SSDI Benefits for 2023
Social Security Disability Benefits for 2023
Great news for Social Security Disability Insurance (SSDI) recipients! The Social Security Administration (SSA) has made some adjustments to the cost of living (COLA) for 2023, which has resulted in an increase in SSDI benefits. The COLA for 2023 is 8.7%, which is the largest increase in 40 years.
That is to say that an individual who receives the average SSDI benefit of $1,277 per month will see an increase of around $111 per month. This increase will provide essential financial assistance to millions of SSDI recipients who rely on these benefits to cover their daily living expenses, such as housing, food, and medical care.
The COLA calculation is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the average change in prices of goods and services. The SSA uses this index to determine the annual increase in SSDI benefits to keep up with the rising cost of living. The increase in SSDI benefits is excellent news for people with disabilities who are struggling to make ends meet. It also highlights the significance of the SSDI program, which offers vital support to those who cannot work due to a disability.
However, it is essential to remember that while this increase will help to reduce financial hardship for SSDI recipients, it may not cover all the extra costs associated with living with a disability. Individuals with disabilities may still need additional support, such as Medicaid or Supplemental Security Income (SSI), to meet their primary needs.
Overall, this increase in SSDI benefits is a positive step forward for individuals with disabilities who depend on these benefits for their livelihood. It represents progress towards ensuring they receive the support they require to live with dignity.
Supplemental Security Income(SSI) for 2023
The SSI program provides financial assistance to disabled adults and children, as well as elderly individuals with limited income and resources. On October 13, 2022, the Social Security Administration(SSA), in a press conference, announced that Supplemental Security Income (SSI) benefits for about 70 million Americans would increase by 8.7 percent in 2023.
One of the eligibility requirements for Social Security Disability Insurance (SSDI) is that an individual must be unable to engage in a substantial gainful activity (SGA) due to their disability. SGA is a term used by the Social Security Administration (SSA) to refer to a level of work activity considered substantial and gainful. As of 2021, the monthly earnings level that the SSA considers to be SGA is $1,310 for non-blind individuals and $2,190 for blind individuals. However, from 2023, SGA for non-blind individuals will be $1,470 or more and $2,460 for blind people. If an individual earns more than these amounts, they would not be eligible for SSDI benefits.
It’s important to note that this SGA limit applies only to earnings from work and not to other sources of income like investments or rental income. Also, the SSA may still consider an individual to be engaged in SGA even if they are earning below the SGA threshold but are engaging in certain types of work activities, like performing work subsidized by their employer.
However, the inability to engage in SGA is just one of the eligibility requirements for SSDI and SSI benefits. An individual must also have a qualifying disability that meets the SSA’s definition and have earned enough work credits through FICA taxes to be insured for SSDI benefits. The eligibility requirements are determined by a range of factors, and it is best to consult with an SSDI representative.
SSDI Limits on Working
Individuals who are presently receiving Social Security Disability Insurance (SSDI) and who make an attempt to return to work can potentially earn more than the amount of their usual benefits during a trial work program. SSDI recipients can participate in a trial work period that lasts for up to nine months. A trial work period month is counted when an SSDI recipient earns more than $1,050 per month, which is an increase from the $970 per month limit in 2022.
SSI Limits on Working
The new federal income limit for Supplemental Security Income (SSI) recipients is set at $914 per month. However, determining what income is countable and what is not can be a complicated process. More than 50% of an SSI recipient’s income is excluded from the limit, allowing for the receipt of benefits until a maximum of $1,912 per month in 2023 if no other income is available.
Any income received between $0 and $1,912 per month will result in a reduction of monthly benefits. For example, if an SSI recipient earns $1,225 a month with no other income, their SSI check will be reduced to $344. It’s important to note that some states offer extra payments to SSI recipients, which can result in a higher income limit. For students receiving SSI, the income exclusion amount has been increased to $2,220 per month, up to an annual limit of $8,950.
All these may look or sound foreign to you. To understand better and get more information, do well to contact the Law Offices of Shea A. Fugate, P.A. today.