Changes to Social Security Disability Benefits in 2022

Opportunities for Ohioans with Disabilities’ Division of Disability Determination (DDD), in 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. 

Robert Fenn and Brandon Smith, Public Affairs Specialists with SSA,  join the podcast to discuss changes to Social Security disability benefits in 2022.

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

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

Do you have a disability? Do you want a job? OOD can help! Visit OODWorks.com or call 800-282-4536 to get started. 

Find OOD on social media: @OhioOOD. 

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

Transcript

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

Kim Jump: Opportunities for Ohioans with Disabilities Division Disability Determination (DDD) in agreement with the Social Security Administration, determines medical eligibility for Ohioans who apply for Social Security disability benefits. The Division of Disability Determination is federally regulated and receives 100% of its funding from the Social Security Administration (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’m joined by staff with the Social Security Administration to learn about 2022 updates related to disability benefits. I’m joined by Brandon Smith, Public Affairs Specialist with SSA based out of Cleveland. And Robert Fenn, Public Affairs Specialist with the Social Security Administration. 

It’s great to have you back on the show Brandon and Robert. Before we get started, I do want to encourage listeners to go back, listen to episode 27 if you haven’t already because you were guests then, and talked all things Social Security disability benefits. One of our very popular episodes.  A helpful starting place for any of our listeners who aren’t as familiar with Social Security disability benefits. 

Today’s discussion is really all about the updates and changes this year to Social Security disability benefits.  Why don’t we get into it? So, thanks so much for being here we really appreciate it. 

Brandon Smith:  Thank you for having us.

Robert Finn:  Thank you, thank you.

Kim Jump:  I heard there was a cost-of-living adjustment, COLA. Can you tell us about that?

Brandon Smith: Sure, this is Brandon and I’ll jump into it.  Yes, for 2022 there is or was a cost-of-living adjustment or COLA sent for people receiving benefits. That’s across the board both people that are receiving Social Security benefits and supplemental security income. People that are on supplement security income or SSI should have seen that increase in the check they received on December 30th. People that are receiving social security benefits be it disability or even retirement, spousal, or survivor. That increase would have been paid on the check they got in January either January 3rd or the 2nd, 3rd, 4th Wednesday depending on when they normally get their payment checks.  

Kim Jump:  Okay, great got it. Brandon, can you explain credit of coverage and what has changed with that?

Brandon Smith:  Yeah sure, to be eligible for Social Security benefits be it Social Security Disability or Social Security retirement, a person needs to work and pay into Social Security in order to earn what is called credits of coverage. Now the amount of a credit of coverage has changed from 2021 to 2022. It was $1,470.00 in 2021. Now in 2022, that amount is $1, 510.00. A person can earn up to four credits per year. So, this year, using my fingers and toes for the calculation, that’d be about $6,040.00 that would need to be earned in 2022 for 4 credits of coverage. 

Kim Jump: Okay, got it. And let’s talk taxes for a second. What about the maximum taxable amount? 

Brandon Smith:  Now we are getting into the kind of money my counterpart Rob Fenn has in his couch cushions but, there is a maximum taxable amount that people pay into Social Security. There’s a 7.65% combined rate for Social Security Medicare; 6.2% usually goes towards Social Security up to the maximum taxable amount, and then there’s the 1.45% Medicare tax. So that 6.2% Social Security tax is applied to a certain amount of money. The maximum amount last year because I want to give that comparison, in 2021 it was $142,800.00 last year. It’s a bump up to $147,000.00 this year in 2022. So, if a person makes $150,000.00, which is really great money. Someone else maybe makes $600,000.00, they are both paying into Social Security the same amount this year that $147,000.00.

Kim Jump: Robert, how about for individuals in employment and collecting Social Security benefits, are there changes to benefits based on how much you earn?

Robert Finn: Yeah. That cola which Brandon mentioned that 5.9% not only affects the cash payment which individuals, social security beneficiaries receives, but also affects what we call the annual earnings test or monthlies test for individuals receiving social security retirement benefits. And so, this year, again after that 5.9%, it changes the monthly amount, the yearly amount for the annual earnings test. For example, last year in 2021, if an individual was underneath his or her full retirement age they were able to make $18,960 dollars gross. Okay, before it affected any social security payments. In 2022, that new amount is $19,560 - $19, 560 if again that person is underneath their full retirement age. If the individual was turning their full retirement age, the same year, reaching that full retirement age, last year they were able to make $50,053. In 2022, that dollar amount is $51,960. Now, I like to make sure I pause a little bit, because normally what people do is grab those numbers 19, 560, 51,960, and they think that means this is all I can make. That’s not technically accurate, because an individual could make over that, if they decide to make more than that, then there’s a calculation we use to figure out how many checks throughout the month or throughout the year, we can continue to send to them. Once a person is over his or her full retirement age- there’s no limit.  So, those numbers again and the way that, the common phrase is, “can I work and still get a social security check?” Well, the answer is yes, but we’re going to determine after we see your wages, which is an estimate that you give to us, that’s going to allow us to determine how many checks we can send to you again throughout the year. $19, 560 or $51, 960 if you are turning your full retirement age that year, this year in 2022.

Kim Jump: Thanks for breaking that down! After a person becomes eligible for Social Security disability benefits, the person may attempt to go back to work, to return, and I know there’s what is called a trial work period, so what is important to know about that?

Robert Finn: Kim, you threw that softball up so nice, I so appreciate that, because many times people will mix the two together, meaning I’m receiving social security retirement benefits, I heard those numbers, the 19, and the 51,000, I heard those numbers, and they think that is the same standards we are looking at for Social Security disabilities and that’s not the case. In the case of Social Security disability beneficiary, that individual has what we call a trial work month dollar amount, so let me explain that. 

Kim Jump: Okay.

Robert Finn: The procedure is somebody decides to go back into the workforce, we call these work incentives, and one of the work incentives is this individual could decide to go back into the workforce, they contact social security, we give them a receipt, we give them a receipt showing that they have decided to go back into the workforce, and what we do is we take account of their actual monthly dollar amount in which they make. So, for example, last year, if someone were to work and had earnings $940 gross or less, individuals underneath a trial work month, and it would not count against the nine allowable months that they’re allowed to make any earnings. So, this would make it real simple. This is January. And if the individual made more than in 2022, that dollar amount is $970. So, if that person made $1,000 in the month of January gross, that would count as one of the nine months in which they’re permitted to work without expecting a social security disability payment. The dollar amount does not have to be consecutive, meaning we are in January and say they made $1,000.  February, they made $1,000, that’s two months.  March, they made $800. $800 is less than $970, so, therefore, it does not count toward the nine they are allowed to make for the trial work month. So, even though three months have gone by, only two of them count. Then let’s say for simple math, the rest of the months they made $5,000. Once we get to nine, we’re going to say they have nine months of using toward their trial work month period, then we are going to give them two more what we call grace payments, and then it starts something we call SGA. We got all kinds of alphabet soup here. Substantial Gainful Activity.  So, that’s another topic there, but I just want to pause to make sure we are all on the same page, here.

Kim Jump: So that nine months is important that’s a good distinction about it not being consecutive months.

Robert Finn: Yes, very much so. And so, once we get to the nine months, and then we give them that grace month period of time, then we have what we call Substantial Gainful Activity. And so last year in 2021, if the individual was to earn $1,310, last year, in 2022 they are allowed to make $1,350 gross before we have to say that check is not due or payable to that person. If they are still over that dollar amount, that’s when they will not receive any more checks for that time period. Now there is something that is part of this work incentive, that if an individual were to recontact social security and they have the same disabling condition that they had prior to those checks stopping, within five years, they have those checks started up again. Now there is a review which we’re going to do, but the point that I’m making is that there is plenty of time for an individual to work- trial work month, $970, 9 different months, then the SGA Substantial Gainful Activity, $1,350 gross, before we are going to stop the checks. And then even if they do have their checks stopped, for the same medical condition and they contact us within five years, we’re going to have those checks started again.

Kim Jump: And as far as Supplemental Security Income goes, what is that amount now, and is there anything special about SSI, that you want to point out?

Brandon Smith: Sure so the 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. So that’s the program that’s potentially paying low birth weight infants, grade school-age children, high school-age children, adults that may not have had enough of work history to potentially qualify for social security disability benefits. In 2021, that amount was $794, for an individual, that has jumped to $841, in 2022. We also have a couple’s rate, a couple’s amount. Last year in 2021 for couples, that amount was $1,191 it’s gone up to $1,261. You know the main thing to be aware of with SSI since it is a needs-based program, you have to make sure you are reporting any changes or alterations to your income, your resources, your living arrangements, your marital situation because all those things can potentially impact your check. It could cause you to potentially get even more money if your spouse’s financial situation changes, your financial situation changes, maybe now you’re going to get more money or the full SSI check if you weren’t before, because of those resources.

Kim Jump: Good. Got it. Well thank you, this has been extremely helpful. If someone wants to learn more, where should they go, what will you have them do?

Brandon Smith: You know we’re gonna, if possible, this may not be applicable to everybody but, if you can, just check on our website SocialSecurity.gov. A person can apply for most of our benefits, retirements, spousal, disability, Medicare, certain situations people can apply for SSI as well, online. All of our pamphlets and brochures, fact sheets, can be found on our website in pdf format. You can create a “my Social Security” account on our website.  SocialSecurity.gov/my account so the website is one of the first places we would really want to point people in that direction to go.

Kim Jump: And what if someone is not good on the computer?

Robert Finn: Then they have the option of calling our 800# which is 1-800-772-1213. They can call between 7:00 am and 7:00 pm for someone to reach them. That phone number also has 24/7, which there is certain information which we can give by audio. So sometimes you don’t need to wait to speak to someone, you just need to listen and hit the right prompts, if that’s their option. Again, even though I use the word option, some people they are comfortable with using the computer, or they have a loved one who said, “mom, dad, aunt, uncle – I’ll take care of that for you.” And then, some people say,,” I like to hear a voice,” and so they wish they can call the 800# - -1-800-772- 1213 between 7 am and 7 pm. And I just want to make sure I give the listening audience a little reason to say, “Why are they bringing up 2021 when we are in 2022?”  Because we do, do reviews from the prior year. And so, if someone worked in 2021, we are going to want to look at their wages in the past, and so that way, I’m telling people to keep those electronic pay stubs, if you’re still getting a paper stub, hold onto that. Just to be certain, that way we can match up those numbers that we just mentioned to you, with what your actual earnings are. That’s why we’re giving 2021, as well as 2022.

Kim Jump: Excellent. Well, Robert, Brandon, this has been a pleasure. Thank you so much for being here today. I look forward to our next discussion.

Robert Finn: Our pleasure. Thank you for having us. 

Brandon Smith: Thank you, ma’am.