Ask Larry

Will We Have To Pay Back Disability If We Sell Our House?

In Texas, if we sell our house, will we have to pay back disability? My husband has been on disability for 4 years. >/blockquote>

Hi. I assume you mean that your husband is receiving Social Security disability (SSDI) benefits. If that's the case, the the answer to your question is no. Selling a house has no effect on SSDI benefits.

However, if your husband receives Supplemental Security Income (SSI), then selling your house could cause his SSI benefits to stop depending on what you do with the proceeds from the sale. SSI is a needs based program, so exceeding the income and resource limits for SSI can cause your benefits to stop or be reduced. And, resources from the sale of a home count for SSI purposes unless they are used to purchase a new place of residence within 3 months.
Even if your husband is receiving SSI, though, and even if his benefits were to stop due to the sale of your home, he wouldn't be required to repay any of the SSI benefits that he was paid for past months when he was below the income and resource limits.

Best, Jerry

Posted: 
Sep 14 2022 - 6:39am
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