Does a Monetary Gift Affect Disability Benefits in Pennsylvania?

If you have a psychological or physical condition that prevents you from working, you may be eligible for Social Security Disability Insurance (SSDI) benefits. Contrary to common assumptions, your financial resources are not considered when determining eligibility. If you happen to receive a monetary gift from a friend or loved one, your SSDI case will likely remain unaffected. However, things might not be so simple and easy, and you should speak to an attorney.

A monetary gift might affect benefits such as Supplementary Security Income (SSI), but it should not affect your eligibility to receive SSDI benefits. SSDI benefits are largely determined based on three factors: your work history, your disability status, and your inability to work. Your financial resources, including cash gifts, are not a factor in determining SSDI benefits. However, if you receive a monetary gift while your application for SSDI benefits is pending, it might raise some red flags with the Social Security Administration (SSA). You should be prepared to prove to the SSA that the monetary gift was not earned income. Remember, if you can earn income, you might be ineligible for SSDI benefits.

For a free and confidential review of your situation, call Young, Marr, Mallis & Associates at (215) 515-2954 and speak to our Pennsylvania disability attorneys.

How Cash Gifts Might Affect Your Disability Benefits in Pennsylvania

Financial benefits or forms of assistance are often complicated. Determining whether you are eligible can be challenging, and many eligible people have a hard time getting approved. While some forms of assistance or benefits are tied to the beneficiaries’ financial situation, like SSI, others are not. If you are applying for SSDI benefits or have been approved for SSDI benefits, your case should not be affected by something like a monetary gift.

SSDI benefits are largely based on your work history and disability status, not income or financial resources. Even if you have plenty of money in the bank, you might still be eligible for SSDI benefits. A friend or family member could give you a large monetary gift, and your benefits would likely remain the same. On the other hand, SSI and similar benefits are affected by your access to financial resources, and a monetary gift could impact your eligibility for such programs.

This is not an unusual situation. People often receive monetary gifts while their SSDI applications are pending, but they are unable to work. Friends or family might choose to help by giving cash gifts to help pay for ordinary living expenses. Be sure to inform our Philadelphia disability attorneys about any monetary gifts so that we can make sure there is no confusion from the Social Security Administration (SSA).

How Eligibility for Disability Benefits is Determined

Whether someone is eligible for disability benefits depends on how long they have worked and paid into Social Security, their mental or physical condition, and their inability to actually work. Income and financial resources are not a part of the equation unless they are from earned income. However, if you are applying or SSI, monetary gifts may be a factor in determining eligibility, even if they are just gifts. As such, a monetary gift should not affect your SSDI benefits, but you should be prepared to prove that the money was a gift and not income.

Work History

First, eligibility for SSDI benefits is based substantially on your work history. According to 20 C.F.R. § 404.130, you must have a sufficient number of “quarters of coverage,” which may be obtained by having employment. How many quarters of coverage you need depends on your age, but people typically need about 40 credits, which account for 10 years of working. However, these credits do not have to be consecutive, but you must have at least 20 from the past 10 years. Cash gifts do not impact how work history is determined.

Disability Status

Next, the government will consider your disability status. Not every medical condition that gets in the way of working may be considered a disability, at least not for purposes of applying for SSDI benefits. According to § 404.1505(a), your disability must be a condition that prevents you from performing “substantial gainful activity” and is expected to last for at least 12 months or end in death. Put another way, your condition should stop you from working and be long-term. Short-term injuries or illnesses are not disabilities for SSDI purposes.

If you are unsure about your disability status, check your condition against the list of qualifying conditions maintained by the Social Security Administration (SSA). There are separate lists for adults and children, and they are quite extensive. These lists cover a broad range of physical and psychological conditions that are considered disabilities.

Whether or not someone has a disability is purely a medical determination. How much money you earn or the existence of monetary gifts does not affect your disability status as determined by the SSA. In fact, many people living with disabilities receive monetary gifts from family or friends to help them pay for treatment.

Inability to Work

Finally, the government must consider your inability to continue working. Specifically, you should be unable to perform substantial gainful activity (SGA). According to § 404.1572, SGA includes work that is both substantial and gainful. Put another way, the work should require mental or physical effort to perform that is done for profit. The work does not have to be particularly difficult. Additionally, profits do not even have to be realized for work to count as SGA.

This is where monetary gifts might cause some complications. You must be unable to work in order to qualify for SSDI. If you receive a large monetary gift, or perhaps someone sends you money regularly to help you, you should be prepared to show that this is not earned income. If the SSA thinks you are earning money, your claim might be in jeopardy.

For Help Now, Call Our Pennsylvania Disability Attorneys

For a free and confidential review of your situation, call Young, Marr, Mallis & Associates at (215) 515-2954 and speak to our Quakertown, PA disability attorneys.