Spending Requirements for SSI

[jay_paul]

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

My son has Down Syndrome and just turned 18. He received his first SSI benefit and I am the representative payee. His does live at home with both parents. I'm not finding much information on what the money can be spent on, what record keeping is required, and if he can pay for any household expenses.

Thanks,

Jay

 

[dbernat32]

There are no spending requirements.

SSI is your son's income in lieu of gainful employment. It can be spent on booze and lottery tickets.

Seriously though, two things you should note:

1. The SSA can deduct about $150 from his check if he lives completely rent free and does not pay for any housing expenses. So you SHOULD take out like $50-$75 or more and put it in your own coffers as "rent". (And yes that is income to you and should be included when filing income tax.)

2. As representative payee (and I assume his guardian as well), you own a duty to care for him. It is his money to be used for his maintainance. Having a house to live in is part of that maintainance and his money can be used for household repairs, utilities, food that is shared as family, etc. But it must only be the share he actually owes.

Incidently, if you haven't already, apply for food stamps for him. If your household income is too high, just tell the social worker that your son prepares meals on his own and he will be approved. That is another $140 he can contribute.


--dbernat32

 

[BL]

=dbernat32;2298141]There are no spending requirements.

SSI is your son's income in lieu of gainful employment. It can be spent on booze and lottery tickets.

http://www.ssa.gov/pubs/10076.html

The recipient has a payee . The payee can give the recipient X amount ( as miscellaneous ) every so often , and technically yes the recipient can do with it as he/she wishes ) .

However , being an Adult and especially a Parent , with a recipient taking meds with a disability , caution should be used on alcoholic consumption w/ meds , as any adverse or lethal outcomes could cause criminal charges.

Seriously though, two things you should note:

1. The SSA can deduct about $150 from his check if he lives completely rent free and does not pay for any housing expenses. So you SHOULD take out like $50-$75 or more and put it in your own coffers as "rent". (And yes that is income to you and should be included when filing income tax.)

The Payee can take out a responsible amount for rent ,and should .

2. As representative payee (and I assume his guardian as well), you own a duty to care for him. It is his money to be used for his maintainance. Having a house to live in is part of that maintainance and his money can be used for household repairs, utilities, food that is shared as family, etc. But it must only be the share he actually owes.

The payee CAN NOT take out monies for home repairs ,etc . ( there personal use ).

Rent would cover or help cover this.

Incidently, if you haven't already, apply for food stamps for him. If your household income is too high, just tell the social worker that your son prepares meals on his own and he will be approved. That is another $140 he can contribute.

Yes , I agree , especially if the recipient ia also paying rent . Check out Medicare/Medicaid also.

--dbernat32

 

[jay_paul]

So may details and I'm finding so little information. Thanks for your comments. I've got a few more questions.

So if I charge him rent and claim that as income to me I probably also lose the ability to claim him as a dependent on my taxes. How is this determined?

Do I need to report to SSI that he is now paying rent?

If he pays rent does that increase his monthly benefit? Currently it is reduced as he is receiving housing and food from us?

Does my son have to file an income tax return for his SSI benefits?

Is there a guide or worksheet anywhere that explains all the tax implications of these spending decisions?

Thanks all.

 

[BL]

You really should be speaking to SSA ( your local Office representative(s) - in person ) .

As payee - you should receive the answers to your questions.

Not sure about CA. , ( this is only an example ) , in my State there are different eligibility and other requirements from being up to 19 yrs. of age and after .

It's possible you may have to wait until age of 19 and your child is re-approved , to start collecting rent , making him responsible for food and medical - filing applications and being approved .

I have no Idea about taxes ,other than an SSI recipient does not have to file.