).

What is lost in all this dangerous sound and fury is the daily struggle of the custodial parent or grandparent with a disabled child (or grandchild).  A hungry belly knows nothing of governmental shenanigans. And when that hungry belly belongs to a child with a disabling condition, the issues don’t just compound, they increase by orders of magnitude.

While my last article focused a bit broadly on the general topic of filing for benefits, this article takes a closer look at the process of filing an SSI claim for a child.

The Child SSI Claimant, Income and Resources

Eligibility

If your child is under 18 and has a disabling condition that perhaps doctors and/or schools have advised you about, a condition that has caused a delay or a developmental issue, or if you feel that your child clearly has a disabling issue, you might consider filing for SSI if:

• You are the custodial parent (or custodial guardian with documentation of that),
  • (you will probably be the representative payee);
• The household income and resources are low, i.e.:
  • Your income and resources are low, and
  • The child’s income and resources are low.
    • When the child turns 18, only what income and resources that child has are counted (no longer are parental income and resources counted).

SSI stands for “Supplemental Security Income,” and it is for individuals who are:

• found to be disabled, or
• are over 65, or
• who are blind

and in all cases: the individual must meet the income and resource guidelines.  Income and resources can be very complex for a child SSI claim.

Income

If you, as parent, have no income other than TANF and/or you receive food stamps, there is a good chance you are low income/resource “enough” to file for SSI (you’ve already been “means-tested,” to an extent).  By the way, if you are receiving unemployment income, beware: that is “weighted” much more heavily than ordinary wage earnings (as is most “unearned” income).  It is counted dollar-for-dollar (only $20 is exempt from being counted).  If you work, your gross income (minus certain deductions like café plans or child support garnishments) factors into the SSI check computation, along with:

• The number of other children (siblings of the disabled child) living in the same household, and
• Whether there’s another parent in the household (who may or may not be working).

Income is really important, and getting income information (wages, unemployment statements, royalty income, etc.) it into the record quickly, before the “recurring cut-off” deadline is key to getting the SSI amount right (after that point, the amount of the following month’s SSI payment can’t decrease; it can only be recomputed upwards, resulting in two deposits being made).

So, Social Security has been working diligently on making it easier to report income, and taking a lot of its efforts online.  While the agency has been working on finalizing a web-based SSI application, every SSI claims rep is holding her breath on this.  There are so VERY many items that must be taken into consideration with everything related to an SSI filing, including an assortment of computer matches that may – or may not – turn up something to indicate the person filing is not eligible (more on that very important item in a moment).

Resources

The resource limit has not changed in well over 20 years.  It is still $2000 for a disabled individual and $3000 for a disabled couple.  Resources are bank accounts/financial instruments, cars (in excess of one), 401ks, collections (i.e., guns, comic books, etc.), savings bonds, etc.  The child resource limit is somewhat different in that it regards a “household” resource limit, not just the child’s.  This is the short explanation.  I don’t want your eyes glazing over.

Important, Headache-saving Side-Trip on Why Resources are Important

Resources are especially important when it’s tax refund time.  Why?  Because there is a bank/financial account verification requirement.  Granted, it has saved the agency enormous amounts of money, but it is an enormous pain to both claims rep and claimant.

When you file for SSI, you must give your permission for them to “contact your bank or other financial institution.”  If you don’t, it will be a denial, unless you have a really incredibly good reason for not giving them permission (there aren’t that many good reasons – being in WITSEC might be a good one, though).

Hypothetically Speaking…

So, you’ve done that, you’ve filed for SSI for your child, the medical was there, the doctors cooperated quickly with the SSA disability examiners’ requests, the consultative exam was decisive, your rep did an awesome job  and boom, your child is approved on the first go-through.  You’re starting to receive SSI deposits each month for your child (and spending them on food and shelter).  You have been reporting your income regularly at the end of each month.  And now it’s April 15 and you’ve received your tax refund!! It was direct deposited into your personal bank account and you spent it on cool things like bills! Car payments! Food! Getting the toilet fixed!

Then, maybe around June, you get a letter in the mail from Social Security advising you of an appointment for an “SSI Redetermination” (these are customary updates to the info in the SSI record).

You are on time for the phone appointment!  You and the claims rep go through all the items in the SSI record.  All is well and you even get a gold star for reporting your income like a trooper every month – BUT!

What about ALL THAT MONEY in your bank account last April?!?!?

Pretty easy question! “That was my tax refund – happens every spring!”

“Well, you’re over the resource limit.”

You: (frowning.  Not doing your dancey dance.)

This is a personal pet peeve of mine.

You. Are. NOT. Over the resource limit because of your tax refund.

The refund is tax money you are due back from the income you reported that has already been counted.  SSI computations do not deduct your taxes when counting your income.  The deductions the comps do take include café plan items (vision insurance, dental, etc.), and also child support garnishment items are discounted.  But not taxes!

What to do?  Because you’ll be socked with an overpayment for those months your bank balance caused you to exceed the resource limit: Make a copy of your tax return, get a copy of the tax refund deposit statement from the bank, and: file an overpayment waiver request!

Next: The Child SSI Claim, Part 2!

 “Win Your Benefits!” is not meant to replace talking with someone who works for the Social Security Administration. If you call someone at your friendly local field office or one of the 800-number call centers, be sure to make your list of questions in advance. And if you can, read this book first. It’s always a very good thing to get a little more background.  Much of the information in this book is available at the www.SocialSecurity.gov Web site. That’s an enormous – and very educational – Web site.

Win Your Benefits! How to Win – and Hang ON to – Your SSI and Social Security Disability Payments!
and
SSI: The Ten Most Important Things You Need to Know
By Angela Allen,
http://www.winyourbenefits.com/books.html
640 S. Hebron Ave., Evansville IN 47714
angela@winyourbenefits.com