How will a car accident settlement affect my SSI benefits?

Asked about 5 years ago - Sunnyvale, CA

I'm receiving a $1600 settlement from a car accident. The attorney is paying the doctor bills directly, (they never came to me for payment originally) the $1600 is what is left after the doctor bills have been paid and is for my pain and suffering. How does this money affect my SSI? I've been told that it is a settlement, not income, so I do not have to report as income in my monthly report, is this correct? Next, since it is below the $2000 asset limit (and as long as my account stays below $2000) I am fine. Given these facts I believe my benefits will NOT be affected, am I correct?

Attorney answers (1)

  1. James Randall Lewis

    Contributor Level 8


    Lawyer agrees

    Answered . You may be correct. I suggest you consult an attorney who specializes in Social Security Disability or Social Security benefits for advice as to how the $1,600.00 could affect your status with SSI. You are correct that compensation for personal injuries is not income, but that does not necessarily mean that the receipt of $1,600.00 would not affect your eligibility for SSI benefits. Barbara Jacobson, Esq. in Sacramento is an excellent resource in Northern California on Social Security issues. Her number is (916) 921-5285.

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