Blake Refund Check and Social Security Benefits

Last Updated: October 25, 2024. Report error / Make suggestion

If you have your drug possession conviction vacated because of the State v. Blake court decision, you may get a refund for the money you previously paid to the court because of that conviction. These fees are sometimes called legal financial obligations (LFOs). If you receive a check from the court refunding these LFOs that you previously paid, this check may impact your Social Security Benefits.

If you are receiving SSDI or Retirement Benefits, programs that require work and tax payments, a Blake refund check will not put your benefits at risk because these are not need-based programs. However, if you receive SSI benefits, they may be affected by receiving a Blake refund check.

To find out which type of benefits you have, you can look at your letters from Social Security which should label which benefits you are receiving. Additionally, if you are receiving exactly the Federal Benefit Rate, you are likely receiving SSI. On the other hand, if you are receiving more than the Federal Benefit Rate, you are likely receiving Title II benefits, for example, SSDI.

No. Social Security will not count the Blake refund checks as income because they are refunds of money you have already earned. See SSA – POMS: SI 00815.250.

Yes. You are not eligible for SSI benefits if you have over $2,000 in resources. Resources include bank accounts, vehicles (if you have more than one), and other financial accounts. This limit is $3000 for a couple.

What should you do?

If you receive a refund:

Report the check to Social Security by calling your local Social Security field office and informing them that you received this check and explain to them that it is a refund.

You will also want to spend the Blake refund check quickly. Social Security counts your resources on the first of the month, so if you spend the Blake check before the first of the month, it will not count as resources for that month. You may be able to put resources in a special needs trust account or an ABLE account. You can also spend down the resources on things that Social Security does not count as resources:

Things you can spend money on for a “spend down:”

Household goods or personal effects – for example electronics, appliances, furniture etc.
The home you live in
Your first vehicle, if used for transportation
Burial spaces
Burial funds up to $1500
Property used in a trade or business

Send a Request for Reconsideration (SSA Form 561) to Social Security and in it explain that the check was not income because it was a refund. This needs to be done within sixty days to retain your benefits while they decide. This is a new rule established by a settlement and many SSA representatives may not be familiar with the new rule, so it is advisable to file your Request for Reconsideration within ten days if possible. You may include the citation to this Social Security rule for rebates and refunds: “SSA – POMS: SI 00815.250.” See also EM-21064 EM for more information about the expanded period of time for Goldberg v. Kelly continuation of benefits.

You can file a Request for Reconsideration form mentioned above, arguing that an exception to the resource limit should apply because this payment is unique and was a refund.

You may also send a Request for a Waiver (SSA Form 632) to Social Security and explain that there should be an exception to the resource limit because this payment is unique. Also, you will want to explain on this form that you were not at fault for the overpayment, and you cannot afford to repay the overpayment. You can make both requests at the same time.

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