SSD and income withholding

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PostPosted: Wed Nov 03, 2010 10:47 am   Post subject: SSD and income withholding  

I'd like to know all that I need to know about income withholding. My ex-spouse has to depend on SSD. Does withholding apply on her check?


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xspousecooper
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PostPosted: Thu Nov 04, 2010 12:18 pm   Post subject:   

It's quite possible that you may withhold income for both your SSD and SS retirement benefits. But I don't think you can withhold SSI since the benefits are a kind of public aid. The parent who isn't a resident has to inform the CSEA if there's any change in the employment.

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PostPosted: Thu Nov 04, 2010 1:30 pm   Post subject:   

There is no income tax on Social Security Disability payments. You only qualify for them if you have a disability expected to last 12 months or longer, or which will result in death, AND you must not be able to "perform any substantial gainful activity" available anywhere in the US economy (even if it is not available where you currently reside). In 2010, Social Security says that any "activity" that would pay most persons $1,000 per month = SUBSTANTIAL and GAINFUL (a bit more for blind persons). Also, according to Social Security's rules, there are no DISABLED persons in America after age 65. [You may be "retired" but you may not be "disabled" when it comes to receiving a cash benefit from Social Security after reaching age 65. The retirement benefit is usually a slightly smaller amount of money than the disability benefit.]



No benefits are paid for the first "FIVE FULL MONTHS" of disability (the disability must exist at midnight on the first day of the month -- a disability that occurs on the 2nd will not enter the elimination/waiting period until the 1st of the next month -- have your stroke at 11:59pm on the 31st and you'll have the shortest possible wait!!), but will not be paid retroactively beyond the month in which one applies for the benefit -- word to the wise: APPLY SOONER RATHER THAN LATER. If you wait until you've been disabled 12 months to apply, you will lose 6-7 months of payments. Approximately 80% of all first-time applications for Social Security Disability are denied. Approximately 80% of those denials which are appealed are awarded to the applicant. Unfortunately, most people don't appeal their Disability denial. (Maybe that's the Government's "plan".)



Social Security retirement benefits can be taxable based on one's income. Prior to "full retirement age" (65-67, depending on the year of one's birth), $1 of Social Security retirement benefit will be withheld for each $2 of income above a certain threshold (adjusted annually for inflation). At or after full retirement age (used to be age 70), income no longer affects one's Social Security benefit (but they can increase one's Medicare Part B premiums).



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PostPosted: Fri Nov 05, 2010 11:08 am   Post subject:   

Quote:
At or after full retirement age (used to be age 70), income no longer affects one's Social Security benefit (but they can increase one's Medicare Part B premiums).




Do they increase Part B premiums for all insured above the age 70? Or is there a particular factor which determines it?
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PostPosted: Fri Nov 05, 2010 6:10 pm   Post subject:   

No, they don't increase Part B premiums based on age, but since 2007 they have charged persons higher Part B premiums based on their adjusted gross income with a 24 month lookback (i.e., 2007 premiums were based on 2005 AGI, 2010 premiums are based on 2008 AGI).



There is now also a two-tier premium for Part B. Persons who did not pay the Part B premium in 2009 pay about 15% more than those who did ($96.40 vs. $110.40 per month). Those persons will always pay a higher premium. And it's only going to get worse as the rest of us Baby Boomers reach age 65 over the next 10-12 years.



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PostPosted: Sat Nov 06, 2010 7:22 am   Post subject:   

Quote:
And it's only going to get worse as the rest of us Baby Boomers reach age 65 over the next 10-12 years.




Yes, I do see the reason why it will get worse. But I'm wondering if our govt. is listening to our pleas?
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PostPosted: Wed Nov 10, 2010 9:25 pm   Post subject:   

Quote:
But I'm wondering if our govt. is listening to our pleas?




I hope you're not holding your breath. Rolling Eyes


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