Tag Archives: social security disability insurance

Withholding of Social Security disability (SSDI) benefits occurs for specific reasons, particularly related to monies owed the federal government, or child support or alimony payments. However, other situations arise which may appear to claimants that Social Security is keeping back funds due them. In any case, the question arises, Do I get those benefits returned to me?

SSDI benefits

Let’s look at a few scenarios.

Retroactive Payments

While not technically withholdings, the Social Security Administration (SSA) may owe you SSDI benefits which accumulate before an official approval. The benefits apply retroactively to the date of application. However, you may be eligible for 12 months of payments prior to that date. These unpaid benefits are due you and will be returned.

Taxed Benefits

Again, not an official withholding, SSDI benefits are taxed in some cases. Household incomes which rise above the Internal Revenue Service (IRS) limits may see part of their monthly benefit check taxed. A spouse’s salary or other sources raise this possibility. Paid SSDI taxes are not returned to you unless your end of the year tax return proves you overpaid in general.

Waiting Period Losses

The SSA withholds the first five months of SSDI benefits from claimants with few ways around it. Much like an insurance waiting period, the SSA assumes short-term disability insurance coverage during this time. Whether this assumption is accurate or not, the process does not allow for an appeal or repayment of this withholding.

Federal Withholdings

While your SSDI benefits come with protection from creditors, the federal government is the exception. Owing money to the IRS or other federal agencies puts you at risk of benefits being withheld.

Food stamp overpayments, federal student and mortgage loans, and unpaid federal taxes fall into this category. Unpaid child support and alimony payments may also negatively impact SSDI benefits.

Limits exist as to the allowable amount of withholdings. And, in cases of proven hardship, the SSA stops some of these withholdings. However, generally, the funds are not returned to you.

Return to Work and Benefits

The SSA provides incentives and offers return-to-work trials. Your benefits may continue under certain conditions and during an adjustment period. However, once your income exceeds the limits and the adjustment period is satisfied, benefits stop.

A 36-month extended period of eligibility begins after three transitional months. If your income drops or you become disabled again, you do not receive the benefits you missed while working. However, you do not need to endure another waiting period after approval.

Navigating the complexities of SSDI benefits and withholdings proves frustrating. An attorney experienced in SSDI gives you the knowledge you need to dissolve your stress.

Contact us today for a free consultation and peace of mind.

If you can no longer work because you have been injured or are ill, there is a good chance that you can receive financial assistance through the Social Security Administration (SSA). The SSA funds two different programs to help people who are in this exact position: Supplemental Security Income (SS)I and Social Security Disability Insurance (SSDI). Although these programs are similar in nature, there are some distinct differences that are the defining factors which determine for which one someone qualifies.

social security income

What is SSI?

SSI is a program that is strictly based upon the applicant’s financial need. The need is determined by looking at all forms of income and assets the applicant has. There is no need to have a work history or to have in any way paid into the Social Security program. This is because SSI is considered a “means-tested program” and is funded by general fund taxes rather than the Social Security trust fund.

What is SSDI?

SSDI is a program that gets funded through payroll taxes. So, in essence, everyone who works at a job where they pay taxes is regularly helping to fund the program. Since this program is funded in this manner, the SSA considers people who have paid into the system to be “insured” by it. Therefore, those are the people who can benefit from it.

Eligibility for SSI

Since SSI is based on financial need,, to be eligible for SSI, you must be able to prove that you have less than $2,000 in assets as an individual or less than $3,000 for a couple. You must also have a considerably low income.

Eligibility for SSDI

To be eligible for SSDI benefits, you must be under the age of 65 and have worked long enough to have earned enough work credits. Workers can generally earn up to four credits per year, or one for every quarter worked.

SSI Recipients may Receive Medicaid

Because of the financial need you must have to receive SSI benefits, those who receive them may also be eligible to receive Medicaid benefits as well. There is a good chance they can receive food stamps and other government assistance as well.

SSDI Recipients may Receive Medicare

Once SSDI recipients have received benefits for two years, they are eligible for Medicare rather than Medicaid.

Financial Benefits of SSI

Those who receive SSI payments, typically get payments of $733 per month for an individual if there are no other forms of income. The amount is reduced to coincide with other forms of income from which the recipient can draw.

Financial Benefits of SSDI

Those who receive SSDI payments, typically get payments of $1,165 per month. However, since these payments are based on income, some recipients can receive more than this amount.

For more information about the differences between SSI and SSDI, contact Fred London Law today.