will a lump sum workers comp payment affect my social security ?
Posted by MarkAug 13
i’ve been on soc sec disability since sept.2006.
i had a injury on the job in 2005. if i get a lump sum payment for the injury will it change my soc sec benefits ? and if so how ?
Related Structured Settlement Blogs
- Pros And Cons Of Selling Your Structured Settlement Future Payment | allfinance
- Choosing Between Lump Sum Annuities and Regular Payouts | Medicare Resource Center
- Tax Free Payments With Trauma Insurance
- Article Plugin » Blog Archive » Get the low down on structured settlements
- Golf Course Job Openings | kfunigraz.com
Incoming search terms:
- workers compensation settlement calculator
- workman compensation annuity
Yes, usually a lump sum settlement from Worker’s Compensation will reduce your Social Security benefit. If it reduces the disabled person’s benefit, it will also reduce any family members receiving. It can actually reduce your benefit to $0.00. It can also make you overpaid for past Social Security benefits received. You should not spend any of your settlement until you report it to Social Security and know what if any you have to give to them. You should have the settlement written up so it is based on a life expectancy at a low weekly rate. This will give you the best shot at the weekly rate being low enough so it would not affect your Social Security.
Make sure you also report any medical expenses or attorney fees deducted from the lump sum as that should not be counted when they do the calculation to see how it is going to affect your Social Security benefit. Social Security often does the calculation incorrectly, so be on your toes. When I worked at Social Security there were only two of us that could do it correctly. Good Luck
Certain receipts of money will affect your SSI. SSI is very generous so it is smart to write and tell them everything. If you do not tell them, you are liable to pay the money back but you have to add penalties and interest.
You may get lucky and have the "comp" money treated like insurance benefits or alimony..