Social Security Supplemental Income 2022 — First of two September $1,682 payments to drop in one day – will you get it?

Social Security wage limit, continued

For people who reach full retirement age in 2020, the earnings cap increases to $48,600, and the penalty is reduced to $1 withheld for every $3 earned above the maximum, per US News.

Your benefit will be adjusted after you reach full retirement age, taking into account your withheld benefit and ongoing wages.

After you reach full retirement age, you can earn any amount you choose without being subject to Social Security withholding.

Social Security wage limit revealed

You can work and collect benefits from Social Security at the same time. If you haven’t reached full retirement age, though, half of all of your Social Security benefits may be withheld temporarily.

In 2020, Social Security beneficiaries under the age of full retirement can earn up to $18,240 before losing one dollar of benefits for every $2 earned over the limit, according to US News.

No state tax on Social Security

New Mexico governor Michelle Lujan Grisham recently signed House Bill 163, which will exempt those making less than $100,000 from paying state taxes on their Social Security benefits. 

Couples earning less than $150,000 also won’t need to pay taxes on their retirement checks either.

Fred Nathan Jr., founder and executive director of Think Mexico, told ThinkAdvisor that the tax relief will let 115,000 seniors earn $710 more on average annually. 

Types of income for SSI, part two

Unearned Income: all income that is not earned such as Social Security benefits, pensions, State disability payments, unemployment benefits, interest income, dividends, and cash from friends and relatives.

In-Kind Income: food, shelter, or both that you get for free or for less than its fair market value.

Deemed Income: income from your spouse with whom you live, your parent(s) with whom you live, or your sponsor.

Types of income for SSI

The SSA describes income is any item an individual receives in cash or that can be used for food or shelter.

The four types of income include:

Earned Income: net earnings from self–employment, certain royalties, honoraria, and sheltered workshop payments.

Who is eligible for SSI? 

Anyone may apply for SSI. 

The SSI program provides monthly payments to people who are at least age 65 or blind or disabled.

An applicant must have limited income, such as wages or pensions.

The person must also have limited resources in terms of things you own.

If benefits are late

The Social Security Administration has shared the 2022 payment schedule.

If you believe your Social Security check was stolen, you need to contact the Social Security Administration office immediately.

If your delay is due to a change in personal information, such as a banking account or address, call your local SSA office or 1-800-772-1213 (Monday through Friday, 7am – 7pm).

For any other delays, the SSA suggests you wait three business days for your check to arrive.

After that date, you should call the SSA.

Applying for SSI benefits

You can apply for Supplemental Security Income after determining if you are qualified for the program.

The Social Security Administration website explains how the following groups can apply for benefits:

• Children under the age of 18
• People between the ages of 18 and 64
• People above the age of 65

How many people receive SSI?

According to the Social Security Administration, about 7.8million people in the United States received SSI payments in July 2021.

The majority, 4.4million people aged eighteen to sixty-four, were seniors, 2.3million were children and teenagers, and 1.1million were children and teens.

Each of these groups’ average monthly benefits differed significantly.

Changes coming to SSI in 2023, part six

For those born in 1929, in order to receive benefits, they must earn 40 lifetime work credits.

Every year, only four credits can be earned and income guides how many workers can receive.

The amount of money it takes to earn one credit typically goes up each year, adjusting for inflation.

This year, it will take $1,510 in earnings per credit – up by $40 from 2021.

Next year, they will likely rise again, although it’s not clear by how much.

Changes coming to SSI in 2023, part five

Claimants who choose to collect their benefits before FRA are typically penalized by up to 30 percent.

Retirees can collect at age 62, but if you wait to claim until FRA, you’ll get 100 percent of the monthly benefit. Additionally, if you delay benefits up to the age of 70, you can get an extra 32 percent each month.

When you claim benefits before reaching your FRA and continue working and earning above a certain threshold, you are also subject to the retirement earnings test.

This means retired workers who claimed before reaching FRA, and who won’t reach FRA in 2022, can have $1 in benefits withheld for every $2 in earned income above $19,560 ($1,630 per month) this year.

If you claimed early but are set to reach FRA in 2022, the SSA can withhold $1 in benefits for every $3 in earned income above $51,960. This comes out to around $4,330 a month.

Due to the high inflation and strong wage growth, both income thresholds should jump for early filers next year. It means you’ll be able to earn more without being penalized.

Changes coming to SSI in 2023, part four

Over the next year, disability income thresholds may rise.

As Social Security benefits are set to increase, claimants who receive the maximum payments in these two programs are also expected to see some changes.

If the threshold does rise, this will mean disabled workers can earn more money each month without losing their benefits.

Changes coming to SSI in 2023, part three

While some Americans likely will have to pay more into Social Security, their return will be larger as maximum monthly payments are expected to increase.

The maximum benefit for a worker at full retirement age (FRA) in 2022 is $3,345 a month.

However, since inflation and wages continue to rise, the maximum payments at full retirement age are expected to grow next year.

To receive the maximum monthly payments, you must meet the following requirements:

• Delay your Social Security claim until the age of 70
• Work a minimum of 35 years
• Reach or exceed the maximum taxable earnings cap for all 35 years

Changes coming to SSI in 2023, continued

Next year, those receiving benefits will see an increase in their earned income taxes.

Earned income consists of a few types of payments: wages and salary, but not investment income.

As of today, Social Security is able to be maintained from its 12.4 percent payroll tax on your earned income.

In 2022, anything earned between $0.01 and $147,000 is subject to the payroll tax while anything above $147,000 is exempted.

The cap on taxable earnings is directly correlated to the National Average Wage Index (NAWI), which is expected to increase, according to The Motley Fool.

This percentage increase will then determine how much the maximum taxable earnings cap will increase next year.

Six changes coming to SSI in 2023

Social Security programs will be facing big changes next year.

Even though next year will be the first time in seven years that the full retirement age will not change, other adjustments will be made.

Expected to come first is a major cost-of-living adjustment (COLA) boost, which could be anywhere between 7.3 and 10.8 percent.

Increases are set to take effect in December 2022, and new benefits should be paid out beginning in January 2023.

Since the average monthly Social Security check is roughly $1,658, an 8 percent increase would be about $1,790 for claimants.

If the increase is 10.8 percent, that would boost checks to $1,837 a month.

However, it’s important to note that a COLA increase isn’t guaranteed as it depends on the rate of inflation.

Appealing SSI decisions if you’re denied benefits

If your application for SSI is denied, you have the right to appeal that decision in most cases.

However, the majority of applicants who are denied do not appeal, either because they don’t think it’s worthwhile or don’t know they can.

The SSA will contact you after you apply with an “initial determination,” notifying you if you qualify or not.

If you disagree with the determination, you can request a reconsideration on medical or non-medical grounds.

Are Social Security payments helping Americans? 

As Social Security payments increase in 2023 due to skyrocketing inflation rates, some people may be earning less money, USA Today reports.

Americans may be earning less than what they receive now because increased payments put recipients in a higher tax bracket. 

Essentially, the more money you make, the more taxes you pay, according to the American Association of Retired Persons.

Differences between SSI and SSDI, part two

For SSDI, the monthly earnings limit is $1,350 for most claimants – but that is boosted to $2,260 if a beneficiary is blind.

According to the SSA, SSDI claimants are entitled to a nine-month trial period where they can test their ability to work and still be considered disabled.

During this period, there is no limit on how much they can earn.

SSI claimants do not get that trial period.

Differences between SSI and SSDI

Disabled Americans can qualify for both Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) simultaneously.

While both programs are operated by the Social Security Administration, the eligibility requirements are different.

To qualify for SSI, individuals can’t have more than $2,000 in assets, while couples can have up to $3,000.

Achieving a Better Life Experience Act

The law aims to ease financial strains for those with disabilities by making tax-free saving accounts available to cover qualified disability expenses.

To qualify, you must,

• Be eligible for SSI based on disability or blindness that began before age 26
• Be entitled to disability insurance benefits, childhood disability benefits, or disabled widow’s or widower’s benefits based on disability or blindness that began before age 26
• Be someone who has certified, or whose parent or guardian has certified that he or she met the criteria for a disability certification before age 26

SSI payment amount

Eligible SSI recipients receive $841 per month for 2022, or $10,092.40 per year.

Couples receive $1,261 per month, or $15,136.93 per year.

Qualifying recipients defined as “essential persons” get $421 per month or $5,057.77 per year.

An “essential person” is someone living with an SSI recipient and offering them basic care.

These amounts could vary by state.

For example, all U.S. states and territories add money to federal SSI payments with the exception of Arizona, Mississippi, North Dakota, West Virginia and the Northern Mariana Islands.

Retirement accounts take hit

As inflation soars, many Americans saw their retirement accounts take a hit on the stock market.

However, a new Fidelity study revealed most investors are still committed despite the volatility.

According to Fox News, Fidelity’s average 401(k) balance dropped to $103,800 in the second quarter.

This is a 20 percent drop from a year ago and 15 percent lower than the first quarter of this year.

SSI and SS payments set to increase

Social Security and Supplemental Security recipients may see an increase of $175 in their monthly payments next year as inflation continues to rise.

Experts are now estimating a cost-of-living adjustment (COLA) of somewhere between 9.8 percent to even as high as 11.4 percent.

Mary Johnson, Social Security and Medicare policy analyst at TSCL, noted a 10.5 percent COLA would increase the average retiree benefit by $175.10 to the average monthly benefit of $1,668.

Redetermination, explained

The Social Security Administration (SSA) conducts redetermination about every one to six years.

Redetermination is conducted in three different ways: telephone, mail, or in-person.

During redetermination, the SSA will review your income, resources, and living arrangements to be sure you are still eligible for SSI and to ensure you are getting the correct monetary support.

If you are married or you are a disabled child under age 18 living with your parents, the SSA will also review the income, resources and living arrangements of your spouse or parents.

How SSI amounts are determined

For the year 2022, the maximum monthly federal payments are $841 for an eligible individual, $1,261 for an eligible individual with an eligible spouse, and $421 for an essential person.

In general, monthly amounts for the following year are calculated by multiplying the current year’s unrounded yearly amounts by the cost of living adjustment (COLA) effective in January of the following year.

The new unrounded sums are then divided by 12 and rounded down to the next lower multiple of $1.