1. HOW WILL EMPLOYMENT AFFECT MY CHILD’S DISABILITY BENEFITS?
Title II and SSI Disability Work Rules
Barbara A. Isenhour
Special Needs Alliance

2. Title II Disability Benefits
Social Security Disability Benefits – SSDI Benefits for the insured worker
Child Disability Benefit – CDB Benefits for child disabled before age 22 if parent insured for Social Security and retired, disabled or deceased
Disabled Widow(er) Benefit – DWB Benefits for spouse or former spouse of insured deceased worker. Must be 50+

3. Trial Work Period
If gross wages equal or exceed $720 it is a trial work period (TWP) service month
No deductions from gross wages
9 TWP service months in prior 5 years
1 TWP per “period of disability”

4. Trial Work Period Earnings Sam gets SSDI of $900/mo.
Year
Jan
Feb
Mar
April
May
June
July
Aug
Sept
Oct
Nov
Dec
2007
$640
$600
$450
$500
2008
$670
$550
$720
$800
$900
2009
$700
$660
$1300
$1200
$1500
$1700
End TWP
2010
2011
Trial work period ends Aug

5. Trial work period example #2
Year
Jan
Feb
Mar
April
May
June
July
Aug
Sept
Oct
Nov
Dec
2006
$620
$900
$1,500
$800
2007
$640
$450
$500
$600
2008
$670
$350
$720
2009
$700
$300
2010
2011
$1,000

6. Substantial Gainful Activity - SGA
2011 SGA for blindness $1,640
2012 SGA for blindness $1,690

7. Calculating SGA Gross earnings Minus impairment related work expenses
Minus work subsidies
Equals SGA

8. Impairment Related Work Expenses – IRWE
Expenses necessary to get to work and perform work duties
Must be paid out of pocket by worker and not reimbursed
Must be paid after employment started
Examples: transportation; durable medical equipment, service animal, private job coach

9. Work Subsidies
Special working conditions or support required in order to work. Subsidies are not paid by the worker.
Job coach
Worker requires more supervision
Worker less productive
Transportation to and from work
Attendant care to get worker ready for work

10. Calculating SGA Eric’s gross earnings $1,400 IRWE – transportation
paid by Eric to/from job - $200
Subsidy – employer says
Eric is 20% less productive
than other employees - $280
Countable earnings $980

11. Cessation of Disability – Sept.2009 SSDI Sept, Oct., & Nov. 2009
2008
$700
$600
$350
$720
$800
$900
2009
$500
$1300
$1200
$1500
$1700
End TWP
Grace period
$1400
Grace
period
2010
2011
2012

12. Extended Period of Eligibility - Re-entitlement Period 36 months from end of TWP
Year
Jan
Feb
Mar
April
May
June
July
Aug
Sept
Oct
Nov
Dec
2008
$700
$600
$350
$720
$800
$900
2009
$500
$1300
$1200
$1500
$1700
End TWP
EPE RP
2010
2011
2012
End 36 months 1

13. Earnings During Extended Period of Eligibility CDB $900/mo. SGA TWP
2008
$600
$350
$720
$800
$900
2009
$500
$1300
$1200
$1500
$1700
End TWP
Grace period
$1400
Grace
period
2010
$1100 $0
$400
2011
2012
End 36 months

14. Why work if Title II?
May get to keep Title II cash benefit and earnings
Even if lose cash benefit wages should be more than cash benefit
Build up own work history to increase future SSDI or SSRI benefit
Extended Medicare coverage
Intangible benefits from working

15. Who Gets SSI Financially needy – assets below allowed amount
Income below the SSI benefit amount - $674 + state supplement or SSP
Disabling medical condition, blind or 65+

16. How SSI Benefit Amount Calculated
The following amounts are deducted from the SSI benefit amount:
Unearned income
Deemed income
In-kind support
Earned income

17. SSI Work Incentives
Student earned income exclusion (SEIE) reduces countable earned income
Impairment related work expenses (IRWE) reduces countable earned income
Blind work expenses (BWE) reduces adjusted countable income
Plan for achieving self-support (PASS) reduces adjusted countable income

18. Student Earned Income Exclusion
Student must be “regularly attending school”
Under age 22
Excludes $1,640 up to $6,600 per year
Calendar year exclusion and must be renewed each year

19. Impairment Related Work Expenses - IRWE
Goods or services required in order to work; related to disabling condition
Must be paid by SSI recipient; not reimbursed
IRWE claimed when earnings reported
IRWE is a deduction from gross earned income

20. Plan to Achieve Self-Support PASS
PASS is a written plan approved by SSA
Allows an SSI recipient to set aside earned or unearned income to be used to achieve an occupational goal.
Can set aside a lump sum in a PASS account instead of placing the funds in a d(4)(A) SNT
Can designate unearned income to PASS account, increasing SSI amount
Can put earnings in PASS account

21. Allowed PASS Expenditures
Purchase vehicle or pay for transportation to work
Tuition or other educational expenses
Equipment, supplies, inventory to establish a business
Child care
Attendant care
Meals during work

22. Title II CDB unearned income
500
Minus general income exclusion
-20
Countable unearned income
480
Gross earned income
Total countable income
Deduct PASS
-480
Adjusted countable income
SSI FBR + SSP
674
Minus adjusted countable income
Adjusted SSI payment
SSI payment w/o PASS
194

23. Unearned income
Earned income
Minus general and earned income exclusion
85.00
Total countable income
915.00
Divide by 2
457.50
Deduct amount funding PASS
Adjusted countable income
SSI FBR + SSP
674
Minus adjusted countable income
Adjusted SSI payment
SSI payment w/o PASS
216.50

24. How Earnings Affect SSI Payment
UNEARNED INCOME
1. ____ UNEARNED INCOME
2. - $20 DEDUCT GENERAL INCOME EXCLUSION
3. ____ COUNTABLE UNEARNED INCOME
EARNED INCOME
4. ____ GROSS EARNED INCOME
5. ____ DEDUCT STUDENT EARNED INCOME
6. -$65 DEDUCT EARNED INCOME EXCLUSION + UNUSED GENERAL EXCLUSION
7. ____ DEDUCT IMPAIRMENT RELATED WORK EXPENSES
8. ____ ADJUSTED EARNED INCOME
9. ____ DIVIDE BY 2
10. ____ COUNTABLE EARNED INCOME
ADD LINE 3 AND 10 TO GET TOTAL COUNTABLE INCOME
11. ____ DEDUCT PLAN FOR ACHIEVING SELF-SUPPORT (PASS) or blind work expense
12. ____ ADJUSTED TOTAL COUNTABLE INCOME
DETERMINE SSI BENEFIT AMOUNT
13.____ FEDERAL BENEFIT AMOUNT + SSP IF APPLICABLE
14.____ DEDUCT ADJUSTED TOTAL COUNTABLE INCOME (line 12)
15.____ ADJUSTED SSI PAYMENT

25. Section 1619(b) Status
Assuming there is no unearned income, when SSI recipient’s earnings = 2 x SSI + SSP + $85 they lose SSI benefit (break even point)
When individual loses SSI what happens to their Medicaid benefits?

26. Section 1619(b)
Individual can keep Medicaid when they lose SSI because of earnings if:
Otherwise eligible for SSI but for income
Depend upon Medicaid in order to work or expect to use Medicaid in next year
Gross income below state threshold amount