Legal News

Weeks went by where it seemed the rules were changing on a daily basis as to whether Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) recipients would be eligible for the economic stimulus payments issued by the government during the COVID – 19 pandemic and how they would receive those payments. There were reports these beneficiaries had to file a tax return even if they were not required to on an annual basis due to income levels, and other reports indicated they had to do nothing to receive these payments. Finally, Social Security issued a comprehensive guide that addresses several scenarios facing beneficiaries and their dependents. Many beneficiaries have yet to receive their stimulus payments so it is important to examine the guide to determine what beneficiaries might be eligible for. As a reminder about the stimulus payments, below are the income guidelines limiting who is eligible for a stimulus payment regardless of whether they also receive Social Security benefits. The amount you’ll receive will depend on your total income in 2019 or 2018. If you qualify, you’ll receive one payment. Here’s who qualifies: If you’re a single US resident and have an adjusted gross income less than $99,000 If you file as the head of a household and earn under $146,500 If you file jointly without children and earn less than $198,000. In addition, an extra $500 payment is being sent to people who have qualifying children, which is explained in more detail below. For children For each child aged 16 or younger in the family, parents will get a payment of $500. Parents will not receive a payment for children born, adopted or placed into foster care in 2020 because the payment is based only on information from your 2019 or 2018 tax return. The IRS said you may claim the child next year for an additional credit on your 2020 tax return. Older children and other dependents may not be eligible for a payment.

If you pay attention to the news, which you should, it is pretty much Coronavirus focused nonstop, but many people do not get their news from conventional news sources such as newspapers on cable news, which can be sometimes dangerous because there is a lot of false information that is spread through social media. Below we are going to provide some facts about the Coronavirus. These facts are issued by government sources such as the Centers for Disease Control and Prevention (CDC) and the Federal Emergency Management Agency (FEMA). Understanding these facts and taking action to prevent the spread of the illness will limit the overall number of people who are impacted by the coronavirus. The Symptoms Reported illnesses have ranged from mild symptoms to severe illness and death for confirmed coronavirus disease 2019 (COVID-19) cases. These symptoms may appear 2-14 days after exposure (based on the incubation period of MERS-CoV viruses). Fever Cough Shortness of breath If you develop emergency warning signs for COVID-19 get medical attention immediately. Emergency warning signs include*: Trouble breathing Persistent pain or pressure in the chest New confusion or inability to arouse Bluish lips or face *This list is not all inclusive. Please consult your medical provider for any other symptoms that are severe or concerning. If You Are Sick Stay home except to get medical care Stay home: People who are mildly ill with COVID-19 are able to recover at home. Do not leave, except to get medical care. Do not visit public areas. Stay in touch with your doctor. Call before you get medical care. Be sure to get care if you feel worse or you think it is an emergency. Avoid public transportation: Avoid using public transportation, ride-sharing, or taxis. Separate yourself from other people in your home, this is known as home isolation Stay away from others: As much as possible, you should stay in a specific “sick room” and away from other people in your home. Use a separate bathroom, if available. Limit contact with pets & animals: You should restrict contact with pets and other animals, just like you would around other people. *Although there have not been reports of pets or other animals becoming sick with COVID-19, it is still recommended that people with the virus limit contact with animals until more information is known. *When possible, have another member of your household care for your animals while you are sick with COVID-19. If you must care for your pet or be around animals while you are sick, wash your hands before and after you interact with them. See COVID-19 and Animals for more information. Know How It Spreads There is currently no vaccine to prevent coronavirus disease 2019 (COVID-19). The best way to prevent illness is to avoid being exposed to this virus. The virus is thought to spread mainly from person-to-person. *Between people who are in close contact with one another (within about 6 feet). *Through respiratory droplets produced when an infected person coughs or sneezes. These droplets can land in the mouths or noses of people who are nearby or possibly be inhaled into the lungs. Clean your hands often Wash your hands often with soap and water for at least 20 seconds especially after you have been in a public place, or after blowing your nose, coughing, or sneezing. If soap and water are not readily available, use a hand sanitizer that contains at least 60% alcohol. Cover all surfaces of your hands and rub them together until they feel dry. Avoid touching your eyes, nose, and mouth with unwashed hands. Avoid close contact Avoid close contact with people who are sick Put distance between yourself and other people if COVID-19 is spreading in your community. This is especially important for people who are at higher risk of getting very sick. The Latest The Federal government issued a 15-day period, beginning March 23, 2020 to help spread the virus. Officials have said they would reexamine how fast the virus was spreading after these 15 days to determine if new measures were needed to be implemented.  

We realize it may be a stretch for ordinary people to want to keep up with the comings and goings of the Social Security Administration, but sometimes circumstances permit where someone does want to follow the latest news regarding the agency due to a possible retirement or disability interest. This blog is an ongoing piecemeal of recent stories that have involved Social Security. Some are tidbits and some are important things that should be known in the world of retirement or disability and others are just interesting stories and nothing more. The No-Match Letter Social Security has gotten back to the practice of sending out “no-match” letters to employers when an employee’s wage and tax statement (W-2) does not match Social Security’s records. The letters, which the agency began sending out earlier this year after a hiatus, informs employers that corrections are needed for Social Security to post the correct earnings to Social Security earnings. The most common reasons wage and tax statements may differ from a Social Security records are transcribing errors to names or Social Security numbers or when a name change occurs, according to a recent story from Forbes. These “no-match” letters are something employers need to deal with because if they go ignored there can be consequences. The first consequence is that the employee, which is subject of a “no-match” letter could have inaccurate earnings reported on their Social Security record that could limit future benefits. Another consequence is that if an employer ignores a “no-match” letter they could end up being fined by the IRS. Finally there are illegal immigration concerns as well. The Immigration and Customs Enforcement (ICE) does periodically ask employers whether or not if they have received “no-match” letters. Social Security Numbers Exposed In Data Breach It doesn’t take a data breach from Social Security to expose your Social Security number, which can happen from business transactions or even when you renew your driver’s license. It was recently reported that thousands of California residents had their Social Security numbers exposed in a data breach that involved information from the California Department of Motor Vehicles (DMV) being shared with unauthorized access to several other federal agencies. The breach was not a hack, according to the DMV, but an error. The information of more than 3,000 drivers was shared improperly according to the story. Some States Tax Benefits And Some Don’t It is up to individual states whether or not they will tax Social Security benefits, and some states do and some states don’t. Determining which states tax Social Security benefits may help some seniors decide where they want to retire. The federal government taxes up to 85 percent of Social Security benefits, but benefits are exempt from taxation in 28 states and seven others don’t tax Social Security benefits at all. There are 13 states where a portion of Social Security benefits are taxable, and another 10 states, including Minnesota, where the taxation of benefits depends on overall income and tax filing

For years, actually decades, people have been concerned about Social Security funding and a future lack of the agency being able to meet 100 percent of benefits obligations. Understanding the problem is part of their solution, so it is important to get accurate information about the problem. The Center on Budget and Policy Priorities released a study, which can be seen below, on the important financing issues facing the Social Security Disability Insurance (SSDI) program. What Financing Issues Does SSDI Face? SSDI costs have leveled off, but the program faces a long-run funding gap. SSDI costs have stabilized as the baby boomers move from their peak disability-prone years to their peak retirement years. (Disabled workers are converted to retired workers at the full retirement age — currently 66 and scheduled to rise to 67 — and the oldest baby boomers are fast reaching that milestone.) But SSDI’s costs will still exceed its revenues. Over the next 75 years, its shortfall is projected to be about 6 percent of the program’s costs or income. SSDI has financial challenges but doesn’t face “bankruptcy.” The payroll taxes that workers contribute out of every paycheck fund most of SSDI’s costs. In addition, SSDI has built up trust fund reserves, which Social Security’s trustees estimate will last until 2052. At that point, tax revenues will be enough to pay for 91 percent of benefits — even if policymakers do nothing to strengthen Social Security’s financing (though they always have in the past). Though the SSDI trust fund has enough funding for more than three decades, policymakers must address overall Social Security financing before then. Overall, Social Security can pay full benefits for 16 more years, the trustees’ annual report shows, but then faces a significant, though manageable, funding shortfall. Policymakers should address Social Security’s long-term shortfall primarily by increasing Social Security’s tax revenues. Social Security will necessarily require an increasing share of our nation’s resources as the population ages, and polls show a widespread willingness to pay more to strengthen the program. SSDI benefits are modest. The average disabled-worker benefit is about $1,236 a month, and 90 percent of beneficiaries get less than $2,000 a month. Most beneficiaries — especially unmarried ones — rely on SSDI for most of their income. SSDI benefits replace about half of past earnings for a median beneficiary. Most other advanced countries spend more than the United States on disability benefits. U.S. eligibility rules are strict, and benefit levels are modest. The Organization for Economic Co-operation and Development (OECD) reports that the United States has some of the most stringent eligibility criteria for disability benefits among advanced economies. OECD statistics confirm that, as a corollary, the United States spends less on disability benefits (as a share of the economy) than most other advanced countries. Social Security’s administrative funding is inadequate. The Social Security Administration’s administrative funding (which, unlike Social Security benefits, is subject to annual appropriation) has declined in real terms since 2010, even as enrollment has climbed. That has impaired customer service by increasing wait times at field offices and on the phone. Staff cutbacks have also led to growing delays in processing applications or changing benefits when a beneficiary’s circumstances change. Another consequence of the cuts is that about 700,000 people await a final decision on their application for SSDI — after paying into Social Security their entire career — or their application for disability benefits from the Supplemental Security Income program. They wait an average of about a year and a half for decisions on their appeals.  

Understanding your options when it comes to Medicare is important when you are approaching the eligibility age, 65, or are disabled under Social Security’s rules. Below is some information from Social Security that might make the process of applying for Social Security a bit easier. Who can apply for Medicare online? You can use our online Medicare application if you: Are at least 64 years and 9 months old; Want to sign up for Medicare but do not currently have ANY Medicare coverage; Do not want to start receiving Social Security benefits at this time; and Are not currently receiving Social Security retirement, disability or survivors benefits. When should I apply? You should sign up for Medicare three months before reaching age 65, even if you are not ready to start receiving retirement benefits. You can opt out of receiving cash retirement benefits now once you are in the online application. Then you can apply online for retirement benefits later. With Social Security’s online application, you can sign up for Medicare Part A (Hospital Insurance) and Part B (Medical Insurance). Because you must pay a premium for Part B coverage, you can turn it down. If you choose not to enroll in Medicare Part B and then decide to do so later, your coverage may be delayed and you may have to pay a higher monthly premium for as long as you have Part B. Your monthly premium will go up 10 percent for each 12-month period you were eligible for Part B, but didn’t sign up for it, unless you qualify for a “Special Enrollment Period.” Special Enrollment Period (SEP) If you have medical insurance coverage under a group health plan based on your or your spouse’s current employment, you may not need to apply for Medicare Part B at age 65. You may qualify for a “Special Enrollment Period” (SEP) that will let you sign up for Part B during: Any month you remain covered under the group health plan and your, or your spouse’s, employment continues; or The 8-month period that begins with the month after your group health plan coverage or the employment it is based on ends, whichever comes first. Why apply for Medicare online? Using the online Medicare application has a number of benefits. You can: Avoid trips to your Social Security Office, saving you time and money. Answer questions at your convenience by starting and stopping the application without fear of losing any information you entered. Make corrections to the application prior to submission. Submit your application electronically. There is no need to mail in your application. When you are finished, just select “Submit Now” to send your application to Social Security. Receive a receipt online for your application that you can print and keep for your records. Check the status of your application online. You will receive a confirmation number once you submit your application. What happens after you apply? Once Social Security receives your application, they will: Review your application and contact you if we need more information or if we need to see your documents; Process your application once Social Security has all of the necessary information and documents; and Mail you a decision letter. Other Medicare registration/enrollment options You can also apply: By phone – Call us at 1-800-772-1213 from 7 a.m. to 7 p.m. Monday through Friday. If you are deaf or hard of hearing, you can call us at TTY 1-800-325-0778. In person – Visit your local Social Security office. (Call first to make an appointment.)  

Social Security has issued a new POMS (Program Operation Manual Series) issuance, updating the agency’s policies regarding child relationships and dependence. If you are unfamiliar with POMS, here is a brief description of what it is. This section of the SSA Program Policy Information Site contains the public version of the Program Operations Manual System (POMS). The POMS is a primary source of information used by Social Security employees to process claims for Social Security benefits. The public version of POMS is identical to the version used by Social Security employees except that it does not include internal data entry and sensitive content instructions. Please note that this document is intended for SSA employees. It contains technical terms and instructions that will be unfamiliar to you. If you have difficulty understanding these materials, please click on this link to the Social Security Handbook, which is written in plain language for use by the public. The New POMS Regarding Parent-Child Relationships This new POMS section reflects changes in our child relationship categories. We will no longer identify children as “Natural Legitimate Child,” “Child of Void or Voidable Marriage,” “Legitimated Child,” or “Illegitimate Child With Inheritance Rights.” These are all children under section 216(h)(2) of the Social Security Act through State intestacy law. As such, these categories are now included in one category called “Number Holder’s (NH) Child Under State Intestacy Law.” This also reflects that many states no longer use terminology such as “illegitimate” and provide avenues for non-marital children to obtain the right to inherit intestate. This new section includes: information about the dependency requirement for Title II child’s benefits previously in GN 00306.005, which will be archived with the release of this transmittal; instructions on what to do if a child files a subsequent claim following a disallowance for dependency not met; instructions on what to do if evidence is received after entitlement making a prior determination of a parent-child relationship questionable; and a quick reference chart, similar to the one previously in GN 00306.001B, that shows the child relationship categories, the dependency requirement for each category, the relationship code to be input on the Child Relationship (CREL) screen in the Modernized Claims System (MCS) for each child relationship category, and updated references.  

Recently we have been seeing a lot of proposals about increasing Social Security benefits and an effort to provide more funding for the operations of Social Security, but we are now seeing the Republicans in the U.S. Senate push back in an effort to limit Social Security’s operating budget. On October 7, 2019, the Center on Budget and Policy Priorities reported that the U.S. Senate plans to cut $2.7 billion in inflation-adjusted dollars from the appropriations bill that funds SSA operations. The result would be a funding reduction for Social Security by 2 percent. This move by the Republicans is not a new one, over the last nine years Social Security has seen its operation budget slashed by 11 percent. Congress continues to ask Social Security to face increased workloads, criticism of poor customer service and calls for increased efficiency, but wants the agency to do all of it with less money yet again. This is like a business asking employees to worker harder and faster, but for less money. The CBPP’s policy analyst, Kathleen Romig, points out that “as workloads and costs have grown – and budget and staffing have shrunk – SSA’s service deliver has worsened.” Below is an explanation Romig provided. Most callers to SSA’s national 800 number don’t get their questions resolved; as callers are on hold for longer periods, nearly half hang up before connecting. And a growing number get busy signals. Due to understaffing, field office wait times have risen in every region of the country since 2010, with millions of visitors waiting longer than an hour. SSA has been forced to close 67 field offices and shorten office hours in the rest, making it harder for taxpayers and beneficiaries to access service. The average wait for a disability appeal is 16 months, causing hardship for hundreds of thousands of workers already struggling with a life-changing disability. SSA has stopped mailing Social Security statements to most workers as legally required, citing budget constraints. Millions of beneficiaries await benefit adjustments due to the agency’s backlog on its behind-the-scenes work, such as awarding benefits to widows when spouses die, issuing back payments, resolving complex claims issues, and adjusting benefits for early retirees and disabled workers with earnings. Some 3.2 million of these actions are pending, causing unnecessary hardship — and often overpayments.