Social Security Administration Reveals Disability Benefits With Additional Consideration For The Blind

Social Security

The disability insurance component as per the Social Security Disability Insurance (SSDI) has stipulated specific criteria by which the income for this category is evaluated. Getting a true understanding of the basics is vital to determine your ultimate social security benefits.

Disability insurance goes out under the SSDI every month to eligible workers who are unable to continue working due to any significant impairment or major illness. Such impairments are expected to last at least a year or lead to the demise of the beneficiary.

Social Security disability benefits are also part of the program that gives retirement support to the majority of elderly Americans who have crossed the age of at least sixty years. 

The benefits that the disabled, blind, or retired workers enjoy are based on the past earnings of the disabled workers. The funds are paid to disabled workers and their dependent family members. 

To be eligible disabled workers should have been in jobs that are covered under Social Security. Back in 2017, the number of disabled workers receiving benefits was 8.8 million. 

Disability Payments As Part Of Social Security Benefits

Disability benefits are linked and show the earnings of workers before they are grounded for their disability or cannot work at the same level as before they were disabled. From $12,228 benefits for a worker earning $20,000 before disability that has been calculated through lifetime average, the social security benefits for disability go up to $33,672 for someone who earned the taxable maximum of $127,200 at the age of 55. These figures are from 2014.

The average benefits to disabled workers from the Social Security benefit that year was $1,172 a month, which comes to $14,064 annually.

Social Security And Disability Insurance Benefits

Workers and their employers also pay into the DI program, taking a part out of the taxes for Social Security. Both employers and workers pay Social Security tax that works out to 6.2% with a cap that is revealed each ear. For 2017, this cap worked out to $127,200.

This cap gets recalculated each year to keep abreast of the average wages that are declared each year. Out of the total percentage, 5.015% is directed to support Social Security retirement and survivor benefits. 1.185% goes towards disability insurance. 

Employers and workers continue to pay a disability insurance tax of 2.37% of their normal wages. The combined retirement tax and survivor benefits work out to 10.03% for a total of around 12.4%.

The disability insurance trust funds under the Social Security fund received $160 back in 2016. This fund was amassed mainly from the 1.185% that employers and workers pay as a percentage tax on wages. 

The total payments under the trust fund of Disability Insurance under the Social Security Administration work out to $146 billion. These are mainly for the benefits that go out to disabled workers and also their families. 

The total cumulative funds under the disability insurance trust fund total sum of $46 billion in end-2016.

The administrative expenses worked out to 1.9% of the outgo from the DI fund. The remainder of the funds went towards the benefits. 

Eligibility For Disability Benefits Under The Social Security Administration 

The Social Security Administration has developed a rigorous evaluation process to determine if a person qualifies for disability benefits. To qualify for disability benefits, the Social Security rules state that the potential beneficiary must be deemed unable to participate in substantial or gainful activity. The reason for such disability must be determined by medical experts and can be both mental and physical. 

Such impairment, as determined by the Social Security law, must be severe enough to potentially lead to death or should be of such a nature as to cause permanent disability lasting at least one year since the evaluation. 

Further, the impairment or combination of impairments must be so severe as the applicant is unable to do his or her previous work and also engage in any other substantial work for gain that is stipulated under the law. 

How Much Is Social Security Disability Changing In 2023

There are certain changes affected by the Social Security Administration every year, and disability programs also face changes to them. While some changes are automatic and linked to other changes, like annual changes in the amount of the benefit that is linked to inflation figures. 

There are bigger changes at times, like the maximum that disability lawyers can charge in any particular year. This year one of the biggest changes was higher Social Security Disability Benefits (SSDI). This is to keep up with inflation and the rising cost of living. 

In 2023 the SSDI benefits come to 8.7% higher than in the previous year. The maximum amount of social security benefits for the disabled is now $3,627 a month. This can result in a higher monthly disability payment from the Social Security Administration. 

The supplemental Security Income (SSI) payment is $914 every month in 2023 for individuals. For married couples, it comes to $1,371 a month. This works out to an increase of 8.7% increase over the previous year (2022).

The number of people qualifying for the SSI will also be higher this year as more people qualify for the benefits as people can now have up to $914 as countable income. Having this income in 2022 would have disqualified beneficiaries. 

But getting close to the earning limit will result in lower SSI benefits under the law. Potential beneficiaries can earn up to $1,470 as income before tax in 2023 and still be deemed qualified for disability benefits. This is up from $1,350 the previous year. This is termed the substantial gainful activity limit and is the same if a beneficiary is applying for benefits or is already receiving them. 

The work credit limits have also been changed for this year. Workers this year will earn one credit for an income of $1,640 earned. This includes income under the head of self-employment.