This is a particularly tough question. I previously wrote about how earning more than the Substantial Gainful Activity amount may cause your benefits to be stopped in Social Security Disability Insurance cases. 

In SSI cases, I just learned that you can earn more than the SGA amount and still keep your SSI benefits.

WARNING: I do not pretend to be a understand SSI benefits calculations. I strongly encourage anyone reading this to check this information with Social Security. Also, any Social Security technicians are more than welcome correct any errors I may make here.

To figure out how much you can earn, I need to introduce the 20-65-1/2 rule. This rule helps us determine the “countable earned income.”

If you are working, and receiving both Social Security Disability Insurance (SSDI, DIB) as well as Supplemental Security Income (SSI).

1. Subtract $20 from SSDI amount.
2. Subtract $65 from he amount you earn (before taxes or any deductions) then divide by 2.
3. Add the two amounts together

In other words: (SSDI – $20) + (gross income – $65) / 2 = countable earned income.

Let’s do an example

If you are getting $100 from SSDI and earn $150,

($100 – $20) + (($150 – $65) / 2)

$80 + ($85 / 2)

$80 + $43 (we rounded up)

$123

Now, you take the SSI benefit amount and subtract the number we just got. 

If you were getting $637 in SSI, you subtract the $123, which equals $551. This is the amount you will still get in SSI benefits. 

If you are receiving SSI and also working, you would use this formula

((gross income – (65 + $20)) / 2  

Note: the $20 is the unearned income disregard previously subtracted from the SSDI amount 

(gross income - $85) /2

Using the amount from the previous example:

($150 – $85) / 2 

($65) / 2 

$33

Social Security will subtract the $33 from the current SSI benefit amount. So, even though you earn $150, Social Security will only reduce your SSI benefits by $33.

Based on this formula, in 2009, you can earn just around $1,400 and still qualify for SSI benefits. But, please, if you find yourself in the situation really having to know how much you can make and still keep your Social Security SSI benefits, speak to Social Security. 

Note: if you were reveiving both SSDI and SSI, the $1,400 in income will probably make you lose your SSDI. So, keep in mind the exceptions I discussed in my earlier article.  Many of them apply in SSI cases as well. 

My thanks to Peter Komlos-Hrobsky, Supervising Attorney of the Health/Elder Unit of Colorado Legal Aid in Denver for bringing this to my attention.

A quickie article answering a common question: can you garnish Social Security disability benefits for child support?

Title 2 Disability Insurance (aka SSDI or DIB) benefits can be garnished for child support.

However, Title 16 Supplemental Security Income (aka SSI) benefits cannot be garnished. 

This is general information only and not legal advice. Contact a lawyer for advice on your specific circumstances.

I was recently asked which pays more in benefits? Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI)?

If you are wondering about the difference between SSDI and SSI, read this post.

As for which pays more, the answer is “it depends.”  

SSI benefits are based on the annual Federal Benefit Rate (FBR) which sets the maximum SSI benefits you can per month. For 2009, the FBR is $674 for individuals ($1,011 for couples).  That mean the most an individual on SSI can receive is $674 per month. Couples who are both on SSI can receive a maximum of $1,011 per month.  

Disability Insurance (SSDI) benefits are based on your payroll contribution to Social Security. The more you have paid into Social Security, the more monthly benefits you may be entitled to.  

Simply put, SSI is capped at $674 per month (based on the 2009 SSI Federal Benefit Rate). Depending on how much you have paid into Social Security, SSDI may pay more in benefits. 

If you want to get an idea of how much you may be entitled if you become disabled, Social Security has online benefit calculators which can estimate benefits amounts.  Social Security also mails you a “Social Security Statement” every year before your birthday which describes your estimated benefits.

SSDI and SSI provide different medical benefits:

• Supplemental Security Income provides Medicaid benefits which can pay for treatment, specialists and surgeries.
• Social Security disability insurance provides Medicare benefits, including Medicare Part D, which pays for prescription drugs.

If you get both SSDI and SSI, you may be able to get both Medicare and Medicaid.

Getting both SSDI and SSI is also helpful in mitigating the 5 month waiting period in SSDI cases. While you may not be able to get your Disability Insurance during the first 5 months, you may still be able to get SSI benefits during that time.

Keep in mind that this requires the alleged onset date to be the same as the protected filing date because of the limits on back benefits in SSI cases.

I recently wrote about the difference between Social Security disability insurance (SSDI) and Supplemental Security Income (SSI).

But, can you get both: SSI and SSDI?

Depending on your circumstances, yes. 

The maximum you can receive on SSI is based on the annual Federal Benefit Rate (FBR).  For 2009, the FBR is $674.  That mean the most you can receive on SSI in $674 per month.  

Disability Insurance Benefits are based on your payroll contribution to Social Security.  The more you have paid into Social Security, the more in monthly benefits you may be entitled to.  

The only way to get both SSDI and SSI is for your SSDI benefits to be less than the Federal Benefit Rate (FBR). 

If that happens, and you qualify financially for SSI, you can also get Supplemental Security Income to pay up to the Federal Benefit rate.

I realize this may sound like a bunch of legalistic gobbledygook. So, here is a quick example:

Let’s say you only qualify for $500 per month in Social Security disability insurance benefits. 

SSI may pay you an additional $174 to bring your total monthly benefits up to the Federal Benefit rate.

However, if you get $700 from SSDI, you will probably get nothing from SSI, because you already are receiving more than the $674 Federal Benefit Rate in SSDI.

We previously discussed Social Security’s Disability Insurance Benefit (DIB) and Supplemental Security Income (SSI) programs.

The big difference between DIB and SSI is type of income which affects eligibility. 

Under the “Disability Insurance” Program, Social Security considers whether you are working and earning money (engaging in a Substantial Gainful Activity – SGA). If you earn too much money as income, you may be denied Social Security DIB benefits.  Of course, there are some exceptions.

In other words, if you are applying for Disability Insurance Benefits, your earnings, if any, may make you ineligible.  But, other sources of money: gifts, prizes, winnings, settlements, and even spouses income, are NOT counted in determining eligibility.

Under Supplemental Security Income, all income: your earnings, your spouse’s earnings, gifts, settlements, and in children’s cases: household income, can make you financially ineligible to receive SSI.  SSI is a ”needs based” program and a program of last resort, if you have another source of income, then your “needs” are viewed as decreased.

In addition to income, SSI also considers your assets in determining eligibility. The plot of land you own, those shares of stock you received, most any assets you have may make you ineligible for SSI.

HOWEVER, the income and asset rules are so complicated and have so many exceptions that you do not want to jump to conclusions about whether or not you may be eligible.  This is something you will want to go over with Social Security.

Is there a difference between Disability Insurance (DIB) and Supplemental Security Income (SSI) benefit amounts?

Yes. The maximum you can receive on SSI is based on the annual Federal Benefit Rate (FBR).  For 2009, the FBR is $674.  That mean the most you can receive on SSI in $674 per month.  

Generally, Disability Insurance Benefits are based on your payroll contribution to Social Security.  The more you have paid into Social Security, the more in monthly benefits you may be entitled to.  

If you want to get an idea of how much you may be entitled if you become disabled, Social Security has online benefit calculators which can estimate benefits amounts.  Social Security also mails you a “Social Security Statement” every year before your birthday which describes your estimated benefits.

In order to qualify for Social Security Supplemental Security Income benefits (SSI), not only do you have to be disabled, you also have to qualify financially.

To be eligible for SSI a person must have $2,000 or less in countable resources. A married couple must have $3,000 or less in countable resources. If you own resources over the SSI limit, you may be able to get SSI benefits while trying to sell the resources.

Not all of your resources count toward the SSI resource limit. For example:

• the home you live in and the land it’s on do not count.
• your personal effects and household goods do not count.
• life insurance policies may not count, depending on their value.
• your car usually does not count.
• burial plots for you and members of your immediate family do not count.
• up to $1,500 in burial funds for you and up to $1,500 in burial funds for your spouse may not count.
• if you are blind or have a disability, some items may not count if you plan to use them to work or earn extra income.

See Understanding SSI and SSI Spotlight for more information.

If you are disabled, how far back will Social Security pay benefits? Back to when the disabiilty began?

It depends on whether you are applying for Social Security Disability Insurance (SSDI or DIB), or Supplemental Security Income (SSI).

Social Security Supplemental Security Income (SSI) pays benefits back to the “Protected Filing Date (PFD),” the date you contacted Social Security and asked to apply for benefits.

Social Security Disability Insurance, on the other hand, pays benefits up to 12 months before the Protected Filing Date.  However, you should also keep in mind the “5 month waiting period.”

Note: these are maximum back benefit payments. Social Security has to find you disabled back to the PFD (for SSI) or 12 months before the PFD (for SSDI) to get those back benefits.

If you are on Supplemental Security Income (SSI), or applying for SSI, you should know that Social Security’s SSI benefits have increased. 

For 2008, the Federal Benefit Rate (the maximum you can receive in SSI) is $674 for individuals and $1,011 for couples. For most people though, this means the maximum SSI benefits you can get i 2008 is $674 per month.

This is up from $637 per month in 2008.

This page lists the Federal Benefit Rates back to 1998.

Beginning January 2009, the maximum monthly Supplemental Security Income (SSI) benefit amount increases to $674 (increased from $637 in 2008) for individuals and 1,010 for couples.  The maximum SSI benefit amount is based on the Federal Benefit Rate (FBR).

If you need to know the monthly maximum SSI amounts for other years, this page lists the Federal Benefit Rates back to 1998.

However, your SSI benefits may be less than the FBR amount if you have any other sources of income.  For example, if anyone is providing food, clothing or shelter for you  – your benefits may be reduced by 1/3.

I was recently asked if you will still receive your Supplemental Security Income (SSI) benefits if you move to a different state.  I understand the fear of moving to a different state when you rely on SSI benefits to make it month to month.

Fortunately, the general answer is yes.

Social Security is a national program.  Whether you are receiving Disability Insurance Benefits (DIB) or Supplemental Security Income (SSI) benefits, your benefits continue even if you move to a different state.

However, the following states provide additional benefits and supplement SSI benefits:

• California
• The District Of Columbia
• Hawaii
• Massachusetts
• Nevada
• New Jersey
• New York
• Pennsylvania
• Rhode Island
• Vermont

So, your benefits may change depending on what state you live in.

Social Security has a more information about how each of these states supplement SSI benefits.

Here is a popular questions:

I’m on SSI, do I have to tell Social Security about an inheritance/settlement I am getting?

The answer is simple:

YES!

There is no point beating around the bush with this one.  If you are on SSI and “come into money” whether it is a gift, inheritance or settlement (or through whatever means), you need to notify Social Security.

Supplemental Security Income (SSI) is a “needs-based” program.  You only get it if you do not have money coming in from other sources.  So, if you suddenly get some money, your benefits may be reduced or even cut off.

Even worse for some people is the potential loss of Medicaid.  You have to be receiving at least $1.00 of SSI benefits to qualify for Medicaid benefits under Social Security.  So if you lose your SSI, you may also loose your Medicaid (unless you qualify under another program).

Well, I don’t want my benefits cut off!  And I can’t afford to have my Medicaid cut off!!!

I understand, and I sympathize.  However, there are worse things that can happen than having your benefits suspended or terminated.  If you fail to report this money to Social Security, you may face the following:

• Overpayment.  If it would be terrible to have your benefits stopped, imagine how bad it may be to have to pay back money that Social Security says you were not entitled to.  See my articles about how difficult it is to fight an overpayment claim, and how hard it is to get an attorney to help.  In my experience, it is easier to find an attorney to help you get your benefits back after SSA cuts them off rather than trying to find an attorney to help you fight an overpayment.
• Prosecution.  While rare, if Social Security thinks that you intentionally hid assets to keep getting SSI, that’s fraud.  Social Security may turn over your case to the Attorney General’s office for prosecution.

Document communication with Social Security

Ok, so you have decided to do the right thing and let Social Security know about the gift / inheritance / settlement / pot of gold.  Great!  Now ask yourself.  If Social Security comes back in two months or two years and you have to prove that you notified SSA about the money, do you have any proof?

TIP: Always document communication with Social Security.

It does not matter if you spoke to someone over the telephone or in person at the Social Security office with a hundred witnesses.  If Social Security looses all record of your discussion, the ball is in your court to prove you provided notice.

Protect yourself.   Assume that Social Security will not have proof of your communications.  You have to keep that keep that proof yourself.

What kind of proof?

1. A certified, return receipt requested letter is always good.
2. If you meet with someone, follow up with a letter reviewing the communication.
3. A phone log and/or meeting log showing dates, times and who you met and spoke with at Social Security and a summary of what was said.

Keep in mind, none of this is bullet-proof evidence.  However, it may show that you took steps to keep Social Security informed about your money situation, which may save you from a fraud charge.

This is especially important if you meet with Social Security, review your income/assets and Social Security tells you that you can go ahead and keep the Social Security benefit check.  If you do not have proof of the discussion, what will you do if Social Security contacts you in two years and says you were not entitled to those benefits?  Yes, this can happen!

If you are not entitled to benefits, it may not matter if Social Security told you to keep the money

Here is another kick in the head:  even if Social Security tells you that you are entitled to keep the benefits, nothing stops Social Security from changing its mind down the road and demanding an overpayment.  Crazy, but true.

Plus, if you read my overpayment article, you have seen that even if Social Security tells you that it is ok to keep the money, and you are without “fault,” that is only one of the two tests for determining if you have to pay the money back.

You may still have to pay the money back.

Special Needs Trusts

Since you stuck it out through this long article, I will let you in on one way to keep the gift / settlement / inheritance and still maintain elligibility for SSI: a Special Needs Trust.

Special Needs Trusts occaisionally pop up in personal injury cases where a person has been serverly injured and becomes disabled and then receives a settlement for the injury. If the person takes the settlement, will probably make them ineligible for SSI.

However, if the settlement is put into a “Special Needs Trust” which can only be accessed for very specific purposes, Social Security may not count the settlement as an asset.

How to set up a Special Needs Trust?

This requires a very special kind of legal voodoo.  You will need to have a trust attorney help you, and not just any trust attorney can do this properly.  You need a trust attorney who is familiar with special needs trusts.  You want a specialist* for this.

If the trust fails for any reason, the settlement or other money may be counted as an asset and the person may lose SSI benefits and Medicaid.

Updated: 04/19/09

*Disclaimer: Colorado does not certify lawyers as specialists in any field.

Social Security has two different benefit programs for individuals who are disabled.

• Disability Insurance Benefits (DIB, also known as SSDI, or Title 2 benefits); and
• Supplemental Security Income (SSI or Title 16 benefits).

Because of its name, it is a common misconception that must apply for “Disability Insurance” if you are disabled. Actually, both programs provide disability benefits.  

What is Disability Insurance Benefits (DIB)?

Generally, Disability Insurance Benefits are based on your payroll contribution to Social Security.  To qualify for DIB, you have to have earned enough Social Security credits, in the right time frame, by paying into Social Security through payroll taxes.  

There are several circumstances in which you may not have enough credits for Social Security Disability Insurance:

• If you have never worked.
• You worked so long ago that you are past your date last insured.  
• Instead of paying into Social Security, you paid into a state program (such as PERA). 

In each of these cases, you might not be eligible for Disability Insurance (DIB).
Please note that this is just an overview.  There are several circumstances in which you may still be eligible for Social Security Disability Insurance (DIB) even if you do not have not have enough credits under your own earnings, including:  

• Social Security Disability Insurance (DIB) based on a spouse’s, or former spouse’s, earnings.
• Widow/er’s benefits and Children’s benefits when a spouse/parent dies.
• DAC (Disabled Adult Child) benefits.

It is often a good idea to speak with Social Security if you think you may qualify for one of these other types of Social Security Disability Insurance Benefits (DIB).

What is Supplemental Security Income (SSI)?

Even if you are not eligible for DIB, you may still be able to apply for SSI.  

Supplemental Security Income is a Social Security program which provides disability benefits to the following groups:

• Children, 
• Adults who have never worked; and 
• Adults who do not have enough quarters of coverage, or are past their date last insured.

Between a Rock and Hard Place:

Is it possible to not be eligible for either Disability Insurance Benefits (DIB) or Supplemental Security Income (SSI)?

Sadly, yes.

If you cannot prove your disability prior to your date last insured, and your spouse makes too much money (or you have another problematic source of income), it is possible that you may not qualify for either DIB or SSI.  This is the proverbial between a rock and a hard place.

Which Program Should I Apply For?

In my opinion, apply for both.  Do not rule out your eligibility for a particular Social Security program. When you apply, Social Security will determine which benefit program(s) you are eligible for and will help you file the application. However, if you want to know if you will qualify for either program, Social Security has a website where you can see what benefits you may be eligible for.

But, Wait!  There’s More.

Once again, this is just a quick overview of DIB and SSI.  There are differences between Social Security Disability Insurance (DIB) and Supplemental Security Income (SSI) which I will address in other articles.

Nate Craig of Truth of the Matter Asserted has a great article about what it means if a judge wants you to change the date you became disabled, or in Social Security parlance “amend your alleged onset date (AOD).”

Often, by the time the claimant’s hearing comes to be scheduled, the ALJ will review the file for the first time. During this review, the ALJ will determine if the onset date is established by the medical records. Most factors of a proposal to amend an onset date will be either a specific medical finding that seems to correlate with the claimant’s limitations or the claimant has earning posted to their earnings record, including unemployment benefits.

Long story short, if the Judge is asking you to amend the onset date, they essentially are going to award benefits.

Nate makes a great point, but there is one exception to this general rule of thumb: SSI cases.

In a SSI (Supplemental Security Income) case, you can only get benefits back to the Protected Filing Date (PFD), the date you requested to file an application.  However, in many SSI cases I see, people (understandably and correctly) claim that their disability began when they stopped being able to work. Normally this is months before they ever filed for Social Security. 

I regularly see Judges asking claimants to change their Alleged Onset Date (AOD) to the Protected Filing Date (PFD).  However, this is just a streamlining measure and does not necessarily mean the judge will approve the case. At least, not in my experience.

However, with this one exception, if the ALJ asks to amend the AOD to any other date, that is usually a good sign!

Read the rest of Nate’s excellent article here.  

Social Security a bit like car insurance:  you pay your premiums to obtain insurance covered.  

When it comes to Social Security, your premiums are your payroll taxes and the coverage is disability insurance.  

In order to qualify for Social Security Disability Insurance, you have to have paid enough into the Social Security system through payroll taxes.  Once you have worked long enough, you become insured for Disability Insurance benefits should you become unable to work.

What happens when you stop paying your premiums?

Just like for car insurance, you may be covered for some time after your last payment, but there will be a cut off date for your policy.  If you have an accident before your cut off date, the insurance company will take care of you.  However, if you have an accident after your policy lapses, the insurance company wont give you anything.  

So, how does this apply to Social Security?

If you have stopped working (or have started a job that does not pay into Social Security — one example in Colorado is teachers, who pay into PERA instead), you stop paying the “insurance premium.”  That means that sooner or later you will reach your date last insured.  The last date you are insured for Disability Insurance benefits under Social Security.  

Here is where things get a little tricky:

• The date last insured does not limit when you can file for benefits.  You can still file for Disability Insurance benefits after your date last insured.  Note: there are some exceptions to this which go beyond the scope of this article.
• The date last insured limits when you must prove your disability began.  Just as in a car accident case where you have to prove that the accident happened while you were still insured, in a Social Security case, you have to prove that the disability occurred before the date last insured.  
• If you can prove that your disability began before your DLI, you may be able to receive Disability Insurance benefits (even if you file for benefits after the DLI).  If you cannot prove the disability began before the DLI, you might not be eligible for Disability Insurance.

Here is another important thing to keep in mind:

Date last insured only applies in Disability Insurance cases.  Date last insured is not an issue in the “other” kind of Social Security disability benefits:  Supplemental Security Income (SSI cases).  While date last insured may make you be ineligible for Disability Insurance Benefits, you may still qualify for Supplemental Security Income benefits (SSI).  

 photo credit: wrhowell

Here is a common problem. You apply for Supplemental Security Income (SSI), but then Social Security tells you that your spouse is making too much money for you to be eligible.

How much is too much?

It was surprisingly difficult to track down an answer. But, at long last, I was able to find out that in order to be eligible for Social Security your countable income has to be less than the Federal Benefit Rate (FBR).

In 2009, the FBR is $674 per month for individuals, and $1,011 per month for couples. In 2008, the FBR was $637 per month for individuals, and $956 per month for couples. Note: the FBR changes annually. This page lists the Federal Benefit Rates back to 1998.

So, your spouse has to be making less than these amounts to keep you eligible for SSI benefits. At least, that is the best answer I am able to find to this surprisingly tricky question.

I am not addressing the difference between countable income and non-countable income. For that I refer you to your local Social Security office. This is just to give you a ball-park idea of how much of your spouse’s income may be too much.

A lot of things happen after you approved for Supplemental Security Income benefits.

First, Social Security needs to review your financial eligibility.

Second, Social Security must reimburse the State for any interim assistance you recieved while waiting for your SSI decision. In Colorado, the interim assistance program is called Aid for the Needy Disabled (AND). This means that if you received AND and won your Social Security SSI case, Social Security will first repay the Department of Human Services (Department of Social Services).

Third, Social Security pays out your back benefits in installment payments.

What!?! My brother is on SSI, they didn’t make him wait to get his back benefits.

The way Social Security handles SSI back benefits was changed on May 8, 2006. If you are entitled to receive more than three months of back benefits, your benefits will be paid in three installments paid every six months (Deficit Reduction Act of 2005 and 42 USC § 1383(a)(10)(A), (B)). The first and second installment payments are limited to three months worth of SSI benefits. However, the first and second installments can be increased to more than three months of benefits to pay for the following:

1. Outstanding debts for: food, clothing, shelter, or medically necessary services, supplies or equipment, or medicine; or
2. Current expenses or expenses anticipated in the near term for: medically necessary services, supplies or equipment, or medicine, or for the purchase of a home. 42 U.S.C. § 1383(a)(10)(B).

Installment payments do not apply in two situations:

1. If you have an impairment that is expected to result in death within 12 months; or
2. If you are ineligible for SSI benefits and are likely to remain ineligible for the next 12 months (for example, if you are only entitled to back SSI benefits because you are also receiving Disability Insurance benefits under Title II and the monthly amount exceeds the monthly SSI benefit payment. 42 U.S.C. § 1383(a)(10)(C).

For more information on how to qualify for one of these exceptions, see POMS SI 02101.020.

Supplemental Security Income, SSI for short, pays up to the Federal Benefit Rate (FBR).

For 2009, the Federal Benefit Rate is $674 for individuals and $1,011 for couples. For most people, this means the maximum SSI benefits you can get in 2009 is $637 per month.

In 2008, the FBR was $637 per month.

In 2007, the FBR was $623 per month.

This page lists the Federal Benefit Rates back to 1998.

Updated 03/16/09.