ARE WE SETTLING into the idea that it’s 2017? Have we stopped writing checks dated 2016?
Good. That’s progress.
Now, several of you have been asking some of the same questions, so let’s see about getting you some answers.
Let’s begin with Social Security disability, as it might relate to veterans, and let me suggest that you go to www.socialsecurity.gov/wounded warriors and learn a whole lot, real quick, but here’s a summary, so you can decide if you even want to do that.
Active-duty military who continue to receive pay while in a hospital or on medical leave should consider applying for Social Security disability benefits if they’re unable to work due to a disabling condition.
Not necessarily disqualified
Active-duty status and receipt of military pay doesn’t necessarily disqualify you from receiving Social Security disability. True, a person can’t receive disability while engaging in “substantial work” for pay or profit. Military payments do not, in and of themselves, prevent you from applying for or collecting disability.
You do need to know that Social Security disability and benefits from the Department of Veterans Affairs are quite different and do require separate applications. (Of course. Why make it easy?)
Anyway, if you take a look at that Wounded Warriors site you’ll see that veterans can receive expedited processing of disability claims if they became disabled while on active military service on or after Oct. 1, 2001, regardless of where the disability occurs.
As an aside, according to a news release, the Social Security Administration and the VA have worked out an electronic sharing of medical records for the purpose of processing disability claims, so a) this is all on the up-and-up, and b) what used to take months should now take a few days.
I know what you’re thinking, but what the heck, we might as well hope for the best.
That’s the short version. If this even remotely sounds like you to you, take a look at that website. This is perfectly legal and you earned it.
The next one that a lot of you have asked about is whether Social Security benefits are taxable. The answers are, “Well, yes, in general …” and “It depends.”
Some folks pay taxes on their Social Security benefits, but generally only if they have other “substantial income,” such as wages, self-employment, interest, dividends, etc.
No more than 85 percent
No one pays federal income tax on more than 85 percent of their Social Security.
Let’s get into the weeds:
• If you file a federal return as an individual and your combined income is between $25,000 and $34,000, you might have to pay income tax on up to 50 percent of your Social Security.
(What the heck is combined income? Add your adjusted gross income to your nontaxable interest and half of your Social Security and that’s your combined income.)
If your combined income is $34,000 or more, you might have to pay taxes on up to 85 percent of your Social Security.
• If you file a joint return, and you and your spouse have combined income between $32,000 and $44,000, you might have to pay taxes on up to 50 percent of your Social Security.
If your combined income is $44,000 or more, up to 85 percent of your benefits might be taxable.
You should receive a Social Security Benefit Statement (form SSA-1099) showing how much you received in the previous year, so you can use that to work from.
If you do have to pay taxes on your Social Security, you can choose to make quarterly estimated tax payments or you can choose to have federal taxes withheld from your benefits.
Learn a lot in a short time
If you really want to get into the weeds, go to www.ssa.gov and have at it. It actually is a pretty decent website, and you can learn a lot in a fairly short time.
One more? OK, I know we’ve plowed this ground before, but honest questions are honest questions, so:
No, you are not required to retire at age 65 or whatever your full retirement age (by Social Security standards). The fact is, nothing “requires” you to retire, ever.
What most of us do want to do at age 65 (or actually a bit before) is make darn sure we understand Medicare and how it affects our particular situation.
That doesn’t mean that you need to go onto Medicare. It just means that you want to understand the rules so you don’t inadvertently shoot yourself in the foot if or when you do decide to retire.
I know that’s very brief and very general, but it answers the question that was asked.
Does that get us to today? Good.
Hey, one day at a time is as fast as any of us can go!
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Mark Harvey is director of Clallam/Jefferson Senior Information & Assistance, which operates through the Olympic Area Agency on Aging. He is also a member of the Community Advocates for Rural Elders partnership. He can be reached at 360-452-3221 (Port Angeles-Sequim), 360-385-2552 (Jefferson County) or 360-374-9496 (West End), or by emailing harvemb@dshs.wa.gov.
