Special For Adult Disabled Children
For a parent awarded SSD benefits for their adult disabled child, meaning a child over age 18, different rules apply. There is no five month waiting period. However, complex rules determine the “entitlement date.” You may need the assistance of an attorney to understand the benefits your adult child is entitled to.
For disabled parents, back pay for their adult disabled child will not go back any further than 12 months before the parent applied for benefits. If the child does not become disabled until after age 18, the earliest benefit date will be the first full month after the adult child is disabled.
What Do I Need To Know About Advance Designation
You should be aware of another type of representation called Advance Designation. This relates to the Strengthening Protections for Social Security Beneficiaries Act of 2018, which was signed into law on April 13, 2018.
Advance Designation allows capable adult and emancipated minor applicants and beneficiaries of Social Security, Supplemental Security Income, and Special Veterans Benefits to choose one or more individuals to serve as their representative payee in the future, if the need arises.
To help protect whats important to you, we now offer the option to choose a representative payee in advance. In the event that you can no longer make your own decisions, you and your family will have peace of mind knowing you already chose someone you trust to manage your benefits. If you need a representative payee to assist with the management of your benefits, we will first consider your advance designees, but we must still fully evaluate them and determine their suitability at that time.
You can submit your advance designation request when you apply for benefits or after you are already receiving benefits. You may do so through your personal account, by telephone, or in person.
About Sharon Christie Law:
Sharon Christie is the owner and founder of Sharon Christie Law, and is an attorney and former nurse. Her team of professionals and paraprofessionals help people win Social Security Disability Benefits! Our Social Security Disability Law Firm serves clients in , Southern Pennsylvania, Northern Virginia, and Washington DC.
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For More On How To Calculate Social Security Disability Benefits Call An Ssdi Attorney Today
Social Security disability law is complicated, which is why it is the only kind of law we practice at Troutman & Troutman, P.C. We have years of experience with SSDI and SSI claims, so we can answer any other questions you may have. In particular, we can explain how the SSA will calculate Social Security disability benefits in Oklahoma.
Point of Interest
Are Social Security Benefits Taxable
If you have a lot of income from other sources, up to 85% of your Social Security benefits will be considered taxable income. If the combination of your Social Security benefits and other income is below $25,000, your benefits wonât be taxed at all. The amount of your benefits that is subject to taxes is calculated on a sliding scale based on your income. Money that Social Security recipients pay in income taxes on their benefits goes back into funding Social Security and Medicare.
If your retirement income is high enough that your benefits are taxable, how do you pay those benefits? You can ask Social Security for an IRS Voluntary Withholding Request Form if youâd like the government to withhold taxes from your Social Security benefits. Otherwise, youâre expected to file quarterly tax returns to pay these taxes over the course of the year.
That covers federal income taxes. What about state income taxes? That depends. In 13 states, your Social Security benefits will be taxed as income, either in whole or in part the remaining states do not tax Social Security income.
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The Number Of People Qualifying For Social Security Disability Benefits Has Increased
For over 60 years, Social Security disability has helped increasing numbers of workers and their families replace lost income. Several factors have contributed to this increase, which the Social Security Trustees and our actuaries have projected for decades. For example, baby boomers have reached their most disability-prone years and more women have joined the workforce in the past few decades, working consistently enough to qualify for benefits if they become disabled.
Despite the increase, the 9 million or so people getting Social Security disability benefits represent just a small subset of Americans living with disabilities.
Restrictions On Potentially Deceptive Communications
Because of the importance of Social Security to millions of Americans, many direct-mail marketers packaged their mailings to resemble official communications from the Social Security Administration, hoping recipients would be more likely to open them. In response, Congress amended the Social Security Act in 1988 to prohibit the private use of the phrase “Social Security” and several related terms in any way that would convey a false impression of approval from the Social Security Administration. The constitutionality of this law was upheld in United Seniors Association, Inc. v. Social Security Administration, 423 F.3d 397 , cert den 547 U.S. 1162 126 S.Ct. 2346 .
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Estimating Your Social Security Disability Amount
In 2022, the average SSDI payment for an individual is $1,358, but almost two-thirds of SSDI recipients receive less than that. And only 10% of SSDI recipients receive $2,000 per month or more.
The 2022 average monthly benefit for an SSDI recipient who has a spouse and children is $2,383.
Because benefit amounts depend on lifetime earnings, there’s a large range in how much Social Security pays. For instance, let’s look at age 55, the most common age disabilities start. For 55-year-olds who have worked their entire lives, Social Security typically pays $1,000 to $2,700. The benefits pay chart here shows you the ranges based on income.
Within those ranges, the amount you’ll receive will depend on the following:
- your average income over 35 years
- whether you paid self-employment taxes if you owned your own business or freelanced
- whether you worked in any jobs that didn’t pay into the Social Security system , and
- whether you took any years off work for child-rearing or long-term illness.
Your Ssdi Payment Depends On Your Average Lifetime Earnings
By Bethany K. Laurence, Attorney
If you are eligible for Social Security Disability Insurance benefits, the amount you receive each month will be based on your average lifetime earnings before your disability began. It is not based on how severe your disability is or how much income you have. Most SSDI recipients receive between $800 and $1,800 per month . However, if you are receiving disability payments from other sources, as discussed below, your payment may be reduced.
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How Does Social Security Define Disability
To be eligible for SSI, you must show that you have a disability that prevents you from working. Social Security requires that:
- You must be able to show medical reports that confirm that you have a severe physical or mental disability.
- The disability must be life-threatening or have lasted or be expected to last at least a year.
- The disability must prevent you from doing Substantial Gainful Activity for at least a year.
Taxation Of Social Security Disability Backpay
Large lump-sum payments of back payments of SSDI can bump your income up for the year in which you receive them, which can cause you to pay a bigger chunk of your backpay in taxes than you should have to. To avoid losing part of your backpay this way, you are allowed to apply the SSDI benefits owed from a prior year to prior tax returns, lowering your income for the year you receive the lump sum. For example, if you were entitled to disability benefits for 22 months before you received your back pay, you could amend your tax returns for two prior years to claim some of the income in those years instead of the current year. You should ask a lawyer or CPA for help on this. For more information, read our article on how Social Security disability backpay is taxed.
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How Much Work Do You Need
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.
What We Mean By Disability
The definition of disability under Social Security is different than other programs. Social Security pays only for total disability. No benefits are payable for partial disability or for short-term disability.
We consider you disabled under Social Security rules if all of the following are true:
- You cannot do work that you did before because of your medical condition.
- You cannot adjust to other work because of your medical condition.
- Your disability has lasted or is expected to last for at least one year or to result in death.
This is a strict definition of disability. Social Security program rules assume that working families have access to other resources to provide support during periods of short-term disabilities, including workers compensation, insurance, savings, and investments.
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Disability And Money In The Bank
Supplemental Security Income disability is a disability program that is based upon need therefore, there are income and resource limits which affect SSI eligibility. Unlike Supplemental Security Income disability, Social Security Disability does not have any kind of income or resource limits because it is based upon insured status rather than need. Consequently, income and resources do not affect eligibility for Social Security Disability benefits.
Does My Health Coverage Change When I Go Back To Work
If youre on SSI and go back to work, your Medi-Cal coverage can continue even after your earnings have reduced your SSI benefits amount to zero. Depending on your income and resource levels, Medi-Cal coverage can continue either through SSIs 1619 work incentive or through Medi-Cal’s Working Disabled Program.
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How Your State Affects Your Ssi Payment
Another factor that affects the amount of your SSI payment is whether you are entitled to a state supplement. Most states give supplemental payments to SSI recipients. Only Arizona, Arkansas, Mississippi, Tennessee, and West Virginia do not have a state supplement. Georgia, Kansas, Louisiana, and Texas pay a small supplement to SSI recipients living in Medicaid nursing homes.
Many states do not pay the same state supplement amount to every SSI recipient. Instead, they pay smaller supplements to some SSI recipients and larger supplements to others, based on a variety of factors that also differ from state to state. For example, a common system for the payment of state supplements is to pay an increased supplement to SSI recipients who are living in nursing homes or assisted living, to account for the higher cost of living in a facility. You can find the amount of the supplemental payment for all states in disabilitysecret.com’s state-by-state disability pages.
What Happens When Your Nine
If you participate in the Trial Work Period Program , at some point you will use up your nine months of unlimited income while still receiving your full SSDI benefits. What then?
The Extended Period of Eligibility When you exhaust your nine TWP months, the SSA wants to give you the incentive to continue working if you can. The Extended Period of Eligibility is a 36-month period in which you have an income safety net.
Each month, the SSA checks your reported income to see if you exceeded the monthly income cap that is substantial gainful activity . If you do exceed the SGA level, you will continue to receive your full SSD benefit during a 3-month grace period. After that, your SSD benefit payment will be suspended for any month your income is above the SGA.
But, if during the 36-month safety net period your earnings again fall below the SGA level, your SSD benefit payments will resume for each such month.
Clauson Law has focused on representing the injured and disabled for over 10 years. We have handled thousands of cases. Each client is important to us and has a unique situation.
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Apply As Early As Possible
The first thing to realize about applying for Social Security disability benefits is that it is often a lengthy process, Geist said.
Once an initial application is filed with the Social Security Administration, it can take three months to five months to get a decision. If that initial application is denied, it can take four months to six months for the application to be reconsidered on a first appeal, Geist said.
From there, if the application has to be reviewed at a hearing, it can take up to 12 months just to get scheduled before a judge, Geist said.
Apply as early as possible, because it is a long process, Geist said.
A 2020 Government Accountability Office report found that about 1.3% of applicants filed for bankruptcy while waiting on their appeals, and 1.2% died before receiving a final decision.
Many particularly those without legal representation end up wrongfully denied on multiple occasions before finally being approved with a lawyers help, said Rebecca Vallas, senior fellow that the Century Foundation. Untold numbers spend what savings they have to try to stay afloat while waiting for an appeal to be heard and countless more lose their homes in the process.
There are about 8.2 million disabled workers collecting benefits, according to the Social Security Administration. Their average monthly benefit is $1,277.
Pay Attention To Financial Qualifications
While the basic rule for Social Security disability is defined as a condition that has lasted or is expected to last for at least 12 months, that should not necessarily determine when you apply for benefits.
If an individual is not working and earning income, then theyre allowed to apply now, Geist said. Theres not a set period of time where they have to wait to apply.
However, there are certain financial restrictions that claimants will have to meet to be approved.
For starters, you must have paid so-called FICA taxes into the system. Generally, you have to contribute for at least 10 years in order to be eligible.
Additionally, your condition must meet Social Securitys definition of a disability. It must be so severe that you can no longer work. It must also be expected to last for at least a year or result in death.
In addition, your income must fall below certain a certain threshold known as substantial gainful activity. In 2021, that limit is $1,310 per month for non-blind individuals.
Those who have not paid FICA taxes may instead qualify for Supplemental Security Income, or SSI. However, those benefits are means tested and come with strict asset limits of $2,000 per individual, or $3,000 per married couple.
While some disabled workers may be tempted to take advantage of expanded pandemic unemployment insurance benefits that are still available in some states, that could hurt your chances of getting approved for disability benefits, Geist said.
How Much You Will Receive
The amount of your monthly SSDI benefit is based on your lifetime average earnings covered by Social Security.
If you don’t already have an estimate, you can get your Social Security Statement online with your personal mySocial Security account or use our Benefit Calculators to determine how much you could get if you became disabled right now.
Lost Or Stolen Federal Payments
Report your lost, missing, or stolen federal check to the agency that issued the payment. It’s usually one of these paying agencies. If your documentation indicates it’s a different agency, and you need its contact information, look in the A-Z Index of U.S. Government Departments and Agencies.
To get an update on your claim, contact the Treasury Department Philadelphia Financial Center at 1-855-868-0151, option 1.
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Neither Ssdi Nor Ssi Payments Amount To A Lot Of Money
As you can see, Social Security disability and SSI benefit payments are not large, especially in comparison to what you can earn if you are able to work.
If you are just short of credits for SSDI, it may make sense for you to try to work and to earn enough credits to make you eligible for Title II Disability. In general, SSDI payments are significantly higher than SSI and you do not have to worry about income and resource offsets.