lmccullough@hawklawgroup.com | October 14, 2025 | Personal Injury
Receiving a personal injury settlement while on Supplemental Security Income (SSI) raises an urgent question: can SSI find out about your settlement in Georgia? The short answer is yes—and they have multiple ways of discovering it.
Knowing how SSI monitors financial changes is vital to protecting your benefits and avoiding the loss of Georgia Medicaid, SNAP, and other critical support programs.
At Hawk Law Group, we’ve helped hundreds of Georgia residents go through the complex intersection of personal injury settlements and SSI benefits.
With over 71 years of combined experience serving the Central Savannah River Area (CSRA), we’ll explain exactly how SSI finds out about settlements, what happens if you don’t report, and the proven strategies to protect your benefits.
If your settlement came from a car accident or injury case, speak with our experienced Augusta personal injury lawyer today. We’ll help you report your settlement properly, protect your SSI benefits, and avoid costly mistakes that could jeopardize your financial security.
How SSI Finds Out About a Settlement in Georgia
⚠️ SSA cross-checks insurers, banks, tax data, and periodic reviews—most unreported settlements surface within 30–90 days.
The Social Security Administration (SSA) has built a sophisticated monitoring system that catches most settlement payments. Here are the five primary ways SSI discovers your settlement:
1. Self-Reporting Requirement in Georgia
You have a legal obligation to report any settlement to SSI within 10 days of receiving the funds. This applies to all settlement types: car accidents, truck accidents, slip and fall, medical malpractice, wrongful death, and workers’ compensation.
While the settlement amount and how you handle it will affect your eligibility, failing to report creates far worse consequences than being transparent from the start.
2. MMSEA Section 111 Reporting
Under the Medicare, Medicaid, and SCHIP Extension Act (MMSEA) Section 111, insurance companies and attorneys must report certain settlement information to the Centers for Medicare & Medicaid Services (CMS). This federal law requires reporting when:
- The settlement involves a Medicare beneficiary or someone receiving SSI/Medicaid
- The payment exceeds specific thresholds
- The case involves liability insurance or workers’ compensation
The data collected by CMS is shared with the SSA through federal information-sharing systems. According to the U.S. Department of Health and Human Services, this reporting mechanism was designed to prevent improper payments and protect program integrity.
This means SSI will likely know about your settlement even if you don’t report it yourself.
3. Bank Account Monitoring & Redeterminations
SSI conducts regular financial reviews called “redeterminations” to verify your continued eligibility. During these reviews, SSA can request bank statements and may access financial institution records to confirm your reported assets fall below the $2,000 individual limit ($3,000 for couples).
Red flags that trigger scrutiny include:
- Large deposits appearing suddenly in your account
- Account balances that exceed resource limits
- Multiple accounts or financial products you haven’t disclosed
- Unusual spending patterns
The Georgia Department of Human Services, which administers Medicaid in coordination with SSI, also monitors financial data. Any discrepancy between your reported assets and your actual bank records will prompt an investigation.
4. IRS and Agency Data Sharing
The SSA collaborates extensively with the Internal Revenue Service (IRS). If your settlement generates a 1099 tax form (common for settlements over $600 that include taxable portions), the IRS shares this information with SSA.
Additionally, data-sharing agreements exist between:
- SSA and Georgia Medicaid (Division of Family and Children Services)
- SSA and the Georgia Department of Revenue
- Federal agencies through the Public Assistance Reporting Information System (PARIS)
These systems are designed to cross-reference income and asset information across multiple government programs.
5. Attorney Reporting or Disclosures
Personal injury attorneys have ethical obligations under Georgia’s Rules of Professional Conduct. While we don’t directly report to SSA, we’re required to advise clients of their legal duty to report and may include relevant information in settlement documents.
At Hawk Law Group, we work with clients before settlement funds are distributed to develop a compliant strategy that protects benefits. Waiting until after you’ve received the money drastically limits your options.
What Happens If SSI Finds Out About an Unreported Settlement?
Discovering an unreported settlement triggers serious consequences:
| Consequence | What It Means for You |
| Immediate Benefit Suspension | Your monthly SSI payments stop the moment SSA determines you exceeded resource limits |
| Retroactive Overpayment Notice | SSA calculates how much you received in benefits after becoming ineligible and demands full repayment |
| Loss of Georgia Medicaid | SSI eligibility is directly tied to Medicaid in Georgia—lose one, lose both |
| Fraud Investigation | Intentional non-disclosure can result in civil penalties, criminal charges, and permanent program disqualification |
| Collection Actions | SSA can garnish tax refunds, withhold future benefits, and pursue legal collection methods |
According to the Social Security Administration’s Program Operations Manual System (POMS), SSA treats unreported assets seriously. Even unintentional failures to report result in suspension and overpayment consequences.
SSI fraud penalties are severe:
- Civil monetary penalties up to $5,000 per violation
- Criminal prosecution (up to 5 years in prison and $250,000 in fines)
- Permanent disqualification from SSI and other federal benefit programs
Our attorneys at Hawk Law Group will help you manage this process correctly from the beginning.
How to Protect Your SSI Benefits After a Settlement
You don’t have to choose between compensation and disability benefits. With strategic planning and proper legal execution, you can have both. Here are the proven methods for protecting SSI while receiving your settlement:
Spend-Down Strategy
If your settlement is relatively small (under $10,000), spending down the excess funds before the end of the calendar month may allow you to maintain eligibility. SSA evaluates your resources on the first day of each month, so strategic spending before that date can keep you under the $2,000 limit.
SSA-approved purchases you can make include:
- Vehicle purchase or repairs: A reliable car for transportation to medical appointments
- Home modifications: Wheelchair ramps, grab bars, wider doorways for accessibility
- Medical equipment: Hearing aids, mobility devices, specialized beds
- Debt payment: Credit cards, medical bills, past-due rent
- Prepaid funeral and burial expenses: Up to $1,500 per person
- Home purchase or repairs: Paying down a mortgage or making necessary home repairs
What you CANNOT spend down on:
- Investments (stocks, bonds, retirement accounts)
- Second vehicles or recreational vehicles
- Property that doesn’t qualify as your primary residence
- Luxury items or non-essential purchases
The spend-down must be completed before the first of the month following your settlement deposit. Keep all receipts and documentation.
Special Needs Trusts (SNTs) in Georgia
For larger settlements (typically $15,000 or more), a special needs trust protects both your settlement funds and SSI benefits. This legal arrangement allows you to set aside settlement money while remaining eligible for SSI and Medicaid.
💼 A properly drafted first-party SNT (under age 65, irrevocable, Medicaid payback) preserves SSI/Medicaid while funding quality-of-life needs.
How it works:
Settlement funds are placed into an irrevocable trust managed by a trustee. The money can be used for expenses that improve your quality of life—things SSI doesn’t cover—without counting against your $2,000 resource limit.
Georgia-specific requirements for a first-party SNT:
- You must be under age 65 when the trust is established
- You must be disabled according to Social Security’s definition
- The trust must be irrevocable (cannot be changed or dissolved)
- Georgia Medicaid has a payback provision upon your death
- Must comply with 42 U.S.C. § 1396p(d)(4)(A) and Georgia estate planning statutes
What the trust CAN pay for:
- Medical and dental care is not covered by Medicaid
- Therapy and rehabilitation services
- Home care attendants
- Education and vocational training
- Entertainment and recreation
- Travel and transportation
- Electronic equipment and technology
- Home furnishings and improvements
What the trust CANNOT pay for:
- Food and shelter (these count as “in-kind support” and reduce SSI)
- Cash payments directly to you
- Items that would disqualify you from SSI
Setting Up an SNT in Georgia:
We work with experienced estate planning attorneys throughout the CSRA to properly draft and fund special needs trusts. This must be done BEFORE you receive settlement funds. Once money hits your bank account, it counts as a resource immediately.
ABLE Accounts for Georgia Residents
The Achieving a Better Life Experience (ABLE) Act created tax-advantaged savings accounts for people with disabilities. Starting January 1, 2026, the ABLE Age Adjustment Act expands eligibility to include individuals whose disability began before age 46 (previously age 26).
If you meet this criteria, an ABLE account offers a straightforward way to shelter settlement funds.
2025 ABLE Account Limits:
- Annual contribution limit: $19,000
- Total account limit: $100,000 (amounts above don’t affect SSI eligibility)
- ABLE to Work additional contribution: Employed account owners not participating in employer retirement plans may contribute up to an additional $15,060 from earnings
- Georgia ABLE program: Georgia STABLE
Benefits of ABLE accounts:
- Contributions grow tax-free
- Withdrawals for qualified disability expenses are tax-free
- Easier to set up than a special needs trust
- You maintain control of the account
Qualified disability expenses include:
- Education and job training
- Housing costs
- Transportation
- Health and wellness
- Assistive technology
- Basic living expenses
Limitations to consider:
- Currently available only if your disability began before age 26 (expanding to age 46 on January 1, 2026)
- Annual contribution limits may not be sufficient for larger settlements
- May require combining with other strategies for comprehensive protection
Structured Settlements
A structured settlement converts your lump sum into smaller periodic payments spread over months or years. By keeping each payment under the $2,000 resource limit, you can maintain SSI eligibility.
How it works:
Instead of receiving $50,000 at once, you might receive:
- $1,800 per month for 27 months, plus
- A final payment of $1,400
Each month, as long as you spend down or properly allocate the funds before the next month begins, your resources never exceed the limit.
Advantages:
- Maintains SSI and Medicaid eligibility
- Provides steady income supplement
- Reduces temptation to spend unwisely
- Offers some inflation protection with longer terms
Disadvantages:
- Must be arranged before settlement is finalized
- Typically requires working with an annuity company
- Less flexibility if urgent needs arise
- May result in lower total value due to fees
At Hawk Law Group, we negotiate structured settlements when appropriate for SSI clients. This requires planning from the beginning of your case—you cannot restructure after receiving a lump sum.
Many clients receiving SSI have questions about how car accident settlements affect their eligibility. Our attorneys explain how to disclose your settlement correctly and structure it so you can keep both your compensation and your benefits.
How to Report Your Settlement to SSI Properly
When you report your settlement correctly, you demonstrate good faith to SSA and create a clear record of compliance. Here’s exactly what you need to do:
Contact SSA Immediately
Call the Social Security Administration at (800) 772-1213 or visit your local SSA office within 10 days of receiving your settlement. You can also report online through your Social Security account.
What to Include in Your Report:
- Settlement agreement: A copy of the signed settlement showing the total amount
- Payment breakdown: Itemized list showing gross settlement, attorney fees, costs, and net payment to you
- Attorney fee documentation: Proof of fees paid (typically 33-40% of gross settlement)
- Medical expenses: Documentation of any medical liens or payments made from settlement
- Fund allocation proof: Bank statements, trust documents, ABLE account statements, or receipts for spend-down purchases
- Dates of transactions: Exactly when funds were received and how they were used
Keep copies of everything you submit to SSA. Send documents via certified mail with a return receipt, or if reporting in person, ask for a receipt showing what you submitted and when.
What Happens After You Report?
SSA will review your submission and make an eligibility determination. Typically, you’ll receive a written decision within 30-60 days. If you’ve used one of the protection strategies above, your benefits should continue without interruption—assuming everything was executed correctly.
Georgia-Specific Considerations for SSI & Settlements
Georgia’s benefit programs are interconnected with federal SSI. Knowing these state-specific factors is critical:
Medicaid Linkage
In Georgia, SSI recipients automatically qualify for Medicaid through the Division of Family and Children Services (DFCS). There’s no separate application—SSI approval triggers Medicaid coverage.
⚠️ Any month resources exceeding limits jeopardize both SSI and Georgia Medicaid coverage.
Lose SSI, and you immediately lose Georgia Medicaid.
Medicaid provides doctor visits, prescriptions, hospital services, mental health treatment, medical equipment, and home health services. Georgia Medicaid serves over one million residents statewide.
Protecting your Medicaid should be a top priority when managing your settlement.
Additional State Benefits at Risk
Beyond Medicaid, SSI eligibility affects access to:
- SNAP (food stamps): Supplemental Nutrition Assistance Program
- LIHEAP: Low Income Home Energy Assistance Program
- Georgia Public Housing: Income-based housing assistance
- CAPS: Childcare and Parent Services program
Georgia Estate Recovery Program
When you receive Medicaid benefits in Georgia, the state may seek reimbursement from your estate after death. This applies to special needs trusts as well. While this might sound discouraging, the alternative is losing benefits immediately.
A properly structured trust allows you to use settlement funds to improve your life while maintaining essential benefits, with Georgia recovering only after you’ve passed away and only if funds remain.
Unsure how your settlement will impact your SSI or Medicaid eligibility?
Our Georgia SSI attorneys will review your case and outline a strategy that protects both your benefits and your recovery. Schedule your free consultation today to get clear answers before making any financial moves.
FAQs About SSI and Settlements in Georgia
Can SSI take my settlement in Georgia?
No, SSI cannot directly seize your settlement. However, exceeding the $2,000 resource limit will make you ineligible for SSI benefits. You’ll lose monthly payments and Georgia Medicaid until your resources drop below the threshold. With proper planning—using special needs trusts, ABLE accounts, or spend-down strategies—you can keep both.
How long after a settlement will SSI find out?
SSI typically discovers settlements within 30-90 days, though sometimes immediately through MMSEA Section 111 reporting. Insurance companies report settlements to federal databases, and bank balance changes trigger alerts during routine SSA monitoring. The safest approach is to report within the required 10-day window.
Will my SSI benefits stop if I get a settlement in Georgia?
Your SSI will stop if your countable resources exceed $2,000 ($3,000 for couples) on the first of any month. However, this doesn’t have to happen. By placing funds in a special needs trust, ABLE account, or spending down on exempt assets before month-end, you can receive your settlement without losing benefits. The key is planning before you receive the settlement check.
What happens if I don’t report my settlement to SSI?
Failing to report creates serious consequences: SSA will suspend your benefits, issue an overpayment demand, terminate your Georgia Medicaid, and potentially investigate you for fraud. Civil penalties can reach $5,000, and criminal fraud charges carry up to 5 years in prison and $250,000 in fines. Even unintentional failures result in overpayment collection. Always report within 10 days.
What can I spend my settlement on to avoid SSI penalties?
SSA-approved exempt purchases include: a vehicle (one per household), home purchase or necessary repairs, medical equipment not covered by Medicaid, paying off debt, prepaid funeral/burial expenses (up to $1,500), and other items that improve your living situation without counting as resources. You cannot spend down on investments, second cars, vacation property, or luxury items. All purchases must be completed before the first of the month following receipt, and you must keep detailed receipts.
Protect Your Benefits — Call Our Georgia SSI Lawyers Today
Your personal injury settlement represents justice for the harm you’ve suffered. You shouldn’t have to choose between compensation and disability benefits. With experienced legal guidance, you can have both.
At Hawk Law Group, we’ve spent over 71 years fighting for injury victims throughout the Central Savannah River Area. We know exactly how to structure recoveries to protect SSI and Medicaid benefits.
We’ve helped clients in your exact situation:
- Car accident victims receiving SSI who needed their settlements protected
- Disabled Georgians managing complex federal benefit rules
- Families worried about losing Medicaid coverage due to wrongful death settlements
- SSI recipients who received overpayment notices and needed immediate help
Here’s what we’ll do for you:
- Evaluate your situation in a free, confidential consultation
- Calculate your settlement’s impact on your specific benefits
- Develop a customized protection strategy using trusts, ABLE accounts, or spend-down methods
- Coordinate with estate planning attorneys to establish special needs trusts
- Handle all reporting to SSA with proper documentation
- Advocate for you if SSA questions your eligibility
Our contingency fee structure means you pay nothing unless we win. We’ll cover all upfront costs and only get paid when you receive your settlement—which we’ll then help you protect.
Don’t wait until after you’ve received settlement funds. The best protection strategies require advance planning.
Five convenient locations:
- Augusta, GA: 338 Telfair St, Augusta, GA 30901
- Evans, GA: 4384 River Watch Pkwy, Evans, GA 30809
- Thomson, GA: 146 Railroad St A, Thomson, GA 30824
- Waynesboro, GA: 827 Liberty St, Waynesboro, GA 30830
- Aiken, SC: 156 Laurens St NW, Aiken, SC 29801
Can’t come to us? We’ll come to you. We offer home and hospital visits throughout Georgia and South Carolina. Our phones are answered 24/7.
Contact us today to discuss your settlement options with our experienced Georgia attorney. Call 706-914-2591 to speak directly with our team — we’re available 24/7 to help you safeguard your financial future.