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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 12705
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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Cost, I have a child in Florida that has been approved for

Customer Question

Cost
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I have a child in Florida that has been approved for SSDI. We met today, they looked at my saving account. I have money there from my tax return over several years. She stated that this asset maybe exempt because it is tax return money. Is that true and how do I prove this, from tax returns filed and bank account deposit. The other option is to spend down. I have saved that money to use for a down payment on the house we rent to own. However, that makes a whole new problem, because that is a large asset. Is there a win win situation here. I work a crummy job a McD for minimum wage. A single mother raising 3 girls on my own and just can't win. Any help would be appreciated.
JA: When we are ready I'll take you to the appropriate web page. Is there anything else important you think the Accountant should know?
Customer: No
Submitted: 2 months ago.
Category: Social Security
Expert:  Lane replied 2 months ago.

Hi. My name's Lane.

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Your tax refund is not likely to cause you to lose benefits, but the rules are somewhat complicated.

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Under SSI rules, your resources are determined as of the first moment of the first day of each month. You cannot have "countable resources" worth more than $2,000 (for couples, the limit is $3,000) in any month

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As you likely know, Social Security exempts your residence, one vehicle, certain household goods, burial plots, and life insurance policies worth up to $1,500. Federal and state tax refunds and advanced tax credits (such as premium supports for health insurance) are also exempt from being counted toward the resource limit, but only for twelve months.

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If you haven't spent the tax refund within 12 months, and you have over the amount of allowable resources, you could lose your benefits.

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And along the same lines, payments from the earned income tax credit and child tax credit are exempt for nine months from the date of receipt.

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I hope this helps to clarify

Expert:  Lane replied 2 months ago.

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

I hope that you’ll rate me based on my accuracy and thoroughness, rather than any good news/bad news content.

That’s the only way JustAnswer.com will compensate me for the work here.

Thanks,

Lane

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice on three continents since 1986.

Customer: replied 2 months ago.
Right Lane, but the SSI person stated I could spend down the money in my savings as well. If I were to pay back a loan I borrowed from my parents. Would that be considered a spend down? My parent would not a tax event because, it was an interest-free loan for me to get back on my feet. Would that be a workable solution
Expert:  Lane replied 2 months ago.
that works. Timing is everything. Get it done before things are examined and then going forward before the first day of the month.
Expert:  Lane replied 2 months ago.
just to touch on it again ... they exempt a residence, so putting it into the house is also a VERY good way to go