Every year the Social Security Administration (“SSA”) makes important changes to the monetary thresholds associated with Social Security Disability Insurance (“SSDI”) and Supplemental Security Income (“SSI”) benefits. It is important to know about these changes, so you are in compliance with SSA’s requirements.
1. SSA Announces a Cost-of-Living Adjustment (“COLA”) for 2023
The Social Security Administration has announced an 8.7 percent benefit increase for 2023. This cost-of-living adjustment (“COLA”) will begin on December 30, 2022 for Supplemental Security Income (“SSI”) beneficiaries. Social Security Disability Insurance (“SSDI”) and Social Security Retirement recipients will see the effects of the COLA in their January 2023 benefit payments.
2. SSA has increased the threshold value for full-time work.
In order to be found disabled under SSA’s definition of disability, you must be able to prove that you are unable to earn a certain monetary value due to the limitations from your disability. This value is referred to as “Substantial Gainful Activity (“SGA”). If you are able to work at SGA levels, SSA will not consider you to be disabled. For 2023, that monthly rate is $1,470.00 for a non-blind individual and $2,460.00 for a blind individual. Thus, if you are able to earn such monthly earnings, in spite of any impairment that you have, then you are not disabled under SSA’s definition of disability.
3. SSA has increased the amount that a person can earn during a Trial Work Period.
SSA allows SSDI recipients to test their ability to work in a program called a Trial Work Period (“TWP”). During a TWP, a SSDI recipient is able to work for 9 month period without being at risk for losing his/her benefits. These months do not have to be consecutive. Specifically, SSA looks to see whether an individual can earn at certain levels over a rolling 60 month period. If a person exceeds certain monetary levels for 9 months (even if not consecutive) over a 5 year period, then the TWP has been exhausted. SSA will then look to see if a person has exceeded SGA values (see above) to determine whether or not, the person is still under a disability. For 2023, SSA will consider any month in which a SSDI recipient earns more than $1,050.00 to be a month in which goods and services have been performed at a TWP level.
4. SSA has increased the value of a quarter of coverage.
In order to receive SSDI benefits, you must be insured for benefits. This means you must have paid into the Social Security system through the Federal Insurance Contributions Act (“FICA”). An individual must have worked a sufficient amount of quarters to be entitled to these benefits. Every year a person can earn up to 4 quarters. For 2023, one quarter of coverage is $1,640.00. This means you must earn at least $6,560.00 for 2023 in order to obtain all 4 quarters for the year.
Got a question about SSDI or SSI that you need us to answer? Please check out our website at www.westcoastdisability.com . We try to provide you with helpful information on our website that will allow you to successfully navigate the Social Security Disability process. Also, feel free to email me your questions at email@example.com or call me at (800) 459-3017 x 101.