What to Do if You're on Disability and Receive Extra Money or Valuables

There are two kinds of disability benefits—Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). You may get just SSDI, SSI, or a combination of SSI and SSDI. You only need to worry about getting rid of extra money or things if you are receiving SSI disability benefits.

Most people don't know which type of disability benefits they get. This is normal! Here are some ways to check which benefits you get:

• If your monthly payment is $943 (for 2024), you're likely receiving SSI benefits. If you get a different amount, you may get just SSDI or a combination of SSI & SSDI. 
• The best way to know which benefits you're getting is to create a My Social Security account online and download your benefit statement.

If you receive a large sum of money or valuable property (like a car), you must tell Social Security about this money by the 10th day of the month after you get it. For example, if you receive money on January 30, you must tell Social Security about it no later than February 10.

Why do I have to tell Social Security about my money? 

SSI benefits are for people who are disabled and have little money. If you get SSI benefits, you must follow Social Security's rules about how much money and stuff you can have.  

SSI rules allow you to have some basic things like:   

• One car
• One home (if you live in the home)
• Personal belongings (clothes, shoes, etc.)
• Household items (furniture, dishes, electronics, etc.) 

But, beyond those basic things, any extra stuff you own can be worth at most $2,000 (or $3,000 if you're married).

Social Security requires you to tell them when you get more money so they can determine whether you still qualify for SSI benefits. If you don't tell Social Security about the money and they find out later, you can get in trouble, face an overpayment, and lose your benefits.

How do I tell Social Security about the money?  

Follow these simple steps:  

1. Use this Social Security form (called "Statement of Claimant or Other Person") to tell Social Security about the money you got. Be sure to say when you got the money and how much you got.  
2. Mail or fax this form to your local Social Security office.  

If you want to keep getting your benefits, you must get rid of the money in the same month you got it. 

However, there's an exception for back pay benefits. "Back pay" is the money you get from Social Security for the benefits you missed while waiting for Social Security to approve your claim. If you get back pay, you have nine months to spend this money down to $2,000 (or $3,000 for a married couple). 

Rules for spending your money

• Keep receipts of what you buy or pay for
• Don't give the money away
• Don't buy something for more than it's worth

If you don't follow these rules, you may risk losing your SSI benefits for several years or experience other problems.

Ideas for spending your money

Here are some things you can do with your money that won't cause problems with SSI rules: 

• Pay off unpaid bills
• Buy new clothes, shoes, or other personal items
• Buy new furniture, appliances, or electronics
• Buy your first home
• Pay off the mortgage on your current home
• Buy your first car or replace your current car
• Pay off a loan on your car
• Pay for medical or dental expenses
• Pay off medical debts, credit card debts, or student loan debt
• Hire a contractor to fix things around your home
• Pay for education expenses
• Travel somewhere and use the money to pay travel expenses
• Save some money, but make sure you don't have more than $2,000 in cash (or $3,000 if you're married)

Remember, don't give things away! This can get you into trouble with Social Security later.

Follow these simple steps: 

1. Use this Social Security form (called "Statement of Claimant or Other Person") to tell Social Security how you spent the money. 
2. Include details about what you spent the money on and how much each thing cost. 
3. Attach receipts or other documents to this form to prove you spent the money.  
4. Mail or fax this form and your receipts to your local Social Security office.

If you have questions, it's a good idea to ask for advice from someone who knows a lot about SSI rules. You can get free legal information and advice by calling Oregon's Public Benefits Hotline.

Summary

Getting a lot of money on SSI can be tricky, but knowing these rules helps. Keep track of your money, report any changes to SSA, and spend wisely.