Supplemental Security Income, known as SSI, is a vital source of financial aid for thousands in Oklahoma and millions across the United States. A car accident settlement can influence your monthly SSI payments. However, with guidance from a knowledgeable attorney, you might be able to maintain your benefits.
Social Security Administration SSI Statistics for Oklahoma
The Social Security Administration (SSA) reports that around 70.6 million Americans are receiving Social Security benefits. Of these, about 7.5 million people were solely SSI recipients. In Oklahoma, nearly 100,000 individuals are receiving SSI, with the highest numbers found in Oklahoma County (around 19,400 recipients) and Tulsa County (approximately 14,800 recipients). Unlike Social Security Disability Insurance (SSDI), which requires a certain employment history and work credits, SSI is designed for low-income individuals with severe, long-term disabilities that prevent them from working full-time. Individuals with countable income above the Federal Benefit Rate (FBR) are deemed ineligible for SSI, as they do not meet the SSA’s low-income criteria. The FBR, which often adjusts annually for inflation (for 2024), is $943 per month for single individuals and $1,415 for couples, setting the income and maximum payment limits for SSI recipients.
Can Accepting a Settlement Offer for a Car Accident Injury Impact My Eligibility for SSI Benefits?
Accepting a modest settlement offer for a car accident injury could affect your eligibility for SSI benefits. The settlement amount might be viewed as income or an asset, influencing your SSI eligibility and benefits. Before making any decisions, it’s wise to consult with an attorney or a financial advisor.
How a Personal Injury Settlement Impacts Supplemental Security Income
To qualify for SSI benefits, applicants must meet several criteria, including earning less countable monthly income than $733. “Countable” income refers to the money remaining after excluding:
- Non-employment income
- The SSA’s numerous income exclusions for the SSI program, such as:
- HUD-related rent subsidies (Section 8 housing)
- Supplemental Nutrition Assistance Program (SNAP)/food stamps
- The first $20 each month
The SSA also considers the applicant’s “resources” towards the income limit, including:
- Primary residence
- Vehicles used for daily transportation
- Household and personal belongings
- Burial plots
- Life insurance policies with a maximum face value of $1,500 per person
For SSI eligibility, an individual’s total resources must not exceed:
- $2,000 for single individuals
- $3,000 for married couples
Compensation from a car accident settlement can cause your monthly income to exceed the FBR threshold set by the SSA. If your settlement pushes you over the monthly limit, your SSI benefits could be reduced or terminated, often resulting in the loss of Medicaid coverage. Understanding the types of damages in car accident cases can help you anticipate potential settlement amounts. Reporting any income changes to the SSA is mandatory. They will review your case and may send a notice about exceeding the SSI income limit, leading to benefit adjustments. To avoid this, consider establishing a Special Needs Trust to help you retain eligibility for SSI benefits and Medicaid. Setting up such a trust is intricate, so consulting a personal injury attorney is recommended.
FAQs
Can I receive a car accident settlement without losing my SSI benefits?
Yes, receiving a car accident settlement without losing your SSI benefits is possible by setting up a Special Needs Trust. This legal arrangement allows you to maintain eligibility by not counting the settlement as direct income or a resource.
How does a Special Needs Trust work?
A Special Needs Trust holds assets, including settlement money, for the benefit of an individual with disabilities without affecting their eligibility for public assistance programs like SSI and Medicaid. The trust is managed by a trustee who disburses funds for the beneficiary’s needs that are not covered by government benefits.
What should I do if I receive a settlement offer?
Before accepting any settlement offer, consult with an attorney familiar with SSI and personal injury law. They can advise on how to accept the settlement in a way that minimizes its impact on your SSI benefits.
What counts as “resources” for SSI eligibility?
Resources for SSI eligibility include cash, bank accounts, stocks, real estate other than your primary residence, personal property, life insurance policies over $1,500 face value, and vehicles not used for daily transportation.
How often does the SSA review SSI eligibility?
The SSA conducts periodic reviews of SSI recipients’ financial status, typically every one to three years. However, recipients must report any income or resource changes within ten days after the month the change occurs.
Can family support affect my SSI benefits?
Yes, financial support from family can affect your SSI benefits if it is considered income. Gifts or payments for expenses not directly related to food or shelter may not impact your benefits, but direct cash assistance could reduce them.
What happens if I don’t report a settlement to the SSA?
Failing to report a settlement or any other change in resources or income can result in an overpayment, where you must repay benefits you were not eligible to receive. It can also lead to suspension or termination of benefits.
Can I work while receiving SSI benefits?
You can work while receiving SSI benefits, but your earnings may affect your benefit amount. The SSA has work incentives that allow you to work while still receiving some benefits.
How is a car accident settlement reported to the SSA?
A car accident settlement should be reported to the SSA as soon as possible. You must provide documentation of the settlement amount, how it was calculated, and how the funds will be used or managed.
What is the Federal Benefit Rate (FBR)?
The Federal Benefit Rate (FBR) is the maximum monthly SSI payment available to an individual or couple. It also represents the income limit for SSI eligibility, which is adjusted annually to account for inflation.