Section 9: Miscellaneous Topics-Advanced Cards Flashcards
Flashcard Example 1
Scenario:
Michael receives an overpayment notice from SSA for SSDI benefits. He believes SSA cannot recover the overpayment because the error was SSA’s fault.
Question:
Can SSA recover an overpayment if the error was SSA’s fault?
Answer:
Yes, SSA can recover overpayments even if the error was SSA’s fault unless the claimant demonstrates both that they are not at fault and that recovery would cause financial hardship or be unfair.
Explanation:
Claimants must prove lack of fault and meet conditions for waiver to avoid repayment.
Key Resource: CFR §404.506 – Waiver of recovery of overpayment.
Key Takeaway:
SSA can recover overpayments unless claimants show they are not at fault and that repayment would be inequitable.
Scenario:
Lisa is a representative payee for her elderly aunt. She uses some of the benefits to pay for her personal expenses, claiming she is entitled to reimbursement for her time.
Question:
Can Lisa use her aunt’s benefits for personal expenses as reimbursement for her time?
Answer:
No, representative payees must use benefits solely for the beneficiary’s needs and cannot use funds for personal expenses without SSA approval.
Explanation:
Representative payees are fiduciaries and must prioritize the beneficiary’s welfare.
Key Resource: CFR §404.2035 – Duties of representative payees.
Key Takeaway:
Representative payees must use benefits solely for the beneficiary’s needs unless SSA approves other uses.
Scenario:
Tom receives SSI benefits but starts earning $1,500/month. He believes his benefits will stop immediately.
Question:
Does earning above the SSI limit automatically terminate benefits?
Answer:
No, SSI benefits phase out gradually based on countable income, with certain exclusions applied before termination.
Explanation:
SSI applies income exclusions, such as the $20 general exclusion and $65 earned income exclusion, to determine countable income.
Key Resource: CFR §416.1100 – SSI income exclusions.
Key Takeaway:
SSI benefits phase out gradually based on countable income and do not terminate immediately when income exceeds limits.
Scenario:
Sara’s child, age 17, receives SSI benefits but starts working part-time. Sara worries this income will disqualify her child.
Question:
Does part-time work affect a minor child’s SSI eligibility?
Answer:
It depends. Earnings of a minor child are subject to SSA’s Student Earned Income Exclusion (SEIE) if the child is a student under age 22.
Explanation:
The SEIE allows exclusions of up to $2,220/month and $8,950/year in 2025 for earnings of eligible students.
Key Resource: CFR §416.1112 – Student Earned Income Exclusion.
Key Takeaway:
Student earnings may qualify for exclusion under the SEIE, preserving SSI eligibility.
Flashcard Example 5
Scenario:
What is the general resource limit for SSI eligibility for an individual?
Question:
How much in countable resources can an individual have and remain eligible for SSI in 2025?
Answer:
$2,000.
Explanation:
The SSI program limits countable resources to $2,000 for individuals and $3,000 for couples.
Key Resource: CFR §416.1205 – SSI resource limits.
Key Takeaway:
SSI resource limits in 2025 are $2,000 for individuals and $3,000 for couples.
Scenario:
What is the purpose of appointing a representative payee?
Question:
Why does SSA appoint representative payees for certain beneficiaries?
Answer:
SSA appoints representative payees to manage benefits for individuals unable to do so themselves due to age, disability, or incapacity.
Explanation:
Representative payees ensure that benefits are used appropriately for the beneficiary’s welfare.
Key Resource: CFR §404.2010 – Appointment of representative payees.
Key Takeaway:
Representative payees are appointed to manage benefits for beneficiaries unable to do so themselves.
Scenario:
Emma, an SSI recipient, receives an inheritance of $5,000. She uses the money to buy furniture for her home. SSA informs her that the inheritance affects her eligibility.
Question:
Does Emma’s inheritance affect her SSI eligibility?
Answer:
Yes, inheritances are countable resources, and Emma’s resources exceeded the SSI limit for the month she received the inheritance. However, purchasing exempt items like furniture can reduce countable resources.
Explanation:
Resource limits apply in the month funds are received. Spending the funds on exempt items like household goods can restore eligibility.
Key Resource: CFR §416.1201 – Definition of resources.
Key Takeaway:
Inheritances affect SSI eligibility in the month received but can be spent on exempt items to reduce countable resources.
Scenario:
Tom’s SSDI benefits were overpaid due to SSA’s miscalculation. He requests a waiver, stating that repaying the debt would cause him financial hardship.
Question:
What must Tom demonstrate to qualify for an overpayment waiver?
Answer:
Tom must demonstrate that he was not at fault for the overpayment and that recovery would cause financial hardship or be against equity and good conscience.
Explanation:
Waivers are granted when claimants prove lack of fault and that repayment would be inequitable or cause undue financial hardship.
Key Resource: CFR §404.506 – Waiver criteria.
Key Takeaway:
Overpayment waivers require claimants to show lack of fault and financial hardship or inequity.
