Representative Payees: Holding Funds and Reporting Changes

This guide presents selected U.S. government consumer education from Social Security Administration. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

How to hold funds

The Treasury Department requires all federal benefit payments to be made using a form of electronic payment. We recommend that you hold benefits in a checking or savings account to protect against loss or theft. Also, don’t mix the beneficiary’s funds with your own or other funds.

You must save any money left over after meeting the beneficiary’s day-to-day and personal needs. The preferred way of saving is through U.S. Savings Bonds or an interest-paying bank account that’s insured under either federal or state law. Interest earned belongs to the beneficiary.

The checking or savings account title must show the beneficiary’s ownership of the funds and show you as the financial agent. Neither you as the payee, nor another third party, can have any ownership of the account. The beneficiary must never have direct access to the account. Any account title (under state law) that shows beneficiary ownership of the account with you as the financial agent is acceptable. Don’t use joint accounts. We recommend that you title the account in one of the following ways:

• (Beneficiary’s name) by (your name), representative payee.
• (Your name), representative payee for (beneficiary’s name).

Your bank will provide help if you have more questions.

An exception for parents and spouses who are representative payees

A common checking account for all family members living in the same household who receive benefits may show a parent or spouse as the owner of the account. Children’s savings, however, must be in separate savings accounts for each child, showing the child as the account owner.

Organizations that serve as payees

Sometimes nursing homes or other organizations place funds for several beneficiaries in a single checking or savings account known as a “collective account.” This is usually acceptable, but special rules apply to these accounts:

• Account titles must show the funds belong to the beneficiaries and not the representative payee.
• The account must be separate from the organization’s operating account.
• Any interest earned belongs to the beneficiaries.
• There must be proper procedures to document credits and debits with clear and current records of each beneficiary’s share.
• The organization must make the account and supporting records available to us when we ask for them.
• The organization must obtain approval from us before establishing the account.

Some examples of collective account titles are:

• “Sunnydale Nursing Home for Social Security Beneficiaries.”
• “Sunnydale Nursing Home Resident Trust Account.”

If you have any questions about collective accounts, contact us.

You’ll need approval from us first if your organization serves as payee and wants to charge a beneficiary for the cost of past care. We also need to approve any decision to “pool” the funds of several beneficiaries for an item such as a television that will benefit the group.

More information about being a payee is available in the Guide for Organizational Representative Payees available at www.ssa.gov/payee or from any local Social Security office. You can also order a copy by calling 1-800-772-1213 (TTY 1-800-325-0778).

Keeping records

As a representative payee, you’re responsible for keeping records and reporting on how you spend the benefits by completing a Representative Payee Report (Form SSA-623, SSA-6230, or SSA-6233). We’ll mail the proper form to you once a year. You can also file the report online at www.ssa.gov/myaccount/rep-payee.html.

You must complete the report unless you are exempt. The following types of payees are exempt from the annual accounting requirements:

• A natural or adoptive parent of a minor child who primarily resides in the same household as the beneficiary.
• A legal guardian of a minor child who primarily resides in the same household as the beneficiary.
• A natural or adoptive parent of a person with a disability who primarily resides in the same household as the beneficiary.
• The spouse of an individual.

You can use the “Income and Expenses Worksheet” on the last page of this publication to keep track of what you spend. When you fill out the Representative Payee Report, you can add the amounts in each column of your worksheet and put the totals on the accounting form. If you need extra worksheets, call 1 -800-772-1213 (TTY 1-800-325-0778).

To supplement our annual accounting process, we may select you for an onsite review. Protection and Advocacy agencies in each state that receive annual grants from us may contact you to schedule a review. This is meant to ensure satisfactory oversight of funds and performance of payee duties.

Paying income tax

Some people who get Social Security benefits have to pay federal income tax on them. At the beginning of each year, we mail each beneficiary a Social Security Benefit Statement (Form SSA-1099) that shows the total benefits they received during the previous year. Give this statement to the beneficiary’s tax preparer to determine if any taxes are due on the benefits.

A special note about SSI recipients in a medical facility

If Medicaid pays more than half the cost for an SSI recipient in a medical facility, we limit SSI payments to $30 a month, plus any extra money the state pays. We also apply this limit to children under age 18, if private health insurance — or both private insurance and

Medicaid — pay more than half the cost of their care in a medical facility. You must use the entire payment for the recipient’s personal needs. After meeting all the recipient’s needs, you must save any money left over on their behalf.

Changes to report

You need to tell us about any changes that may affect benefit payments. As payee, you’re responsible for repaying money you receive for the beneficiary if you don’t report any of the events listed below. You must tell us if:

• The beneficiary moves.
• The beneficiary starts or stops working, no matter how little the earnings amount.
• The beneficiary’s medical condition improves.
• The beneficiary starts receiving another government benefit or the benefit amount changes.
• The beneficiary travels outside the United States for 30 days or more.
• The beneficiary is imprisoned for a crime that carries a sentence of more than one month.
• The beneficiary is committed to an institution by court order for a crime committed because of a mental impairment.
• Custody of a child beneficiary changes or a child is adopted.
• The beneficiary is entitled as a stepchild, and the parents’ divorce.
• The beneficiary gets married.
• The beneficiary no longer needs a payee.
• The beneficiary dies.

You must also tell us if:

• You’re no longer responsible for the beneficiary.
• You move.
• You no longer wish to be payee.
• You’re convicted of a felony.
• You’re violating a condition of your probation or parole imposed under federal or state law.

You must tell us if you or the beneficiary have an outstanding arrest warrant for a felony in the state where you or the beneficiary live. In states that don’t classify crimes as felonies, you must also tell us if you or the beneficiary have an outstanding warrant for a crime punishable by death or imprisonment for more than one year.

A special note about reporting changes for SSI recipients

If the beneficiary gets SSI benefits, you must also report the following changes:

• The beneficiary moves to or from a hospital, nursing home, correctional facility, or other institution.
• A married beneficiary separates from their spouse, or they begin living together again after a separation.
• Someone moves into or out of the beneficiary’s household.
• The beneficiary or their spouse has a change in income or resources.

A child’s SSI payment amount may change if there are any changes in the family’s income or resources.

If you fail to report any actions to us, we may pay the beneficiary too much money. In that case, you may have to return the money the beneficiary wasn’t due and the payments may stop. If you intentionally withhold information to continue to receive payments, you may face criminal prosecution. Criminal penalties can include fines and imprisonment.

Also, payees for people on SSI should remember the limits for savings and resources are $2,000 for singles and $3,000 for couples. All interest earned on savings counts toward that limit. Money in a child’s dedicated savings account doesn’t count toward the resource limit. For more information, see our section titled “A special note about children who are blind or have a disability and receive SSI .” Also, read What You Need to Know When You Get Supplemental Security Income (SSI) (Publication No. 05-11011).

If you stop being a payee

If you’ll no longer be the payee, you must notify us immediately. This is important, because we’ll have to select a new payee as soon as possible. When you’re no longer responsible for the beneficiary, you must return any benefits, including interest and any cash you have, to us. We’ll reissue the funds to the beneficiary or the new payee.

If the beneficiary dies

If the beneficiary dies, you must give any saved benefits to the legal representative of the estate. Otherwise, the savings must be managed according to state law. If you need information about state law, contact the probate court or an attorney.

When a person who receives Social Security benefits dies, no check is payable for the month of death, even if they die on the last day of the month. You must return any check received for the month the beneficiary died. An SSI check, however, is payable the month of death. But you must return any SSI checks that come after the month of death.

Medicare and Medicaid

Payees may need to help beneficiaries get medical services or treatment. This is a requirement for the payees of children receiving SSI. You should keep a record of medical services and medical expenses not covered by Medicare and Medicaid. For information about Medicare coverage, read Medicare (Publication No. 05-10043).

If the beneficiary has low income and few resources, the state may pay Medicare premiums and some out-of-pocket medical expenses. A person may qualify even if their income or resources are too high for SSI. For information, contact the state or local medical assistance (Medicaid) agency or social services office.

The beneficiary may also be able to get Extra Help paying for the annual deductibles, monthly premiums, and prescription co-payments related to the Medicare prescription drug program. The beneficiary may qualify for Extra Help if they have limited resources and income. These resource and income limits usually change each year.

Beneficiaries will automatically get Extra Help and don’t have to apply if:

• They have both Medicaid with prescription drug coverage and Medicare.
• They have Medicare and Supplemental Security Income.
• The state pays for their Medicare premiums.

For more information about getting Extra Help with Medicare prescription drug plan costs, call our toll-free number, or visit our website. You can also help the beneficiary apply for Extra Help online at Social Security’s website.

Sources and publication details

• A Guide For Representative Payees — Social Security Administration; source date: April 2026; selected sections: How to hold funds; Changes to report; Medicare and Medicaid.

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.