'Income' eats away at Social Security disability checks

By Howard Ain
Community Press
October 14, 2009

The recession is expected to add more people to the Social Security rolls - so many, in fact, that the government said it will pay out more benefits than it will collect in taxes the next two years.

Social Security disability claims have jumped nearly 20 percent since the recession began. It seems a lot of people who had been working despite their disabilities are now applying for Social Security Disability benefits after losing their jobs.

If you find yourself in this situation, you have to be very careful to avoid losing benefits unnecessarily.

Cynthia Hurst of Blanchester applied for Social Security disability back in 2002, and didn't get approved until 2007.

"It took me 5 1/2 years to get approval, jumping through their hoops to do whatever they wanted me to do. I had been denied twice," she said.

When Hurst finally got approved, she learned Social Security would give her benefits going back five years. "I found out you'll receive back pay in a few increments the first year, but they won't give you the rest for another year," she said.

What happened next was the biggest surprise for Hurst, who has been living with her boyfriend, Cecil, for many years.

"They said that food and shelter in someone else's house is considered an income - so they took the difference of that," she said.

Hurst counted up all the money the Social Security Administration took out for food and shelter each month from 2002 to 2008, and it came to more than $13,000. This is money neither she nor Cecil will receive.

Hurst said, "I asked, 'Well, if you're going to take the money from me, why don't you give it to Cecil who has been taking care of me all these years?' She said, 'Well, he should have been keeping receipts.' I wasn't told about that."

Hurst said she's learned a valuable lesson. "I had the wrong attorney. I should have worked with a disability attorney who knew the ups and downs," she said.

So, if you're thinking about applying for such benefits you should first know it can take months, even years, to get approved - and you may have to go through several appeals. You certainly should hire an attorney who focuses on this type of law.

To avoid losing back pay for food and shelter, write out a loan agreement with the people with whom you're living. State in the agreement should benefits be awarded you will repay them for their expenses - and state an estimate of that value.

Unfortunately, Hurst had no such agreement so it's too late for her. But she said now, after telling her story, at least everyone else will know what to do.

http://communitypress.cincinnati.com/article/20091014/LIFE/910140305/1001/NEWS/+Income++eats+away+at+Social+Security+disability+checks