SSDI and Widow's/Widower's Benefit

Discussion in 'Other Benefits' started by nwlivewire, Dec 13, 2010.

  1. nwlivewire

    nwlivewire PEB Forum Veteran

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    Hello All:

    I just got off the phone with Social Security.

    Here's my situation.

    I receive SSDI every month.

    I also receive a small amount of Widow's benefit based on my deceased spouses Social Security Admisinstration claim.

    HERE'S WHAT PISSES ME OFF AND HOW CAN THIS BE FAIR?

    Just to round off the figures....

    My SSDI is 1290.00 per month.
    My Widow's Benefit from SSA is 180.00

    Total GROSS BEFORE Medicare premiums for 2010: 1,470.00 per month

    Now, in 2010, I earned Army pay all year long.

    I paid into Social Security almost $ 3,300.00 during the year of 2010, AND, as a result,

    My own SSDI will go up in 2011 approximately 40.00 per month and be adjusted from

    1290.00 to 1330.00 per month.

    HOWEVER,

    Social Security takes away, dollar for dollar, my widows benefit. So, in 2011, that 180.00 will be adjusted DOWN by 40.00 per month to 140.00.

    No cola this year - I understand that.

    My total SSDI/Widow's benefit for 2010 is 1,470.00 per month.

    My total SSDI/Widow's benefit for 2011 is 1,470.00 per month.


    Seems like I got penalized for having an earned income as I paid 3,300.00 in FICA taxes and it didn't really do me any good - they gave me an increase in one account, but took it all back from me in the other account.

    I guess what I'm trying to say is that my total benefit amount is the same whether I work or not. My 3,300.00 contribution into Social Security this year didn't do me any good.

    I asked the Social Security lady over the phone if I could get my 3,300.00 back, but she said I couldn't get my money back.

    Plus, I just found out that my SSDI is gonna get taxed at about 50%, because I have earned income.

    Man, I gotta get me a job on Wall Street. Seriously. At least I'd get to keep more of what I earned.

    But a 50% tax bite on disability????? And after waiting for 2 years to get it? Only to see it taxed away and taken back by the Federal Government?

    HOLY COW!

    WHERE'S MY TAX BREAK. EVEN WALL STREETERS DON'T PAY 50% TAX RATES.

    Oh well, guess I'll have to hire another lawyer and try to negotiate a settlement with the IRS next year. I've only had to spend 40,000.00 in lawyer fees these past 4 years, so what's another 10 grand?

    I am beyond nice words right now and ready to flip my lid!

    nwlivewire
  2. OneFavor

    OneFavor PEB Forum Veteran

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    Did you physically report for duty? Are you getting INCAP pay? If you have not actually work, it is still considered disability pay. I had to actually go to the office along with the doctors notes showing that I was not physically performing any duty, but that they INCAP pay is a form of disability pay. The only problem is if you are actually working. I still had to pay a 6k tax bill because of the INCAP pay that I received though. I hate that we are placed in positions where we have to spend more than the benefit we are suppose to be entitled to.
  3. nwlivewire

    nwlivewire PEB Forum Veteran

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    Dear OneFavor:

    I'm receiving AD Army pay, though not performing my regular duties.

    According to the tax lady I went to, she said that the IRS sees AD pay as earned income, even though SSDI doesn't see my AD pay as such because I'm not performing my regular duties.

    So the SSDI giveth with one hand, while the IRS taketh away with the other.

    If anyone knows of a different answer than what my tax lady told me, please let me know.

    50% tax bite really sucks and I'll be paying this for a couple of years at least!

    God, no wonder Veteran's end up living underneath bridges and underpasses.

    Guess I better go start staking out my spot!

    Wonder if my Congressman has an spare room to let out.

    v/r,
    nwlivewire

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