Wife on SSDI: Representative Payee Report for healthy daughter (age 4)

[PerfaLEybEDW]

What is the name of your state (only U.S. law)? PA

My wife has been on SSDI for a little more than a year. We also receive an auxiliary benefit for my healthy, 4-year old daughter. The money for both is direct-deposited to my wife's checking account every month. The money is mostly spending money for my wife and to pay my daughter's daycare. I am the breadwinner of the family and our standard of living is based on my salary, which is much more than what my wife's SSDI is in. For that reason, we do spend quite a bit on my daughter, and even fund 529s for her.

Which makes me puzzled as out to fill out this Representative Payee Report. I've heard if one lists that they saved anything, IRS will ask for it back when they turn 18. Should I then just state that all the money was spent on my daughter? I have the proof, between daycare and an ER visit. Do I need to start a separate bank account for my daughter (can only imagine what the fees might be for such a low amount)?

 

[Onderzoek]

What is the name of your state (only U.S. law)? PA

My wife has been on SSDI for a little more than a year. We also receive an auxiliary benefit for my healthy, 4-year old daughter. The money for both is direct-deposited to my wife's checking account every month. The money is mostly spending money for my wife and to pay my daughter's daycare. I am the breadwinner of the family and our standard of living is based on my salary, which is much more than what my wife's SSDI is in. For that reason, we do spend quite a bit on my daughter, and even fund 529s for her.

Which makes me puzzled as out to fill out this Representative Payee Report. I've heard if one lists that they saved anything, IRS will ask for it back when they turn 18. Should I then just state that all the money was spent on my daughter? I have the proof, between daycare and an ER visit. Do I need to start a separate bank account for my daughter (can only imagine what the fees might be for such a low amount)?

If you go to socialsecurity.gov and search under "conserved funds", one of the links you will find is

https://secure.ssa.gov/apps10/poms.nsf/lnx/0200603055

When a child reaches age 18, if the payee has leftover money, conserved funds, then SSA wants it sent back to SSA so it can be reissued to the rightful owner, the 18 year old now adult. At age 18, the parent/payee no longer has any legal authority over what was saved and not spent. Even if the parent wants it spent on college, the 18 year old legally can do whatever he wants including a new car or just blow through it. Often it is better for the parent to save the parent's money for college and spend the SSA funds on current needs. But money can be saved and not required to be repaid because there is some left over.

Bring the award letter and your child's SS card to your bank and ask about a representative payee account and direct deposit of the benefits. It IS the easiest way to keep track of how the money is spent.

 

[LdiJ]

I have a different perspective on this. Money is being spent to house, clothe and feed your child...to provide extras for your child, to provide daycare and anything else that she needs or wants. That money should be considered as coming from the child's SS benefit first. Its come from the family "pot" just like the income is going into the family "pot", no matter whose account it goes into.