My husband receives Social Security Disability and recently won a lawsuit for Personal Injury in a Product Liability Case. Is this amount reportable to Social Security and will we lose his benefits? What if we Settle?
He is only 37 and is on SSDI not SSI. We also receive SSDI benefits for our 2 children. I just want to make sure that we will not lose his income if we settle. Is there a specific wording that needs to be used or does it matter since it is not earned income? I appreciate the help. Thanks
As long as your husband received SSDI, the he will have no worries. SSDI is not income based, SSI is. Thus, any assets he has do not affect his benefits. Secondly, any personal injury settlement is tax free and not considered income. You will not receive any W-2’s or 1099’s.
SSDI is not income sensitive to the best of my knowledge. I assume that since this was originally a workers compensation claim, provisions have been made for a medical set aside concerning any bills which may be payable by Medicare. You should discuss the possibility of a Medicare lien claim with your attorney. Hopefully the lien claim has already been resolved with the workers compensation claim, however, it does not hurt to discuss the issue with your attorney.
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Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to ensure proper advice is received.
There is not obligataion to report the cash payment - it is separate from any Social Security benefits. There may be some Medicare obligations, though - either through the workers' compensation part of the claim or, depending on the language of the settlement, for the personal injury medical bill payment part of the claim for "future expenses." You personal injury attorney should be familiar with this and should have protected you as much as possible at the time of settlement.
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