I have read so many inspiring diaries here about folks making the best of very difficult situations and they have my upmost respect and support. I am amazed how many kossacks say they are living on SSDI, including a very inspirational diary on the rec list now by kktlaw. I understand that everyone with a disability or medical condition severe enough to be receiving SSDI or SSI are in different situations. I just wanted to add something that I know a lot about, that is how earnings can impact benefits and other general information regarding public benefits. This particular diary is about how earnings impact SSDI (not self-employment income). In the next few months, I'll be posting information on different public benefits such as SSDI, SSI, Medicare, Medicaid, Housing, Food Stamps and some problems people run into and how to avoid them (i.e. overpayments, Ticket to Work, etc.)
So hopefully this information in this diary finds someone who thinks it’s useful, consider it a Kossack community public service.
Peace!
There are some very important things one needs to understand regarding SSDI. First of all, the work rules are intended to be flexible. This means that depending on what someone’s long term work objectives are, they would uses these rules accordingly. Someone who may have the expectation to get off of benefits someday would use these work rules differently than someone who may not have that expectation. Also, many SSDI beneficiaries are under the impression that SSA will automatically know if they go back to work. Nothing could more further than the truth, they would find out eventually (2-4 years later) but by that point a beneficiary may be facing a substantial "overpayment" (how to deal with an overpayment is another diary).
Also, do not necessarily think that the information you get from the local SSA office is accurate, I have many clients who are facing substantial overpayments because they received erroneous information from their SSA Claims Rep. Ok, it's very easy to overstate information when talking about this stuff so I'll keep it short and simple. I put my email on my profile and if you have any questions about this stuff, don't hesitate to contact me :-)
Title II
SSDI (Social Security Disability Insurance)
A beneficiary or recipient receives SSDI based on:
• Own work record
• The worker’s widow
• The worker’s disabled adult child (if onset of disability was prior to turning 22)
Eligibility is based on number of "Credits" Earned
The number of work credits you need to qualify for disability benefits depends on your age when you become disabled. Also, the credits must have been earned within a certain time period. Generally, you need 20 credits earned in the last 10 years, ending with the year you become disabled.
1 credit = $1090 earned
Maximum is 4 credits per year
5 month waiting period after award
No asset limit
Medicare eligibility after 24 months
Wages must be below $940 at application
Substantial Gainful Activity (SGA)
• SGA is a way the Social Security Administration can measure a beneficiary’s ability to work productively (self-sufficiency level).
• SGA is currently $940 ($980 in 2009), $1570 ($1640 in 2009) if legally blind.
• Increases every year with the cost of living.
SSDI – 3 Steps to Self Sufficiency
• Trial Work Period
• Extended Period of Eligibility
• Post EPE and Expedited Reinstatement
SSDI – STEP 1 - Trial Work Period
• Nine "Trial Work Months" where you may earn as much as you can and still receive your SSDI cash benefit.
• Trial Work Months are not consecutive, used when earnings exceed $670 ($700 in 2009) in a month, if all nine are used within a 5 year period then you would move on to step II. However, the $670 amount should not be seen as some kind of limit or ceiling to stay under!
• It is in your best interest to keep track of your own Trial Work Month usage.
• The Purpose of the Trial Work Months is an opportunity to "test" your ability to work, in order to see what works for you.
SSDI - STEP 2 - Extended Period of Eligibility
• Extended Period of Eligibility or EPE (Step 2).
• 36 month time frame (3 years) which begins once you complete your last (9th) Trial Work Month.
• If earnings reach SGA ($940) in one calendar month, then you are not eligible to receive your SSDI cash benefit for that month, if earnings fall below SGA the next month due to your disability then SSDI cash benefits are resumed.
• EPE continues to roll regardless of employment situation.
SSDI - STEP 3 - Post EPE (After completion of Step 2)
• Once you have completed the 36 month Extended Period of Eligibility (Step 2), you may continue to receive SSDI cash benefits until you earn over SGA.
• Once earnings exceed SGA, termination of benefits occurs.
• It is also in the best interest of the beneficiary to understand when, and when they are not eligible for a SSDI cash payment.
Expedited Reinstatement – Safety Net Provision
• If SSDI (or SSI) has been terminated, then due to a change in your medical condition (related to original claim) you are unable to be gainfully employed. You may request reinstatement of benefits within 60 months (5 years) from day of termination.
• You will receive 6 months of provisional benefits while a SSA review is completed.
• If found ineligible, no repayment is expected but you can elect to file a new claim
Individual SSDI Work Incentives:
Subsidy
• Special accommodation allowed by an employer to a disabled worker.
• Social Security Administration will place a monetary value on the accommodation based on the supports, special considerations, or allowances you receive on the job that another employee (non-disabled) with the same job description does not receive.
• You may then earn that amount over SGA and still retain your SSDI benefits.
Impairment Related Work Expense (IRWE)
• If you have an out-of-pocket expense that is 1) directly related to your disability and 2) you need that service or item to go to work; The cost of this service or item will serve as a deduction and allow you to earn that amount over SGA and still keep your benefits.
• Examples of IRWE include;
o Medications not covered by health insurance
o Alternative therapies
o Certain transpiration costs
o Many others
Please, if you are on SSDI and are thinking about working I urge you to contact the WIPA program in your state and speak to a Community Work Incentive Coordintor. These are advocates whose mandate is to explain these rules and their nuances to you according to what your pariticular vocational goals may be.
You can find the WIPA program that serves your area here