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Old 02-04-2013, 01:56 PM
 
Location: pacific northwest
419 posts, read 564,378 times
Reputation: 271

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Thanks Lenora. Interesting. Yea a mystery as to why they don't file taxes. She tells me they don't make enough yet how can they not make enough and own the vehicles and home they do. Plus they are continually getting new floors, new patio, etc for the house. Sounds to me like the make a lot to be able to do all they do.
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Old 02-04-2013, 02:05 PM
 
6,226 posts, read 6,845,442 times
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Quote:
Originally Posted by pnwretired View Post
Also social securty disability is not TAXED; unlike regular social security that is. I have a real problem in this area. Why should someone who is disabled (and believe me I know those who are that are far from disabled), not pay any taxes. This is an issue that needs to be addressed. Unfortunately, those that are truly disabled are being lumped into the same category as those who "are they really disabled". I know a guy with a back issue = retired on SS disability = that is able to bend over and do yard work; carry the debris to his truck and unload it at the dump. Disabled - yea right.
Those who collect SSDI (not SSI) do pay taxes on their monthly benefits.
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Old 02-04-2013, 02:12 PM
 
Location: pacific northwest
419 posts, read 564,378 times
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Yes, Lenora passed that info to me. It is social security disability (ssdi) and ssi. Dont know why they don't file federal income tax then. Oh well. Some of us have to follow the law and others not I guess.
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Old 02-04-2013, 04:11 PM
 
18 posts, read 29,647 times
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Quote:
Originally Posted by Mircea View Post

Everyone on SSDI automatically qualifies for Medicare.

Mircea
To be completely factual...Medicare coverage begins two years after the Benefits Eligibility Date.

Ie, it does not begin immediately upon granting of benefits for SSDI.
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Old 02-04-2013, 04:25 PM
 
Location: Lakewood OH
21,697 posts, read 23,668,169 times
Reputation: 35449
Quote:
Originally Posted by lenora View Post
SSD is terminated when the beneficiary reaches full retirement age, in this case that would be age 65. Thus, your friends are receiving both social security retirement benefits and the law enforcement pension. That's not unusual. I can't speculate as to why they are not filing federal tax returns, that would best be addressed by Curmudgeon (a retired law enforcement officer) or someone equally knowledgeable about retirement and taxes.
Yes that is true. You get a letter from SSD telling you that you have reached full retirement age and you are no longer eligible for disability benefits. You still keep whatever rates the benefits you are being paid and yes you do recieve a statement to file for the IRS. I am looking at mine right now.

According to the statement I just read, it says that if SS is your only source of income, you may not have to pay taxes. So you may not have to pay them but you do have to file them. I wonder if this is causing the confusion on the part of some people.
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Old 02-04-2013, 04:50 PM
 
Location: Lakewood OH
21,697 posts, read 23,668,169 times
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Quote:
Originally Posted by Minervah
The answer is "yes" because I did it.

If you look at your SS statements sent to you every year you will see there are two amounts. If you qualify for SSDI, you can get that in lieu of regular SS but you must qualify. In other words, you must be eligible for SSDI by being totally disabled and unable to work. It was actually the lady at the SS office who suggested I do this when I went to apply for regular SS benefits.

That would be also be the wrong conclusion.

You can file for SSDI only if you have not yet reached full-retirement age.

One other thing that should be noted here....in both of the above situations, the SSDI claim was filed before filing for OASI benefits.

I would be interested in knowing how many people filed for OASI, started receiving OASI benefits, and then filed for SSDI and were approved. My intuition says the denial rate would be extremely high, excepting those instances where someone was disabled prior to age 62 and been receiving treatment for it.

I believe those who take early retirement, but continue working, and then become disabled, would also have a greater chance of being approved, as opposed to someone who retired early, got bent out of shape because of the reduced benefits, and then applied to effectively get full benefits.

That is what I meant when I said "But you must qualify." So to clarify:

Perhaps I just didn't word it properly. Thank you for clarifying my statement. I re-explained how that worked in my situation in an additional post. I began SSD one year prior to being eligible to full SS benefits. When I became eligible, for full SS benefits, I recieved my letter from SSD telling me I was no longer eligible for SSD but would be recieving only SS benefits. Apologies for any confusion this may have caused anyone.
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Old 02-04-2013, 04:56 PM
 
Location: Baltimore, MD
3,745 posts, read 4,218,356 times
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Quote:
Originally Posted by Mircea View Post
<snip>

That isn't completely true either.

Everyone on SSDI automatically qualifies for Medicare.

This isn't completely true either. In general, a claimant who is awarded SSDI is not eligible for Medicare until 29 months after the initial date of disability. The exceptions are those claimants with ALS or ESRD.

In order to qualify for Medicaid, a person on SSDI must meet the financial criteria. It is possible for someone to be disqualified for Medicaid on the basis that they receive too much in SSDI benefits (and that is also true for those who receive retirement benefits) -- meaning their monthly/annual income is too high.

SSI (and thanks for getting that right) is usually granted when a person receiving SSDI is below a certain income level.

Well, no. SSI may be awarded when a person's SSDI is less than the SSI amount, but the claimant's household must meet both the income and asset tests.

The amount of SSDI one receives is equivalent to the amount one receives if one retired at full-retirement age, based on their annual/month earnings.

Partially correct. A period of disability will "freeze" one's earning record but does not necessarily replace the higher earnings (raises) that one might normally expect at the height of one's career. It's dependent on the individual's work history and onset of disability.

Converting....
Clarifying...

Lenora

I do not profess to understand the SSDI claims process.

I do.

I can tell you that a double amputee was denied (but approved on appeal).

I can tell you that quite a few were approved first time through.

The law limits the fees for attorneys.

Not completely true. If the representative chooses to utilize an SSA approved Fee Agreement, then the regulations limit the fees. However, some attorneys do not use a Fee Agreement, depending on the case. If the attorney chooses not to use a Fee Agreement, then a Fee Petition must be filed for approval. Fee Petitions are subject to approval, but are not limited in the amount of fees awarded.

I can also tell you that a person was denied SSDI, went to an attorney, filed an appeal, and was approved within 30 days -- and that was a shock to both the appellant and the law firm. The law firm refused to collect the full amount to which they were legally entitled, stating that their involvement with the case was extremely limited (they merely completed the appeal forms and filed them).

I've worked with attorneys as a paralegal, private investigator and detective sergeant, and I can tell you that some of them are damn good decent people, but some of them should be taken and shot...immediately.


Some attorneys are arrogant a*******, but hey, no worse than some paralegals, private investigators and police officers. The most dangerous are those who know a little bit about a particular area of law, but speak (or write) as if they were experts.

That would be the wrong conclusion.

They can file only if they have not yet reached full-retirement age.

I do not know of any reason one could not apply for retroactive disability benefits for the period prior to reaching FRA, but the window for capturing those lost benefits will be relatively short.

That would be also be the wrong conclusion.

You can file for SSDI only if you have not yet reached full-retirement age.

See above.

One other thing that should be noted here....in both of the above situations, the SSDI claim was filed before filing for OASI benefits.

I would be interested in knowing how many people filed for OASI, started receiving OASI benefits, and then filed for SSDI and were approved. My intuition says the denial rate would be extremely high, excepting those instances where someone was disabled prior to age 62 and been receiving treatment for it.

Intuition. I like that.

I believe those who take early retirement, but continue working, and then become disabled, would also have a greater chance of being approved, as opposed to someone who retired early, got bent out of shape because of the reduced benefits, and then applied to effectively get full benefits.

And THERE your belief would be wrong!

Concluding...

Mircea

Smiling...

Lenora

Scary, isn't it?

This is supposed to be the Information Age and all. It's more like the Wrong Information Age.
Stating...

Mircea
Agreeing...

Lenora
Peace.
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