If You’re Not Sure Why You Received A Payment
If you receive a check or direct deposit payment from the Treasury Department and do not know what its for, contact the regional financial center that issued it.
If you received a check, look for the RFCs city and state at the top center. Then contact that RFC to find out which federal agency authorized the payment. It will be one of these:
If you received payment byelectronic funds transfer , or direct deposit, follow the directions under Find Information About a Payment.
Use the Treasury Check Verification System to verify that the check is legitimate and issued by the government.
How To Lose Ssdi Benefits
The commonest reason why the SSA would stop a persons Social Security Disability payments is because the recipient has gone back to work, even though this isnt always the case. If you go back to your normal job when in receipt of SSDI benefits the SSA will decide if you are taking part in substantial gainful activity .
The key factor in deciding if work is considered to be SGA is the amount someone is paid. In 2020, somebody is typically considered to be engaging in SGA if his/her earnings exceed $1,260 or $2,110 for someone who is blind.
For example, if you are earning $200 weekly in a part-time job, you are not working above the SGA limit. If you are spending a lot of time at work but what you are doing constitute SGA despite the earnings being below the SGA threshold you could have your SSDI stopped.
However, if you are working and make over SGA you can be entered into a trial work period. This period allows somebody who is receiving SSDI benefits to try to go back to work without being told they will lose their SSDI eligibility.
In the majority of cases, you should be able to work for up to 9 months during a trial work period and you will still continue to receive your SSDI regardless of the amount you are earning. When the trial work period comes to an end and you are still taking part in a job earning above the SGA level the SSA is likely to decide you are no longer disabled so your Social Security Disability payments will stop.
Applying For Disability Benefits Could Provide The Income You Need
When you’re physically or mentally disabled due to an illness or injury, the last thing you need is to worry about your finances. Social Security disability benefits provide a secure source of income so you can provide for yourself and your loved ones. You should apply for benefits as soon as possible if you’re eligible so you will have the money you need to be financially secure and maintain the highest quality of life you can.
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Tips For Navigating Social Security
- A financial advisor can help you account for the various sources of retirement income, including Social Security benefits. Finding a qualified financial advisor doesnt have to be hard. SmartAssets free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If youre ready to find an advisor who can help you achieve your financial goals, get started now.
- If youre applying for Social Security disability benefits, youll need to fill out form SSA-827. This provides your consent for the SSA and Disability Determination Services to view your medical records.
- Dealing with a disability, either temporary or permanent, is hard enough without considering the financial impact. Having an emergency fund in place for unpredictable things like this can be a huge relief.
Speak To An Experienced Social Security Disability Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified social security disability lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local social security disability attorney to discuss your specific legal situation.
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Can You Own Property While On Disability
So, you can file for SSDI whether you own a single home or multiple houses or vacation homes or rental properties . SSDI is also not concerned with other types of assets such as multiple vehicles or investment accounts, and so on. In short, assets do not affect eligibility for Social Security disability insurance.
What If Your Application Is Denied
The denial rate for Social Security Disability benefits is very high, so there’s a significant chance your application won’t be approved. If your claim is denied, there are multiple stages of appeal, including:
- Request for reconsideration, which means a new disability claims examiner reviews your claim again
- A hearing before an administrative law judge
- A review by the Social Security Administration’s internal appeals board
- Appeal to a federal court
The decision not to award you benefits could be reversed at any stage of the appeals process. For example, your request for reconsideration could result in your benefits being approved and you wouldn’t need to move on to additional appeals. However, you must go through each phase if your claim continues to be denied and you want to keep fighting.
If you must appeal a benefits denial, the process of getting benefits can take a very long time. In fact, depending where you live, it may take around a year for a hearing to be scheduled. You may be able to attend your hearing via video if you’re unable to attend in person.
All of these stages of appeal take place within the Social Security’s administrative process until you get to the federal court appeal. The ALJ works for the Social Security Administration but is still supposed to impartially weigh the evidence to determine whether your claim was handled properly.
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Investments That Dont Jeopardize Ssd Benefits
Someone who receives SSD benefits can invest in securities such as stocks, bonds, exchange-traded funds , and real estate investment trusts without jeopardizing their benefits. Dividend income from stocks, as well as other sources of passive income, is OK as far as the SSA is concerned because its unearned income.
The key is whether the investment income is earned or not, says Gantt. Passive income is not earned in the legal meaning of SS law and not counted as evidence of an ability to work.
You Earn Too Much Income
For SSDI, which is the benefit program for workers who have paid into the Social Security system over multiple years, one of the most basic reasons you could be denied benefits is that, when you apply, you are working above the limit where it is considered “substantial gainful activity” . This means you earn too much money to be considered disabled. You are allowed to work a small amount when you’re applying for and collecting SSDI, but not over the SGA limit, which is $1,310 per month in 2021 . The figure is adjusted annually. Income from investments does not count toward the SGAonly work income counts, as it shows your ability to work.
As to SSI, which is the disability benefit for low-income people, when you apply for SSI, you can’t be making over the substantial gainful activity level . But there’s a limit on all earned and unearned income for SSI, around $1,600 per month, that applies both when you’re applying for benefits and when you’re collecting benefits. And any time your income is over $85 per month, your SSI payment will start to be reduced, by a somewhat complicated formula. If you make more than about $1,650, your payment would be reduced to zero in other words, you won’t qualify for SSI.
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Social Security Disability Payments Are Modest
At the beginning of 2019, Social Security paid an average monthly disability benefit of about $1,234 to all disabled workers. That is barely enough to keep a beneficiary above the 2018 poverty level . For many beneficiaries, their monthly disability payment represents most of their income. Even these modest payments can make a huge difference in the lives of people who can no longer work. They allow people to meet their basic needs and the needs of their families.
What Is Supplemental Security Income
Supplemental Security Income benefits are awarded to with a disabling condition, a low income, and limited resources. Seniors over 65 can also qualify for SSI benefits.
SSI benefits are funded through general tax revenue, rather than through special taxes collected solely for the program. You can qualify for these benefits regardless of your work history, but you must have low income and few valuable assets.
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What Are My Income Limits On Social Security
Since its inception, Social Security has benefitted hundreds of millions of Americans in need. A large portion of these benefits go to those with severe disabilities who are unable to earn sufficient wages.
To be sure Social Security goes to those who need it most, income plays a large role in deciding who receives Social Security disability insurance and Supple-mental Security Income .
Limit On Substantial Gainful Activity
A person with a disability applying for or receiving SSDI can’t earn more than a certain amount of money per month by working this isn’t because of an income limit, but rather because the SSA wouldn’t consider that person disabled.
If you can do what the SSA calls “substantial gainful activity” , you aren’t disabled. A person who earns more than a certain monthly amount is considered to be “engaging in SGA,” and thus not eligible for SSDI benefits. In 2022, the SGA amount is $1,350 for disabled applicants and $2,260 for blind applicants.
The rules differ for business owners, since their monthly income may not reflect the work effort they put into their business. For more information, see our article on SGA for small business owners.
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Can I Earn Money While I Collect Long Term Disability Benefits
Disability attorney Gregory Dell discusses if a claimant is able to earn income while receiving long term disability benefits.
Disability claimants often ask me if they can earn money through some other method besides just collecting their long-term disability benefits. The answer to this question really depends on the language in your policy. If you have an own occupation definition of disability, then the likelihood is that you could work in some type of different occupation and earn money. However, if you dont have an own occupation definition of disability, the probability is that if you earned any kind of money in some other profession, that any money you earn would be offset from your disability benefit payment.
So if you were earning $3,000 a month in a long-term disability benefit payment and you had some other occupation that paid you $1,500 a month, for example, the likelihood is that the disability carrier may claim an offset of $1,500, which would leave you with $1,500 left of your monthly benefit. So if you have specific questions about your policy and whether you can work and continue to collect your disability benefits, go ahead and give us a call and well be happy to answer your questions.
Social Security Retirement Benefits
If you are drawing Social Security retirement benefits, you are free to work and earn money, or invest your savings in the stock market. Social Security places no restriction on the amount of money you can earn, or on the size of your retirement nest egg. Keep in mind Social Security’s full retirement age from 65 to 67, depending on the year of your birth.
Social Security does, however, limit benefits for people who take early retirement still earn money from employment. According to the latest rules released by the IRS, Social Security benefits will be reduced 5/9ths of 1% for each month that it is withdrawn before full retirement is reached. The agency does not count investment earnings in this calculation, however.
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Will Passive Income Reduce Ssi Benefits Or Make You Ineligible
Since passive income is money earned that is not related to a work activity or your ability to perform it, most forms will not be taken into account by the SSA when they are determining your eligibility or the amount of monthly benefit you are entitled to receive.
It is always best when receiving passive income to maintain a hands-off approach to ensure that it is not considered work on your part. This can be done by hiring managers and maintenance people to take care of your rental properties. If investing, have a money manager or stockbroker manage your account. This way the income will be earned through capital appreciation and not actually work in researching and choosing stocks.
Should We Count On Social Security
Social Security is an important program that helps prevent many people from slipping into poverty. But, remember that Social Security is only designed to replace about 40 percent of your pre-retirement income, on average.
And the future of the program remains uncertainaccording to current estimates, Social Securitys trust funds are set to run out by 2035, which means that only 80 percent of promised benefits will be payable. Lawmakers are constantly working on program reform for example, the Social Security 2100 Act is currently under consideration, but no fixes are certain.
Thats why its great to hope that you will ultimately be able to collect Social Security benefits, but its prudent to save for retirement in other ways, too, to supplement those expected funds.
Investing involves risk including loss of principal. This article contains the current opinions of the author, but not necessarily those of Acorns. Such opinions are subject to change without notice. This article has been distributed for educational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
Cathie Ericson is a freelance writer whose work has appeared in a wide range of publications, including Forbes, MarketWatch and Realtor.com.
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Future Of Social Security
An increase in eligible participants combined with an increase in life expectancy is straining the Social Security program. Because of the financial burden this created, Social Security was amended in 1983, changing the age people can collect full Social Security benefits.
As a result of the 1983 amendments, the retirement age will increase between 2003 and 2026 from age 65 to age 67 with an 11-year gap at which the retirement age will remain at 66, depending on the year of birth.
Economic analysts predict that the Social Security system eventually will pay out more in benefits than it receives in payroll taxes. Analysts have long warned of this shortfall, and they predict the program could be in jeopardy as of 2035.
It is anticipated a reduction in benefits of about 13% or an immediate increase in payroll tax rate from 12.4 to 14.4%, or a little of both, will be needed to allow full payment of scheduled payments for the next 75 years.
As the challenges to meet the needs of millions of retirees continue, policymakers and politicians continue to argue about revamping or privatizing the program. The recent economic downturn has affected jobs and savings programs, further weakening the program. With so many people dependent upon Social Security for retirement benefits, its vital to understand the system and its limitations, as well as to make changes before time runs out.
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When Does Social Security Pay More Than Disability
The reverse of the above situation is if you are between your FRA and age 70. After you reach your FRA, your Social Security benefit amount increases by 0.8% for every month you hold off on electing. This continues until you reach 70, at which point your benefit reaches its maximum. In this situation, your monthly Social Security benefit would be larger than your monthly disability benefit.
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