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Whenever he got a letter with the Social Security Administration stamp on it, James was afraid to open it.
A 34-year-old with cerebral palsy who relies on Social Security disability benefits for most of his income. Benefits include his monthly rent and bills. But that wasn’t enough, so he added side businesses like DoorDash, Instacart and other delivery apps.
It’s a difficult, frustrating act of balancing, working hard to stay independent — but not so much that his interests are cut off. Also full of fear. James spoke to The Penny Hoarder about his experience, but asked that his last name not be used for fear of conflict with federal agencies.
Millions of people are in James’ position, terrified and confused by the labyrinthine rules that govern their interests. Disability benefits experts say discrimination, confusion about the rules and fears of benefits being cut at any time are all too common.Although the official social security position is that people with disabilities should reach their fullest potential.
This is a primer on how the system works.
Is it legal to work while disabled?
Yes, it’s even encouraged. The Social Security Administration helps people with disabilities find jobs through the Job Incentive Program. How much a worker with a disability is allowed to work and earn depends on several factors, and the two main forms of assistance — Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) — work very differently.
SSI vs SSDI – What’s the Difference?
To qualify for either program, the Social Security Administration first uses a specific definition to determine whether an applicant is disabled.
According to the SSA, “disability” means an applicant who:
- Completely disabled (not partially or disabled in the short term).
- Can’t do the jobs they could have done before the disability.
- Unable to adapt to other jobs due to physical condition.
- and Disability has lasted (or is expected to last) for at least one year or will result in death.
Beyond this definition, procedures vary widely.
“Sometimes even the beneficiaries can’t tell the difference between the two,” said Kathleen Romig, the group’s social security policy expert. Center for Budget and Policy Focus. “And the work rules are completely different.”
Supplemental Security Income (SSI)
Supplemental Security Income is a financial need-based program for seniors and people with disabilities. Allowances paid by the federal government are designed to cover basic necessities such as food or housing for people with little or no income.
As of January 2021, the maximum federal benefit is $794 per month for individuals and $1,191 per month for couples. Several states have increased this number, According to the Social Security Administration. The total fluctuates from year to year.
SSI recipients can work and continue to receive their benefits until their gross income, after some deductions, exceeds $794.
“The first $65 of income is not considered; after that, benefits are reduced by $1 for every $2 earned,” Romig said. “The first $20 of unearned income is also ignored; after that, SSI benefits are reduced dollar-for-dollar.”
In other words, benefits drop after the first $85 of income each month, whether that money comes from work or a friend.
Confused? So do many recipients.
SSI generally applies to people who have not paid Social Security taxes from past W2 jobs. Once they have worked enough in the eyes of Social Security, they can transfer to SSDI. But the vast majority of people on SSI don’t work and can’t work.
Social Security Disability Insurance (SSDI)
Social Security Disability Insurance is available to people who qualify as disabled and have paid enough Social Security taxes (usually worth 5 to 10 years) in their past employment. work credit) are eligible for additional benefits.
SSDI recipients are also allowed to work, and the rules are more relaxed because they pay taxes to the system for a much longer period of time.
The program itself is not suitable for low-income people.But here is monthly limit On how much someone can earn from a job: $1,310 a month or $2,190 for a blind worker. Income and assets other than work income are unlimited.
“The benefits for the SSI people are different because they don’t pay the system,” said CEO Paula Vieillet my employment options, a national employment network and consulting firm that provides social security assistance to people.
Social Security Job Incentive Program and Rules
The two main job incentive programs of the Social Security Administration are Plan to achieve self-support (by) and work ticket. Both are free and voluntary.
Only SSI recipients are eligible to join PASS. People in the program set work goals, which may include starting a business, going to college, or learning new skills. Once the program is approved by the Social Security Administration, all expenses related to meeting PASS goals can be deducted from their income, allowing SSI recipients to earn more money and keep their cash benefits.
Both SSI and SSDI recipients are eligible for Ticket to Work.
The benefits for SSI personnel are different because they do not pay the system.
They were granted an exemption from what’s called a continuing disability review. This periodic medical examination determines whether a person meets the strict definition of “disabled”. If an SSI or SSDI recipient has a ticket and is making good progress in the program, they do not need to worry about medical review or losing current benefits.
SSDI recipients are also granted a probationary work period during which they can work and earn as much as they can for nine months without jeopardizing their benefits.
“What the ticketing scheme does is provide protection. It gives people a chance try Go back to work,” Viellet said. “If they don’t make it, there is no risk, no loss. “
Why are disabled people still disoriented?
For one, federal policy has not kept pace with inflation or changes in the labor market, experts say. This is especially true for Supplemental Guaranteed Income, James’ ongoing program.
While the program is primarily geared toward disabled seniors and children, James’ case highlights some outdated regulations. For example, the $85 income deduction was set in 1972 when the act was signed into law. It hasn’t changed since then. Liquid assets eligible for SSI are capped at $2,000, which was set in 1989.
Another issue is the maximum monthly payment of $794. While that number changes from year to year, Romig points out that it’s well below the poverty line.
For working SSI and SSDI recipients, their income may fluctuate from month to month as it is often difficult to stick to a fixed work schedule due to the nature of their conditions. This makes it difficult for even the most serious recipients to accurately report their earnings.
“Of course, you always want people to reach their maximum potential. This is America,” Romig said. “It’s one of our fundamental ideals.”
But the difficulty of navigating these programs and the threat of losing benefits as workers often conflict with this value.
Expert advice: Don’t go it alone
The complexity of each program is confusing, even to experts, Vieillet said. For the average person, it can be downright overwhelming.
Teresa Nier, benefits and employment manager at My Employment Options, said when Social Security letters started mailing, “they freaked people out”.
Of course, you always want people to reach their maximum potential. This is America. This is one of our fundamental ideals.
For workers with disabilities, it can be helpful to join free job incentive programs and employment networks. Ticket to Work provides benefit protection for recipients who want to test the waters of employment.and organizations like this my employment options Have certified benefits advisors on staff to help applicants grapple with paperwork and fine print – while finding jobs that fit their unique needs.
To avoid unexpected benefit cuts or having to refund overpayments to the agency, “people need to keep their Social Security Administration phone numbers and addresses up to date,” Neal said. “Open those letters. Ask questions.”
Adam Hardy is a former staff writer for The Penny Hoarder. This story was originally published in July 2019. Income thresholds and other statistics have been updated for 2022.
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