What Do Social Security Disability Benefits Include?

What Do Social Security Disability Benefits Include

When you’re found eligible for Social Security disability insurance (SSDI) benefits, what does that mean? And what do Social Security disability benefits include? Many people considering applying for Social Security disability think they will only receive monthly payments for as long as the Social Security Administration (SSA) considers them to be disabled. However, this is not entirely true.

Here’s everything you need to know about the disability benefits that claimants receive:

What Do Social Security Disability Benefits Include?

Beneficiaries of the Social Security Disability Insurance (SSDI) program receive more than just a monthly lump-sum payment. According to MassResources.org, a site run by independent nonprofit Community Resources Information, SSDI beneficiaries can not only expect to receive monthly payments, but also Medicare Part A and Part B coverage. In fact, many applicants asking “What do Social Security disability benefits include?” may not realize they receive medical insurance through the SSA. Medicare coverage doesn’t begin until 24 months after the beneficiary is found eligible for Social Security Disability benefits, MassResources.org notes.

According to the Kansas Department for Aging and Disability Services, beneficiaries who are still covered under group or individual health plans when they reach the threshold for Medicare benefits don’t have to sacrifice their Medicare coverage or receive a penalty just because they are on a different plan at the time. There are stipulations about when beneficiaries under these circumstances can enroll in Medicare.

The department says beneficiaries who decide to forego Medicare coverage because they are still covered under a group plan can enroll for Medicare during an eight-month period, which starts depending on the person’s circumstances. Applicants wondering “What do Social Security disability benefits include?” with regards to medical insurance should consult with their attorneys to understand more about Medicare coverage stipulations.

What Do Social Security Disability Benefits Include Regarding Back Pay?

In addition, some beneficiaries are even eligible for back benefits if their medical impairment started more than six months before they applied for Social Security disability benefits, according to MassResources.org.

Beneficiaries aren’t the only ones who may directly receive benefits from the SSA. MassResources.org notes eligible spouses or children may receive a monthly payment of up to one-half of the beneficiary’s monthly payment, and amounts can vary between 150% and 180% of beneficiaries’ benefits.

Why Benefits Are Taxable

According to the IRS, only benefits through the Supplemental Security Insurance (SSI) program aren’t taxable. The IRS says Social Security disability beneficiaries’ tax liability relies on their income and benefits during the taxable year. TurboTax says disability beneficiaries will receive Form SSA-1099 during tax season. The site notes the amount of Social Security disability benefits that are taxable is different depending on the person.

For example, TurboTax says if half of your Social Security disability benefits and your additional income, such as retirement or interest, exceeds $25,000, it is taxable. Certain types of Social Security lump-sum payments are also taxable. However, if the individual’s only income comes from Social Security, it may not be taxable.

Your Social Security advocate may be able to help you understand specifics when answering the question, “What do Social Security disability benefits include?” Social Security attorneys are not financial advisors, but receiving information from a credited source who has experience with the SSA and the entire disability process may be to the advantage of beneficiaries. However, such knowledge varies from lawyer to lawyer.

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