The U.S. Federal Government has an excellent program for those disabled American citizens wanting to return to work prompted by improved workplace adaptations or health. Federal Government Social Services Work incentives are Social Security Administration (SSA) policies and programs that will allow disabled individuals to explore their earning potential without sacrificing their disability benefits. There are two disability programs run by SSA.
You can work and collect disability benefits simultaneously, however, Federal Government Social Services limit the amount you can earn. If SSA sees that you have engaged in SGA (Substantial Gainful Activity), then your payment can end when receiving SSDI (Social Security Disability Insurance). If according to the Social Security Disability Work Program, you are an older, blind, and disabled individual with limited means, you can work and collect SSI (Supplemental Security Income) as well. However, you are required to comply with a complex set of income rules for this one.
Whether your Social Security disability benefits will affect your inheritance depends on the type of benefit that you are receiving. Read on to know the impact of a potential inheritance on both programs.
Reporting your Inheritance to Social Security Disability Work Program
Are you eligible for an inheritance while enjoying your Social Security disability benefits? - Then it is necessary to report your inheritance to the Social Security Disability Work Program if you are receiving SSI benefits.
Social Security Disability Insurance Benefits Receiver
If you are receiving SSDI benefits, your inheritance will be safe as it will not affect the benefits. You must know that the SSDI benefits you are eligible for are based on your work record before you became disabled. The benefits do not depend on your resources and assets at any given time. So, you can skip reporting your inheritance if you are receiving SSDI benefits exclusively.
Supplemental Security Income Benefits Receiver
If you are eligible for a potential inheritance and you are collecting SSI benefits, then reporting about your inheritance is required and advised.
Federal Government Social Services have strict limitations on your resources and income if you are qualified for this particular benefit. Even a negligible change in your resources and income at any given time will affect your eligibility to receive SSI benefits.
When you will receive your inheritance, it will be considered your income for that month. If you keep even a small fraction of your inheritance and spend it all in the month you have received it, the leftover amount will be considered as your resource for the following month by SSA. So, to ensure you do not get disqualified and keep on receiving future SSI benefits, you must inform the U.S. Federal Government about your potential inheritance.
Is it compulsory?
Under Federal law, every individual is required to report the changes in their income to SSA. You must do this quickly as the Federal Government Social Services gives you up to 10 days following the end of the month in which your income changed.
What if you do not want your inheritance?
You must report your inheritance to SSA even if you are planning not to receive your inheritance. As per SSA, your disclaimed inheritance is considered a transfer of resources as the inheritance amount will be transferred to someone else or your beneficiary. SSA might penalize you if you transfer a resource instead of using it for shelter and/or food. This is because, if you kept the inheritance money, then you might not need the SSI benefits depending on the amount you were eligible to receive from the inheritance.