Today we are living through unprecedented inflation, which makes it difficult for individuals on fixed incomes to keep ahead of their expenses.
Fortunately, the Social Security Administration recognizes this and allows for an annual cost of living increase to Social Security retirement benefits, disability insurance benefits (SSDI), and Supplemental Security Income (SSI). Anyone who relies on these critical Social Security programs will see an increase in their payments beginning in January of 2023 because of the latest cost of living increase.
How Will This COLA Increase Affect Social Security Disability Insurance?
For the more than 7.7 million individuals who rely on Social Security Disability Insurance, they will see an increase of 8.7 percent beginning in January 2023. Social Security reports that this will increase the average monthly benefit payment for a disabled worker to $1,483. For those with a spouse and children, the average increase will bump benefits to around $2,616.
But Will This Also Affect SSDI Income Ceiling Limits?
Social Security Disability Insurance was developed to assist disabled individuals unable to work. Consequently, Social Security imposed caps on the amount that recipients could earn in additional income, or what Social Security calls “substantial gainful activity” or SGA. If a recipient exceeds the SGA cap, he or she may lose their SSDI eligibility.
Like the cost-of-living increase, the SGA income cap is also adjusted annually. In 2023, an SSDI recipient will be able to earn up to $1,470 from other work without risking their disability benefits. This is an increase from $1,350 in 2022. For recipients who are blind, the SGA income cap is higher and has increased from $2,260 in 2022 to $2,460 in 2023.
Other incentives offered by Social Security are designed to help disabled individuals explore work options. One of these incentives is the Trial Work Period which allows SSDI recipients to earn an unlimited amount of income for any nine months over a five-year period without losing their disability benefits. During 2022, if a recipient earned at least $970 in any given month, it would count as a month toward this work period quota. In 2023, this figure will increase to $1,050.
Does the Cost-of-Living Increase Also Affect SSI?
Supplemental Security Income is a federal safety-net program designed to help lower-income, older disabled individuals. Unlike Social Security retirement benefits and SSDI, SSI payments are not funded by Social Security payroll taxes.
SSI recipients will also receive a cost-of-living increase in 2023. Beginning in January, the federal payment to SSI recipients will increase from $841 to $914. In cases where both spouses are eligible for Supplemental Security Income, the new payment for 2023 will be $1,317 per month, up from the 2022 payment of $1,261.
What About Younger People Who Collect SSI?
Some younger individuals who are disabled or blind may also receive Supplemental Security Income payments. If they are attending a vocational or trade school or a secondary school, college, or university, they are entitled to a Student Earned Income Exclusion and can earn up to a certain amount without it affecting their SSI payment. In 2023, this monthly amount increases to $2,220, not to exceed $8,950 annually.
Getting Experienced Assistance with Your Social Security Benefits
Applying for Social Security benefits can be complicated. At Silver & Silver, we have dedicated our over 40-year careers to individuals who need help getting the essential benefits they need. Our experienced Social Security Disability insurance lawyers can help you navigate the process, whether you’re submitting your application or appealing a denial. Call us at (610) 638-7255 or contact us through our website contact form to schedule a complimentary consultation.
Disclosure:
This website is designed to provide only general information. The information presented on this website is not formal legal advice. You should not rely on any general information from any source for making legal decisions. Each legal matter is unique and requires specific attention from a qualified and experienced attorney. Unless a representation agreement has been signed with the Law Offices of Silver and Silver, we are not your legal representatives.
