Wednesday, December 19, 2018

3 Important Changes for 2019 that Could Affect Your Social Security Disability and Supplemental Security Income benefits

Every year the Social Security Administration (“SSA”) makes significant 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 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 2018, that monthly rate is $1,220.00 for a non-blind individual and $2,040.00 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.

2.      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 2019, SSA will consider any month in which a SSDI recipient earns more than $880.00 to be a month in which goods and services have been performed at a TWP level.

3.      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 2019, one quarter of coverage is $1,360.00. This means you must earn at least $5,440.00 for 2019 in order to obtain all 4 quarters for the year. 

For more information, please see: https://www.ssa.gov/news/press/factsheets/colafacts2019.pdf

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 megan@westcoastdisability.com or call me at (800) 459-3017 x 103.

 

Monday, November 19, 2018

SSA Announces a Cost-of-Living Adjustment (“COLA”) for 2019

The Social Security Administration has announced a 2.8 percent benefit increase for 2019. This cost-of-living adjustment (“COLA”) will begin on December 31, 2018 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 2019 benefit payments. This COLA will affect the more than 67 million Americans who receive monthly Social Security and Supplemental Security Income benefits.

Additionally, the maximum amount of earnings subject to Social Security tax will be increased from $128,400 to $132,900.

For more information on the 2019 COLA adjustment, please see https://www.ssa.gov/news/press/releases/2018/#10-2018-1

Got a question that you need answered? Please check out our website at www.westcoastdisability.com . We try to provide you with valuable information on our website that may help you navigate the Social Security Disability process. Also, feel free to shoot me an email at megan@westcoastdisability.com or call us at (800) 459-3017 x 103.

Tuesday, September 11, 2018

How Are Administrative Law Judges Hired?


My clients frequently ask me how the Social Security Administration (“SSA”) selects the Judges to hear their disability claim. Up until July 10, 2018, Administrative Law Judges (“ALJ”) were hired through a competitive process that was conducted by the Office of Personnel Management. It involved an application, a series of online and in-person tests that took place in the D.C. area, followed by a structured interview. The process was lengthy and could take a full year. Once all the results were in, the ALJ candidates would receive a score. If the score was high enough, the candidate would be placed on an ALJ register and potentially receive an interview at one of the Federal agencies looking to hire an ALJ, if the location of position matched a location that the ALJ candidate selected as an area he or she would serve.

This all changed on July 10 2018, however. On said date, President Donald J. Trump signed an executive order excepting ALJs from competitive service and assigned the hiring process of ALJs to the individual agencies where they would serve. Unfortunately, as the Office of Personnel Management has historically competitively screened the ALJ candidates, the individual agencies do not have a process in place for hiring ALJs at this time. The fear is this can impact the already exceedingly long backlogs at the hearing offices.

This significant order was issued at least in part due to the Supreme Court’s recent decision in Lucia v. Securities and Exchange Commission, No. 17-130 (June 21, 2018) which questioned whether ALJs had been properly appointed in keeping in line with the Appointment Clause of the Constitution. The fear of course is that replacing the hiring of ALJs with a noncompetitive or meritless process will open the door to a political cronyism.

A bill has been introduced by Sens. Maria Cantwell, D-Wash., and Susan Collins, R-Maine, to restore a competitive process that would be overseen by the Office of Personnel Management, but defer to the Lucia decision by requiring that an agency head make the final appointment of the ALJ.

All we know for now is that ALJ candidates who have already been on the hiring register received emails this week letting them know that the register was now closed. Other than that, there is a lot of speculation as to the next steps the agencies will take to hire new judges and to whether the proposed bill will get the traction it needs to restore the ALJ hiring process back to a competitive format. 

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 megan@westcoastdisability.com or call me at (800) 459-3017 x 103.

Friday, August 17, 2018

Start Planning To Get Your California Real ID


Start Planning To Get Your California Real ID

It may seem like an odd choice of topic for a disability blog, but I wanted to tell you abut California’s REAL ID card that you will need to take a domestic flight or enter a Federal building after October 1, 2020. While this change is still a couple years off, the process is more time consuming than a normal driver’s license renewal, so I thought it was worth talking about. Additionally, if you do not replace your current driver’s license with a real ID by October 1, 2020, you will be barred from all domestic flights or from entering a Federal building or Social Security office unless you have an alternative form of identification, like a valid passport. Thus, when it comes time to renew your driver’s license, OR if your current driver’s license expires before the October 1, 2020 deadline, you will want to make plans to obtain a Real ID.

Important Facts to Know About the Real ID

·         The Department of Motor (“DMV”) vehicles has started issuing Real IDs as of January 22, 2018.
·         You cannot renew your driver’s license by mail or online to get a Real ID. The DMV is still allowing online and main-in renewals, but only for non-Federally compliant identification cards which will come with prohibitive restrictions on travel and entering Federal buildings.
·         The DMV is extremely backlogged (though not as bad as what we are seeing with SSA 😊). When I scheduled my license renewal to secure a Real ID, the first available appointment was 7 weeks in the future.
·         In order to obtain a real ID, you must bring in an original or certified copy of a birth certificate, US passport, permanent resident card, or other original proof of identity.
·         You also must bring in proof of your Social Security Number with certified proof such as a SSN card, W-2, or paystub with full SSN. Original or certified copies are required.
·         You need a California residency document such as a utility bill, rental agreement, mortgage bill, or medical document that has your name and address on it. Make sure your name is spelled correctly on it.
·         If your identity document is in a different name, you will need to provide a certified name change document such as a marriage license, divorce decree or court document. No photocopies will be accepted.
The Read ID is meant to provide more security for our citizens, but obtaining said ID takes some planning and patience. Make sure you make an appointment to get a Real ID, rather than do a walk-in appointment. The local DMV offices are so backlogged right now, that walk-ins can end of wasting most of the day sitting in long DMV lines. For more information on the real ID process, please visit, https://www.dmv.ca.gov/portal/dmv/detail/realid/realidfaq

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 megan@westcoastdisability.com or call me at (800) 459-3017 x 103.

Tuesday, June 26, 2018

Social Security Trust Funds Expected to Be Depleted by 2034


The Social Security Board of Trustees released its annual report on the financial health of Social Security’s combined trust fund reserves this month. The Old Age and Survivors Insurance and Disability Insurance (“OASDI”) trust funds are expected to be depleted in 2034. At that time, recipients would only be eligible for 79 percent of their estimated benefits unless Congress takes action to strengthen the programs that fall under the Social Security Administration’s (“SSA’s”) umbrella. This expected depletion date aligns with the predictions from last year.


Last year alone, SSA paid out $941 billion to 62 million beneficiaries. Total expenditure by SSA for 2017 amounted to over $952 billion. SSA brought in a total income of $997 billion for 2017.


No one knows what SSA’s future looks like. After all, the program is 83 years old and has undergone various adaptations over the years. SSA will undoubtedly continue to evolve over the next 16 years as we approach the expected depletion date.


While SSA has helped countless numbers of retirees and disabled individuals since 1935, there is no guarantee that it will continue to exist in the exact format that we are used to seeing. Keep in mind that the programs administered by SSA were never meant to be complete income replacement programs. Rather, SSA is set up to operate like any other insurance program and is meant to supplement people’s savings and other private investments. Thus, it is important to continue to try to save for your future independently to what you expect to receive from SSA down the line. After all, you have no idea what SSA will look like by the time you retire or if you are affected by disabilities.



For more information and statistics in regards to SSA’s annual report, please visit: https://www.ssa.gov/news/press/releases/2018/#6-2018-1



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 megan@westcoastdisability.com or call me at (800) 459-3017 x 103.

Monday, May 7, 2018

What is My Full Retirement Age?

Contrary to popular belief, the age of 65 is no longer the full retirement age for all Americans. In fact, unless you were born in 1937 or earlier, you full retirement age is older than 65. For instance, if you were born in 1938, then your full retirement age is 65 years and 2 months. If you were born between 1943 and 1954, your full retirement age is 66. For those individuals born after 1960, your full retirement age is 67. Of course, the full retirement age will likely increase over time, as Americans continue to live longer than previous generations.

The earliest you can start receiving retirement is age 62. However, if you opt for an earlier retirement than your full retirement age, your benefit can be reduced by 20 to 30 percent depending on how early you opted for this premature retirement. Ideally, you should delay taking your retirement benefit until you are at full retirement age in order to maximize your benefits.

Additionally, you can delay taking your retirement even once you are at your full retirement age, in order to increase your monthly benefit. However, you must sign up for Medicare at age 65. For more information about how age affects retirement benefits, please check out this link: https://www.ssa.gov/planners/retire/retirechart.html

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 megan@westcoastdisability.com or call me at (800) 459-3017 x 103.

Tuesday, April 24, 2018

April is National Social Security Month

April is National Social Security Month. The goal of the Social Security Administration (“SSA”) during this month is to educate the public about the services that the Social Security Administration has to offer.

While the backlogs at SSA continue to grow, I can honestly say that their online services have drastically improved over the last decade and are extremely user-friendly.

If SSA gives you the option to use their online services, take advantage of it. It will certainly save you a lot of time and energy. SSA seems to process paper forms MUCH slower than they do materials that are submitted online. If you take the initiative and file for disability or retirement benefits online, you can drastically reduce the waiting time.

I certainly hope that SSA continues to add more electronic services to their technological arsenal. Heck, I would even be fine with them replacing their employees with robots at this point if it meant cutting down the ridiculous backlog and expediting deserving claimants’ cases 😊.

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 megan@westcoastdisability.com or call me at (800) 459-3017 x 103.

Thursday, March 15, 2018

Are Social Security Disability Benefits Taxable?


Have you filed your 2017 taxes yet? Well, if you are a Social Security Disability recipient, make sure that you let your accountant know that you are receiving disability benefits. Each year, the Social Security Administration sends out SSA-1099 and SSA-1042S forms to recipients showing the total amount of Social Security benefits that they were paid for the previous year.

Not everyone has to pay taxes on Social Security benefits. Individual filers must pay taxes if your combined income on your federal return exceeds $25,000. If you are married, and file a joint return, you will pay taxes on your benefits if you and your spouse have a combined income of more than $32,000. Even if you are married and file a separate return, you will still likely have to pay taxes on your benefits, so always consult with your accountant about your tax liability. Thankfully, no one pays taxes on more than 85% of his or her issued benefits.  

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 megan@westcoastdisability.com or call me at (800) 459-3017 x 103.

Friday, February 2, 2018

Are Social Security Disability Benefits Permanent?


I often receive calls asking to file for “permanent disability.” I have to explain that Social Security Disability Insurance and Supplemental Security Income benefits are not considered permanent disability benefits. In fact, the Social Security Administration (“SSA”) is supposed to review most cases every three to five years to determine whether an individual remains disabled. However, it is not uncommon for an Administrative Law Judge to recommend that a “younger individual,” which is defined as a person under the age of 50, be reviewed at the end of the first calendar year to see if there is medical improvement.

Historically, SSA had neglected these “continuing disability reviews,” but they are becoming more and more common. SSA has the burden of proving that there has been medical improvement when it comes to a disability review. However, it is not uncommon for SSA to deem that a medical improvement has occurred and stop benefits. You do have a right to appeal and you must read SSA’s notification letters carefully and follow the instructions. Here are some tips to keep in mind in hopes of ensuring a smooth disability review.

1.      Stay in consistent treatment with your medical providers. If you stop treating, you can pretty much guarantee your benefits will be ceased.

2.      Respond timely to all correspondences. Pay attention to the deadlines in the letters that you receive from SSA. When returning requested forms to SSA, make sure you either drop them off at your local office and get a stamped receipt OR send them in by certified mail and request a signature.

3.      Get an updated letter of support from your treating specialist if you are in the midst of a review.

4.      Make sure SSA receives your updated medical records from your doctor if they are requested. Sometimes doctors fail to respond to SSA’s requests, which can jeopardize your benefits.

5.      Finally, be realistic. Some disabilities are permanent, but many are not. If your doctor is telling you to return to work, you may in fact be physically and mentally ready to start working again. Start slowly and make sure you notify SSA if you start earning money at any type of occupation. Also, stay abreast of what SSA considers the monetary value of full-time work as it changes every year. For 2018, full-time employment is considered the ability to earn $1,180.00 (gross) per month or $1,970.00 (gross) per month for those who are legally blind.

Don’t worry. If the medical evidence and objective findings consistently supports that you remain disabled, you will likely retain your benefits. Just remember to make sure that you follow SSA’s directions and if you have any questions about the review process, call your local SSA office for details.  

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 megan@westcoastdisability.com or call me at (800) 459-3017 x 103.