[acb-hsp] FW: [Jobs] COLA 2013.doc

[Baracco, Andrew W]

Didn't know about the SSI student earned income exclusion.  Always
something new to learn.

 

Andy

 

 

From: Jobs [mailto:jobs-bounces at nfbnet.org] On Behalf Of Dick Davis
Sent: Wednesday, October 17, 2012 7:13 AM
To: allstaff at blindinc.org
Cc: Jobs for the Blind; Rehabilitation Counselor Mailing List; Jennifer
Dunnam
Subject: [Jobs] COLA 2013.doc

 

Hi,

 

Cost of living adjustments for 2013 just came out from Social Security.
There are several things that will affect blind people:  

 

The first is a raise in SSI to $710 a month for an individual and $1,066
for a married couple.  

 

The second is a raise in Substantial Gainful Activity (SGA) for the
blind to $1,740 a month, or $20,880 a year.  That means an individual
will be able to work 40 hours a week at $10 an hour and not lose SSDI
benefits.  Since many entry level jobs pay less than that, it is an
important incentive for blind people on SSDI to go to work.   

 

The third is an increase in the SSI Student Earned Income Exclusion
amount to $1,730 a month, or $6,960 per year.  Those earnings are not
counted against a student's SSI.  An individual who is a high school,
college, or voc tech school student can qualify.  This little known
exclusion is a powerful incentive for blind and disabled students to
work. 

 

Please pass this information on to anyone who might benefit from it.  

 

Dick Davis

 

 

Cost-of-Living Adjustment (COLA):

Based on the increase in the Consumer Price Index (CPI-W) from the third
quarter of 2011 through the third quarter of 2012, Social Security and
Supplemental Security Income (SSI) beneficiaries will receive a 1.7
percent COLA for 2013. Other important 2013 Social Security information
is as follows:

Tax Rate:

2012

2013

Employee

7.65%*

7.65%

Self-Employed

15.30%*

15.30%

NOTE:  The 7.65% tax rate is the combined rate for Social Security and
Medicare.  The Social Security portion (OASDI) is 6.20% on earnings up
to the applicable taxable maximum amount (see below).  The Medicare
portion (HI) is 1.45% on all earnings.

* The Temporary Payroll Tax Cut Continuation Act of 2011 reduced the
Social Security payroll tax rate by 2% on the portion of the tax paid by
the worker through the end of February 2012.  The Middle Class Tax
Relief and Job Creation Act of 2012 extended the reduction through the
end of 2012.  Under current law, this temporary reduction expires at the
end of December 2012. 

 

Maximum Taxable Earnings:

2012

2013

Social Security (OASDI only)

$110,100

$113,700

Medicare (HI only)

N o   L i m i t

 

Quarter of Coverage:

2012

2013

Earnings needed to earn one Social Security Credit

$1,130

$1,160

 

Retirement Earnings Test Exempt Amounts:

2012

2013

Under full retirement age

NOTE: One dollar in benefits will be withheld for every $2 in earnings
above the limit.

$14,640/yr.
($1,220/mo.)

$15,120/yr.
($1,260/mo.)

The year an individual reaches full retirement age

NOTE: Applies only to earnings for months prior to attaining full
retirement age. One dollar in benefits will be withheld for every $3 in
earnings above the limit.

There is no limit on earnings beginning the month an individual attains
full retirement age.

$38,880/yr.
($3,240/mo.)

$40,080/yr.
($3,340/mo.)

 

Social Security Disability Thresholds:

2012

2013

Substantial Gainful Activity (SGA)
     Non-Blind
     Blind 


$1,010/mo.
$1,690/mo.


$1,040/mo.
$1,740/mo.

Trial Work Period (TWP)

$720/mo.

$750/mo.

 

Maximum Social Security Benefit: Worker Retiring at Full Retirement Age:

2012

2013

 

$2,513/mo.

$2,533/mo.

 

SSI Federal Payment Standard:

2012

2013

Individual

$698/mo.

$710/mo.

Couple

$1,048/mo.

$1,066/mo.

 

SSI Resources Limits:

2012

2013

Individual

$2,000

$2,000

Couple

$3,000

$3,000

 

SSI Student Exclusion:

2012

2013

Monthly limit

$1,700

$1,730

Annual limit

$6,840

$6,960

 

Estimated Average Monthly Social Security Benefits Payable in January
2013:

Before
1.7% COLA

After
1.7% COLA

All Retired Workers

$1,240

$1,261

Aged Couple, Both Receiving Benefits

$2,014

$2,048

Widowed Mother and Two Children

$2,549

$2,592

Aged Widow(er) Alone

$1,194

$1,214

Disabled Worker, Spouse and One or More Children

$1,887

$1,919

All Disabled Workers

$1,113

$1,132

 

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