Help!!! My daughter was finally approved for SSI. We waited 3 years. Now Social Security is telling me I have to get a Dedicated Account for her back pay and we cannot spend this money without Social Securitys permission. The lady at Social Security said this had to be a different account than the one her regular check goes in. Is this true?
When a child under the age of 18 is eligible for past-due SSI benefits, those benefits must be deposited into a dedicated account. However, when the amount due does not exceed six times the federal benefit no dedicated account is required. No commingle of funds is allowed in the account. No other benefits can be deposited into this "dedicated account." This would include monthly SSI benefits.
Money in a dedicated account must remain in the account until all funds are depleted or benefits are terminated. This is true even after a child reaches the age of 18.
All money in a dedicated account is restricted in how they can be spent. These funds must be used only for the benefit of the child and only for the following allowable expenses:
1. Medical treatment.
3. Job skills training.
4. If related to the child's impairments; personal needs assistance; special equipment; housing modification; and therapy or rehabilitation.
5. Other items or services related to the child's impairments that SSA finds appropriate.
"Dedicated account" funds cannot be used for basic maintenance cost (food, clothing, shelter, and personal items) not related to the child's impairments.
Below are some examples of acceptable expenditures that can be used from the dedicated account
Personal aids used to facilitate living and learning, such as assistive technology for communication and mobility or modified instructional materials.
Special foods for children with special dietary needs.
Special clothing, such as orthopedic shoes, or adult-sized pants with snap crotch for older incontinent children.
Increased electrical bills from needed, frequently operated mechanical devices.
Specialized daycare and therapeutic recreation such as special summer camps or Special Olympics.
Food and veterinary care for a guide dog or other assistive animal.
Repair of wall, carpets or furnishings that have been damaged or worn by a disabled child.
Counseling, crisis intervention services, respite care, and therapeutic foster care, when not covered by health insurance or a public service program.
Repayment of past debt, including self-reimbursement by a creditor payee for those items or services that were related to the child's impairment and benefited the child.
Household furnishings, appliances, and changes in utility services related to the child's disability, such as air conditioning for an asthmatic child, a washing machine for an incontinent child, or installation and maintenance of a phone line to insure ready access to a needed service.
Household renovations where the current conditions adversely affect the child's health, such as insulating a home for a child with a respiratory or cardiovascular condition that is aggravated by extremes of cold or heat, or a separate bedroom for a child with emotional disabilities who requires a structured setting.
Special play and recreational equipment related to the impairment.
Computers and related accessories and software to promote learning, cognition, and other skills.
Transportation expenses incurred in getting the child to training classes, therapy sessions, doctors' appointments, etc. This includes bus or cab fare or, in some cases, the purchase of a vehicle.
It is recommended that all proposed expenditures from dedicated accounts be approved by Social Security before using the dedicated funds. Knowingly using dedicated account funds for expenditures not permitted or denied by Social Security will lead to a determination that there has been a "misapplication" of funds.
The payee will be personally responsible for "knowing" misapplication of funds. (With Social Security Administrations increased debt collection powers this can be a serious problem that will not go away.)
If Social Security denies the proposed expenditure(s) you have the right to appeal.