Sunday, August 14, 2022

How Do They Determine Social Security Disability

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Benefits For A Disabled Child

How Social Security Disability Benefits Are Calculated: The Good Law Group

A child under age 18 may be disabled, but we don’t need to consider the child’s disability when deciding if he or she qualifies for benefits as a dependent. The child’s benefits normally stop at age 18 unless he or she is a full-time student in an elementary or high school or is disabled.

Children who were receiving benefits as a minor child on a parents Social Security record may be eligible to continue receiving benefits on that parents record upon reaching age 18 if they are disabled.

Have You Or A Loved One Been Denied Social Security Disability Benefits

If you or a loved on has been denied Social Security Disability Benefits you need to speak with an experienced SSD attorney as soon as possible. Please contact us online or call our Virginia Beach office directly at 757.490.3500 to schedule your free consultation. We have offices throughout Virginia including Chesapeake, Newport News, Norfolk and Suffolk.

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Adjust Your Pia For The Age You Will Begin Benefits

The final amount of Social Security retirement benefit that you receive is based on the age when you begin benefits.

The earliest you can begin retirement benefits is age 62 . You get more by waiting until a later ageas late as age 70to begin benefits.

Of course, another complex formula is used to determine how much more you will receive if you wait.

This formula uses your Primary Insurance Amount calculated in the previous step. This is the amount you will get if you start benefits at your full retirement age . Your FRA can vary, depending on the year you were born. For people born between 1943 and 1954, as in our example, the FRA is age 66.

For people born on Jan. 1, the FRA is based on the year prior. Someone born on Jan. 1, 1955, will have an FRA based on 1954.

A reduction is applied to your PIA if you begin benefits before your FRA. A credit, referred to as a “delayed retirement credit,” is applied if you begin to receive benefits after your FRA.

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A Complex Weighted Formula Is Used To Calculate Your Disability Benefits

Every SSDI recipient receives a unique amount of money. Your SSDI benefits are based on the income that you have paid Social Security taxes on in the past. This income is called your covered earnings. The average of your covered earnings over several years is called your average indexed monthly earnings .

You can view your covered earnings history by visiting or you can check your Social Security statement which is sent every five years to those under the age of 60.

The more money that you have earned and paid Social Security taxes on, the higher the amount that you are eligible to receive in disability payments. However, it is important to note that there are maximums in place in spite of the applicants earnings. The maximum benefit as of 2015 is $2,663 per month, and most people receive between $1000 and $1200 per month in benefits on average.

Once your AIME is calculated, a formula is applied to your AIME to calculate your primary insurance amount . Using your PIA, the Social Security Administration can calculate your monthly benefit amount.

This may seem complicated, and you are not expected to calculate your disability benefits on your own. You can contact the SSA or your local Social Security office to get an accurate estimate of your potential monthly benefits for SSDI. A representative will ask you questions about your past earnings and other relevant questions and calculate your estimated benefit for you.

How To Stop Social Security Check Payments

The Social Security Disability 5

The SSA can not pay benefits for the month of a recipients death. That means if the person died in July, the check received in August must be returned. Find out how to return a check to the SSA.

If the payment is by direct deposit, notify the financial institution as soon as possible so it can return any payments received after death. For more about the requirement to return benefits for the month of a beneficiarys death, see the top of page 11 of this SSA publication.

Family members may be eligible for Social Security survivors benefits when a person getting benefits dies. Visit the SSAs Survivors Benefits page to learn more.

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The Other Parts Of Medicare

  • Medicare Advantage Plan people with Medicare Parts A and Part B can choose to receive all of their health care services through plans that are offered by private companies and approved by Medicare. For more information, we recommend you read Medicare’s How do Medicare Advantage Plans work?
  • Medicare Part D helps pay for medications doctors prescribe for treatment. For more information on the enrollment periods for Part D, we recommend you read Medicare’s How to get prescription drug coverage page.

If you receive Medicare and have limited resources and income, you may be eligible for Extra Help with Medicare Prescription Drug Plan Costs.

Average The Highest 35 Years

The Social Security benefits calculation uses your highest 35 years of earnings to calculate your average monthly earnings. If you do not have 35 years of earnings, a zero will be used in the calculation, which will lower the average. In the table below, the highest 35 years are listed in Column G.

Total the highest 35 years of indexed earnings, and divide this total by 420, which is the number of months in a 35-year work history, to find the Average Indexed Monthly Earnings.

For our example worker, who was born in 1953 and turned 60 in 2013, the highest 35 years of wages total $1,919,040. Divide by 420 to get an AIME of $4,569.

How to Calculate Your AIME for Social Security Benefits

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How Is Social Security Calculated

There is a three-step process used to calculate the amount of Social Security benefits you will receive.

Step 1: Use your earnings history to calculate your Average Indexed Monthly Earnings .Step 2: Use your AIME to calculate your primary insurance amount .Step 3: Use your PIA, and adjust it for the age when you will begin receiving benefits.

You can use a copy of your Social Security statement that provides your earnings history to plug your own numbers into the formulas below.

Your Primary Insurance Amount

How Social Security Disability is Calculated

PIAs are complex to calculate and even harder to explain. The PIA is the sum of three separate percentages of portions of average indexed monthly earnings, states the SSA. Essentially, the SSA separates your AIME into three portions that it calls bend points:

  • Bend Point #1: Your first $885. They SSA will take 90 percent of this figure.
  • Bend Point #2: Your earnings between $885 and $5,336. The SSA takes 32 percent of these earnings.
  • Bend Point #3: Your earnings above $5,336. The SSA takes 15 percent of these earnings.

The sum of the three bend points will be your monthly disability benefit amount.

Example of Calculating Your PIA and Monthly SSDI Benefit

  • Lets say your AIME was $3,800/month.
  • Your PIA would be the sum of $796.5 for Bend Point #1 + $932.80 for Bend Point #2 .
  • You receive a grand total of $1,729/month for SSDI.

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Financial Eligibility For Ssi

Your income requirements for SSI depend on the state in which you live. You must have a very low monthly income, and approximately half of your current income is taken into account. The amount is set by your particular state, and it is usually between $700 and $1400 per month, and some states allow individuals with higher incomes to still qualify for SSI. You must own less than $2,000 in property for individuals, or $3,000 for a couple.

In addition to these financial requirements, you must be disabled, blind or over the age of 65. You must also be a citizen of the United States or meet very specific requirements based on military service, U.S. permanent residency, or refugee or political asylum status.

If you are disabled and are approved for SSI, you are also normally able to participate in the Medicaid program in your state, as well the food stamp program. There are specific state stipulations that must be met for these programs.

Social Security Disability Evaluation Process

While there are some conditions that the Social Security Administration considers so severe that they automatically render an applicant disabled, many conditions require careful screening, including answering these five questions:

  • Are you currently working? If you are working, you are not blind, and your earnings average more than $1,310 per month in 2021, then you will not be considered disabled. If you are not working, or if your income falls below Substantial Gainful Activity limits, move on to question two.
  • Is your condition severe? If Social Security determines that your condition does not interfere with basic work-related activities, then you will not be considered disabled. If your condition does interfere with basic work-related activities, move on to question three.
  • Is your condition found in the list of disabling conditions? Social Security maintains a list of disabling medical conditions that automatically qualify you as disabled. If your condition is not one of these, then Social Security will determine if it is severe enough to qualify. If so, you will be considered disabled, and your application will be approved. If not, move on to question four.
  • Can you do the work you did previously? If your condition does not interfere with your ability to do the work that you used to do, then you will not be considered disabled. If it does, move on to question five.
  • In addition, qualifying conditions must be expected to last at least one year or result in death.

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    Disability Help Group: Winning Case Study

    George stopped working in 2013 because he had a car accident. Unfortunately, he was unable to go back to work. He suffered from chronic back pain. George didnt know he could file for Social Security disability benefits when he stopped working. He contacted Disability Help Group for assistance in 2019. At that time, his date last insured had expired in December 2018. George had to go to a disability hearing. We were able to help George provide all of his medical records to the judge since his accident. Therefore, George was able to show that his medical conditions kept him from working before his DLI. He was approved for benefits.

    How Much Work Do You Need

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    In addition to meeting our definition of disability, you must have worked long enough and recently enough under Social Security to qualify for disability benefits.

    Social Security work credits are based on your total yearly wages or self-employment income. You can earn up to four credits each year.

    The amount needed for a work credit changes from year to year. In 2021, for example, you earn one credit for each $1,470 in wages or self-employment income. When you’ve earned $5,880, you’ve earned your four credits for the year.

    The number of work credits you need to qualify for disability benefits depends on your age when you become disabled. Generally, you need 40 credits, 20 of which were earned in the last 10 years ending with the year you become disabled. However, younger workers may qualify with fewer credits.

    For more information on whether you qualify, refer to How You Earn Credits.

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    How Much Does Ssdi Pay

    The Social Security Administration uses your Average Indexed Monthly Earnings and Primary Insurance Amount to calculate your SSDI benefits. The formula Social Security uses is quite complicated, and most people won’t be interested in trying to calculate their benefits on their own, especially because Social Security can give you a good estimate.

    Are You Engaged In Substantial Gainful Activity

    First Social Security checks to see if you’re currently working or if you’ve worked since you applied for benefits. If you are working and making a certain amount of money , you are probably doing what’s called “substantial gainful activity” . If you earn more than the allowed level for SGA, you won’t qualify for Social Security disability benefits, even if you have an impairment that meets the requirements for disability. If you have no earnings or your earnings fall under the SGA limit, the analysis proceeds to Step 2.

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    What If My Dli Has Expired

    You can still file for Social Security disability benefits if you stopped working more than five years ago. However, you would need to show that you became disabled before your DLI expired. You must have medical evidence that shows you couldnt work before your DLI. Sometimes, this can be very difficult. Older medical records might not be available. You may not remember all of the doctors that treated you. How Can I Check My Social Security Disability Credits?

    Effect Of Divorced Spouse’s Benefit On Other Family Members’ Benefits

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    Benefits paid to a divorced spouse or a surviving divorced spouse based on disability or age won’t be counted toward the maximum family benefit. However, benefits paid to a divorced spouse who is eligible for benefits based on taking care of the disabled worker’s minor or disabled children do count toward the maximum family benefit. This means that benefits paid to a divorced spouse who is not disabled and under age 60 will count toward the maximum family benefit .

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    A Note About Spousal Benefits

    According to the SSA, spousal and family benefits for those receiving SSDI payments are capped at 50% of your benefits per individual and about 180% for an entire family. These spousal and family benefits are available in specific situations that may not apply to you. The spousal benefit will not increase to the full amount of your retirement benefit when you reach full retirement age or when your spouse does.

    Engaging In Substantial Gainful Work

    In determining whether the applicant can work, the Social Security Administration first considers whether that person can continue performing the work they did in the last 15 years.

    If they cannot perform their past work, Social Security evaluates whether they can adapt to other work available in the economy. While evaluating whether the applicant can perform other work, the Social Security Administration will consider the persons age, education, training, and work experience.

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    Please Answer A Few Questions To Help Us Determine Your Eligibility

    Step 1 of 11< backforward >

    When you apply for Social Security disability benefits, the Social Security Administration wants to know whether your medical disorder is severe enough for you to qualify for benefits. To determine this, the SSA will send your file to the Disability Determination Service agency in your state for a medical review. A claims examiner, with the help of a medical consultant will determine your medical eligibility. DDS is concerned only with determining your medical eligibility for disability benefits .

    Any time your claim for disability is evaluatedwhether at DDS or when you appeal a DDS decisionSocial Security procedures require that specific issues be addressed, in a specific order. This is done to make sure that everyone gets the same consideration. If at any point in the SSA’s five-step analysis, the evaluating agency or court determines that your impairments justify a grant of disability benefits, the evaluation ends. This article explains what happens at every step in the disability determination process.

    How Do They Calculate Benefits Through The Ssi Program

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    If you meet the definition used by the SSA for being disabled or blind, you may qualify for SSI benefits. You cannot have resources or assets valued at more than $2,000 for an individual and $3,000 for a couple. Speak with an SSI advocate about the resource limitations because some assets may be excluded from the value limits.

    For example, the value of a home you own and rent out to a tenant would be included in the $2,000 or $3,000 resource limit. The same home would be an excluded asset if, instead of renting it to a tenant, you lived in it as your primary residence.

    The monthly federal benefit payable to an individual through SSI is $794 in 2021. It is $1,191 for married couples where both spouses qualify for SSI. You may live in a state that supplements the federal benefit.

    The federal benefit that you actually receive may be less than $794 a month or $1,191 as a couple based on income that you receive from sources other than SSI. For example, interest income or earnings from work may reduce what you receive each month from SSI.

    To calculate your monthly SSI benefit, you must deduct the income you have for the month from the federal benefit. However, Social Security does not count all income. The following are some of the exclusions SSI allows from monthly income:

    1). $20 of monthly earned or unearned income

    2). The first $65 of monthly earned income and one-half of the balance.

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    More Specific Conditions That Could Entitle You To Benefits

    It is important to note that every applicant presents individual circumstances that could qualify or disqualify them for benefits. With this in mind, some of the specific conditions the SSA lists under its broader medical categories include:

    • Liver disease
    • Depressive disorder
    • Bipolar disorder

    These are just some of the many conditions the SSA lists as potential prerequisites for receiving disability benefits through one or more federal programs. Additional context may be required to determine your eligibility and the number of benefits you could receive if you are eligible. As such, these conditions do not automatically qualify you for disability benefits.

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