confussed

plgerrard · 03-16-2010, 05:59 AM

Quote:

Trudi, maybe I misunderstood, but I was told that $720 was the "cap" in a regular situation unless you were TRYING/ABLE to return to the workforce. Here is the explantion I found. Does this make any sense??

Not Trudi, but I think I can answer your question. There are two different income caps. The first ($720) is the trial return to work period.

Let's say you go back to work part time earning an average of $700/month. You can earn more than $700/month for any 9 months out of 60. The amount you can earn in those 9 months is unlimited. So, you could receive a $5,000 bonus, and it wouldn't count against your benefits - until you accumulated 9 months over $720 in a 60-month period. The 60-month period is rolling, meaning that every month the prior 61st month drops off. So if you received a large bonus in December 2004, it would no longer be counted in the 9 month total. Example:

Jan - Nov 2004 earn $700/mo. Dec 2004 receive $5,000 bonus. You have now accumulated 1 month over $720.
Jan - Nov 2005 earn $700/mo. Dec 2005 receive $5,000 bonus. You have now accumulated 2 months over $720.
Jan - Nov 2006 earn $700/mo. Dec 2006 receive $5,000 bonus. You have now accumulated 3 months over $720.
Jan - Nov 2007 earn $700/mo. Dec 2007 receive $5,000 bonus. You have now accumulated 4 months over $720.
Jan - Nov 2008 earn $700/mo. Dec 2006 receive $5,000 bonus. You have now accumulated 5 months over $720.
Jan - Nov 2009 earn $700/mo. Dec 2009 receive $5,000 bonus. You have still only accumulated 5 months over $720. The bonus in 2004 is no longer within the 60-month window. It has rolled off.

But, if you took a part-time job that pays $800/month, your 9 months would be exhausted in the first 9 months you work:

Jan - $800 month - accumulate 1 month over $720
Feb - $800 month - accumulate 2 months over $720
Mar - $800 month - accumulate 3 months over $720
Apr - $800 month - accumulate 4 months over $720
May - $800 month - accumulate 5 months over $720
Jun - $800 month - accumulate 6 months over $720
Jul - $800 month - accumulate 7 months over $720
Aug - $800 month - accumulate 8 months over $720
Sep - $800 month - accumulate 9 months over $720

Once you have exhausted those 9 months, you cannot earn over $1000 per month. How your benefits would be affected if you earn over $1,000 depends on whether you are a SSDI recipient or a SSI recipient.

SSDI recipient: If you earn $999/month, you keep all your benefits. If you earn $1,001, you loose all your benefits.

SSI recipient: If you earn $999/month, you keep all your benefits. If you earn $1,001, only 50% of the amount over $1,000 (50 cents) is deducted from your benefit payment. I have backed into the formula for calculating SSI benefit payments, and it works out to income of $1,433/month before benefits stop.

Sunrise · 03-17-2010, 11:56 AM

Quote:

Originally Posted by jana

Trudi, maybe I misunderstood, but I was told that $720 was the "cap" in a regular situation unless you were TRYING/ABLE to return to the workforce. Here is the explantion I found. Does this make any sense??

http://ssa-custhelp.ssa.gov/cgi-bin/...i=&p_topview=1

Question
I am receiving Social Security disability benefits. Will I lose my benefits if I work and earn money?

Answer
Not right away. We have special rules called "work incentives" that help you keep your disability and Medicare benefits while you test your ability to work. For example, there is a trial work period during. During the trial work period you can receive full benefits regardless of how much you earn. You just have to report your work activity and continue to have a disabling impairment.

The trial work period continues until you accumulate nine months (not necessarily consecutive) in which you perform what we call "services" within a rolling 60-month period. We consider your work to be "services" if you earn more than $720 a month in 2010. For 2009, this amount was $700.

After the trial work period ends, your benefits will stop for months your earnings are at a level we consider "substantial," currently $1,000 in 2010. For 2009, this amount was $980. Different amounts apply to people who are disabled because of blindness. The monthly substantial amount for statutorily blind individuals for 2010 is $1,640; for 2009 this amount was $1,640.

Ugg! I don't understand the trial work formula! So if you work and earn more than $720.00 a month for 9 months, within a 60 month period (that can start over at any point?!?) you loose benefits for as many months as you earned $1000 or more in a month? Then what happens? Do you get your benefits back at some point? If you didn't make over $1000.00. When and how? I couldn't figure this out in an on-going basis. Especially with the "rolling" periods.
Can you say it another way please? Lord it's confusing.

Sunrise · 03-17-2010, 11:59 AM

Sorry, I didn't see this before I posted. I *think* I understand now.
Thanks for this!
Sunrise

Quote:

Originally Posted by plgerrard

Not Trudi, but I think I can answer your question. There are two different income caps. The first ($720) is the trial return to work period.

Let's say you go back to work part time earning an average of $700/month. You can earn more than $700/month for any 9 months out of 60. The amount you can earn in those 9 months is unlimited. So, you could receive a $5,000 bonus, and it wouldn't count against your benefits - until you accumulated 9 months over $720 in a 60-month period. The 60-month period is rolling, meaning that every month the prior 61st month drops off. So if you received a large bonus in December 2004, it would no longer be counted in the 9 month total. Example:

Jan - Nov 2004 earn $700/mo. Dec 2004 receive $5,000 bonus. You have now accumulated 1 month over $720.
Jan - Nov 2005 earn $700/mo. Dec 2005 receive $5,000 bonus. You have now accumulated 2 months over $720.
Jan - Nov 2006 earn $700/mo. Dec 2006 receive $5,000 bonus. You have now accumulated 3 months over $720.
Jan - Nov 2007 earn $700/mo. Dec 2007 receive $5,000 bonus. You have now accumulated 4 months over $720.
Jan - Nov 2008 earn $700/mo. Dec 2006 receive $5,000 bonus. You have now accumulated 5 months over $720.
Jan - Nov 2009 earn $700/mo. Dec 2009 receive $5,000 bonus. You have still only accumulated 5 months over $720. The bonus in 2004 is no longer within the 60-month window. It has rolled off.

But, if you took a part-time job that pays $800/month, your 9 months would be exhausted in the first 9 months you work:

Jan - $800 month - accumulate 1 month over $720
Feb - $800 month - accumulate 2 months over $720
Mar - $800 month - accumulate 3 months over $720
Apr - $800 month - accumulate 4 months over $720
May - $800 month - accumulate 5 months over $720
Jun - $800 month - accumulate 6 months over $720
Jul - $800 month - accumulate 7 months over $720
Aug - $800 month - accumulate 8 months over $720
Sep - $800 month - accumulate 9 months over $720

Once you have exhausted those 9 months, you cannot earn over $1000 per month. How your benefits would be affected if you earn over $1,000 depends on whether you are a SSDI recipient or a SSI recipient.

SSDI recipient: If you earn $999/month, you keep all your benefits. If you earn $1,001, you loose all your benefits.

SSI recipient: If you earn $999/month, you keep all your benefits. If you earn $1,001, only 50% of the amount over $1,000 (50 cents) is deducted from your benefit payment. I have backed into the formula for calculating SSI benefit payments, and it works out to income of $1,433/month before benefits stop.

LIT LOVE · 03-25-2010, 11:32 PM

For the OP: The fact that you're researching this for her shows how much you care, but sometimes the reward of testing your current abilities outweighs the risk (and it is likely small in your friend's case) of a change in her disability status from a review.

Considering her age, diagnosis of injury, and the fact she has been receiving benefits for many years, it likely won't be an issue.

There was a period when I was taking 1 class a week at the local Community College while I was in the application process. My attorney tried to vaguely discourage me, but my mental health was more important to me. Did it hurt my 1st application? I think it did. When I received my Fully Favorable decision it included the timeframe I had taken classes. Eventually I adapted to a more solitary existence and the pain incurred from going to class 1 night a week no longer made sense for me.

And while I hope your friend reaches her goal, you have to consider if her journey towards it might end up being just as important for her.

Site Navigation

NeuroTalk Online Support Groups

confussed

NeuroTalk Forums