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Qualification and Eligibility Rules Under the Social Security Disability Insurance program, an adult child (a person age 18 or older) may receive monthly benefits based on disability or blindness if:
Social Security Disability benefits begin after the disabled individual has been disabled for 5 full months. These 5 months are called the "waiting period." Social Security evaluates the work activity of persons claiming or receiving disability benefits under Social Security Disability Insurance. Beginning January 1, 2005, a Social Security Disability beneficiary can earn $830 a month as a result of "substantial gainful activity" or SGA and remain eligible for benefits. For 2004, this amount was $810. Under the new rule, monthly SGA earnings limits will be automatically adjusted annually based on increases in the national average wage index. This amount applies to people with disabilities other than blindness. If the applicant is blind, effective January 2004, earnings averaging over $1,350 a month generally demonstrate SGA. For January 2005, the blind SGA amount was increased to $1,380.
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REDUCTIONS IN BENEFITS Social Security disability benefits will be reduced so that the combined amount of the Social Security benefit a family receives plus a workers' compensation payment and/or public disability payment does not exceed 80 percent of the recipient’s average current earnings. (Note that the unreduced benefit amount is counted for income tax purposes.) For someone who is working, the first $65 ($85 if the person has no other income in a month) of earnings in a month are disregarded. After that Social Security considers $1 for every $2 the person earns in a month. Social Security also deducts from the monthly earnings any monthly expenses that a person, who has a disability has which are needed by the person to work, are related to the person's impairment and paid by the person. These expenses are deducted before Social Security applies the $1 for $2 computation. For someone who is blind, Social Security deducts any expenses the person has in order to work that are paid by the person. This amount is deducted from the earnings after the $1 for $2 computation from the monthly earnings. The remaining earnings are added to any other income the person receives in a month, such as a pension or unemployment insurance, and the result is deducted from the federal benefit rate, which is $579 a month for 2005 ($564 for 2004). |
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Jay J. Sangerman, PLLC
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