S.S. Disability

[mrichman333]

This is just a rant. I started doing the return of a guy who was born 1951 with his 2010 return.

I have copy of his 2009 return.

In 09 he was receiving S.S disability of $22,660, had $122,106 in W-2 earnings

In 10 ………………………………….. 27,522 51,857

In 11 27,556 51,857

In 12 28,574 99,037

My opinion the system stinks. If he can earn even the lower $51,857 why the heck do the

Rest of have to help support him.

The first three years you can make as much as you want while on S.S. disability. WHAT THE HECK!!!!

His wife does not work. He had about $7,000 in dividend and Interest income.

And when he was in my office he was complain about how unfair the tax system is, and that

Mitt Romney should pay more. GEZZZZZZZZZZZZZ

[jklcpa]

That is crazy and you are right, the system does stink.

I have an elderly woman and her daughter as clients. I have known them my entire life and went through school with the daughter since kindergarten. The daughter didn't graduate HS because sometime around the age of puberty she deveoped severe schizophenia, paranoia, and other mental challenges. She can function (sort of) if she remembers to take her meds. She found a job that paid a small amount but it became almost more disabling than just living with the mental challenges she faces daily. No way she could live on the little bit she earned and she could not continue working. She's now 53 and still lives with mom who is in her 80s and in poor health. Mom fought hard to get the daughter qualfied for disability benefits, and even now sometimes she has to go through some process to have the drugs reinstated as being necessary. The amount of disability is very small, nothing she could live on, and no one has an answer to what will happen to her when mom passes away. She has a brother that won't be stepping up to that plate. It all makes me very sad.

[Terry D EA]

This is just one of the many parts of life that is unfair and it is very sad. We all have ranted one time or another about the folks working the crap out EIC as well. 75.00 withheld and three kids income less than 33k and whamo 8,000 free money. Now if some folks really need this and it is legit. How many on the other hand, are just plain working the system. This is our government at it's best promoting poverty. Thanks Mr. President for the Obama phone. Just another way, the hard working man pays for the lazy but capable of working. Get ready Obama care is coming into full swing. I like his quote "Apparently this is what the American people want they voted me in office" Not all of us did!

[mrichman333]

That is crazy and you are right, the system does stink.

I have an elderly woman and her daughter as clients. I have known them my entire life and went through school with the daughter since kindergarten. The daughter didn't graduate HS because sometime around the age of puberty she deveoped severe schizophenia, paranoia, and other mental challenges. She can function (sort of) if she remembers to take her meds. She found a job that paid a small amount but it became almost more disabling than just living with the mental challenges she faces daily. No way she could live on the little bit she earned and she could not continue working. She's now 53 and still lives with mom who is in her 80s and in poor health. Mom fought hard to get the daughter qualfied for disability benefits, and even now sometimes she has to go through some process to have the drugs reinstated as being necessary. The amount of disability is very small, nothing she could live on, and no one has an answer to what will happen to her when mom passes away. She has a brother that won't be stepping up to that plate. It all makes me very sad.

It seems the ones who really need it don't get it, or don't get enough.

[Cathy]

This is just a rant. I started doing the return of a guy who was born 1951 with his 2010 return.

I have copy of his 2009 return.

In 09 he was receiving S.S disability of $22,660, had $122,106 in W-2 earnings

In 10 ………………………………….. 27,522 51,857

In 11 27,556 51,857

In 12 28,574 99,037

My opinion the system stinks. If he can earn even the lower $51,857 why the heck do the

Rest of have to help support him.

The first three years you can make as much as you want while on S.S. disability. WHAT THE HECK!!!!

His wife does not work. He had about $7,000 in dividend and Interest income.

And when he was in my office he was complain about how unfair the tax system is, and that

Mitt Romney should pay more. GEZZZZZZZZZZZZZ

Rich,

No wonder the client is behind on his tax returns. He knows he earned too much, other than for the first 9 months. See the link below. After the first 9 months, there is a limit on how much one can earn for those next three years: $1,010 a month!!! I bet he hasn't filed his 2011 or 2012 return yet, huh? Sounds like he hasn't reported to Social Security that he's working! IRS is probably hounding the guy for his 2010 return.

http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/317/~/working-and-receiving-social-security-disability-benefits

[kcjenkins]

This is just a rant. I started doing the return of a guy who was born 1951 with his 2010 return.

I have copy of his 2009 return.

In 09 he was receiving S.S disability of $22,660, had $122,106 in W-2 earnings

In 10 ………………………………….. 27,522 51,857

In 11 27,556 51,857

In 12 28,574 99,037

My opinion the system stinks. If he can earn even the lower $51,857 why the heck do the

Rest of have to help support him.

The first three years you can make as much as you want while on S.S. disability. WHAT THE HECK!!!!

This is just not true, you have ONLY 9 months where you can earn any amount and still get disability. After that, a safety net allows you to work another three years risk free. During those three years, you can work and still receive benefits for any month in which your earnings do not exceed these limits:

$1,690 for blind individuals; or $1,010 a month if you are not blind. He clearly is not entitled to disability for any period after the 9 month trial period. In fact, he's probably going to have a problem for not telling SSA that he was not eligible to continue to get those disability checks. Social Security's Office of Inspector General takes reports of fraud very seriously.

[Randall]

I have a client who receives SS disability and makes $200k+ (net) thru his business. They cut him off, he hired a lawyer, got reinstated with back pay. And he's a big Obama hater and tax hater.

[kcjenkins]

All depends on HOW THE INCOME IS REPORTED. It is EARNED income that is considered, not investment income. I bet your client's income was not W-2 income, or was some sort of 'deferred' earnings. We all know there are lots of tricks within our complex tax code.

[joanmcq]

And you wonder why SS is in trouble. The ones like Randall's client are the ones that irk me the most. Bitching about 'welfare leeches' when all he needs to do is look in the mirror.

[Randall]

Yes, KC, the letter of the law. That's the problem, everyone looking for a way around the rules, not realizing what they're doing as joanmcq pointed out.

[kcjenkins]

http://www.cch.com/TaxLawPileUp.pdf

[JJStephens]

Arrgghhh! This kind of thing just frosts me!

My wife has been seriously ill for four years--bed-ridden much of that. She had a head injury in April '09 and at the same time was taking some meds that literally destroyed part of her brain where her injury occurred. SSA has twice denied her claim on the pretext that other people who have her diagnosis are able to work, so she should be able to work too. On the second decision they admitted they did not even read all the supporting data we provided. We're talking with a disability attorney but he says it will take at least a year and half to get a decision.

We not only lost her income (she's totally incapable of working) but also our health insurance (which we had through her previous job). I finally got her covered by a program for people with that kind of challenge, but I've been uninsured for four years. Plus we lost our house. I had to leave my primary day job (pastoring) to be able to tend to her. And then I hear story after story of things like this! It's maddening . . . and disheartening. But, that's life in the good ole US of A. I guess I'd rather be here with the opportunity to grouse about it than in a lot of other places I can think of.

[mrichman333]

My guy is a Obama tax hike lover. Everyone should pay his fair share, yet he wanted me to include his vitemins as medical expense.

Not sure how he gets around this. Could be he has fallen through the cracks and they'll catch up with him sooner or latter.

[Randall]

Hypocrisy doesn't have political boundaries.

[GeneInAlabama]

I have a neighbor who is on total disability but worked as a brick layer's laborer and paid under the table while "disabled". He now installs swimming pools doing most of the work himself and still draws a check for total disability. Oh, and I have heard from a reliable source that he sells the pain pills that he doesn't use for himself.

[Cathy]

Arrgghhh! This kind of thing just frosts me!

My wife has been seriously ill for four years--bed-ridden much of that. She had a head injury in April '09 and at the same time was taking some meds that literally destroyed part of her brain where her injury occurred. SSA has twice denied her claim on the pretext that other people who have her diagnosis are able to work, so she should be able to work too. On the second decision they admitted they did not even read all the supporting data we provided. We're talking with a disability attorney but he says it will take at least a year and half to get a decision.

We not only lost her income (she's totally incapable of working) but also our health insurance (which we had through her previous job). I finally got her covered by a program for people with that kind of challenge, but I've been uninsured for four years. Plus we lost our house. I had to leave my primary day job (pastoring) to be able to tend to her. And then I hear story after story of things like this! It's maddening . . . and disheartening. But, that's life in the good ole US of A. I guess I'd rather be here with the opportunity to grouse about it than in a lot of other places I can think of.

jj,

Im so sorry to learn about your wifes illness. You both will be in my thoughts and prayers.

My brother began his career with Social Security as a Disability Benefit Claims Determination Agent and had to retire on disability himself when he was diagnosed with MSA. At the time of his retirement, he was a Social Security Judge.

My brother, John, always reminded me of what I needed to relay to my clients and/or friends who had filed for Social Security Disability benefits. John told me to tell them to NEVER EVER give up on their disability claim. If they were denied, take the next step. If denied again, then take the next step until the bitter end. He said unless the claimant was: 1. blind, 2. on kidney dialysis, or 3. had been diagnosed with a terminal illness with death expected within a certain time frame, then more than likely the initial claim would be denied.

He also said it was easier to be awarded benefits if the claimant was 55 year old or older for some reason.

I asked John WHY does the Soc. Sec. Administration put people through the hassle and struggle when they are usually approved if they take it to the bitter end. He replied that it is due to the rules and regulations they must follow. For instance, in reviewing a doctors record for a claimant......if the doctor made a notation in his file when the patient came for a visit something to the effect: "patient looked better today and said he/she is feeling better". Social Security has no way of knowing what the doctor really meant is: "The patient doesnt look like he/she will die tomorrow like he/she did last month but although the patient still looks horrible he/she looks better than last month". They must go on the doctors exact words. "The patient looks better and feels better".......then the patient must be on the way to recovery and is not suitable as a disability recipient......thus claim denied.

Also, when a claimant gets to the point of hiring an attorney and the attorney doesn't file an appeal within the time frame allowed, the claimant still shouldn't give up. I recently had one of my clients in that situation. The attorney just dropped his case because he didn't think his client would win. I suggested he go to another attorney to see if there was any way that the appeal could be continued because it was not the fault of the claimant, but his attorney who missed the appeal deadline. Evidently it can be done, as my client came this year with huge 1099-SA's with back pay for 5 or 6 years.

Also, don't worry about that guy in the first post of this thread.........He's about to find himself what "reversed back pay" means........he's going to be paying back Social Security!

Take care,

Cathy

[kcjenkins]

My guy is a Obama tax hike lover. Everyone should pay his fair share, yet he wanted me to include his vitemins as medical expense.

Not sure how he gets around this. Could be he has fallen through the cracks and they'll catch up with him sooner or latter.

Well, since YOU know the law, you can not prepare his tax return as if it is non-taxable, for sure Personally, I would not prepare one for him at all, since he is clearly committing fraud be accepting the disability checks.