Monday, January 25, 2010

Can I do What I want with my Social Security Back Pay?

On another post, an individual named JonJon left the following comments regarding social security back pay:

"I want to know the rules about back pay. Things like what you are allowed to do with your back pay and what you aren't allowed to do with back pay. Am I allowed to just take the whole back pay out of the bank and do whatever I want? The problem is I been living for years without money, and it hurts me financially to know that they will deduct money if you have too much of it. It makes me angry that people can't save that money..Any ideas please?"


Social Security never deducts money from back pay except for fee withholding, in which they hold the fee that is due to an attorney (or a non-attorney who has been approved for withholding) for providing representation on your claim.

As far as back pay rules regarding what you can do with your back pay, there are no rules if you are entitled to a back payment of Social Security disability benefits.

However, if your back payment is based upon entitlement to SSI, there are rules that apply. Remember, SSI disability entitlement is based upon need so there are income and resource limits. Therefore, Social Security releases SSI disability back pay in increments rather than all at one time. If an individual needs some of their back pay between those scheduled releases they must be in a dire situation such as "loss of home".

If you are not sure if your claim was filed in the social security disability or SSI disability program (or both programs if you have a concurrent claim), you may wish to contact the social security office where your claim was taken.

Return to the Social Security Disability SSI Benefits Blog

Other Posts

The Biggest Mistake in a Social Security Disability Claim
SSI or Social Security Disability, Which One Do I Apply for?
Can I Get Disability if I Have Not Worked Before?
Social Security Disability and Getting a Different Diagnosis on a Mental Condition
Where Do You Begin When Applying For Social Security Disability Benefits?
If My Doctor Gives Me a Letter Will I Get Disability?



Anonymous troy said...

can i buy a house and car or not and will i have a time limit to spend my pack pay and can they take what i dont spend

12:27 PM  
Blogger Disability Blogger said...

There's no time limit to spending your back pay and no restrictions on how you spend it. If you spend it or save it, that's up to you and if you don't spend it all they don't try to recoup it. In essence, it is your money to do with as you wish.

9:24 AM  

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