What are you allowed to spend Social Security money on?

Asked by: Jalen Pouros  |  Last update: February 1, 2026
Score: 4.1/5 (18 votes)

Your payee receives your monthly benefits and must use the money to pay for your current needs, including: Housing and utilities. Food. Medical and dental expenses.

Can you spend Social Security money on anything?

First, you must spend the money on the beneficiary's current needs such as rent and a security deposit, food, or furnishings. After paying these expenses, you may spend the money to improve the beneficiary's daily living conditions or for better medical care. Spend the money wisely.

What can I use my Social Security money for?

Your payee receives your payments on your behalf and must use the money to pay for your current needs, which include:
  • housing and utilities;
  • food;
  • medical and dental expenses;
  • personal care items;
  • clothing; and.
  • rehabilitation expenses (if you're disabled).

What is considered misuse of Social Security funds?

According to SSA policy, misuse of benefits occurs when a payee does not use the benefits for the beneficiary's use and benefit or save unused benefits for the beneficiary's future needs.

Can Social Security see what I spend my money on?

Can SSI see what you buy? Contrary to popular belief, SSI does not look into the purchases you make. While financial institutions may share transactional data with government agencies when required by law, SSI recipients can rest assured that their purchasing choices remain private.

Here’s How Much Money You’ll Get From Social Security

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What are the rules for SSI spending money?

If you receive SSI, you can't have more than $2,000 ($3,000 for a couple) in cash and property (other than your home and car). You must spend enough of your back payment within nine months to keep your total resources below $2,000 ($3,000 for a couple).

Can Social Security watch your bank account?

For those receiving Supplemental Security Income (SSI), the short answer is yes, the Social Security Administration (SSA) can check your bank accounts because you have to give them permission to do so.

What can I spend my child's SSI back pay on?

The following are examples of approved requests for expenditures from dedicated accounts.
  • Personal aids to facilitate living and learning. ...
  • Special food for children with dietary needs. ...
  • Attorney fees. ...
  • Caregiver expenses. ...
  • Transportation expenses. ...
  • Medical expenses. ...
  • Housing expenses.

Can money be borrowed from Social Security?

Money that the federal government borrows, whether from investors or from Social Security, is used to finance the ongoing operations of the government in the same way that money deposited in a bank is used to finance spending by consumers and businesses.

What is considered misuse of funds?

Misuse of funds and assets: Misuse of funds and assets is understood as the utilization of funds and assets (such as cars, phones, etc.) for other purposes than the one stated in the application for funding of projects and activities; and negligent or improper maintenance of assets.

What is the $16728 Social Security bonus?

Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

Can you spend your disability money on whatever you want?

SSI recipients are not allowed to have more than $2,000 in assets (beyond your house, vehicle, and other exclusions). This can mean that if you spend your money on luxury items you will lose your benefits. Spending benefits on illegal items or services can also result in you losing your benefits.

How to get $3000 a month in Social Security?

Exactly how much in earnings do you need to get a $3,000 benefit? Well, you just need to have averaged about 70% of the taxable maximum. In our example case, that means that your earnings in 1983 were about $22,000 and increased every year to where they ended at about $100,000 at age 62.

What can Social Security funds be used for?

The only purposes for which these trust funds can be used are to pay benefits and program administrative costs. The Social Security trust funds hold money not needed in the current year to pay benefits and administrative costs and, by law, invest it in special Treasury bonds that are guaranteed by the U.S. Government.

Can I buy whatever I want with SSI?

Although there are no rules on what you have to spend your SSI benefits on, it is best practice to spend your SSI benefits to meet your basic personal needs first, before you spend money on any other expenses. This can include housing and utility costs, food, clothing, and personal care items.

What is the spend down rule for Social Security?

For SSI and Medicaid, the term “spend down” refers to spending excess money down to the applicable resource limit (which is generally $2,000 for an unmarried individual and $3,000 for a married couple). The spend down must occur in the same month in which the money is received.

What debts can be taken from Social Security?

Can my benefits be garnished to pay my government debts, child support, or spousal support? Social Security and Social Security Disability Insurance (SSDI) can sometimes be garnished to pay money you owe to the government, such as back taxes or federal student loans, and money you owe for child or spousal support.

Can I withdraw money from Social Security?

You can withdraw an application for Social Security retirement benefits within 12 months of getting approval, but you'll have to return any money you've received. If you've reached full retirement age but are younger than 70, you may also be able to pause your payments.

Can I use my Social Security to get a loan?

Can You Get a Personal Loan on Social Security? You can take out a personal loan while you're receiving Social Security benefits if a lender is willing to give you one. Lenders will want to know that you have enough income to repay the loan, and Social Security benefits count toward that.

What can I use my adult child's SSI money for?

How Can SSI Help? Who Can Get SSI? 10 SSI can help pay for basic living expenses, like rent, food and medical care for the child you are caring for. The amount of the benefit depends on the child's living situation and whether the child has any income.

What can cause you to lose your Social Security disability benefits?

The termination of benefits in the Social Security disability program is based predominantly on four factors: conversion to the retirement program (that is, attainment of full retirement age), death, medical recovery, and work recovery.

Does SSI check what you spend your money on?

The SSA doesn't care what the money is spent on. If you spent double that on other things and then couldn't pay a bill, that would be a problem for you, but no, they do not care. SSI is your money for which you must have qualified in order to be approved. Entertainment and leisure are parts of life.

Does Social Security track your spending?

Representative payees are required to maintain detailed and accurate records of all funds received and spent in order to provide a true accounting to SSA. A detailed record of expenditures may include: Receipts. Bank statements (including electronic versions)

How much money can I have in the bank while on Social Security?

An SSI lawyer at Liner Legal can help you to determine how much of an effect monthly income will have on your SSI benefits. Resources, including bank deposits, cannot exceed a total value of $2,000 for one person and $3,000 for couples who are married and residing together.

How often does SSI review your case?

The law requires us to perform a medical CDR at least once every three years, however, if you have a medical condition that is not expected to improve, we will still review your case, once every five to seven years.