SSI and credit cards

[WADDiE]

I've edited this to make it more clear what I'm trying to get help on.

I'm on SSI and have a couple credit cards. I was wondering how it works if something was to be charged on my credit card and my mom was to pay the bill. For example; I'm getting tile put in my downstairs because my carpet was so thick I couldnt push. The tile people needed a credit card to order the tile and pay in advance. So, after it was charged a payment was made on my credit card from my moms bank account. This is her money not mine. I have no money then what I receive monthly because I'm trying to go back to school.

anyone have insight on this? thanks.

edit.// I found my answer. Anyone can pay a bill for me. So, if i charge something my mom can pay my credit card bill from her bank account.

[Timaru]

How does your mother account for the large cash deposits being paid into her account when the IRS come knocking on the door?

[darrel]

I'd like to know why you feel that you should be betting benefits if you have to hide all this money? I can under stand wanting the medicaid/medicare but what do you need the SSI/SSDI for apparently you have plenty of other income. you must be a republican.

[dan_nc]

Why doesn't your mom just buy it for you then?

[Foolish Old]

Any recorded transaction can be traced. A fraud investigation will gain access to these records.

[WADDiE]

I'd like to know why you feel that you should be betting benefits if you have to hide all this money? I can under stand wanting the medicaid/medicare but what do you need the SSI/SSDI for apparently you have plenty of other income. you must be a republican.

Its not my money. Its hers. I just get points on my credit cards if the purchase goes through my card. I have none of my own cash except what I get monthly. I'm not trying to screw the system. Don't misinterpret what I said.

For example, I'm getting tile put in my downstairs (because i cant push on the carpet), they needed a credit card to order it so I used mine because I'd get points then. Then to pay the bill the payment is made from her checking account.

Thats all I'm talking about. I think you thought I have all this cash stashed away and I'm trying to beat the system which is not the case.

I just wanted to know if SSI allows you to use credit cards. Like, if I wanted to buy a new computer and pay it off monthly. (Just an example)

How does your mother account for the large cash deposits being paid into her account when the IRS come knocking on the door?

it's her money thats an income and has been taxed. we're not using the cash from the drug money ;) (that is SARCASM)

[Liz321]

If it's on your card it's your debt/credit.

Ask someone at the CIL/ILC in your area. They may have more information.

[Timaru]

it's her money thats an income and has been taxed. we're not using the cash from the drug money ;)

So where are you stashing the drug money? :mega:

[darrel]

why would you have your mom out selling drugs?
thats low man.

[WADDiE]

So where are you stashing the drug money? :mega:

wouldn't you like to know ;). bleh i hate drugs, seen it ruin too many friends lives and im only 23 :\

why would you have your mom out selling drugs?
thats low man.
gotta get by some how :p. i guess i'll give the offices a call tomorrow to get a clear answer.

[darrel]

sorry for misunderstanding

[WADDiE]

sorry for misunderstanding

haha not a problem, i was being lazy on my typing and it was like 2am. i could've explained better. i probably would of reacted the same after readig what i initially wrote :D

[ldykawakii]

I have credit cards and the only information I have ever had to provide was my bank account information. I don't know how anyone in our situation can get by without vredit cards, some months things get tough and credit card purchase is a necessity or if i need to fix something on my wheelchair that isn't covered by insurance. I bought my ti-lite on credit and pay monthly. When I talked to ILC--in NH they didn't seem concerned about the debt I had or that my family occasionally helps out with bills. Hope you find a definate answer.

[TheRainman]

Waddie

Your parents can give you money to a certain amout without it being considered income. I don't remember the amount but its a large number. So don't worry about it.

As far as credit cards. Their not considered income unless you don't pay them and they forgive the debt. Then you must pay income tax on that debt.

[WADDiE]

Waddie

Your parents can give you money to a certain amout without it being considered income. I don't remember the amount but its a large number. So don't worry about it.

As far as credit cards. Their not considered income unless you don't pay them and they forgive the debt. Then you must pay income tax on that debt.

Thats the answer I was looking for :). I just wanted to make sure I'm not putting my benefits in jeopardy if someone was to pay on a credit card. Thanks TheRainman ;)

I found this http://www.ssa.gov/pubs/11015.html#5 . Under what is not income it says, "Bills paid by someone else for things other than food, clothing or shelter;" A credit card is a bill so it falls under that category i would think.

[Sue Pendleton]

I'm not a CPA so double check by ordering the IRS booklet on cash gifts. In the USA anyone can give anyone else up to $10, 000 without being taxed. As far as I remember on the long form you can also receive up to $10,000 from a family member without paying taxes on it. But since SSI is income AND asset based your Mom should probably pay directly to your card company. If you are allowed to own a home and this makes it more accessible and is not meant to up its worth you should be ok asset-wise.

Mom cannot buy you a second car or one worth more than your state's limits.

As long as you can pay your bills with the amount SSI gives you credit cards are no problem. Like the rest of America you can pay the minimum balance forever. You do need to read your state's SSI fine print on if they think your Mom's gift was really income in their eyes. If they consider it income then you need to talk to someone and see if it can be forgiven or appeal it to gift status.

[darrel]

Try and see if they would concider it as like a home improvement grant.

it was more fun picking on you, :D

[Sue Pendleton]

Thats the answer I was looking for :). I just wanted to make sure I'm not putting my benefits in jeopardy if someone was to pay on a credit card. Thanks TheRainman ;)

I found this http://www.ssa.gov/pubs/11015.html#5 . Under what is not income it says, "Bills paid by someone else for things other than food, clothing or shelter;" A credit card is a bill so it falls under that category i would think.

That link isn't working for me. Can you tell me how you got to that publication? I like to give Walmart, now that a local store was driven out of business, gift cards to an older family member who gets SSI. Other than his buying a bicycle or computer, not a chance, most items there fall under food or clothing. Hmm, they carry prescriptions and smokes, so.. Should I switch to a check this holiday season?

[dan_nc]

Sue, the link worked for me.


What is income?

SSI considers “income” anything a person gets that can be used for food, clothing or shelter. It includes cash, checks and “gift” items received, such as food and shelter.
SSI divides income into two categories—earned and unearned. Earned income includes wages, net earnings from self-employment, certain royalties and money from sheltered workshops. Unearned income includes Social Security benefits, workers’ or veteran’s compensation, pensions, support and maintenance in kind, annuities, rent, interest and other income not earned.
In 2007, a person must have less than $643 a month in unearned income to receive SSI benefits. A couple can get SSI if they have unearned income of less than $924 a month.
Because a larger portion of earned income is disregarded, a person who receives SSI can earn up to $1,331 a month ($1,953 for a couple) and still continue receiving SSI.
While we encourage people who already receive SSI benefits to work, people who work while applying for SSI benefits based on disability cannot make as much in earned income. That’s because their ability to work affects our disability decision. A person who is just now applying for SSI disability benefits and earns more than $800 a month probably will not be able to get SSI benefits.
People who live in a state that adds money to the federal payment can get SSI even if they have more income (see the Maximum payment amount chart (http://www.ssa.gov/pubs/11015.html#10) above).
Income lowers the amount of an SSI payment. But not everything a person gets is income, and some things that are income do not count.
What does not count as income?


Medical care and services (including reimbursements and payment of health insurance premiums by others);
Social services;
Income from the sale, exchange or replacement of resources (these are considered resources);
Income tax refunds;
Insurance on charge accounts or other credit accounts;
Proceeds of a loan;
Bills paid by someone else for things other than food, clothing or shelter;
Replacement of lost or stolen income;
Home energy assistance;
$20 a month of earned or unearned income (except some types of unearned income based on need, such as certain veterans’ pensions);
$65 a month of earned income plus one-half of earned income over $65 a month or, if there is no unearned income, $85 a month of earned income plus one-half of the rest;
Food stamp assistance;
Government refunds of taxes paid on real property or on food purchases;
Assistance based on need from a state or local political subdivision or Indian tribe;
Amounts for tuition and fees paid from grants, scholarships and fellowships and gifts for educational expenses;
Home-grown produce consumed by the household;
Irregular or infrequent earned income totaling no more than $30 a quarter;
Irregular or infrequent unearned income totaling no more than $60 a quarter;
Domestic commercial transportation tickets received as gifts and used;
Payments for giving foster care to a child who is not getting SSI, but has been placed by an approved agency in the home of someone who gets SSI;
One-third of any child support payments from the absent parent;
Earnings (up to $1,510 a month, but no more than $6,100 a year in 2007) of a person under age 22 who regularly attends school or a training program;
Grants or loans to students from the Department of Education’s or Bureau of Indian Affairs’ educational programs;
Income needed by a blind or disabled person for an approved “plan for achieving self-support (http://www.ssa.gov/pubs/11015.html#11)”;
The cost of a blind person’s work expenses;
Wages used to pay for items or services that help a disabled person work (http://www.ssa.gov/pubs/11015.html#12);
Housing assistance from most federal housing programs;
Compensation to volunteers from ACTION programs run by state and local subdivisions;
Restitution payments made by the U.S. government to Japanese-Americans and Aleuts who were interned or relocated during World War II;
Payments made by the Austrian government under paragraphs 500-506 of the Austrian General Social Insurance Act;
Agent Orange settlement payments;
Reparations payments received by Holocaust survivors from the Federal Republic of Germany;
Earned income tax credit payments;
Netherlands WUV payments to victims of persecution during the German and Japanese occupations of the Netherlands and the Dutch East Indies;
Relocation assistance provided for federal or federally assisted projects or by state or local governments;
Assistance furnished in connection with a residentially declared disaster and any interest earned on the assistance;
Most federal judgment distribution payments and per capita payments of funds held in trust by the Secretary of the Interior made to members of Native American tribes, including purchases made with such payments;
Up to $2,000 annually of income that Native Americans get from their interests in trust or restricted Indian lands;
Interest which is paid on excluded burial funds and left to accumulate;
Any interest earned and left to accumulate as part of the value of an excluded burial space purchase agreement;
Interest and dividends earned on other resources, in many cases;
Food, clothing or shelter in a nonprofit retirement home or similar institution that is provided or paid for by a nonprofit organization that is not expressly obligated to do so;
Food, clothing, shelter and home energy assistance provided by a private nonprofit organization if the assistance is based on need as certified by the state;
Home energy assistance provided by certain home energy suppliers if the assistance is based on need and is certified by the state;
Victims’ compensation payments; and
Payments from the Radiation Exposure Compensation trust fund.

[WADDiE]

Try and see if they would concider it as like a home improvement grant.

it was more fun picking on you, :D

haha :p. its actually my parents home really has nothing to do with me except that the tile was charged on my card. they are paying for everything. i was just trying to figure out if it was bad to use my card in that way. im consulting the experts sometime this week hopefully. once i have a for sure answer i'll be sure to post it up here.

[WADDiE]

Ok, so, i met with my attorneys the other day that specialize in this. They don't see a problem with using credit cards and have someone else pay the bill. ASLONG as what they are paying on isn't for food or shelter. Keep receipts. Becareful if its say a target bill... because food can be purchased at target. ALSO, I learned the visa or mastercard giftcards are also ok to do. It'd be better to give giftcards for say bestbuy because you cant get food there. So, like a speciality store instead of a store that has lots of things...target, fred meyers etc.

I'm no attorney but this is what my guys said and they're looking out for my best interests. I'm also on SSDI which is different from SSI i've been told... But, they were excited I had credit cards cause they can be used to our advantage if someone wants to help out with something that isnt food or shelter. Clothes are not included in that anymore btw...