I regularly get questions regarding Social Security qualification and benefits, especially disability benefits. Today, we will go through a few of the more common questions that you may have about your Social Security.
Q: I applied for a replacement Social Security card last week but have not received it. When should I expect to receive my new card?
A: It takes approximately 10 to 14 days to receive your replacement Social Security card. Social Security takes precautions prevent identity theft and ensure the integrity of your Social Security number. To do that, they have to verify documents you present as proof of identity. In some cases, they must verify the documents before they can issue the card. For more information about your Social Security card and number, visit www.socialsecurity.gov/ssnumber.
Q: How long must I work to become eligible for Social Security retirement or disability benefits?
A: You generally need 40 Social Security “credits” to be eligible for retirement benefits. You can earn up to four credits per year. In most cases, you need at least ten years or forty quarters to be eligible for Social Security retirement benefits. During your working years, you earn credits based upon your earnings. The amount of earnings needed to earn one credit rises as your average earnings levels rise. In 2012 and 2013, you receive one credit for each $1,160 of earnings, up to the maximum of four credits per year. If you become disabled before age 62, the number of credits you need for Social Security Disability Insurance (“SSDI”) benefits depends upon your age at the time you become disabled. You must have a minimum of six credits if your disability begins before age 28, and the requirement approaches 40 credits as you approach age 62.
Q: What is the difference between Social Security disability and Supplemental Security Income (“SSI”) disability?
A: Social Security administers two major programs that pay disability benefits. Social Security Disability Insurance (“SSDI”) payments are based on your work and earnings, while SSI disability payments are based on financial need. Both disability programs require that you have a severe medical impairment or combination of impairments that prevents you from working for at least a year or is expected to result in death.
Social Security taxes are paid by workers, employers, and self-employed persons. These taxes fund disability benefits under SSDI. To be eligible for SSDI benefits, you must earn enough credits to be insured. Social Security also pays SSDI benefits to blind or disabled workers, widow(er)s, or adults disabled since childhood, who are otherwise eligible. Your monthly SSDI benefit payments are based upon your Social Security earnings record.
SSI is a program financed through general revenues, not Social Security taxes. Social Security pays SSI disability benefits to adults or children who are disabled or blind, have limited income and resources, meet the living arrangement requirements, and are otherwise eligible. For more information about Social Security disability benefits, refer to Social Security publication, Disability Benefits at www.socialsecurity.gov/pubs/10029.html.
Q: Social Security says my disability must be expected to last a year to qualify for Social Security disability benefits. Does this mean I have to wait until I’ve been disabled an entire year before applying for disability through Social Security?
A: No. If you believe your disability will last a year or longer, you should apply for disability benefits as soon as you become disabled. It can take at least three to four months to process an application. If your application is approved, Social Security will pay your first Social Security disability benefits for the sixth full month after the date your disability began. For example, if your disability began on January 15, Social Security will pay your first disability benefit for the month of July. Social Security pays in the month following the month for which they are due, so you will receive your July benefit in August.
Q: I am on disability and would really like to try to work again. I understand Social Security’s Ticket to Work might let me try working without jeopardizing my SSDI or SSI benefits. What can I do?
A: Ticket to Work is a voluntary program offering disabled beneficiaries a variety of services such as vocational rehabilitation, training, and job referrals. Ticket to Work can help you get the support and services you need to help you achieve your employment goals. For more information, visit the Social Security website at www.socialsecurity.gov/work or call Social Security toll-free at 1-800-772-1213. If you are deaf or hard of hearing, you can call Social Security’s TTY number, 1-800-325-0778.
Work Incentives make it possible for you to explore work while still receiving health care and cash benefits designed to give you a safety net:
• You can keep your Medicaid/Medicare while you work;
• You can select part-time or work-from-home alternatives to help you reach your goal of financial independence; and
• You can try work with confidence, knowing your benefits will continue during your transition period.
You can find more information about Social Security work incentives by contacting Social Security or visiting the Social Security website at www.ssa.gov/pubs/EN-05-10095.pdf.
Q: Are Supplemental Security Income benefits federally taxable?
A: No, SSI payments are not subject to federal income taxes. You will not receive an annual form SSA-1099 to report your SSI benefits to the Internal Revenue Service, as is done with Social Security benefit payments. You may have to pay income tax on your Social Security benefit payments. If so, you may ask Social Security to withhold federal income taxes from your Social Security benefit payments. For more information, visit the Social Security website at www.socialsecurity.gov.
If you do not do computers or do not like talking on the phone, you can still see and talk to a live body by visiting the Social Security office nearest you. The local office in the Port Huron area is at 2620 Krafft Road, about ¼ mile east of M-25 in Fort Gratiot. Their office hours are weekdays 9:00 a.m. to 3:00 p.m., except Wednesday. Wednesday office hours are 9:00 a.m. to 12:00 p.m.
No matter how you choose to contact Social Security, they are there to assist you. Give the website a try. By using all the tools at your disposal, you are better able to receive the benefits for which you are eligible.
By: Matthew M. Wallace, CPA, JD
Published edited May 5, 2013 in The Times Herald newspaper, Port Huron, Michigan as: Answering your questions about Social Security