What can a payee not do?

What can a representative payee not do?

The representative payee cannot make decisions about the funds that are not in the best interests of the beneficiary. A representative payee can never refuse to care for the beneficiary as punishment for something the beneficiary has done.

What are the rules of a payee?

What power does a payee have?

As a representative payee, you only have the power to handle the Social Security benefit for your friend or loved one (the beneficiary) and not any other money or property for that person unless some other document or government agency appoints you to do so.

What are the responsibilities of a payee?

The main responsibilities of a payee are to use the benefits to pay for the current and foreseeable needs of the beneficiary and properly save any benefits not needed to meet current needs. A payee must also keep records of expenses.

Representative Payees: Things You Can't Do

Can a payee go to jail?

Payees are required to spend the beneficiary's money only on the payee's medical needs and personal expenditures. If a representative is caught misusing a beneficiary's funds, he or she will not only have to repay the beneficiary, but also face fines and even imprisonment if found guilty.

Does SSI track your spending?

A special note about SSI payments

We don't count all resources. However, some items you buy could cause the recipient to lose their SSI payments. Any money you don't spend could also count as a resource.

What happens if a payee misuse funds?

The penalty upon conviction for a payee's misuse of funds may be a fine of up to $250,000, imprisonment up to 10 years, or both.

How do I get rid of a representative payee?

When you want to change your rep payee, go to your Social Security Administration field office and request a change of payee. You will be given a form to fill out, and guidance will be provided if necessary.

Who is the owner of a representative payee account?

A representative payee bank account is an account used by an appointed person or organization to manage the finances of a Social Security beneficiary. Representative payees are chosen by the Social Security Administration to administer the account for a beneficiary—usually an older or disabled person.

What can you spend disability money on?

Answer: After paying for the disabled person's food, shelter, clothing, medical and dental costs, and any rehab expenses, the representative payee can spend disability benefit money on personal comfort items and recreation costs (such as outings, movie tickets, or magazine subscriptions).

Can a rep payee have online access?

Organizational representative payees are able to complete their Representative Payee Report online by using Business Services Online.

What can I use my child's SSI money for?

SSI can cover the child's share of household expenses for basic needs like food, rent or mortgage, and utilities. These benefits also can pay for clothing, school supplies, and other necessities. In most states, children who are eligible for SSI will also be eligible for Medicaid.

Does a representative payee file taxes?

If a levy is received for an individual who is receiving benefits on behalf of someone else as a representative payee, it will be returned to the IRS.

Is a representative payee responsible for overpayment?

Generally, the overpaid person (including a representative payee) is responsible for repayment of an overpayment. If the overpaid person dies, his or her estate, or the beneficiaries of the estate, is responsible for repayment of the overpayment.

Does a payee get paid?

Your organization can charge the beneficiary a fee for any month in which: You are authorized in writing by SSA to collect a fee, AND. You are the payee of record and the beneficiary receives a Social Security and/or SSI payment, AND. You provided payee services for that month.

Will my stimulus check go to my payee?

Stimulus payments belong to beneficiaries

The SSA issued guidance to representative payees indicating that stimulus payments are not coming from the agency but from the IRS. As such, the payments belong to the beneficiaries, and representative payees are not responsible for managing the money.

Can Social Security cut you off?

Changes in your income, health, or living arrangement can lead to a termination of your Social Security disability or SSI benefits.

How do I change my SSI payee to myself?

If you have a representative payee because of a physical or a mental disability, in order to become your own payee, you must show SSA that you are now mentally and physically able to handle your money yourself.

What is considered Social Security abuse?

Filing claims under another person's Social Security number (SSN). Scamming people by impersonating our employees. Bribing our employees. Misusing grant or contract funds.

Does Social Security tell you when you are being investigated?

The SSA will not tell you that you are under investigation. Find out more about SSA investigations and Cooperative Disability Investigations (CDI) here.

Can Social Security look at your bank account?

If you receive benefits through the federal Supplemental Security Income (SSI) program, the Social Security Administration (SSA) can check your bank account. They do this to verify that you still meet the program requirements.

How can I hide money from SSI?

How long does a representative payee have to keep records?

Keep separate records, for each beneficiary for whom you are payee, for at least 2 years. You must keep records of all payments we make to you, all bank statements, and receipts or cancelled checks for rent, utilities, and any major purchases made for the beneficiary.

How much money can a person on disability have in the bank?

How Much Money Can I Have in the Bank if I'm on Disability? You can have up to $2,000 in cash or in the bank and still qualify for, or collect, SSI (Supplemental Security Income).