If your are receiving SSD or SSI do you have to report a settlement amount?

Asked about 3 years ago - Pittsburgh, PA

I was wondering if someone wins a civil suit against someone and they end up receiving a 40,000 settlement does that have to be reported to the Social Secuity agency as an income.

Attorney answers (3)

  1. Eric Leonard Bolves


    Contributor Level 10


    Lawyer agrees


    Answered . With SSDI you do not have to report unless it is a workers' comp settlement.

    With SSI you do have report. While SSDI is like getting an early retirement based on your work credits, SSI is technically a welfare program that depends on household income and assets. That money may be protected however by setting up a Special Needs Trust. You should try to find a local lawyer who can prepare one. This is a very special trust and is not something one should try to write on their own.

    If you are in my practice area, call me for a free phone consultation. 407-894-1002. Answering a question on this... more
  2. Suzanne Villalon

    Contributor Level 11


    Lawyer agrees

    Answered . If you receive SSI, you do need to report this change in resources: SSA says:
    "Tell us if there is any change in what you own." (see: http://ssa.gov/pubs/11011.html)

    Your settlement will likely impact any SSI benefit. SSA says:
    "Money, whether in cash or an account, is considered a resource in the month after it is received in most cases. Sometimes money does not count as a resource for a limited period of time but then becomes a countable resource if it is not spent within the given time limit."

    Can you structure the settlement and retain entitlement? You should seek legal advice for a specific answer to that question. See the link below about Trusts and the other link for general information about SSI.

    This does not apply to DIB benefits.

    DISCLAIMER: This response is for informational purposes only and does not form an attorney-client relationship. It... more
  3. Robert C. Alston

    Contributor Level 14

    Answered . The answer to your question depends on whether the benefit is SSD(SSDI) or SSI. In most cases you get either SSDI or SSI but not usually both. This is important since SSDI is based upon your past work and the benefit is not based upon your current financial situation. On the other hand, SSI is a needs based program and any change in your income or resources affects your eligibility and the amount of the benefit. Therefore a $40,000 settlement would disqualify you from continuing to received SSI but not SSDI.

    Actual legal advice can only be provided by an attorney licensed in your jurisdiction, with experience in the area... more
Avvo instant logo@2x

Need an answer to your questions within 15 minutes?

  • 30-minute phone call
  • Ask any questions
  • $99 flat fee
  • Money-back guarantee
Talk to an attorney now

Can't find what you're looking for?

Ask span5@2x

Ask a question on our public forum.

Ask a lawyer
Instant span6@2x

Have an attorney contact you privately.

Right now.

Icon lock@2x
Secure conversation. Your details remain between you and your attorney.
Icon clock@2x
Get an answer guaranteed. Be assured that a lawyer will contact you to help with your legal issue.
Start your session now