2021 Social Security Updates You Don’t Want to Miss

New year, new limits! Every January, the Social Security Administration increases various limits for disability-related social security benefits, such as Supplemental Security Income and Social Security Disability Insurance.  

Supplemental Security Income (SSI) is a monthly cash benefit for individuals with disabilities who have $2,000.00 or less in their personal bank accounts (*but remember, an individual can still qualify with additional funds in an ABLE account or Special Needs Trust). 

While the $2,000.00 resource limit remains unchanged in 2021, the monthly cash benefit increased by $11.00 (1.3% cost of living adjustment), bringing the maximum monthly benefit to $794.00 per month.  If you are receiving SSI, you should see this increase reflected in your January deposit.  

Social Security Disability Insurance (SSDI) is a monthly cash benefit for individuals with disabilities: (a) who have their own work history, or (b) whose disability began before the age of 26, and who have a parent that paid into Social Security who is retired, under disability, or deceased.   

An individual's monthly SSDI benefit is linked to his or her own work record, or the work record of a parent.  Therefore, this monthly benefit amount is fixed, and is not subject to an annual cost of living adjustment. 

However, SSDI recipients should be aware of a key change to the Substantial Gainful Activity (SGA) level.  The SGA level caps the amount of wages that an individual with a disability can earn each month, while still maintaining eligibility for SSDI.  In essence, if an individual is consistently earning above the SGA level, the Social Security Administration may determine that the individual's disability is not impacting his or her ability to work.  As a result, the individual may lose eligibility for SSDI.

In January 2021, the monthly SGA level for non-blind individuals increased to $1,310.00 in gross monthly wages ($2,190.00 for blind individuals).  Unless an exception applies, an individual with a disability must earn less than $1,310.00 in gross monthly wages in order to maintain SSDI eligibility.  There are some exceptions to this rule.  For example, an individual who is enrolled in a "Trial Work Period" can earn over the SGA level for several months and still maintain SSDI eligibility.  In addition, individuals who pay privately for supports and services in order to work, such as a personal care assistant, job coach, etc., may be eligible to deduct these expenses to reduce their monthly countable wages below the SGA level. 

If you have questions on how the 2021 changes might impact your benefits, don’t hesitate to contact us at 860-266-7724 or kathleen@kdhayeslaw.com.