The Facts On Social Security Disability Insurance And Supplemental Security Income For Workers With Disabilities
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Nearly one out of every six working-age Americans29.5 million peoplehas a disability, making them much more likely to experience economic hardship than people without disabilities. Many people with disabilities are able to work, although they face greater challenges finding work than people without disabilities. But many individuals with severe and long-lasting disabilities have no or only limited capacity to work and are particularly vulnerable to economic hardship.
For roughly 12 million people with disabilities, Social Security Disability Insurance and Supplemental Security Income, both core components of our nations Social Security system, provide critical lifelines. The modest but vital assistance that Disability Insurance and Supplemental Security provide makes it possible for individuals with severe disabilities and health conditions to live independently, keep a roof over their heads and food on the table, and pay for needed, often life-sustaining medications and other basic expenses.
This issue brief answers some of the common questions about Disability Insurance and Supplemental Security. Our focus in this brief is on nonelderly adults with severe disabilities. It is important to note, however, that Supplemental Security also provides vital support to some 1.2 million children with severe disabilities, as well as more than 2 million low-income seniors.
What Documents Do You Need To Apply For Social Security
When it’s time to apply for your Social Security benefits,you’ll need to have the following documents in hand:
- Your Social Security card.
- Your original birth certificate, or a certifiedcopy.
- Proof of U.S. citizenship or lawful alien status.
- Military service papers, if applicable.
- Your W-2 form from the last year.
Likewise, what documents do you need to apply for social security card?
- your Social Security card
- your original birth certificate or other proof of birth
- proof of U.S. citizenship or lawful alien status if you werenot born in the U.S.
Subsequently, question is, what documents do I need to apply for Medicare? Information and Documents You Need to Enroll inMedicare
Correspondingly, what can be used as proof of Social Security number?
An acceptable document must be current andshow your name, identifying information andpreferably a recent photograph. For example, as proof ofidentity Social Security must see your: U.S. driver’slicense State-issued non-driver identification card or.
How do I apply for my Social Security benefits?
You can apply:
How To Get Help Paying Rent
If you need immediate, emergency assistance
To find out what other help may be available for you locally
Even if you don’t qualify for rental assistance through these agencies, they may be able to refer you to a community organization that can help. You may also search for and contact community or nonprofit organizations in your area. They may help you directly or offer you referral information.
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When Social Security Is Not Taxable
You won’t owe federal tax on your Social Security benefits if your total income falls below the taxable thresholds set by the IRS.
You won’t owe state taxes on your benefits if you live in any of the 37 states that don’t tax this income. You can minimize the tax burden by adopting one of the strategies below.
Learn About Public Housing
Public housing is state-owned, affordable rental houses or apartments. It’s intended for families with low incomes, seniors, and people with disabilities. Found nationwide, public housing comes in all sizes and types, from single-family houses to high rise apartments. The Department of Housing and Urban Development administers the program.
Since the demand for public housing is often larger than the amount of housing available to HUD and the local PHA, long waiting periods are common. A PHA may close its waiting list when there are more families on the list than can be assisted in the near future.
Paying Taxes On Social Security
You should get a Social Security Benefit Statement each January, detailing the benefits you received during the previous tax year. You can use it to determine whether you owe federal income tax on your benefits. The information is available online if you enroll on the Social Security site.
If you owe taxes on your Social Security benefits, you can make quarterly estimated tax payments to the IRS or have federal taxes withheld from your payouts before you receive them.
What Is A Social Security Card
Your Social Security card is an important piece of identification. You’ll need one to get a job, collect Social Security, or receive other government benefits.
When you apply for a Social Security number , the Social Security Administration will assign you a nine-digit number. This is the same number that is printed on the Social Security card that SSA will issue you. If you change your name, you will need to get a corrected card.
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How To Apply For A Housing Choice Voucher
You will need to fill out a written application or have a representative of your local PHA help you.
The PHA representative will collect information on your family size, income, and assets.
The PHA will check this information with other local agencies, your employer, and your bank. This helps them decide if you qualify and how much assistance you’ll get.
The amount of assistance you may get is adjusted so you can afford a moderately-priced rental in your area.
The housing you choose must meet health and safety standards before the PHA can approve the unit.
After you’ve been approved for a voucher and found a place to rent, the PHA will inspect the rental before you sign your lease. These inspections are performed so the PHA can be sure the property is worth the rental price.
Keep Some Retirement Income In Roth Accounts
Contributions to a Roth IRA or Roth 401 are made with after-tax dollars. This means they’re not subject to taxation when the funds are withdrawn. So the distributions from your Roth IRA are tax-free, provided their taken after you turn 59 1/2 and have had the account for five or more years. Distributions taken from a traditional IRA or 401 plan, on the other hand, are taxable.
That means the Roth payout won’t affect your taxable income calculation. That also means it won’t increase the tax you owe on your Social Security benefits.
This advantage makes it wise to consider a mix of regular and Roth retirement accounts well before retirement age. The blend will give you greater flexibility to manage the withdrawals from each account and minimize the taxes you owe on your Social Security benefits.
A similar effect can be achieved by managing your withdrawals from conventional savings, money market accounts, or tax-sheltered accounts.
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What Types Of Income Do You Have To Report To Social Security Disability
What Types of Income Do You Have To Report To Social Security Disability?
Whether you currently receive Social Security disability benefits or happen to be going through the application process, you must report income received from wages and other sources to the Social Security Administration. It may sound simple enough, but the challenge in reporting different types of income to SSD comes from there being two programs that pay disability benefits.
The programs, Social Security Disability Insurance and Supplemental Security Income, each have different sets of rules used to determine eligibility that affect the reporting of income. The following information about types of income may help you to avoid mistakes that could result in a denial of your application for benefits or termination or reduction of benefits. After you read through it, schedule a free consultation with a Social Security disability lawyer at MJ Ellis Disability Law to learn more.
Income Rules For Ssi And Ssdi Can Be Confusing
Complicated regulations determine what income to report, how to report it and the effect reporting may have on the benefits you receive through SSI and SSDI. Speaking with a disability lawyer at MJ Ellis Disability Law sorts through the complex rules to provide you with clear and easy-to-understand answers to questions about reporting different types of income to SSD. Speak to an SSD lawyer today.
How To Get A Social Security Card
Ways To Avoid Taxes On Benefits
The simplest way to keep your Social Security benefits free from income tax is to keep your total combined income so low it falls below the thresholds to pay tax. However, few choose to live in poverty just to minimize their taxes.
A more realistic goal is to limit how much tax you owe. Here’s a rundown of three solutions:
Housing Choice Voucher Eligibility
Your local public housing agency decides if you are eligible for a Housing Choice voucher based on:
Your annual gross income
Whether you qualify as a family, a senior, or a person with a disability
U.S. citizenship or eligible immigration status
Your family’s size
Other local factors
In general, your family’s income may not exceed 50% of the median income for the county or metropolitan area.
Each state or city may have different eligibility rules for housing programs. Contact your local PHA to learn about your eligibility for Housing Choice vouchers.
Social Security Disability And Spousal Benefits
If you are not disabled but your spouse is, you may qualify for spousal benefits under the umbrella of the Social Security Disability program. These benefits can lead to a reduction of your Social Security Benefits as subject to the Government Pension Offset. This Offset, like the WEP, only takes place if you had a job where you did not pay into the Social Security System in the form of taxes.
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Is My Spouse Eligible To Receive Social Security Spousal Benefits
Spouses are eligible to receive 50 percent of their spouses full retirement benefit if they wait until they reach full retirement age. If they apply for a spousal retirement benefit before that time, the amount is pro-rated, depending on the age at which the spouse applies. For example:
If a spouse applies for a spousal retirement benefit at age 62 and the full retirement benefit is age 67, the applicant will get 32.5 percent of the spousal benefit.
If a spouse applies for a spousal retirement benefit at age 62 and the full retirement benefit is age 65, the applicant will get 37.5 percent of the spousal benefit.
The benefit increases as ages go up, to a maximum of 50 percent at full retirement age. It should also be noted that only one spouse can apply for a spouses benefit when a couple is married.
In cases of divorce, the divorced spouse can get retirement benefits on the spouses record if the marriage lasted for at least 10 years. To collect this benefit, the spouse must be at least 62 years old and not married. That benefit does not impact the amount a spouse and their current married partner can get.
Try This Life Expectancy Calculator For Social Security
Retirement benefit calculations are based on extensive actuarial studies and data. As a service to the public, the Social Security Administration has developed a simple Life Expectancy Calculator that allows you to plug in your gender and date of birth to get a rough estimate of how long you may live.
Knowing this information may help you in deciding when the right time is to apply for retirement benefits.
To use the Calculator, go to
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Next Steps For Apply For Ssdi Or Ssi Benefits
Evidence required by DDS for case documentation
Once you apply for disability benefits with the SSA, the Disability Determination Services , a division of the Massachusetts Rehabilitation Commission, will review your case. DDS will review medical information and vocational information, if necessary, that includes:
- A history of all work performed in the last 15 years
- A description of the physical demands and skill requirements for each job
- Educational history
When all required medical and vocational information is received, the disability examiner and staff physician and/or psychologist carefully evaluate each claim, using a sequential evaluation process.
The following people or agencies can help supply the information that is needed to process a claim for disability benefits.
- Treating physicians and psychologists
- School records
- Consultative examinations authorized by the DDS
How Soon After Applying Will I Be Eligible For Benefits From Sdi
There is a seven-day waiting period, which means you wont get any SDI benefits for the first week youre off work because of a non-work-related injury or illness. Benefits start on the eighth day. It typically takes SDI 14 days to process an application, so you usually start getting your benefit payments two weeks after you file your claim.
Note: There is no waiting period for Paid Family Leave .
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What To Do If Your Benefits Are Already Being Withheld
If youre subject to the Social Security earnings limit, dont wait for the SSA to start reducing the benefit you receive. Instead, Id recommend voluntarily suspending benefits.
If you wait for the Social Security Administration to discover that youve earned too much working while receiving benefits, your risk of an overpayment notice is higher.
Either way, you arent missing payments that youll never get back. Your benefit amount will be recalculated at your full retirement age to reflect the months that benefits were withheld.
The best way to avoid the earnings limitation is to wait until full retirement age to file for benefits. If you cant wait, make sure you have a clear understanding of how working impacts your Social Security benefits.
If you still have questions, you could leave a comment below, but what may be an even greater help is to join my . Its very active and has some really smart people who love to answer any questions you may have about Social Security. From time to time Ill even drop in to add my thoughts, too.
You should also consider joining the 295,000+ subscribers on my YouTube channel! For visual learners , this is where I break down the complex rules and help you figure out how to use them to your advantage.
Social Security Spousal Benefits Requirements
Based on actuarial studies, after a married couple reaches 65 years old, a majority of the time, one spouse will outlive the other by as much as 10 years. So the decision on who should file for benefits and when that should take place can have a major long-term impact on the income of a surviving spouse.
Spouses who never worked or have had low earnings throughout the course of their life are entitled to receive up to half of their spouses full retirement benefit. Depending on your personal situation, you may receive your own benefit or a blended amount of both you and your spouses benefit. Either way, you will receive a combination of benefits that gives you the highest possible amount.
One strategy often employed is for a spouse to take their spouses retirement benefit and delay taking their own benefit. By doing so, you can continue to accrue delayed retirement benefits which will result in a larger benefit amount when you file for your own retirement benefit.
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What Kind Of Income Counts As Earnings
The Social Security income limit applies only to gross wages and net earnings from self-employment. All other income is exempt, including pensions, interest, annuities, IRA distributions and capital gains.
The term wages refers to your gross wages. This is the money that you earn before any deductions, including taxes, retirement contributions, or other deductions.
If you want to see a more in-depth conversation about what counts as income for the earnings limit, see my article on the Social Security Income Limit: What Counts as Income?
Beware Of Backpay And Overpayments
The insurance claims process from application to approval can take a long time.
Processing your application for SSDI or SSI benefits can take an average of three to five months, according to the Social Security Administration.
However, your benefit schedule technically begins as soon as you file, making it common to receive a significant amount of retroactive benefits, also known as backpay, in a lump sum. According to NOLO, Social Security can even pay you for up to 12 months prior to your application date if you became disabled at least 17 months before that date.
When you receive this backpay, it is important to be aware of any overpayments the delay might have caused.
Insurance companies will state they have overpaid you for any months in which you received your full LTD and SSDI benefits, and will often demand you repay them.
The insurer may handle the overpayment in one of three ways:
If your insurance company is requesting an overpayment be refunded, contact an expert long-term disability attorney to ensure the backpay and overpayment amounts are correct.
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