Benefits Counseling for Loan Programs

1. Benefits Counseling for Loan Programs Michael Dalto Maryland Technology Assistance Program 2301 Argonne Drive, T-17 Baltimore, MD 21218 (800) 832-4827 (voice) (866)(TTY) (410) 554-9237 (fax) dalto@mdtap.org (e-mail)

2. Benefits from Social Security • Supplemental Security Income (SSI) • Social Security Disability Insurance (SSDI)

3. When you consider a loan for someone who gets SSI or SSDI, be sure that: • The checks are likely to last as long as the loan, or • The borrower won’t need to rely on the checks (e.g., because s/he will be earning enough to replace them) • If the borrower is starting work or increasing earnings, s/he understands the impact on his/her SSI or SSDI to avoid overpayments • The borrower understands the impact of work on medical benefits (Medicaid or Medicare)

4. SSI Work Incentives • SSI work incentives help a person receive higher SSI payments to offset out-of-pocket expenses for work or career advancement. • Two SSI work incentives can help a person qualify for SSI if s/he would otherwise have too much income. • Can be used if employed or self-employed

5. SSDI Work Incentives • SSDI work incentives may enable a person to keep SSDI while working if s/he would otherwise lose it. • Can be used if employed or self-employed

6. SSI Tips • You need to pay for room and board to receive the maximum SSI payment ($564/month in 2004, $579/month in 2005, before any state supplement). • If an applicant receives maximum SSI but doesn’t pay for room and board, s/he is likely receiving too much SSI, and may end up with an overpayment.

7. SSI Tips • In most states, you’re automatically entitled to Medicaid if you receive any amount of SSI – even $1 per month. • Getting married will usually reduce or eliminate your SSI payment

8. Keeping Medicaid If SSI IsLost Due to Work • A rule called “1619(b)” lets you keep Medicaid even if you lose SSI due to earnings. Your Medicaid is not in jeopardy until you earn a much higher amount called the “1619(b) threshold”, which differs from state to state. 1619(b) thresholds range from $14,556 to $42,390 (in 2004). • See http://www.ssa.gov/work/ResourcesToolkit/Health/1619b.htmlfor your state’s threshold • A worker may earn even more than these limits and still keep Medicaid if s/he: • Pays for certain work-related expenses, • Receives publicly-funded attendant services, and/or • Has higher than average medical expenses covered by Medicaid

9. Blind Work Expenses (BWE) • Work incentive for workers who receive SSI due to legal blindness • Allows a deduction for most work-related expenses, whether or not they relate to blindness • Expenses include: • Taxes withheld from pay • Meals consumed at work • Work-related transportation • Job training or coaching • Tools and equipment needed for work • Assistive technology needed for work (including training to use it, maintenance and repair costs)

10. Blind Work Expenses (BWE) • The deduction lets the worker keep more SSI • BWE can also help some blind workers qualify for SSI. • A blind worker earning as much as $30,000 per year (possibly more) – much higher than the usual earnings limit to receive SSI – could use BWE’s to qualify for at least a small SSI payment. • In most states, this qualifies him/her for Medicaid.

11. Plan for Achieving Self Support (PASS) • Work incentive for SSI recipients who want to pursue work goals that will increase their earnings – and decrease their dependence on SSI or SSDI – within 3 to 4 years • PASS lets you deduct expenses needed to reach the work goal. • The deduction lets you keep more SSI. • PASSes usually last up to 3 or 4 years. • Must be approved – and periodically reviewed – by SSA

12. Plan for Achieving Self Support (PASS) • Expenses may include: • Transportation costs (including vehicles and modifications) • Education costs (tuition, books, fees, etc.) • Job-related equipment, tools, uniforms, computers, etc. • Expenses to start a business • Assistive technology • Job coaching or on-the-job training • Childcare, and many others

13. Plan for Achieving Self Support (PASS) • A PASS may help some individuals qualify for SSI, especially if they receive too much “unearned income”, such as SSDI, to ordinarily be eligible for SSI. In most states, receiving SSI qualifies a person for Medicaid. • Cautions about using a PASS to qualify for SSI: • The work goal must be earnings high enough to lose SSDI within several years • If you receive only SSDI (and not earnings) and you use a PASS to qualify for SSI, your living expenses can’t exceed the maximum monthly SSI payment plus $20.

14. Self-Employment and SSI • Business expenses are deducted from earnings when figuring SSI reduction. • SSA allows all business expenses allowed by IRS. • May use BWE, PASS or both • Business expenses can be used twice – as both business expenses and PASS expenses

15. SSDI Tips • Getting married could terminate your SSDI in some cases, if you receive benefits on a parent’s work record

16. SSDI Tips • Usual limit on earnings (after a 9-month “trial work period”) to keep SSDI = • $810/month (in 2004); $830/month (in 2005) for non-blind individuals • $1,350/month for blind individuals (in 2004); $1,380/month (in 2005)

17. Impairment Related Work Expenses • Impairment Related Work Expenses (IRWE) may be deducted from earnings. • IRWE are disability-related expenses needed for work including: • Assistive technology • Transportation necessitated by disability, including vehicle modifications, but not vehicle purchase • Job coaching • Attendant services • Therapies • Medications, medical services and supplies, and many others

18. Subsidies and Special Conditions • Subsidies and Special Conditions may also be deducted. • These are situations in which the worker is earning less than s/he is paid, including: • Receiving extra supervision or assistance on the job (from a job coach, coworker, supervisor, etc.) • Working at reduced productivity (slower pace, not completing all duties, etc.)

19. SSDI Tips • If difference after deductions is below: • $810/month (in 2004); $830/month (in 2005) • $1,350/month for blind individuals (in 2004); $1,380/month (in 2005) • Then the worker keeps SSDI.

20. Self-Employment and SSDI • Business expenses are deducted from earnings. • “Unincurred business expenses” (i.e., business expenses paid by another person or agency) are deducted • Unpaid help to conduct the business is deducted • May also deduct IRWE’s

21. Benefits Assistance • Every state and territory has at least one organization • Provide free help to understand and use SSI and SSDI work incentives • Mostly centers for independent living

22. Benefits Assistance • To find a Benefits Assistance agency: www.ssa.gov/work/ServiceProviders/ BPAODirectory.html • For more information about work incentives: www.ssa.gov/work/ResourcesToolkit/ workincentives.html

23. Top Five Reasons You Should Care About SSA’s Work Incentives • They encourage people to work by decreasing the impact on benefits. • They enable people receiving SSI to keep higher payments while working. • They enable people to keep SSDI while earning above the usual limits. • They enable some individuals to qualify for SSI (and, in most states, Medicaid) who would otherwise be ineligible – including people receiving only SSDI, and blind individuals earning up to $30,000 per year. • They can help capitalize small businesses.