WIPA Frequently Asked Questions
Who administers SSI and SSDI, and what is the difference between the two
programs?
How much can I earn before losing my Social Security Disability
Insurance (SSDI) and or Supplemental Security Income (SSI) benefits?
If I did lose my benefits due to earnings, how difficult would it be to
get my benefits back?
How do I correctly report my earnings to the Social Security
Administration?
I receive SSDI and have a child who also receive benefits from my
record, how would their benefits be effected if I went to work?
If I did return to work would I lose my Medi-Cal and or Medicare?
Who administers SSI and SSDI, and what is
the difference between the two programs?
The Social Security Administration administers the
two programs SSDI and SSI. Social Security Disability Insurance (SSDI),
which is based on prior work under Social Security, and Supplemental
Security Income (SSI). Under SSI, payments are made on the basis
of financial need.
Social Security Disability Insurance (SSDI) is financed through the
Social Security trust fund taxes paid by workers, employers, and
self-employed persons. To be eligible for a Social Security
benefit, the worker must earn sufficient credits based on taxable work
to be "insured" for Social Security purposes. Disability benefits
are payable to blind or disabled workers, widow(er)s, or adults disabled
since childhood, and non-disabled children under 19 who’s parents
are/were eligible to receive the benefit. The amount of the
monthly disability benefit is based on the Social Security earnings
record of the insured worker.
Supplemental Security Income (SSI) is a program financed through general
revenues. SSI disability benefits are payable to adults or
children who are disabled or blind, have limited income and resources,
meet the income and resources guidelines and living arrangement
requirements, and are otherwise eligible. The monthly payment
varies up to the maximum federal benefit rate, which may be supplemented
by the State or decreased by countable income and resources.
It depends on what type of benefits you currently
receive. If you receive SSDI and you have not worked since
receiving benefits. You may be eligible to receive a Trial Work
Period. A Trial Work Period is an SSDI Work Incentive that allows
you to test your ability to work without losing any of your cash
benefits for at least 9 months. During a Trial Work Period any
month that a person earns $720.00 (2010) or more a trial work period
month would have been used. During a Trial Work Period there is no
earnings threshold. If you are receiving SSI income is
counted a bit differently.
An example will make these rules clearer. Danny is an SSI recipient and
receives a SSI check in the amount of $907. Danny gets a job earning
$800 per month gross (before taxes). Social Security Administration
(SSA) will compute his SSI payment amount as follows: SSA will exclude
the first $20.00 from the $800.00 this is called a General Income
Exclusion leaving $780.00. SSA would then deduct $65.00 as an Earned
Income Exclusion leaving $715.00. SSA would then divide the $715.00 in
half, leaving Danny's Countable Income of $357.50. The Countable Income
of $357.50 is then deducted from his SSI amount of $907. Danny will
receive an SSI check of $549.50 to supplement his earned income of $800.
This will give him a total monthly income of $1,349.50. by
returning to work, Danny has increased his monthly income by $442.50 per
month.
If I did lose my benefits due to earnings, how difficult would it be to get my benefits back?
If you were receiving SSDI you would be eligible
to utilize a Work Incentive called the Extended Period of Eligibility
the month after you have completed your trial work period. During this
36 month period you would be eligible to receive benefits anytime your
Countable Earned Income falls below Substantial Gainful Activity (SGA)
of $1,000.00 (2010).
If you were collecting SSI and for any reason you were unable to
continue your earnings at a level that caused your SSI benefits to be
reduced to zero, you may be able to have your SSI reinstated, as long as
you had received SSI check within the time you were eligible to receive
benefits . Social Security may require you to reapply. While SSA is
considering your application, you would be eligible for a Work Incentive
called Expedited Reinstatement of Benefits that would allow for
Provisional cash benefits for up to 6 months while SSA makes a
determination of your application.
How do I correctly report my earnings to the Social Security Administration?
There a couple ways to report your earnings, the
first is to mail your pay check stubs to them and ask for the originals
to be mailed back with a stamped receipt stating that they received your
reported earnings. The other way (preferred) is to go into your
local SSA office and give them the original paycheck stubs and request a
stamped receipt and copies of the stubs for your records.
The basic rule is: If you are entitled to receive
your benefits, your child would be eligible to continue to receive
benefits as well. If your child is not disabled, and not enrolled in
school, benefits would be terminated when the child turns 18, if the
child is participating in school full-time they would be entitled to
receive benefits until they turned 19. If the child is disabled, the
benefits would continue and the child would be eligible to use the SSDI
work incentives such as the Trail Work Period and Extended Period of
Eligibility.
If I did return to work would I lose my Medi-Cal and or Medicare?
If you receive SSDI and went to work, you would be
eligible to receive at least 93 months of Extended Medicare after you
have completed your Trial Work Period. If you receive SSI and your
earnings are under $34,324.00 for 2010 you would be able to use a work
incentive called 1619 (B). 1619 (B) allows for continued
full-scope free Medi-Cal even though you are not eligible to receive SSI
cash payments. If your earnings are above the 1619(B) threshold,
you could apply for Medi-Cal 250%. This form of Medi-Cal is a
premium based insurance that has a sliding scale on how much your
premium would be.
