Chapter 6: Types of Financial Benefits – Am I eligible?

Factor

Comparison of SSI and SSDI

SSI SSDI

Eligibility based on Age (65+) OR blindness (any age) OR disability (any age) AND limited/no income and resources Disability AND sufficient work credits through own/family employment

When benefits begin 1st full month after the date the claim was filed or, if later, the date found eligible for SSI 6th full month of disability; 6-month period begins with the first full month after the date SSA decides the disability began

Average benefit (monthly) $ 841 $ 1358

Maximum benefit (monthly) $841/$1261 (single/married couple) (based on income) $3,148 per individual based if both have benefits based on each person’s work history in 2022 (based on work history)

Health Insurance Automatically qualifies for Medicaid upon receipt of SSI (in most states) Automatically qualifies for Medicare after a 24-month waiting period from time benefits begin

There are three types of Social Security benefits:

● Retirement benefits. ● Survivor benefits. ● Disability benefits.

Retirement Benefits -Older Individuals

● Social Security replaces a percentage of their pre-retirement income based on their lifetime earnings. The portion of your pre-retirement wages that Social

Security replaces is based on your highest 35 years of earnings and varies depending on how much you earn and when you choose to start benefits. ● When you work, you pay taxes into Social Security. We use the tax money to pay benefits to: ● People who have already retired. ● People who are disabled. ● Survivors of workers who have died. ● Dependents of beneficiaries.

Social Security Disability (SSDI) People who are disabled

● Many individuals with disabilities have some type of Social Security benefit, but not all persons with disabilities do have benefits.

Social Security Disability (SSDI)

● Persons who have worked and paid in Social Security taxes. An individual who was working as a construction worker and through a health condition and/or accident lost his or her vision would likely be eligible for SSDI benefits if the person has worked for a long period of time.

SSDI-Survivor Benefits

● Spouses, children under age 18 and/or immediate family members with disabilities who draw SSDI from a spouse/ parent. For adults who have not worked, this benefit would be for a person who was born with a disability that presents impairments affecting one or more major life skills.

Health Coverage for Persons with Disabilities

Medicare is a national health insurance program in the United States, begun in 1965 under the Social Security Administration and now administered by the Centers for Medicare and Medicaid Services

In most states, an SSI recipient will automatically qualify for health care coverage through Medicaid. TennCare is the state of Tennessee’s Medicaid program. It provides healthcare to mostly low-income pregnant women, parents or caretakers of a minor child, children and individuals who are elderly or have a disability. To get Medicaid, you must meet the income and resource limits. You can apply anytime for TennCare. SSI, or Supplemental Security Income, is a needs-based program that provides a monthly check to persons who are blind, elderly, or have a disability. For disabled people who have never worked, or those who haven't worked enough in recent years to qualify for SSDI (Social Security disability insurance), SSI may be the only program available to them. However, the SSI program is tough to qualify for financially, as it has very low income limits and asset limits.

Earned Income Exclusion

If you earn income, you are allowed to deduct a certain amount of the income before it gets subtracted from your SSI payment. You can subtract $65 of your earned income, plus another $20 for earned or unearned income, and then subtract half of the remainder—that is the amount you can deduct from your income. Only the remainder of the income will be subtracted from your SSI payment.

In-Kind Support and Maintenance

If you receive SSI benefits and someone provides you with shelter and/or food that you don't pay for, the Social Security Administration (SSA) will count this as income and subtract it from your SSI payment. In other words, it reduces your monthly SSI payment to account for this in-kind support and maintenance (ISM), since the SSA considers that you don't need the full SSI payment since you're receiving some food or shelter for free. For more information, see our article on how income and in-kind support affects your SSI payment.

Concurrent SSI and SSDI Benefits

For those applicants who receive a low SSDI payment, Supplemental Security Income does exactly what its name implies, it supplements. For example, if an approved disability claimant receives SSDI monthly benefits in the amount of $400, an SSI award could be used to guarantee that the claimant's total monthly benefits equal the minimum SSI amount, which is currently $794 per month. The SSDI recipient would receive an additional $394 in SSI to bring her total monthly benefits to $794, a sum equal to the full SSI monthly benefit amount.

Of course, this scenario will not happen in every such case. Because SSI has resource (asset) limits (currently, an individual cannot have more than $2,000 in disposable

assets), many SSDI claimants will not be eligible to receive Supplemental Security Income, no matter how low their SSDI benefit amount is.

Reporting Earned Income to the Social Security Administration

Individuals who receive Social Security Retirement Benefits, Social Security Disability Benefits or Supplemental Income are required to report their earnings on a basis to the Social Security Administration. Failure to do so could result in loss of benefits or repayment to the Social Security Administration.

Social Security Retirement Benefits

In 2021, if a person is under full retirement age, the annual earnings limit is $18,960. If they reach full retirement age in 2021, the limit on their earnings for the months before full retirement age is $50,520. Income changes should also be reported as they will affect the amount of the retirement benefit paid.

If the person reaches full retirement age during 2021, Social Security must deduct $1 from their benefits for each $3 they earn above $50,520 until the month that the person reaches full retirement age.

If a person is younger than full retirement age, there is a limit to how much they can earn and still receive full Social Security benefits. If they are younger than full retirement age during all of 2021, Social Security must deduct $1 from the person’s benefits for each $2 the person earns above $18,960. Starting with the month the person reaches full retirement age, there is no limit on how much you can earn and still receive your benefits.

Social Security Disability

Supplemental Security Income- The person with a disability and/or the representative payee should consistently report wages during the first six days of the month to help prevent overpayments and underpayments. Because SSI is a needs-based program for people who are aged, blind, or disabled, the amount you can receive is based, in part, on the income available to you.

Wages can be reported in a person’s My Social Security Account online, by telephone or fax. There are certain conditions that must be met for reporting by telephone.

Programs that Support Work

Most adult SSI and SSDI beneficiaries can now use the Ticket to Work program. The new Ticket to Work program rules also gives beneficiaries more choices in the organizations that can assist them with their employment goals.

Social Security's Ticket to Work Program supports career development for Social Security disability beneficiaries ages 18 through 64 who want to work. The Ticket Program is free and voluntary. The Ticket Program helps people with disabilities progress toward financial independence. Individuals who receive Social Security benefits because of a disability and are ages 18 through 64 probably already qualify for the program.

How much money can you make on the Ticket to Work program?

During the trial work period, there are no limits on your earnings. During the 36month extended period of eligibility, you usually can make no more than $1,310 ($2,190 if you are blind) a month Page 8 5 in 2021 or your benefits will stop. These amounts are known as Substantial Gainful Activity (SGA).

A Ticket to Work program can last up to seven years. Social Security does an annual review to assess whether you're making timely progress toward your vocational goals.

PLAN TO ACHIEVE SELF-SUFFICIENCY (PASS) - Plan to allow individuals to save money with the purpose of helping them with their ability to continue working. This is a plan that a person may develop with a representative of the Social Security Office.

ABLE ACCOUNTS: Ability to save money without compromising their benefits.

ABLE BASICS

● In general, there is a $15,000 annual contribution limit (all contributors combined). ● There are eligibility requirements related to opening an ABLE account. Currently, an individual must have a disability that began before age 26. ● An eligible individual is not obligated to enroll in their state of residence. ● The “designated beneficiary” is the account owner (although another person such as a parent, guardian or person with power of attorney may be allowed signature authority over the account). ● Funds in the account may be used for “qualified disability expenses.” Examples include, but are not limited to, education, housing, transportation, employment training and support, assistive technology, personal support services, health, prevention and wellness, financial management and administrative services, legal fees, funeral and burial expenses and basic living expenses. ● Assets in and distributions for qualified disability expenses will be disregarded or given special treatment when determining eligibility for most federal meanstested benefits (including SSI benefits and Medicaid).

● Contributions to an individual’s ABLE account may be made by any “person.” A person is defined as an individual, trust, estate, partnership, association, company or corporation.

HOW TO APPLY FOR DISABILITY BENEFITS

When you get Social Security disability benefits, what do you need to know?

● Information About You ○ Your date and place of birth and Social Security number. ○ The name, Social Security number, and date of birth or age of your current spouse and any former spouse. You should also know the dates and places of marriage and dates of divorce or death (if appropriate). ○ Names and dates of birth of children not yet 18 years of age. ○ Your bank or other financial institution's Routing Transit Number and the account number. ● Information About Your Medical Condition ○ Name, address, and phone number of someone we can contact who knows about your medical conditions and can help with your application. ○ Detailed information about your medical illnesses, injuries, or conditions: ■ Names, addresses, phone numbers, patient ID numbers, and dates of treatment for all doctors, hospitals, and clinics. ■ Names of medicines you are taking and who prescribed them. ■ Names and dates of medical tests you have had and who ordered them. ● Information About Your Work: ○ The amount of money earned last year and this year. ○ The name and address of your employer(s) for this year and last year. ○ The beginning and ending dates of any active U.S. military service you had before 1968. ○ A list of the jobs (up to 5) that you had in the 15 years before you became unable to work and the dates you worked at those jobs. ○ Information about any workers' compensation, black lung, and/or similar benefits you filed, or intend to file for. These benefits can: ■ Be temporary or permanent. ■ Include annuities and lump sum payments that you received in the past. ■ Be paid by your employer or your employer's insurance carrier, private agencies, or Federal, State, or other government or public agencies.

■ Be referred to as: ● Workers' Compensation. ● Black Lung Benefits. ● Longshore and Harbor Workers' Compensation. ● Civil Service (Disability) Retirement. ● Federal Employees' Retirement. ● Federal Employees' Compensation. ● State or local government disability insurance benefits. ● Disability benefits from the military (This includes military retirement pensions based on disability but not Veterans' Administration (VA) benefits.)

Along with the information listed above, they may ask you to provide documents to show that you are eligible, such as:

● Birth certificate or other proof of birth. ● Proof of U.S. citizenship or lawful alien status if you were not born in the United

States. ● U.S. military discharge paper(s) if you had military service before 1968. ● W-2 forms(s) and/or self-employment tax returns for last year. ● Medical evidence already in your possession. This includes medical records, doctors' reports, and recent test results.

Award letters, pay stubs, settlement agreements, or other proof of any temporary or permanent workers' compensation-type benefits you received

To apply:

● To start your application, go to the Apply for Benefits page, and read and agree to the Terms of Service. Click “Next.” ● On that page, review the “Getting Ready” section to make sure you have the information you need to apply. ● Select “Start A New Application.” ● They will ask a few questions about who is filling out the application. ● You will then sign into your my Social Security account, or you will be prompted to create one. ● Complete the application.