If you are a senior citizen in Oklahoma or are living with a disability, here are some Social Security changes for 2021 you should be aware of:
Cost of Living Allowance (COLA) Raise
One of the recent changes to Social Security disability benefits that will come as a welcome relief is an increase in the amount of monthly benefits due to a cost-of-living adjustment.
Recipients of Social Security retirement benefits, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) received a 1.3 percent cost of living adjustment for 2021.
If you are among the more than 70 million Americans receiving Social Security retirement or disability benefits, you’ve seen more in your monthly check since January 2021.
Increased payments of monthly Social Security benefits to more than 8 million beneficiaries began at the end of December 2020.
As of January, the Social Security Administration (SSA) estimated average monthly payments as:
| All retired workers: | $1,543 |
| Couple both receiving Social Security benefits: | $2,596 |
| Widow with two children: | $3,001 |
| Widow or widower (of age) alone: | $1,453 |
| All disabled workers: | $1,277 |
| Disabled worker, spouse and one or more children: | $2,224 |
| Individual SSI recipient: | $794 |
| Couple receiving SSI: | $1,191 |
Taxable Amount and Earning Allowances Raised
Other changes for Social Security stem from a higher amount of earned income that is taxed for Social Security purposes. The Social Security Administration increased the maximum earnings subject to Social Security tax from $137,700 a year to $142,800. This applies to the FICA (Federal Insurance Contributions Act) portion of payroll taxes and puts more money into Social Security and Medicare trust funds.
A person who is employed pays a 7.65 percent payroll tax rate. The Social Security portion is 6.2 percent on earnings up to the applicable taxable maximum amount ($142,800 as of 2021). The Medicare portion is 1.45 percent on all earnings. A self-employed person pays a 15.3 percent FICA tax, accounting for what employers pay for most workers in payroll tax.
Thanks to other changes to disability benefits, you can earn more now while drawing Social Security than was allowed last year.
The earned income limit for workers younger than full retirement age (age 66 for people born in 1943 through 1954) that receive “early” Social Security retirement benefits will increase from $18,240 to $18,960– a $60-per-month increase ($1,520 to $1,580). For each $2 earned over $18,960, Uncle Sam deducts $1 from the early retirement benefits.
For people turning 66 in 2021 (born in 1955, the earnings limit increased to $50,520 from $48,600 ($4,050 to 4,210 per month, or $160 per month). The federal government deducts $1 from benefits for each $3 earned over $50,520 until the month the worker turns age 66.
There is no limit on earnings for workers who are full retirement age or older for the entire year.
SSDI Earnings Thresholds Raised
Americans receiving Social Security Disability Insurance benefits may also earn more this year and still claim benefits through the Social Security program.
A part of the qualifications for SSDI payments is the inability to perform “substantial gainful activity,” which is government-speak for holding a job that pays a living wage. However, the government wants people of all abilities to work if they can, so SSDI recipients are allowed to earn a “threshold amount” without losing eligibility for benefits.
The SSD earned income thresholds for 2021 are:
- Non-blind workers: $1,310 per month ($15,720 per year), up from $1,260 per month.
- Blind workers: $2,190 per month ($26,280), up from $2,1100 per month.
- Trial work period: $940 per month ($11,280), up from $910 per month.
More Online Appeals
Individuals who are denied Social Security Disability benefits or Supplemental Security Income payments have several levels of appeal available to them to seek a reversal of the denial.
The Social Security Administration now allows claimants requesting a review at the Appeals Council level to submit their request online.
The Appeals Council is the third level of appeal, which is available after reconsideration of your application and a hearing before an Administrative Law Judge (ALJ), each of which you may also request online.
The Appeals Council looks at all requests for review, but it may deny a request if it believes the hearing decision was supported and in accordance with Social Security law and regulations. If denied by the Appeals Council, the applicant may file a civil lawsuit in a federal district court. In Oklahoma City, the appeal would be filed in the United States District Court for the Western District of Oklahoma.
Get Help with Social Security Disability Benefits
Social Security Disability benefits programs are large and complex. Social Security disability changes may not be communicated well, but they may affect the value of benefits received or whether an applicant is eligible to receive benefits. If you have become disabled and unable to work for a living, the Oklahoma City Social Security disability lawyers at Ryan Bisher Ryan & Simons can help you seek the full Social Security benefits promised to you by law.
Our attorneys have the knowledge, experience, and resources necessary to successfully navigate the Social Security Administration bureaucracy and secure maximum SSDI and SSI benefits for you.
Contact us today to schedule a free consultation about the disability benefits federal Social Security law says you are to receive.
This post was originally published in August 2018 and has been updated for accuracy and comprehensiveness in September 2021
We are Ryan Bisher Ryan & Simons, a legal firm that, for decades, has been fighting for the rights of hardworking Oklahoma residents. Our mission is to hold the powerful accountable.
