As a part of receiving benefits from the Social Security Administration (SSA), your other income is periodically updated and reflected in your benefit payout. For example, if you are a retiree who has a 401k or 503b and a pension, every year when you file your taxes the SSA will update your annual income. Rarely does this update affect retirees, as they are entitled to full benefits over age 67 (born after 1960) if their annual income is under a certain amount; however, if you are partially or fully disabled and unable to work full time or part time for additional or supplemental wages, the SSA still keeps a record of your income and adjusts your benefit payout accordingly.
Whenever you file a tax return, even if Social Security Disability insurance compensation is your sole source of income, that income is updated in the SSAs Earning Record. If you receive other income from sources such as a part time job that is not affected by your physical disability, workers’ compensation permanent injury settlement or payments, or Veterans Affairs Disability compensation, then that will be reflected in your SSDI benefits compensation payouts.
The SSA adjusts benefit payments based on how much additional income you earn from other sources, which also means if you sell property, dividends from investments, or receive rents on owned property, that will be reflected in your Earnings Record. Benefits are reduced for anyone receiving social security benefits (such as survivor benefits and disability) who is under the retirement age for their birth year. The minimum income to remain unaffected by these payment reductions is roughly $17,000 in total income per year. Here’s a chart from the SSA explaining how payouts are adjusted:
|For People younger than full retirement age during the whole year|
|If your monthly social security benefit is||And your earn||you’ll receive yearly benefits is|
|$700||$ 16,920 or less||$ 8,400|
|$ 700||$ 18,000||$ 8,760|
|$ 700||$ 20,000 Credits||$ 6,860|
|$ 900||$ 16,920 or less||$10,800|
|$ 900||$ 18000||$10,260|
|$ 900||$ 20,000||$ 9,260|
|$ 1,100||$ 16,920 or less||$ 13,200|
|$1,100||$ 18,000||$ 12,660|
|$ 1,100||$ 20,000||$ 11,660|
The good news for those under retirement age or receiving SSDI or SSI compensation is that your earned income record can be disputed if you believe there has been an error in calculation. If you think there is a discrepancy in the SSAs calculations, you should contact Attorney Fred S. London today for a consultation regarding your case. Fred S. London and his team have the experience and knowledge you need to make the most effective appeal possible for your income adjustment appeal to the SSA. Call today or visit our website for more information about consultation.