Accounting for Supplemental Social Security

Written By:  Andrew Eide

When I signed up to receive Social Security Retirement benefits in 2015 the Social Security Administration explained that since my daughter, Keira, is less than 16 years of age she will receive what is called Supplemental Social Security. I asked them how she can receive something based on what I paid into Social Security and they told me that is how the Social Security Administration works. They don’t know if you have other income from work, or perhaps another Retirement income, so they feel it is important to provide Supplemental Social Security for children under the age of 16 to those who are receiving Social Security Retirement.

Since Keira is not old enough to manage her own funds I am designated as her Representative Payee. This means I receive her monthly Social Security income and I manage it for her. As you can see in the scan of the Income and Expense Worksheet the Social Security Administrative provides to me, I have to keep an accounting of the money received from Social Security for Keira’s benefit. Notice I have to list the monthly Social Security benefits received, the monthly amount spent for food and housing for Keira’s benefit, and expenses for clothing, medical, dental, personal items, recreation, and miscellaneous expenses.

The concept is simple. The amount spent on the last two columns should not exceed the total amount received for that year in benefits. If I have not spent all the money received for Keira’s Supplemental Social Security then I will be required to provide to Social Security Administration where the extra money is kept. In this case I have a Personal Savings Account in Keira’s name, with my name listed as the Representative Payee, and I would be required to notify them how much is in the account and information concerning that account.

When I spoke with Social Security Administration concerning the accounting I was told the numbers on the form should add up correctly. I told them I was keeping all receipts, scanning them, and I have so many receipts and account statements, and when I asked them if I need to send all those receipts and account statements they said they do not ask for those items unless there is a discrepancy where they determine that documents are needed to justify the numbers.

The bottom line is they prefer you spend the money for the benefit of your child than to spend very little and save a lot into a Savings Account or College Education Account. Although we would like to save over half the money specifically for use when Keira attends College the problem there is Social Security Administration would question why we are not spending the money on Keira even though saving it for her future education is, in fact, spending it on her.

In closing I received the reporting form yesterday from Social Security Administration. All they want to know is how much of the total amount they gave to Keira did I spend in support of Keira. Then the asked if anything is left over where is the money deposited such as a Checking, Savings, or Investment Account. Form way easier than I thought it would be.