Last month I was approved for SSD. I didn't even apply for SSI where my wife (fortunately) makes a good living.

When I turned in the medical documentation in support of the online application, questionnaire, etc., to the local Social Security office a day or two after finishing the online filing, I was surprised to nevertheless be thoroughly interviewd by a pleasant young man who wanted to see my complete 2008 joint tax return, which I provided on the spot, and he photocopied in its entirety.

To my great surprise, I was approved 5+ months later, something I learned when same guy in the district office called me one morning out of the blue, at which point we discussed my household income and the taxability of the benefits, on account of which I elected to withhold 25%, including on the lump sum back pay. So far so good. Next, I received correspondance about my Medicare eligibility, which was up front about the sliding scale for Part B coverage as a function of household adjusted gross income: AGI. No surprise there.

But today, I got a confirming letter regarding the amount of my Medicare withholding, which mentioned - by the way - that I was to expect a second letter from the SSA regarding the effect of our AGI (they call it MAGI) on my Social Security benefits!

Where I only sought SSD - which I understood was not needs based - does anyone know if this could mean that I'm looking at liability for overpayment on the lump sum disability award, even though the SSA intake officer who interviewed me had my 2008 tax returns from Day One and the back pay only went back to July 1, 2008?

Thanks,
Mike


ps With 25% withholding on the backpay award, I'm hoping that the worst thing I'm looking at is a tax hit next April, i.e., that any "overpayment" is less than 25% of the award.

pps I apologize if it sounds like I'm complaining. I'm all in favor of progressive benefits, I just wish I had known about them, if that's what's going on, before I replaced a broken amp on my (very) old high wattage audio system: I had gone over six months without tunes and could have held out longer.

Hi Michael,

I worked for the IRS for seven years so am very well versed in all of the tax implications, however I don't fully understand the question.

Are you saying that you applied for SSDI but were awarded SSI instead?

Joe

Your MAGI may have an effect on the amount of your Part B Medicare premium because of Income Related Monthly Medicare Adjustment (IRMMA) legislation. Your MAGI has no effect on your Social Security benefits.

https://secure.ssa.gov/apps10/poms.n...0!opendocument