Published on: April 7, 2016
You’ve finally received your disability award letter but aren’t really sure what it means or know what to expect. The Social Security Administration will send you a disability award letter if your application was approved and you qualify for disability benefits.
This letter should outline how much your benefits will be and when your payments will begin; typically, you won’t receive payments until your 6th month of disability.
The Basics of What to Expect
If you disagree with the provisions of your Award Letter, you have the right to file an appeal called a Reconsideration; however, you must notify the SSA within 60 days of receiving your letter.
Once you have received your first payment, as outlined in your award letter, you should continue receiving your disability benefits if your condition doesn’t improve and you are still unable to work. It is your responsibility, however, to inform the SSA of any changes including any improvements in your condition and your ability to work.
The Social Security Administration does conduct periodical reviews to verify and evaluate the status of your disability. On top of these reviews, the Social Security Administration typically will contact you by a phone call or direct mail if they need to reach you for anything; however, they may also show up at your doorstep. If this happens, the person will show you his or her identification, but you should still contact the SSA to verify that they had sent someone out to see you.
Electronic Payments
Electronic payments can be received in any of the following forms:
- Direct Deposit
- Direct Express®
- Electronic Transfer Account (a low-cost federally insured program)
When you applied for disability benefits, you should have signed up for electronic payments. This is because your benefits are paid electronically if you applied on or after May 1, 2011. It is not a crisis if you didn’t, the U.S. Treasury Department will send your benefits payments via the Direct Express® card program so you can continue receiving timely payments.
Paying Taxes
Even though you are receiving tax-funded benefits, you still have to pay taxes on them-- if you have substantial income in addition to your Social Security benefits. For example, a benefits recipient who is filing individually and whose modified adjusted gross income is more than $25,000 will likely have to pay taxes on their benefits. Also, you may have to pay taxes on your benefits if you are filing jointly and your combined modified adjusted gross income is more than $32,000. Modified adjusted gross income generally includes all income (including tax free income) other than Social Security benefits; SSI is never taxable.
Retirement & Medicare
If you are approaching full retirement age and receiving disability benefits, you don’t have to panic; your disability benefits will roll over into retirement benefits. The amount will remain the same unless you are receiving reduced widow(er)’s benefits. If you fall into that category, then you will need to contact the SSA when you reach full retirement age so they can make all the necessary adjustments to your benefits.
Once you have been receiving disability benefits for 24 months, you will be entitled to medicare benefits. As you approach this 24-month benchmark, the Social Security Administration will send you up-to-date information regarding your future medicare coverage and you will receive your Medicare card in advance of your entitlement date.
Appealing Your Award Letter?
After you have applied and have been approved for receiving disability benefits, you will eventually receive your benefits award letter. Even though you have been approved and have received your award letter, you will still have to regularly communicate with the SSA and keep them informed on any changes that can affect your benefits continuation, tax and account payments. If you are concerned with the amount of benefits you are receiving as outlined in your award letter, then contact an experienced disability advocate to help you today.
