Benefits Planning & Social Security Work Incentives

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Karin Wheeler
5 years ago
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1 10//10 Benefits Planning & Social Security Work Incentives Supplemental Security Income (SSI) & Wage Employment SSI is reduced $1.00 for every $.00 in gross wages earned after the 1 st $85 of earned income each month (if there is no unearned income) (Gross wages - $85)/ = the reduction in SSI due to gross wage earnings Example: ($685 Gross Wages - $85)/ = $300 Less SSI $674 SSI is reduced by $300 = $374 SSI 1

2 10//10 SSI & Gross Wages Gross Wages SSI 010 SSI FBR Single Person: $674 per month 010 SSI FBR (Married Couple): $1011 per month

3 10//10 Supplemental Security Income (SSI) & Work Incentives Impairment Related Work Expenses (IRWE) (Gross wages - $85 - IRWE)/ = the reduction in SSI due to gross wage earnings offset by IRWE Example: ($685 Gross Wages - $85 - $300 IRWE)/ = $150 Less SSI $674 SSI is reduced by $150 = $54 SSI Supplemental Security Income (SSI) & Work Incentives Blind Work Expenses (BWE) [(Gross wages - $85)/] BWE = the reduction in SSI due to gross wage earnings offset by BWE Example: [($685 Gross Wages - $85)/] - $300 BWE = $0 Less SSI $674 SSI is reduced by $0 = $674 SSI Supplemental Security Income (SSI) & Work Incentives Plan for Achieving Self-Support (PASS) [(Gross wages - $85)/] PASS = the reduction in SSI due to gross wage earnings offset by PASS Example: [($685 Gross Wages - $85)/] - $300 PASS = $0 Less SSI $674 SSI is reduced by $0 = $674 SSI 3

4 10//10 4

5 10//10 Social Security Disability Income (SSDI) & Wage Employment SSDI is not a needs based program eligibility is based on disability and on the number of credits earned from working in the past. There are no personal resources limits. Only Earned Income is counted by SSDI. Unearned Income is not counted. Earnings over Substantial Gainful Activity (SGA) at some point in time can cause the loss of monthly cash benefits. SSDI = all or nothing Social Security Disability Income (SSDI) & Wage Employment Substantial Gainful Activity (SGA) for 010: $1000 ($1640 blind) Trial Work Period 9 months over rolling 60 months with earnings over $70 in 010 or 80 hours selfemployment Extended Period of Eligibility (EPE) 36 months 5

6 10//10 Social Security Disability Income (SSDI) & Wage Employment Extended Medicare IRWE Subsidy 010 Non-Blind SGA: $1000 per month gross wages 010 Blind SGA: $1,6400 per month gross wages Supplemental Security Income (SSI) & Self Employment SSI policies covering self employment are substantially different than SSI policies for wage employment. It s important to note that self employment policies do not include any type of corporation. Self employment earned income policies only apply to unincorporated businesses. The following slides highlight the major differences associated with SSI & self employment (versus wage employment) 6

7 10//10 PESS Property Essential to Self-Support - SSI Yearly Net Income Predicting & Averaging SSI Net Income Reduced by 7.65% (1/ of 15.3%) SSI All other SSI Work Incentives 1619(a) & (b), PASS, BWE, IRWE, SEIE, GIE, EIE, EXR, $1.00 SSI Check Reduction for $.00 Net, AFIA & TANF IDA s $637 SSI N.E.S.E SSI 010 SSI FBR Single Person: $674 per month 010 SSI FBR (Married Couple): $1011 per month Remember 1619(b) SSI/Medicaid Thresholds 3 7

8 10// Non-Blind SGA: $1000 per month N.E.S.E. 010 Blind SGA: $1,640 per month N.E.S.E

9 10// PoppinJoes.com VR: $3,950 Council: $9,000 PASS: $1,86 Total: $5,36 9

10 10//10 10 Current Assets Checking 9,941 Total Checking 9,941 Equipment Assets VR Purchased Equipment 3,950 DD Council Purchased Equipment 9,000 Pickup Truck & Trailer 0,568 Total Equipment 33,518 Equipment Depreciation VR Purchased Equipment -3,950 DD Council Purchased Equipment -5,400 Pickup Truck & Trailer -1,340 Total Depreciation -1,690 TOTAL ASSETS 41, Current Liabilities $0,568 Loan - 1 Year 3,900 Total Current Liabilities 3,900 Long Term Liabilities $0,568 Loan Balance 4,38 Total Long Term Liabilities 4,38 Total Liabilities 8,8 Equity Opening Balance Equity 0 Paid In Capital: VR, DD Council & PASS 5,36 Owners Draw -30,000 Net Income/Retained Earnings 38,305 Total Equity 33,541 TOTAL LIABILITIES & EQUITY 41,769 7 Q & A Activity 10

GLOSSARY OF TERMS. Center for Medicare and Medicaid Services. This is a U.S. Department that oversees Medicare and Medicaid. Previous name HCFA

GLOSSARY OF TERMS. Center for Medicare and Medicaid Services. This is a U.S. Department that oversees Medicare and Medicaid. Previous name HCFA GLOSSARY OF TERMS Appeals Benefit Break Even Point BWE CDR CMS COLA Countable Earned Review process for an individual if there is a disagreement concerning a claim for benefits. This applies to applications