OOD Works

Understanding Social Security Disability Benefits Updates for 2025

• Opportunities for Ohioans with Disabilities • Episode 55

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Decisions on whether Ohioans are eligible for Social Security disability benefits are crucial for people looking to create a dependable foundation for their lives. Staff with the Division of Disability Determination (DDD) of Opportunities for Ohioans with Disabilities (OOD) understand those needs and the importance of quickly processing cases and delivering accurate decisions. In agreement with the Social Security Administration (SSA), DDD determines medical eligibility for Ohioans who apply for Social Security disability benefits. 

In this episode, Robert Fenn and Brandon Smith, SSA Public Affairs Specialists, explain the changes to Social Security disability benefits in 2025. The discussion is a valuable resource for anyone looking to understand and navigate Social Security benefits and provides a comprehensive overview of the upcoming changes.

(Check out episode 27, Applying for Social Security Disability Benefits, for additional information.)

Learn more at SSA.Gov or call 800-772-1213.

Transcripts and MP3 files are available at ood.ohio.gov/podcast.

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Have a disability? Want to work? Visit OODWorks.com!

Male Voice Introduction: 0:02

Welcome to OOD Works, the podcast, a show about unique individuals and services provided by Opportunities for Ohioans with Disabilities, the state agency that helps individuals with disabilities find a job and be more independent. Here's your host Kim Jump.

Kim Jump: 0:16

OOD’s Division of Disability Determination (DDD0 agreement with the Social Security Administration, SSA determines medical eligibility for Ohioans who apply for Social Security disability benefits. DDD is federally regulated and receives 100% of its funding from SSA. Under SSA, disability is based on an individual's inability to work. OOD offers vocational rehabilitation services for those who have a disability and want to work. For those who cannot work, disability benefits are a possibility. In this episode of OOD Works podcast, I am joined by SSA staff to learn about the 2025 updates related to disability benefits. We'll hear from Brandon Smith, Public Affairs Specialist with SSA, based in Cleveland, and Robert Fenn, Public Affairs Specialist with SSA, based out of Akron. So welcome back to the show, Brandon and Robert. Great to have you here.

Robert Fenn: 1:27

Thank you, thank you, thank you. It's good to be back.

Brandon Smith: 1:30

Yes, thank you so much.

Kim Jump: 1:32

Well, before we get going, just one more word to our listeners that, if you would like, it would be helpful to go back to episode 27 as a starting place to understand all things related to Social Security Disability Benefits. It was a discussion we had several years ago and really would provide a lot of good foundational information if you're not real familiar with Social Security Disability Benefits. But today this episode is really dedicated to talking about the updates and changes coming in 2025. So the recent news back on October 14th 2024, was SSA announced a 2.5% benefit increase for 2025. So, before we dive into too many questions, Robert, can you give us an overview and what is really important to know about this announcement?

Robert Fenn: 2:32

Yes, it is a very important announcement that Social Security beneficiaries are going to receive that 2.5 percent increase. Many individuals who are receiving Social Security benefits come to look forward to that and that news of when it's going to be announced and the dollar amount, as you said, 2.5 percent. This information is calculated from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW), a mouthful and is determined by the Department of Labor and Bureau of Labor Statistics and what this means is that we're looking at over 68 million Social Security beneficiaries looking at a 2.5 percent increase added to the Social Security benefits and around 7.5 million (SSI) - Supplemental Security Income benefits going to increase in 2024. 

Robert Fenn: 3:30

Now we at Social Security, we mail notices out to individuals who do not have a “my Social Security” statement or “my Social Security” account. So this means that those who have a “my Social Security” account shameless plug going to SocialSecurity.gov and opening a “my Social Security” account. You can receive notifications of this after November 20th and you can see what your new increase or their new increase will be. It's about an average of $50 per month for individuals those who are receiving Social Security, disability and Social Security retirement payments that payment will increase in January and those are receiving SSI payments. If someone's receiving an SSI payment, which is normally on the 1st, if the 1st was a fall on a holiday, then we pay before that. So my point is they will receive their increase in January.

Kim Jump: 4:20

Okay, well, that's great news, and thanks for the plug for the online way to get those notices too. This year, for the first time, Social Security beneficiaries will receive a newly designed and improved cost of living or COLA adjustment notice. That is going to make it easier for customers to find the information that they need most. Brandon, can you break that down for us?

Brandon Smith: 4:48

Absolutely so. This year, individuals that are receiving benefits that are going to get the notices regarding their cost of living adjustments are going to receive a simplified notice. It's only going to be one page. It's going to use really plain language, personalized language. It's going to give you the exact dates and dollar amounts specific to your situation and it'll break down any deductions that could be coming out of your check. There might be individuals that are receiving Medicare and they have their Medicare Part B premium coming out of their check. So now, instead of sort of guessing and wondering and sifting through a lot of different pages, it's one page. It'll give you your new amount, it'll tell you what's coming out and it'll make it easier for you to kind of understand and budget plan going into 2025. Okay, great.

Brandon Smith: 6:01

So is that the same as a free, secure, personalized “my Social Security” account that way from their laptop desktop? I guess you could use your phone. I don't know how easy that would be. You can log into your account. You can pull up any notices. It has the option for you to stop mail notices because, once again, depending on the population that we're talking about, some people, hey, I don't want to go out to the mailbox, I don't want to go out to my post office box. I want to be able to read any important notices on my personalized device wherever I am and have reliable internet access. So yes, you can see your cost of living adjustment notice via your “my Social Security” account.

Kim Jump: 6:42

Okay, super Thanks, Robert. Can you explain credit of coverage and what has changed for it this year?

Robert Fenn: 6:51

Yes, credit of coverage—it’s probably one of the most basic or one of the founding I should say we're founding, but foundation parts of Social Security. Those of us who are paying in Social Security, we pay a FICA tax –Federal Insurance Contribution Act, and when we pay that tax 6.2 percent Social Security, we translate the percentage into a dollar amount, which we now call a “quarter of coverage”. Last year, if an individual was working paying that FICA tax and they made at least $1,730 in 2024, that earned them a credit. This year that dollar amount's going up to earn a credit to $1,810. This is very important because, excuse me, as individuals work, they're looking to get what we call 40 of those quarters of coverage. 40 quarters of coverage makes an individual insured for a Social Security retirement benefit. Now the less amount of quarters of coverage they have makes them possibly not eligible for retirement benefits, but it's possible that they could have a certain amount of those quarters of coverage for Social Security disability and that's another podcast that we can get a certain amount of those quarters of coverage for social security disability and that's another podcast that we can get into in terms of the dollar amounts. But the key to it is making that one thousand eight hundred ten dollars this year to earn that credit quarter of coverage. So that will be the new amount going in 2025.

Robert Fenn: 8:20

Yes, 2025. I got them all mixed up now. Happy New Year to me. 😊

Kim Jump: 8:24

We're with you. That's great. And, Brandon, what about the maximum taxable amount for 2025?

Brandon Smith: 8:36

Yeah, it's gone up… and some people may be fully aware of this, some people may not, so I'll just go over this really quickly. If you're an employee and your job pays into Social Security, there's a 7.65% combined tax rate for Social Security and Medicare. 6.2% goes towards Social Security up to a certain amount. 1.45% goes towards Medicare, on 100% all of your earnings. When you work for a company, you pay 7.65%, the company pays 7.65%. When you're self-employed, meaning you are your own boss, you pay the combined 15.3%. So, for that 6.2% that goes towards Social Security, the maximum taxable amount usually goes up in 2024. That amount was $168,600. 2025, it's going to be $176,100. So what does that mean? So if a person makes, say, $180,000 and their neighbor makes $300,000. As far as we're concerned, they both made $176,100 because that's the maximum amount that they paid in Social Security.

Kim Jump: 9:57

OK, thank you. That's great. Robert: how about those individuals who are in employment and also collecting Social Security benefits? Are there changes this coming year to benefits based on how much you earn?

Robert Fenn: 10:20

Yes—Thanks for asking that, Kim, because this is very important to individuals who are receiving Social Security benefits, and I am of the thinking that you know we're all trying to make the best of what we have and who doesn't want to be able to work to feel good about that. And then also, in this example that we're speaking of, for retirement benefits, can I work and how would it affect my Social Security payments? So, if an individual in 2024 was working, and they made $22,320 gross or $1,860 gross per month less than those dollar amounts, they still will receive their Social Security payments for each month that they're eligible for - that dollar amount $22,320, is going to be increased in 2025. An individual can make $23,400 or $1,950, just dividing it by 12, per month and still receive a Social Security check for each month that they're eligible and entitled to that payment. So, again, the new amount in 2025 will be $23,400 for those who are less than their full retirement age, quick, little backdrop. Full retirement age means I reached a certain age to be eligible for my 100% of benefit. So those who are born between 1943 to 1954, full retirement age for that person is 66. Anyone born after 1954, their full retirement age will increase by increments of two months 1955, 66 and two months all the way to 1960 or later. Full retirement age will be 67. Go to SocialSecurity.gov, type in full retirement age, there's a chart there and they will be able to see their year of birth and their full retirement age. So if a person's less than their full retirement age, it would be the $23,400.

Robert Fenn: 12:09

If a person is turning their full retirement age that same year, we increase the amount from 2024 amount is $59,520 to next year, 2025, that new dollar amount will be $62,160. So if a person's birthday is going to be June of 2025, from January to the month before, which would be May, because their birthday is in June, from January to May they can make $62,160. That's not a bad salary in my opinion, but no one's here listening because of my opinion. So $62,160 is the dollar amount a person could earn without Social Security, looking to withhold any other payments. Once a person reaches their full retirement age in my example was June. Doesn't matter if it's June 30th or June 1st—that month on, it does not matter how much they're earning, they receive their full Social Security payment. So again, just repeat those numbers because it's very important to so many people, Kim. $23,400 and $62,160 gross.

Kim Jump: 13:16

Okay, thank you. What about Robert, the income limit for people on disability benefits? Has that changed for 2025?

Robert Fenn: 13:25

Yes. So it's important that we separate the two. There's retirement, which is an annual earnings test, or a monthly earnings test. When I say annual earnings test, that's the dollar amount that I gave you the $62,160 or the $23,400 or monthly test, that's the $1,950 or the $5,180. For a Social Security disability, there are different guidelines of how work wages would affect them. We have something we call a trial work period, which Brandon will take care of that part of it. But I also will cover the part of the substantial gainful activity.

Robert Fenn: 14:04

When someone wants to apply for Social Security disability and they've reached our office, they've contacted us via the phone or website, we're going to ask if they're currently working and their current salary. We're going to look to see. In 2024, we would have asked are you making one thousand five hundred fifty dollars gross per month? And next year, 2025, we're going to say are you making more or less than $1,620 gross per month? That's what the new SG amount is for those who are non-blind. If someone is blind, next year they can make $2,700 gross month, or is determined if it's substantial gainful activity. If someone is receiving a social security benefit after their dry work period. Then we can discuss how the SGA will come into place. So again, the substantial gainful activity amounts next year will be $1,620 for those who are not blind or $2,700 for those who are blind.

Kim Jump: 15:05

Okay, thanks, Robert. Well, Brandon, Robert tagged you (laughter) for trial work period, so could you explain how that is going to be impacted this next year?

Brandon Smith: 15:29

Sure, and I appreciate that high-five as I get in the ring. First off, we want to make sure that it's perfectly clear to everybody if you're receiving disability benefits and you decide to return to work, you must report your work activity to Social Security. It is your responsibility or the responsibility of your representative payee, if someone is managing your benefits for you to report that work activity, those wages, to Social Security, which can be done we've said it a couple of times, we'll say it again via your personalized my Social Security account. So if you're receiving Social Security, Disability Insurance, SSDI, you can return to work for at least nine months, make whatever you want to and still get your full disability payments. We call this the trial work period. So in 2024, any month you earn over $1,110 before taxes counts towards that trial period, taxes counts towards that trial period. That amount is going to go up by $50 in 2025 to $1,160. So, if a person's on (SSDI) - Social Security Disability Insurance and they make $1,000, well, that's not even considered a trial period month because it's under that limit.

Brandon Smith: 16:52

Those nine months do not need to be consecutive. They are within what we call a rolling five-year period. So, for example, let's say a person in 2025, they're on disability, they go to work. They make $3,000 a month from January through March, and then they stop working in April. Well, so far they've used three of those months, and then in 2026, maybe they go back to work in June, July, and August and make another $5,000 a month. All right, even though it's not consecutive. They've used six of those nine trial work period months, and then, let's say, in 2027, they go back to work and they make $4,000 for another couple of months. They go back to work and they make $4,000 for another couple of months. They can make this amount without it negatively impacting their check, for up to nine non-consecutive months, and that's what's the trial work period. But it only counts if you make at least $1,160 in 2025.

Kim Jump: 17:49

Okay, good, good. Brandon, how has Supplemental Security Income, SSI, been impacted by the announcement in October?

Brandon Smith: 18:01

Yeah. So, SSI Supplemental Security Income is a federal needs-based program for people that are blind, disabled, or over the age of 65 with limited income, limited resources, and Robert and I have both been at Social Security for a long time, and we understand it can be alphabet soup. I used to tell people when do you get your check? SSI checks are traditionally paid on the first day of the month, unless the first falls on a weekend or a holiday. So in 2024, the standard amount for an individual on SSI is $943. That amount is going to increase to $967 in 2025. And then there's our couples rate, which I just discovered this a couple of months ago, was actually just one and a half times the amount of the single rate. So if you're an SSI couple, the maximum amount you can get is $1,415 in 2024. That's going up to $1,450 for 2025.

Kim Jump: 19:08

 Great—well, this has been helpful. This is really the most important things that listeners need to know going into 2025. If they want to learn more, dive deeper into some of these topics. What would you recommend? 

Brandon Smith: 19:28

Well, we would always encourage those that can. You know, visit our website. Our website is SSA.gov. From our website, a person can apply for retirement spousal disability Medicare. You can apply 365 days out of the year, Monday through Friday. Hopefully, you know, beat the team up north, you can, just you know. Hey, you know, hope springs eternal. Hope springs eternal. Along with that, we really would encourage people to create that free, secure, personalized My Social Security account SSA.gov/myaccount.

Kim Jump: 20:39

Okay great.

Robert Fenn: 20:41

What about if someone's not very good at using the computer?

Robert Fenn: 20:48

Well, we encourage everyone to utilize our website, and if they cannot, or for whatever reason, they can call our 800 number. And I'll also say this in regards to the computer Brandon and I we do a ton of outreach and we see so many great people out there, and I take the time sometimes to ask individuals you don't have a computer. And they'll say no, versus I don't like a computer. And I'll just simply ask them would you mind holding up their cell phone? And then they say you know versus I don't like a computer. And I would simply ask them would you mind holding up your cell phone? And then they'll look at it and I say do you realize that's a computer that you use as a phone? And they go oh. And so I just like to take the moment to remove some of that stigma behind that, because, in terms of seniors, they're one of the highest demographics who use computers, in terms of checking Johnny's first steps on Facebook or whatever it may be, and so we encourage individuals to take that opportunity. Check out our website SocialSecurity.gov.

Robert Fenn: 21:40

Yeah and just look at it. It's a great website for you to use. Now, if there is a reason to call us, 1-800-772-1213 is the phone number. 1-800-772-1213 is our national number. I am happy to say that we have a new phone system which has allowed us to decrease substantially our waiting time. We had a higher average amount of time, near 30 to 40 some minutes, and now we're looking at 12. Now that does not mean everyone's going to call us and get in immediately, but there has been a change, which we are glad because we're looking to serve the public as most efficiently as possible. So again, our website, SocialSecurity.gov, is the first option, and then they also can call 1-800-772-1213.

Kim Jump: 22:34

option, and then they also can call 1-800-772-1213. Great Well, Brandon, Robert, I thank you for your time today. As always, it's very informative and you break it down in such an understandable way, so thank you.

Brandon Smith: 22:42

You're welcome. You're welcome.

Robert Fenn: 22:43

No, we thank you for this opportunity and we thank you all who are also serving with the Opportunities for Ohioans with Disabilities. We thank you all for this opportunity.

Kim Jump: 22:52

A transcript of today's episode is available at OOD.Ohio/Gov/podcast. We welcome you to subscribe and leave a review. We're on social media at Ohio OOD. Do you have a disability? Do you want a job? We can help OODWorks.com.