SSI SI Ben enef efits a and Work I Ince ncentiv ntives Part - - PowerPoint PPT Presentation

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SSI SI Ben enef efits a and Work I Ince ncentiv ntives Part - - PowerPoint PPT Presentation

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SSI SI Ben enef efits a and Work I Ince ncentiv ntives Part 2 2 Ashlea Lantz ESFLMP Subject Matter Expert MO MO EFS FSLMP MP BENEFITS P TS PLANNI ANNING NG S SERIES S 30 TH TH , 2 JULY LY 3 2018 1 18 1:30 30-2: 2:30 0

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Ashlea Lantz ESFLMP Subject Matter Expert

MO MO EFS FSLMP MP BENEFITS P TS PLANNI ANNING NG S SERIES S JULY LY 3 30TH

TH, 2

2018 1 18 1:30 30-2: 2:30

SSI SI Ben enef efits a and Work I Ince ncentiv ntives

Part 2 2

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Today’s Objectives

2

  • SSI Specialized Work Incentives
  • Application and Examples

7/31/2018

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SSI Specialized Work Incentives (deductions)

SSI specialized work incentives that apply to some people:

  • Student Earned Income Exclusion (SEIE)
  • Impairment Related Work Expenses (IRWE)
  • Blind Work Expenses (BWE)
  • Plan to Achieve Self Support (PASS)
  • 1619(B)
  • Property Essential for Self Support (PESS)

7/31/2018 3

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SEIE

Student Earned Income Exclusion

7/31/2018 4

Social Security Related Benefits Supplemental Security Income (SSI)

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SEIE

Students get to keep more SSI while working

  • First $1,820/month (2018) of earnings

excluded

  • Up to $7,350/year (2018) can be excluded
  • January – December annual period
  • Includes summer months if going to

continue back with school in the Fall

7/31/2018 5

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SEIE

Eligibility

  • Under age 22, and
  • Regularly attending school (see Red

Book link) https://www.ssa.gov/redbook/ Once you hit 22, SEIE stops

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SEIE

  • First Exclusion listed on SSI Calc Sheet
  • Required Work Incentive (not optional)

– if you’re in school and making money it should be applied

  • If SSA misses it, you can go back and

receive payment for error

  • Request in writing to ensure it’s applied

7/31/2018 7

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SEIE

Regularly attending school;

  • College or University – 8 hrs/wk
  • Traditional School 7-12/12 hrs/wk
  • Combination of school and training program
  • Homeschooled Students (due to disability)
  • “Homebound” Students
  • Online Schooling

The idea is the educational component will make you less reliant on benefits in the future

7/31/2018 8

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SEIE

Report student status (don’t assume SSA is aware the beneficiary is regularly attending school) Verification of enrollment

  • ID Card
  • Tuition Receipt (or comparable evidence)

Document that the program involved training to prepare the beneficiary for paying employment

7/31/2018 9

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SEIE Question

  • Pete is 20 years old and participating in

is a Senior Plus program at his high

  • school. He recently got a part-time job

making $1000/month? Does Pete qualify for SEIE?

7/31/2018 10

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SEIE Answer

Yes or No?

7/31/2018 11

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Questions?

7/16/18 12

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IRWE

Impairment Related Work Expense

7/31/2018 13

Social Security Related Benefits Supplemental Security Income (SSI)

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IRWE

You keep more SSI when paying for certain expenses Expenses must be:

  • Paid by the beneficiary
  • Need for an impairment – related to the

disability

  • Enables beneficiary to work - you have to

have it

  • Reasonable in price

7/31/2018 14

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IRWE

Amount of expense paid can be deducted in the SSI calculation

  • Can potentially get up to half of the

amount back in the SSI check

  • Must be approved by SSA and doctors

notes may be required for justification – work with SSA rep to discuss

7/31/2018 15

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IRWE Calculation Example

Step 2: Countable Earned Income $1000.00 Earned Income (-) $ SEIE (up to $1,780/month) (-) $_ 20.00 General Income Exclusion (if not used) (-) $__65.00 Earned Income Exclusion ($65) (-) $ 200.00 IRWE (=) $_ $715.00 Remainder (/) 2 Divide by 2 (-) $ BWE (=) $ 357.50 Countable Earned Income 7/31/2018 16

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IRWE Examples

Examples of IRWE’s (not an exhaustive list)

  • Medications
  • Job Coaching
  • Medical Devices
  • Routine Medical Supplies
  • Some Transportation
  • Medical services
  • Etc.

7/31/2018 17

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IRWE Question

Pete is receiving SSI. He is not entitled to a Title II benefit. He recently got a job making $1000/month gross wages. He pays out of pocket for medications and blood tests every month for $200 due to his diagnosis. Could Pete consider the $200 in expenses an IRWE?

7/31/2018 18

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IRWE Answer

Yes or No?

7/31/2018 19

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BWE

Blind Work Expense

7/31/2018 20

Social Security Related Benefits Supplemental Security Income (SSI)

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BWE

Keep more SSI when paying for work related expenses

  • Only available for people blind by SSA standards

Expenses that are:

  • Paid by the beneficiary
  • Enables beneficiary to work
  • Amount of expense can be deducted in the SSI

Calculation

  • Can potentially get up to entire amount back in

the SSI check

7/31/2018 21

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BWE Examples

  • State and Federal

Taxes

  • Union Dues
  • Mandatory pension

contributions

  • Guide Dog
  • Childcare
  • Transportation
  • Meals consumed

during work

  • Reader Services
  • Etc.

7/31/2018 22

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BWE Calculation

Step 2: Countable Earned Income $1000.00 Earned Income (-) $ SEIE (up to $1,780/month) (-) $_ 20.00 General Income Exclusion (if not used) (-) $__65.00 Earned Income Exclusion ($65) (-) $ IRWE (=) $_ 915.00 Remainder (/) 2 Divide by 2 ($457.50) (-) $ 200.00 BWE (=) $ 257.50 Countable Earned Income 7/31/2018 23

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Questions?

7/16/18 24

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PASS

Plan to Achieve Self Support

7/31/2018 25

Social Security Related Benefits Supplemental Security Income (SSI)

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PASS

Purpose: Get extra SSI to pay for food/shelter while using own money to pay for work expense to become self-sufficient

  • Set aside unearned income (not SSI) or

wages

  • Money in account must be used to pay

for a work goal/expenses (excluded from resource limit)

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PASS

  • Get SSI or increased SSI to cover living

expenses – Goal must eliminate need for SSDI or significantly reduce need for SSI

  • Time limited – length based on goal

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PASS

If you are a concurrent beneficiary (receive both SSI and Title II), you are a perfect candidate for a PASS plan! Lets look at an example…

7/31/2018 28

SSI SSDI SSDI goes into the Bank (less $20)

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PASS CADRE: KATE RADER

PASS Cadre Location Jurisdiction Toll-free Number Local Number Lincoln, NE Kansas, Missouri, Iowa, Nebraska 866-592-1755,

  • ext. 23014

866-592-1755,

  • ext. 23014

For PASS Form: https://www.ssa.gov/forms/ssa-545.pdf

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PASS Examples

  • Tuition
  • Self Employment Start Up Costs
  • Resource Ownership/Equipment/Tools
  • Vehicle
  • Etc.

Remember the goal is to reduce or eliminate need for SSI/Title II Benefits

7/31/2018 30

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Questions?

7/16/18 31

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1619 (B)

7/31/2018 32

Social Security Related Benefits Supplemental Security Income (SSI)

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1619 (B) Protection

  • If your earned income causes SSI check

to go down to $0 (balance out) – you can still maintain SSI eligibility state (Medicaid too)!

  • This is HUGE for folks!

7/31/2018 33

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1619 (B) Protection

Eligibility Criteria

  • Received SSI the month before 1619b

starts

  • Need Medicaid
  • Continue to experience a disability
  • Continue to meet resource limit and SSI

non-financial eligibility criteria

  • Earnings under annual threshold
  • MO: $37,188/year

7/31/2018 34

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PESS

Property Essential for Self Support

7/31/2018 35

Social Security Related Benefits Supplemental Security Income (SSI)

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PESS

  • Resources that are essential to a

person’s business (their means of self- support) are excluded.

  • You can have more than $2k in

resources if in a business account (must be sole proprietorship)

7/31/2018 36

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PESS

Property Excluded Regardless of Value or Rate of Return

  • Property used in a trade or business
  • Property used by an individual as an

employee for work

  • Property required by an employer for

work

  • Resources/property must currently be

used to be considered under PESS

7/31/2018 37

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PESS Example

Em is a business owner who run’s Em’s Coffee Co. She needs certain equipment to run her business such as an espresso machine, coffee grinder, industrial sinks, fridge and convection oven. These items add up to thousands of dollars. Due to PESS Em doesn’t need to worry about these resources impacting her SSI.

7/31/2018

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SSI Work Incentive Summary

  • Multiple work incentives can be used at
  • nce
  • Not all work incentives work for all people –

assess and decide what makes sense

  • Even if additional work incentive aren’t use,

will still financially get ahead

  • With IRWE/BWE

If high income and low expense amount, may not be able to get any extra SSI back

7/31/2018 39

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EFSLMP Community of Practice

7/16/18 40

If If you ar are not a a current subsc scriber to

  • ODEP

ODEP's EF EFSLM LMP ma mailing g lis list, you

  • u can regi

egister er here.

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Contact

7/16/2018 41

ASHL SHLEA LAN ANTZ EFS FSLMP SME SME

Ashlea.Lantz@griffinhammis.com Cell: 319-361-0214

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Questions?

7/31/2018 42