Social Security Disability (SSD) is meant to help people who aren't able to work still be able to support themselves. The program is based on need and can be impacted by the person's ability to return to work. Anyone who is disabled but who is considering returning to work should learn about the restrictions that come with disability payments.
The Social Security Administration (SSA) has programs that can help individuals return to work. One of these allows for a nine-month trial period that you can use to see if you are able to work. Once this period is over, there is a grace period of three months during which you are able to continue working. This gives you a chance to see what you are able to do and if you are able to make enough money to warrant the challenges that you will face.
If you work beyond the grace period, which would mean more than 12 months total, your disability payments can stop. During your time of employment, there are income limits. Once the 12-month total employment period is completed, your income will help determine whether you can keep benefits or not if you continue working.
As it is with everything related to disability, you have a lot to think about if you are considering a return to the workforce. Understanding how any income might impact your benefit is important so that you can make an informed decision. Of course, this doesn't mean that you should avoid working if you can. Instead, balance out your options and decide what is right for your needs.
The need to file for bankruptcy is place where most people never think they will find themselves. This is a serious financial decision that comes with very important benefits and impacts. You should make sure that you understand all of them before you make the decision to file. We can help you to learn all about them while you are considering your options.
One of the things that you need to know about bankruptcy is that all cases aren't created equally. One form of bankruptcy, Chapter 7, requires the court to liquidate your assets to cover what they can for your debts. Another common form of bankruptcy is the Chapter 13, which doesn't require liquidation of all your assets but it does require that you make regular payments to the bankruptcy trustee to pay off a portion of the debts.
Each of these types of bankruptcy has specific criteria that must be met in order to make a successful petition. We can evaluate your case to ascertain which form of bankruptcy is appropriate for your needs. Once we figure this out, we can get your case filed so you can enjoy the benefit of the automatic stay that will stop creditors from contacting you.
On top of knowing which form of bankruptcy you need to file, you need to be prepared to deal with the education requirements of filing. The goal of bankruptcy is to help you control your debts so that you are able to have a fresh financial start. The bankruptcy system requires that you learn about responsible money management so that you have the best chance possible to get your finances in order and keep them that way well into the future.
Tax season can be stressful for those who do not fully understand the process. For people who receive special assistance, such as Social Security disability benefits, this can be especially confusing.
However, taking the time to review the law and seek clarity can help to alleviate some of the stress. There are a few key facts to understand about taxes and how they affect Social Security disability benefits.
Determining what is owed
Though most recipients of this benefit do not have to pay taxes on it, a few fit in certain income brackets and must pay taxes on a portion of their benefit award. Usually, this includes people who receive payments from other sources that boost their yearly income. According to the Social Security Administration, single filers who make at least $25,000 a year, and couples who report at least $32,000 a year must pay taxes on a portion of their income. The taxable portion of the award fluctuates depending upon the filing status and income level but does not exceed 85 percent of the benefit amount.
Understanding back payments
People usually receive back payments as a lump sum and therefore assume that they report the payment for the tax year in which they receive it. This is not correct. Since the back payments are not for that year, recipients should actually report them for the years they cover. To do this, the recipients must file amendments for those years through the IRS.
Setting up withholdings
For those taxpayers who know that their income level will result in them having to pay taxes on their benefits, it may be beneficial to institute withholdings on their payments. This would help to reduce or eliminate the amount of tax they owe at the end of the year, and may, in fact, result in them receiving a refund. The benefit recipients need only to complete and submit a withholding agreement to set it up.
These are a few of the key facts that Social Security recipients should know about. For further detail, it can be helpful to review the law and speak with a knowledgeable professional.
Filing for bankruptcy is a big step toward solidifying your financial future. When you file a Chapter 13 bankruptcy, you will work with the bankruptcy trustee to repay some of your debts. Instead of thinking of this time as difficult, you can look at it as a way to refine your money mindset.
As part of the Chapter 13 bankruptcy, you will have to live on a limited portion of your income. The remainder goes toward repaying some of your debts. This is a perfect time to learn how to tell yourself no and to set up a budget. By learning to live on a budget now, you can better manage your money when you are living without the supervision of the trustee in three to five years.
Once the bankruptcy is discharged, you can start to rebuild your credit. This isn't going to be easy. In fact, you might have to start with some low-limit, high-interest cards to get your foot in the door. Make sure that you are using them responsibly. Ideally, you will pay the balance off each month.
Make sure that you apply what you learned in your education courses. This can help you stay on track. Your goal is to live a comfortable life that doesn't lead to you having to file for bankruptcy again. Even though you might not be able to do everything you want, the relief you will feel from being financially free will be worth it.
Just remember that bankruptcy isn't throwing in the towel. Instead, it is a responsible decision that you can make when you are drowning in debt.
Having to rely on Social Security Disability Insurance (SSDI) payments isn't something that most people think they will ever have to do. If the time for you to need these payments does come up, you need to understand that you might be facing a long road toward approval. We can help you work through the process of applying for benefits and appealing a decision if one isn't made in your favor.
There are several things that you need to know when you are applying for disability benefits. One of these is that there are time limits and certain time requirements that must be present. For example, your disability can't be a short-term one. It must be expected to impact your ability to work for a certain amount of time in order for the claim to be valid.
Another thing to remember is that you might have to appeal the decision made for your case. Many disability claims are denied at first. Preparing yourself for this possibility might help you decide how you are going to handle the situation.
If you do have to appeal a decision, you only have a specific amount of time. This information is found on your decision letter. You have to comply with the time limit and instructions exactly because failing to do so could mean that you have to apply again, which would start the process over.
We are here to help you with all aspects of your disability claim. Make sure that you are working on the case from the start so that you aren't trying to rush around to make the deadline for various aspects of your case.
Social Security provides much-needed benefits for young people who become disabled, yet many people aren't even aware the program exists. If you have a child who suffers from autism, cerebral palsy or another medical condition present either from birth or at a young age, there are certain things you should know.
Supplemental Security Income provides some benefits
If you tried to file for Social Security benefits for your child when he or she was under the age of 18 and were told that you didn't meet the financial eligibility requirements, you likely filed for Supplemental Security Income (SSI).
It is a needs-based program only available to people with low income. When income levels are being evaluated, a parent's income is partially designated for the care of any children in the home, which often leaves children ineligible. If the financial requirements weren't met, no disability decision would have even been made.
However, once your child is over the age of 18, your income no longer matters. That means that you can refile for benefits.
Social Security provides an additional benefit
If you or your adult child's other parent are on Social Security due to your age or disability status, your child is entitled to file for an additional type of benefit.
Disabled Adult Child (DAC) benefits are only available to those people who became disabled prior to the age of 21. The benefit exists because the government recognizes that some people essentially never have an opportunity to pay into the Social Security system and gain insured status on their own.
However, there are restrictions. Your adult child is only able to claim DAC benefits prior to marriage. Your child will also eventually become eligible for Medicare as a DAC, but not until being entitled to benefits for two years.
Only one disability decision is necessary for both programs
The good news is that you only have to go through the disability decision process with Social Security one time to file for both programs. While the Social Security representative that works with you should automatically see if your child is eligible for both programs, make sure that you inquire if nothing is said.
If you've been speaking with a debt settlement company, you may have heard some fantastic claims. It's not uncommon for debt settlement firms to lure potential clients in with promises of reducing their debt by 50 percent. Some claim they can help you eliminate your debt problems within 36 months. In many cases, however, these debt settlement companies aren't selling anything more than snake oil.
Although some debt settlement firms will deliver on their promises, in some cases, the process of getting you a favorable debt settlement may not entirely clear-cut or easy. There are some real risks associated with the process.
It will hurt your credit rating. Your credit card accounts could become delinquent when you start paying your money to the debt settlement firm. These delinquencies will stay on your record for seven years.
Your accounts will get hit with interest and penalties. Interest on your debts will skyrocket, and your debts will have large fees applied to them.
There are no guarantees. Some credit card companies and banks will refuse to negotiate with a debt relief firm. It's not unfeasible for your debt relief company to not get you even a single discount.
It only works in certain situations. The Center for Responsible Lending reports that the majority of consumers will have to settle approximately for debts before they will receive any net benefit from the process.
You'll pay fees. Your debt settlement company may charge numerous fees and expenses for managing your account each month.
You might get taxed. When debt gets forgiven, the IRS could tax you on the money owed that was forgiven.
Before working with a debt settlement firm, consumers are encouraged to understand the legal aspects of the agreement they are entering into with the debt settlement company. Fully understanding the agreement and investigating alternative debt resolution options, like bankruptcy, could save borrowers a great deal of money and headache.
Over the years, filing bankruptcy has become less of a taboo topic and more of a tool. For many people it helps to provide a chance to start over financially, in a sense.
If you are considering bankruptcy, it is essential that you fully understand the process. There are a few key steps to take after filing to ensure the completion of the bankruptcy.
Depending upon the area that you live, there are certain course requirements that you must complete in order to receive a discharge. In the state of Illinois, you must complete two courses:
These courses are not one in the same and are offered through different organizations. You must make sure that the courses you choose meet the set requirements.
The purposes of the two courses are related but still provide different services. The credit counseling provides an education on credit and effective means to eliminate debt, which may help to raise your credit score. On the other hand, debtor education helps you to understand how to budget, manage your funds and properly utilize your income so that you may stay out of debt in the future. Together, these two programs may help you to flourish once you receive your clean slate through bankruptcy.
You must choose programs that have approval from the U.S. Trustee Program. Once you find the accredited institutions in your area, you may select the program that works best for your situation. The trustee overseeing the bankruptcy monitors all aspects of the process, including the completion of the course requirements. If you have any questions, you may consult with the trustee or a knowledgeable attorney to ensure that the process runs as smoothly as possible.
These are important aspects to address through the bankruptcy process. If you are looking to file for bankruptcy, you should take time to understand what all it entails and determine the best course of action to take.
Americans work and pay into the Social Security Disability Insurance program so if they become disabled before retirement age, they have some income to rely on. Unfortunately, due to the backlog of people waiting on disability decisions, they often have to wait an unreasonable amount of time if they are not fortunate to be approved at the onset.
During 2016 and 2017, according to Social Security Administration reports, 19,000 people passed away while waiting for a fully favorable decision on their benefits. This is a sad state for the Social Security Disability Insurance program to be in.
Many claims are denied at the initial levels and applicants have to request a hearing with an administrative law judge. The average waiting time from start (initial application) to finish is 605 days; in some areas of the country, it can be closer to 800 days. For someone who has worked hard and paid into this program and now can no longer work and needs the coverage, this is an unacceptable length of time to wait. By the time a person is approved, he or she is often at the poverty level.
SSA claims the backlog may not subside before 2022. This is despite the fact that they have hired additional judges and staff and endowed additional funding.
For serious conditions, such as cancer and other diseases that have a poor diagnosis of improvement, there is a Compassionate Allowance program, which is supposed to fast-track claimants' cases through the system. However, the U.S. Government Accountability Office declared that the program needs improvements, not to mention that many people are not even aware it exists.
If you are disabled, you should seek a disability attorney to represent you in your case. The GAO report also shows that claimants are three times more likely to be approved if they are represented. This is partially because most people do not understand what is needed for a favorable decision.
Your home is in foreclosure. You've missed too many payments. The bank is repossessing the home and they're going to sell it. A date has even been set and it appears that the sale is imminent.
Since your financial situation isn't what you'd like it to be and you're over your head in debt, you file for bankruptcy. Suddenly, that sale gets cancelled. It can't proceed while you're in bankruptcy, and you get to stay in the house.
You know that bankruptcy will likely take anywhere from one and a half to three months. When it's done, does the foreclosure process have to begin again entirely, with notices from the lender and everything else? Or does it just pick up where it left off?
Typically, it just starts again where it left off. That means the new sale date can be set far faster than it was the first time.
The key thing to note is that bankruptcy doesn't actually cancel the foreclosure process at all. It may have cancelled that sale date, but that's just because it put an automatic stay on the foreclosure. Essentially, this just pauses the process because the court must conclude the bankruptcy case first. When it's done, the automatic stay is lifted and other court cases, like foreclosure, can move forward.
Of course, bankruptcy may eliminate many unsecured debts. You could find that your home is affordable again when you're done. Just don't assume the automatic stay buys you more time than it really does, and make sure you know exactly how these two legal cases work together.