Collecting Disability Payments
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Disability Guide Topics
When your disability claim is approved, you will get a letter from the Social Security office stating that your claim was approved. The date of which Social Security found you to be disabled, and when your benefits will begin.
When Do Payments Start? How Much Will You Receive?
Your disability payments do not being until five months after the date on which you are found to be disabled by law. The amount of benefits you receive is based on the average of your lifetime earnings. Social Security sends an annual statement of earnings each year that provides an estimate of your monthly benefit for disability benefits.
How are Disability Payments Made?
You can receive a check each month from Social Security, however Social Security strongly urges anyone who gets a benefit check to have the check direct deposited into a checking, savings or credit union account. This is protection for the beneficiary and saves Social Security time and money. The date you receive your payment is based on the birth date of the person’s social security number under which the disability claim was filed.
How Long do Payments Last?
Your disability benefits will last as long as your medical condition does not improve and you cannot work. Due to advances in medicine, in certain cases Social Security may review your claim to determine if you are still eligible for benefits.
Continuing Disability Reviews
How Frequently is Your Case Reviewed?
- Medical improvement expected—if your condition is expected to improve within a specific time, your first review will be six to 18 months after you started getting disability benefits.
- Improvement possible—if improvement in your medical condition is possible, your case will be reviewed about every three years.
- Improvement not expected—if your medical condition is unlikely to improve, your case will be reviewed only about once every five to seven years.
There are other circumstances which can trigger a review:
- Occurrence of the date of a scheduled medical reexamination in cases in which your impairment is expected to improve or in which improvement is possible
- Voluntary reports received from individuals indicating medical improvement or return to work
- Substantial earnings posted to your employment record
- A report of medical improvement received from a vocational rehabilitation agency
- A report from a third party indicating you are no longer disabled, not following required treatment, or failing to follow provisions of the Social Security Act
What is the Review Process?
Social Security will send you a letter informing you that your claim is up for review. The letter explains the review process and your appeal rights. Social Security will set up an interview with a Social Security representative who will ask you about your medical condition and any work you may have done.
A team consisting of a disability examiner and a doctor will review your file and request your medical reports. You may be asked to have a special examination. Social Security will pay for the examination and some of your transportation costs.
The Medical Improvement Review Standard
This is the same standard used to determine your disability initially does your impairment or condition continue to meet or equal the Listing of impairments and is your condition so severe that it severely limits your ability to complete major life functions.
Disability Benefit Payments and Taxes
- You will have to pay taxes on your Social Security Benefits only if you receive substantial income in addition to your disability benefits.
- If you file a federal tax return as an "individual" and your income is more than $25,000, you have to pay taxes.
- If you file a joint return, you may have to pay taxes if you and your spouse have a combined income that is more than $32,000.
- If you are married and file a separate return, you will probably pay taxes on your benefits.
- For more information, contact the Internal Revenue Service.
Reporting Changes to Your Situation to SSA
Any changes that may affect your benefits or the benefits due your dependents should be reported promptly to Social Security.
Payments Outside of the U.S.
You can travel and live in other countries without affecting your benefits. There are special reporting requirements; you should contact Social Security if you intend to be out of the country more than 30 days. Social Security cannot send benefits to the following countries; Azerbaijan, Belarus, Cuba, Cambodia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, North Korea, Tajikistan, Turkmenistan, Ukraine, Uzbekistan and Vietnam.
Returning to Work and the Impact on Benefits
SSDI Work Incentives
Trial work period—the trial work period allows you to test your ability to work for at least nine months. During your trial work period, you will receive your full Social Security benefits regardless of how much you are earning as long as you report your work activity and you continue to have a disabling impairment. In 2009, a trial work month is any month in which your total earnings are $700 or more, or, if you are self-employed, you earn more than $700 (after expenses) or spend more than 80 hours in your own business. The trial work period continues until you have worked nine months within a 60-month period.
Extended period of eligibility—after your trial work period, you have 36 months during which you can work and still receive benefits for any month your earnings are not “substantial.” In 2009, earnings of $980 or more ($1,640 if you are blind) are considered substantial. No new application or disability decision is needed for you to receive a Social Security disability benefit during this period.
Expedited reinstatement—After your benefits stop because your earnings are substantial, you have five years during which you may ask Social Security to start your benefits immediately if you find yourself unable to continue working because of your condition. You will not have to file a new disability application and you will not have to wait for your benefits to start while your medical condition is being reviewed to make sure you are still disabled.
Continuation of Medicare—if your Social Security disability benefits stop because of your earnings, but you are still disabled, your free Medicare Part A coverage will continue for at least 93 months after the nine-month trial work period. After that, you can buy Medicare Part A coverage by paying a monthly premium. If you have Medicare Part B coverage, you must continue to pay the premium. If you want to end your Part B coverage, you must request it in writing.
SSI Work Incentives
Continuation of SSI—SSI payments are made to people age 65, blind or disabled and have little income or resources. If you are disabled and work despite your disability, you may continue to receive payments until your earnings, added with any other income, exceed the SSI income limits. This limit is different in every state. Even if your SSI payments stop, your Medicaid coverage usually will continue if your earnings are less than your state level.
Expedited reinstatement—if Social Security stopped your payments because of your earnings and you become unable to work again because of your medical condition, you may ask Social Security to start your payments again. You will not have to file a new disability application if you make this request within five years after the month your benefits stopped.
Work expenses related to your disability—if you work, you may have to pay for certain items and services that people without disabilities do not pay for. For example, because of your medical condition, you may need to take a taxi to work, instead of public transportation. Social Security may be able to deduct the cost of the taxi from your monthly earnings before Social Security determine if you are still eligible for benefits.
Plan to achieve self-support—If Social Security approve your plan for a work goal that will reduce your dependence on SSI or help you leave the SSI rolls, any money you use for this purpose will not be counted when Social Security figure out how your current income and resources affect your payment amount.
The Ticket to Work and Work Incentives Improvement Act (TWWIIA)
TWWIIA is legislation that modernizes employment services system for people with disabilities and makes it possible for millions of Americans with disabilities to not have to choose between taking a job and having health care.
Medicaid Buy-In. Section 201 of TWWIIA governs the provision of health care services to workers with severe disabilities by establishing a Medicaid state plan buy-In optional eligibility groups.
Extended Medicare Coverage. Section 202 extends the period of premium free Medicare Part A coverage and requires consumer protection for some individuals with Medigap coverage. Individuals receiving Social Security Disability Insurance who elect to work above threshold levels (substantial gainful activity) can maintain their Medicare coverage for eight and a half years after they return to work.
Medicaid Infrastructure Grants. Section 203 provides grants to States to develop state infrastructures to support working individuals with disabilities.
Demonstration to Maintain Independence and employment. Section 204 provides health care coverage to individuals with potentially disabling conditions who work testing the hypothesis that the provision of health care and related supports will prolong independence and employment and reduce dependency on disability income support programs.
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