SSI stands for Social Security Income. It is the money that you get from the government to live on. You can only get SSI if you are disabled, or are over 65 years old and don’t have any other income.
The problem is that there are so many ways to cheat on your taxes by hiding money from ssi that it’s hard to keep track of them all.
So, how do I hide money from SSI? We all know that taxes are a necessary evil, but most of us probably don’t have a clear understanding of how it all works. Here are some key takeaways from our post on SSI and FICA taxes that you need to know.
What Is SSI?
SSI stands for Social Security Income. Unlike Medicaid, which is administered in every state by the federal government, SSI benefits are only provided to citizens who are disabled and/or over age 65 with no other income or resources.
There used to be a variety of programs that could provide benefits if you were low-income enough; however those have been consolidated into just two: SSI and Supplemental Security Income (SSI).
How Much Do SSI Benefits Pay?
Currently, the monthly benefit for an individual under 65 is $733 a month. Benefits increase with inflation in order to keep pace with basic living expenses such as housing, food and health care costs.
However every state has their own guidelines regarding income level and assets that are needed or justified before one qualifies for these payments (some states have very strict requirements).
How Much Money Can SSI Recipients Have in the Bank?
Various SSI-related questions and popular misconceptions arose years ago as to whether or not SSI recipients could have a bank account and even what kind of account they can open.
In short, the rules say that in order for someone to have their own checking or savings accounts, they must receive 25% of any income received from such accounts (income in excess of $1000).
There is no limit on how much money you can withdraw before those funds are put into the grantor’s name, but there is a minimum balance needed each month ($200 per household) .
How Do I Hide Money From SSI? – Details Guide!
There is no reason to hide money except for the simple fact that you don’t have any. SSI recipients cannot open any bank account with their own name, only one placed under a power of attorney (POA) .There are some exceptions however:
- If an individual has been found guilty on five occasions of committing fraud or did not cooperate in doing what they were required to do as part of entering into public assistance programs (SSI etc.), it can result in deportation and/or loss benefits. In such a case all income comes through payees instead and are therefore subject to the usual income tax rules for a non-qualified account.
- If an individual received annual Social Security benefits of $1000 or more in the last 18 months, it can result in deportation and/or loss benefits. In such cases all money comes from other sources (tax refunds etc.) and are therefore subject to those conditions as well! Strangely not mentioned is if your name has been tainted by association with fraud that you did agree to help out despite doing so while on public assistance programs; That would catch up to you also isn’t it?
Couldn’t I Use My ” Spouse’s” Account as Opposed the Grantor?
If you use your “spouse’s” bank account to help hide money from SSI, you will be penalized for using non-qualified funds. The expenses of opening and managing a joint checking or savings account can add up quickly (and in some cases even start to collect again) .
And this is where we come back full circle into the issue of whether it would truly be prudent on how much income one could receive without reporting because there are certain amounts that were set by Congress for those who do not qualify for Medicaid according to SSA.
In contrast, using a joint checking or other savings account can be beneficial for those who are “self- employed” and need to generate rental income but also spend money regularly on things like groceries as opposed to keeping it all in the bank!
Not that you would do such a thing of course, rather I give this example because my accountant is from Slovakia (probably where he started off finding out how lax some banks here are when it comes down to compliance).
How Does SSI Know Your Income?
SSI has several ways they can gain information on your income. They need to specifically find out what used to be called “fraud” but is now referred as you not reporting all of the money earned.
This will also apply if there are any tax refunds coming in (not just W-2’s) that were deducted from gross wages becoming non-qualifying for SSI for a specific period without PROOF of explained why it was earning these amount(s).
The entire application process, once approved deals with 7 different sections dealing with this;you’ll have an awful time explaining the reasoning for overpaying yourself (or under-pay yourself)
So ask your accountant what he/she uses to try and find out how much you can earn by end of month after a given expense is deducted.
This means that if HMDA only reports income earned during tax season, in reality they aren’t going to be reporting everything either due to March or April starts also not being report on SSI as such payments are considered part of “monthly expenses” too.
Can I Hide a Bank Account From SSI?
No, you have to open it up otherwise. However good thing about the EU was that being a citizen of Slovakia meant I didn’t need an SSI number for my bank account –
Because this is who finances Social security/social insurance (which include all sorts of acounts like retirement pension schemes which are not technically “SSI” accounts but use similar terminology).
Though if your joint income with spouse or significant other goes over 400€ there will be more than likely limits placed on paying into foreign deposit accounts depending on how many children live in your household etc; and so checking these restrictions will be necessary especially if your income is going over these limits.
What’s the Deal With This and Why Do People Not File?
There are two cases where nonfiling happens, one being due to ignorance (or just stupidity) and another being that of somebody who has a pretty much fulltime job as it ambles around at discharging public administration related procedures so they can’t find time in their schedule for anything else but filing SSI forms etc.
If you’re like me someone who used to have an e-mail address only – I’d say believe it or not there was a time where I had an SSI number too.
It wasn’t one that was officially attached to my name actually; it was just a random number given out by the government based on geographical location (Corina – Maria).
Can SSI Take Your Inheritance?
SSI must receive every penny until you turn 64 or are considered disabled. That’s the law, just like in Germany (retirement funds for older persons only to be given out after that age), so if you’ve separated from your spouse before turning 50 SSI cannot take any inheritance that takes place prior to this time period.
However, there is a very famous U.S.-based federal case here in the States that provides recognition to inheritance from older persons into their SSI (Social Security income) entitlement so long as it’s done after this time period has run out.
Where Can I Hide My Savings?
I went through a period of time in the ’80s when they would closely inspect my SSI bookings on their computers so essentially it’s harder to hide your money nowadays than before.
Just like AGPS checks, these types works off of information given by you/they’re reverse-engineered from nearby government buildings ( IRS – Social Security Administration) or even postal facilities maybe and are supposed not just to keep records but more importantly find folks who might be withholding income;
This is possible for some bigger cities somehow with an investment bank mentality running things. It’s no surprise that everybody knows about hiding funds in places like HSBC and the Cayman Islands.
Effective Ways to Hide Money
- In an envelope taped to the bottom of a kitchen shelf.
- In a watertight plastic bottle or jar on the back of your toilet, in the tank.
- In an envelope that is at the bottom of your child’s toybox.
- In the freezer, in a plastic baggie.
- Inside of an ancient sock at the bottom of your sock drawer.
What Happens if You Don’t Report Income to SSI?
After the authorities come looking for your funds early on, they will garnish 25% of whatever you have; then after 30 years it’ll be 50%. If you fail to report those funds that were found by AGPS or SSI , it makes them more suspicious.
The government is not too keen as to seeing this happen and there are several instances where people who reported their income only slightly under what was against IRS guidelines had their payments increased later based off how much enough money
They willfully hid without being caught in a decade-long game with members of both agencies (and possibly other government circles) until they had to leave the country with their money.
What Is the Best Way to Hide Money From the Government?
The best way to not only hide money from the IRS, but also to pass wealth to your heirs tax free is to establish an International Asset Protection Trust in the correct jurisdiction. These essentially work hand in hand with Trusts.
A lot of very wealthy people living in the US, including myself have owned International Asset Protection Trusts (IAPTs) and saw firsthand that it can help keep you out of jail.
It has also kept my family’s wealth hidden from both the IRS and every other government agency in Portugal where I am a citizen as well. You must establish an LOC (Trust Location Code).
Does SSI Check Your Bank Account Every Month?
Yes, SSI does indeed check your bank account weekly and then again within 60 days to see if you received a payment from them. (This would be 7 updates in total)
If they don’t get notice of any payments for 45 days running , their funding authority will release the funds for disbursement without penalty . Even so, at least one month must pass before your family’s funds will show up on-line as active deposits.
Depending on how large your income is that year could take longer than 1 year; after 3 years it’ll make them suspicious enough to start looking into changes made with your account , starting with the names and addresses on your deposit cards.
If you have more than one SSI payment, be sure not to let them know about it too soon; that’s what can get people into big trouble!
Savings Options For SSI Beneficiaries
For SSI beneficiaries, it’s important to have some financial security in an emergency. One way to do this is to set up savings options in case of an unexpected income shortfall. Several options are available, including 529 Plans, special accounts called ESA’s (Estate Savings Accounts).
And contributions to traditional IRA or 401K plans. It’s important to investigate each carefully before deciding, as each has its benefits and drawbacks. The best way to do this is to speak to a financial advisor who can help you find the right option.
Frequently Asked Questions
1. When Will SSI Check My Bank Account?
SSI checks your bank account on a monthly basis and notifies you via email. If you are unable to log in to the SSI website, please contact our customer service team at 888-746-0342 or send an email to help@socialsecurity.
2. How Do I Cancel SSI Benefits Online?
To cancel your Social Security benefits online, you need to visit the Social Security Administration website. You will be asked for your SSN and other personal information before being able to make a request.
The steps involved in cancelling your benefits are:
- Visit the Social Security Administration website
- Enter your personal information
- Request a cancellation of benefits
- Confirm your change
You don’t need to complete the entire process of cancelling benefits. You can cancel, withdraw or amend your request at any time by contacting the customer service center on 888-433-7842 .
3. How Much Money Are You Allowed to Save if You’re on SSI?
It is difficult to answer this question because there are many different factors that need to be taken into consideration.
First, you should know what your monthly income is before figuring out how much money you can save per month.
After knowing the income, you can start thinking about how much money you can save on a yearly basis and then make a decision based on that amount.
4. How Does SSI Know Your Income?
SSI uses an income test to determine if you are a person of low income.
There are three methods for determining if your household is considered to be of low income:
- The application itself will ask questions about your gross monthly income and the amount that you contribute towards rent, utilities, and mortgage or rent payments.
- You can also complete the SSI interview form online which has questions related to how much money do you make per month, what is your work schedule like, and other information on living expenses.
- Lastly, it is possible to use a third-party website like TaxAct that provides information on whether or not your household qualifies as being of low income based on their formula calculations and inputting certain data points such as number of people in the household and number of children in the household under age 18 years old who are eligible for benefits from SSI.
5. Can Social Security See All of Your Bank Accounts?
No, Social Security is not able to see all of your bank accounts. It is only able to see the account you have reported with them.
If you have more than one bank account, then Social Security will be able to see the account that you report with them and they will also be able to see any additional accounts that are connected to that particular bank account.
SSI is a government-run retirement savings program that helps to make sure that you are contributing enough to your retirement fund.
It also makes sure that you don’t get paid too much in Social Security payments, and as a result, you will not receive any benefits from the government. The best way to hide money from SSI is by keeping it in an investment account.
This way, your earnings will be sheltered from the program’s clutches and you can keep your benefits intact without paying taxes on them.
You should know that if you are under 60 years old, you cannot avoid paying taxes on these funds when they come out of the investment account. I expect now you understand how do I hide money from SSI.