I was told that if onSSI that i couldn"t collect any lottery winnings
SSI and SSD arre the two main types of disability benefits. You have to be disabled to be eligible for benefits under eaither program. For SSD, you also have to have worked long enough and paid in enough taxes to earn credits for SSD, For SSI, you have to neet financial requirements, as SSI is a need based program.
First, if you are on SSI and win the lottery, you will lose the SSI benefits. You can collect lottery winnings - - it is the SSI that you lose, not the lottery winnings.
Second, how long you will lose them depends on how much you win and over what period Social Security apportions or spreads out the winnings. If it is less than 1 year, then you can automatically go back on SSI. If is over one year, then you have to file a new claim and start all over.
I hope this information helps. Good luck to you.
My colleague, Mr. Farrell, is of course correct in the general sense.
It should be noted that if a recipient of SSI wins something besides a large prize or jackpot, SSI benefits will be suspended or reduced only while the winnings are spent down. For example, if one won $500, then SSI would be reduced for one month (or maybe a couple of months if the monthly amount is less than $500.) If one won a larger amount, like $5000, Social Security might suspend benefits for 7 or so months (based on receipt of $674 per month before the lottery winnings.)
In any case, if you are fortunate enough to win lottery money you should report it the same month to Social Security. SSI recipients should also report all such windfalls, no matter how modest, to Social Security as soon as possible. Things such as an inheritance or car accident settlement or the like. I recommend reporting it in writing and getting a receipt of the report from Social Security - that way you might avoid potential overpayment recapture collection efforts later.
Of course, buying lottery tickets with your SSI benefits might not be the wisest use of such funds....
I would expect that receipt of Medicaid benefits through SSI is an area of concern. I have worked with structured settlement advisors to use found money post a finding of SSI disability, to meet my clients needs as allowed by the Administration, and to maintain Medicaid. It is important to disclose the funds and a plan to SSA before the Lotto reports it as income to you.