[Nfbmo] FW: [rehab] COLA 2013.doc

Wed Oct 17 18:42:52 UTC 2012

A point of clarification. Social Security budgets earnings  for Disability 
payments  based on when a person actually earns them so the $10.00 an hour 
is actually a bit high unless the person has Impairment Work Related 
expenses. For example in October of 2012 if a person works normal weekday 
schedule full time there would be 23 work days. Doing the math : $10.00/hour 
times 8 hours/day times 23 days =$1840
  $100.00 over the $1740.00 limit, so in those 23 workday months a person 
needs $100.00 in work related expenses.  Even in 22 day work months a person 
would earn $1760.00 – $20.00 over the limit.
So, the absolute safe limit for a full time employee without overtime is 
$9.45 per hour which is still a decent entry level income. And, of course 
many of us would have expenses that would allow for higher income. The one 
expense SSA allows without question is the care and feeding of a guide dog.
Gene

From: Shelia Wright
Sent: Wednesday, October 17, 2012 11:49 AM
To: 'NFB of Missouri Mailing List'
Subject: [Nfbmo] FW: [rehab] COLA 2013.doc

Below is some info Dick Davis shared on the Rehab list that is relevant to
our discussions about "Barriers to Employment". To increase employment of
blind persons both sides of the coin needs to be included in our discussions
and can be useful.
Shelia

-----Original Message-----
From: rehab [mailto:rehab-bounces at nfbnet.org] On Behalf Of Dick Davis
Sent: Wednesday, October 17, 2012 9:13 AM
To: allstaff at blindinc.org
Cc: Jobs for the Blind; Rehabilitation Counselor Mailing List; Jennifer
Dunnam
Subject: [rehab] 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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