WHAT DOES IT MEAN TO “PAY INTO SOCIAL SECURITY”?

Posted January 31, 2023 by Premier Disability Services, LLC®

Social Security disability benefits are primarily broken into two types: Title II (SSDI/DIB) and Title XVI (SSI/DI). The latter isn’t employment-based. However, for this discussion, we’re dealing entirely with the former, or Title II, claims.

Title II benefits function as a form of retirement, and both your initial eligibility and your total benefits are tied to your earnings history. Specific eligibility requirements and overall benefits calculations are outside the scope of this discussion. However, this is the link to your paycheck, and it’s important to understand that each time you “pay into Social Security” this way, you’re impacting both your eligibility for Title II benefits as well as your overall benefits following a successful Title II claim.

First, making these payments for a full quarter (three months) earns you a “credit” toward eligibility. To be eligible, you must have accrued credits in 20 of the last 40 quarters immediately preceding your application. In other words, you must have worked and made payments across enough three-month periods to equal five out of the last 10 years immediately prior to your application date.

Second, the more you’ve paid into Social Security, the greater your benefits are likely to be following a successful Title II claim. This is because Title II functions as a form of retirement by replacing a percentage of your pre-retirement income. Generally speaking, Social Security is based on your highest 35 years of earnings, provided you still meet the eligibility requirement. Again, specifics on how the percentage is calculated are outside the scope of this conversation. However, it’s easy to see how making higher and/or additional payments could increase your future benefits following a successful Title II claim.

Please contact us for a free, no-obligation evaluation!

By: Devon Brady of Premier Disability Services, LLC®

I Was Sent an AOD Amendment Request: Now What?

Posted January 13, 2023 by Premier Disability Services, LLC®

Occasionally, administrative law judges will send what’s called an “AOD Amendment Request”. Essentially, they are indicating that if you are willing to adjust your alleged onset date to a date they specify, they will award you either a partially or fully favorable decision. Both the date and whether the decision will be partially or fully favorable will be specified in the request.

            This request is optional. You may choose to proceed with your original alleged onset date, and your claim will proceed to the next stage as planned. However, before you make your decision, it’s important to understand how each option impacts your claim and your potential benefits.

            If you choose to accept the request, the largest—and likely most important—impact it will have on your benefits is a possible reduction in backpay. Whether it will result in a reduction, and if so by how much, depends on what type of benefits you applied for and the new alleged onset date (after accepted the amendment request). Partially favorable decisions will still follow the analysis below for whichever benefits would be awarded in the amendment request.

If you had a Title II (SSDI/DIB) claim for which benefits would be awarded, you will still be eligible for up to 12 months of backpay. The exact amount you receive depends on your new alleged onset date: the farther it is from your application date, the more backpay you’ll receive, up to a maximum of 12 months. Unfortunately, if your new alleged onset date isn’t prior to your application date, you won’t be eligible for backpay.

If your claim was for Title XVI (SSI/DI) benefits only, or if you are accepting an amendment request resulting in only Title XVI benefits, you will need to compare your original application date with your new alleged onset date. Title XVI claims are only eligible for benefits beginning on their application date. However, if your new alleged onset date falls after your original application date, benefits will begin as of your new alleged onset date.

If you accept the amendment request, a decision will be rendered, and then the Social Security Administration will contact you to collect any necessary details and arrange payment. However, if you deny the amendment request, your claim will proceed to the next stage as planned, whether that’s the initial hearing or, if an unfavorable decision was received, an appeal. Denials simply communicate that you feel confident the medical evidence supports a disabled finding as of the original alleged onset date.

Regardless of your decision, you should communicate it as soon as possible to ensure you don’t exceed any filing deadlines. If you have legal representation, you should inform them of your decision first, even if you’re planning to deny the request. Beyond that, nothing else is required!

Contact Us today for a free disability evaluation!

By: Devon Brady of Premier Disability Services, LLC®

Will Gifts Affect My SSI Eligibility?

Posted December 27, 2022 by Premier Disability Services, LLC®

Some gifts may count as income, in which case they can affect your SSI eligibility. But determining which gifts do and do not affect your eligibility can be complicated. First, you have to determine whether or not specific exclusions apply. Then you have to determine if particular conditions apply that would preempt or otherwise invalidate those exclusions. Finally, there’s one more round of exclusions to review before a gift is considered income, should the first set not apply.[1]

                The first set of exclusions are household goods and personal effects. Per 20 CFR § 416.1216(a) and (b), these are excluded from being counted as resources, which effectively keeps them from being counted as income as of April 1, 2005, as explained in a Social Security Administration operating manual, SI 01130.430. Unfortunately, the CFR isn’t particularly useful in determining whether these exclusions apply to a particular gift, because it doesn’t provide useful definitions of either.

Luckily, SI 01130.430 fills this gap, providing not only robust definitions but examples of each exclusion. Household goods are “items of personal property, found in or near the home, [that] the householder uses on a regular basis… for maintenance, use, and occupancy of the premises as a home.” ((C)1). Personal effects are “items of personal property ordinarily worn or carried by the individual, or items that have an intimate relation to the individual.” ((C)2).

There are limits to these exclusions. First, neither can apply to items an individual acquires or holds because of their value or as an investment, including animals kept for breeding or resale purposes. Furniture, appliances, and household electronics (i.e. televisions) are used for their utility around the home, not their dollar or investment value. Similarly, jewelry and other trinkets that are regularly worn or that have sentimental value are valued for factors other than their dollar or investment value. However, if it isn’t regularly worn (or designed to be worn), and if it doesn’t have some sentimental value (i.e. a family heirloom), it may not be considered a personal effect. (More detail is provided in 20 CFR § 416.1205.)

If your gift doesn’t qualify for either the household good or personal effect exclusion, there is one more set of exclusions to review. Necessary medical devices and personal care devices, such as prosthetic devices, are not counted as income. Items of cultural or religious significance also are not counted as income. Finally, educational gifts such as books and money used toward tuition are not counted as income. These exceptions can be found in 20 CFR § 416.1216.

If none of the above exclusions apply to your gift, it will be counted as income. In that case, a fair market value will be assumed for your gift, and it will count toward the SSI asset limit. If your total assets, including the fair market value of your gift, exceeds the asset limit, you will be ineligible for SSI. As of 2022, the SSI limit is $2,000 for individuals and $3,000 for couples.

By: Devon Brady of Premier Disability Services, LLC®

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[1] These are actually a subset of the same exclusions reviewed in the first step. They’re also reviewed along with all other items during that step. They’re presented separately here only to highlight their importance and to aid understanding of the overall process.