wow, THank yall all so much - not super straight forward it sounds like!! It's sad when people who truly need help and assistance can't get it .. It's all so stressful!! hopefully i won't need it, but when making such big decisions like buying a house, I want to be as informed as possible with the "worst case" scenerio..

I worry about not being able to provide for my family ALL of the time, much less adding the cost of medical bills on top of that!

So it sounds like even if you get Social Security disability, the private insurance reduces their amount so you only end up with 60% of your gross anyway. And I am assuming it is all taxable too.

Does anyone know if my child still a minor would also collect Social security and can the private insurance reduce their supplement based on her collecting too?

It looks like I need to get myself in a position to live on 60% of my pay soon. I have a lot of calculating to do. Is there any other benefits/discount disability may qualify you for such as real estate tax deductions, utilities, etc?

Thanks so much eveyone for sharing your wealth of information and experience. This forum is a lifesaver. Where else could you collect so much information so fast.

kathie

Once you have been on disability for 6 months (insurance or SSDI), they stop deducting FICA/MED. SSDI is not subject to withholding unless you have a certain amount of earnings. Your insurance company will send you a W-2 (earnings), but SSDI will send you a 1099 and is not considered earnings. The following is copied from the SS website:

"About one-third of people who get Social Security have to pay income taxes on their benefits.

If you file a federal tax return as an “individual,” and your combined income* is between $25,000 and $34,000, you may have to pay taxes on 50 *percent of your Social Security benefits. If your combined income* is more than $34,000, up to 85 percent of your Social Security benefits is subject to income tax.

If you file a joint return, you may have to pay taxes on 50 percent of your benefits if you and your spouse have a combined income* that is between $32,000 and $44,000. If your combined income* is more than $44,000, up to 85 percent of your Social Security benefits is subject to income tax.

If you are married and file a separate return, you probably will pay taxes on your benefits.

At the end of each year, we will mail you a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits you received. You can use this statement when you complete your federal income tax return to find out if you have to pay taxes on your benefits.

Although you are not required to have federal taxes withheld, you may find it easier than paying quarterly estimated tax payments.

For more information, call the Internal Revenue Service’s toll-free telephone number, 1-800-829-3676, to ask for Publication 554, Tax Guide for Seniors, and Publication 915, Social Security And Equivalent Railroad Retirement Benefits.

*On the 1040 tax return, your “combined income” is the sum of your adjusted gross income plus nontaxable interest plus one-half of your Social Security benefits.

Pensions from work not covered by Social Security

If you get a pension from work where you paid Social Security taxes, that pension will not affect your Social Security benefits. However, if you get a pension from work that was not covered by Social Security for example, the federal civil service, some state or local government employment or work in a foreign country—your Social Security benefit may be reduced.

For more information, ask for Government Pension Offset (Publication No. 05-10007), for government workers who may be eligible for Social Security benefits on the earnings record of a spouse; and Windfall Elimination Provision (Publication No. 05-10045), for people who worked in another country or government workers who also are eligible for their own Social Security benefits. "

Hope this helps.

Juanita

Wow.. thank yall!!!! that was great information, but one question - is there any money left after all the stinkin taxes!?!?! Ugh....

I don't know if there is any money left after taxes, but I do think that the system is very inefficient. Why take money that comes from taxes; give it out to people, and then tax it.? Shouldn't they just decide how much you need and then make it tax free? It would save tons of money on administrative costs and that money could be used to help the people that need it.

Yes there is money left after taxes. I didn't have to pay any taxes in 2012, fica/med or withholding.

jUANITA

Does anyone know if your dependents/children can collect social security benefits too?

thanks
kathie

Yes that is correct about the 60%. For example, if SSDI amount is 1800.00 and your disability insurance is paying you 2200.00 a month, then dis ins will pay you 400.00 a month vs. the 2200.00. Their portion makes you whole on the original 60% amount.

I also went the LongTerm Disability/SSDI route. The LTD policy paid 60% until SSDI was approved. Now LTD deducts what SSDI pays. I still get 60% between both of them. Neither of the payments are taxable. I was a high wage earner and I was taxed at the high tax rate while I was working, so getting 60% of my earnings, straight out, without taxes, is almost as much as I was earning with taxes.

My LTD company used AllSup to pursue SSDI. They did an excellent job. I am now on Medicare, which costs half of what I was paying for Cobra.

I also downsized my life. We sold our home and we are now renting. I don't want a mortgage over my head. You may want to reconsider buying a home. In my opinion, it really isn't necessary.