Forgiving Federal Student Loans and Social Security Disability Benefits

The U.S. Department of Education can forgive certain types of federal student loans if theU.S. Department of Education determiners that the borrower is “Totally and Permanently Disabled” (TPD). The receipt of social security disability benefits does not automaticallyestablish a TPD because the U.S. Department of Education’s definition of a TPD is different than SSA’s definition of “disabled”. Although not controlling, an award of disability benefits is proof to establish a borrower’s TPD. If a social security disability recipient’s Notice of Award includes information about a Continuing Disability Review (CDR) schedule, applying for a TPD should be a relatively simple process. A request for the U.S. Department of Education to consider forgiving a student loan is made by completing an application. To obtain an application or information about ways of establishing proof of a TPD, visit the U.S. Department of Education’s online resource center. Disabilitydischarge.com

Combating Disability Fraud

The Social Security Administration, its Office of the Inspector General (OIG), and the Michigan Department of Human Services recently announced a new Cooperative Disability Investigations (CDI) Unit in Detroit. As part of the nationwide CDI Program, the Detroit Unit will identify and prevent Social Security disability fraud throughout the State of Michigan.

Federal Income Tax and SSDI Benefits  

Social Security beneficiaries may have questions about whether their retroactive benefits and/or their ongoing monthly benefits are taxable.  This article provides general federal income tax information for SSDI benefits.  The information provided in this article should not be used as the basis for specific tax questions.   When an individual receives SSDI retroactive benefits and/or ongoing SSDI monthly benefits, SSA is required to send a 1099 form by February 1 of the following year, specifying how much of the Social Security benefit received in the retroactive payment was really a payment for a prior year (or years).  If a fee for an attorney was paid, the 1099 form will list the amount of  the  attorney fee paid.  http://www.irs.gov/pub/irs-pdf/p915.pdf.  The taxpayer should double check all numbers on the 1099 form with his or her Notice of Award.   It is a myth that up to 85% of SSDI benefits are taxable.  

Common Abbreviated Terms Used by the Social Security Administration

COMMON ABBREVIATED TERMS USED BY THE SOCIAL SECURITY ADMINISTRATION:  The Social Security Administration (SSA) uses many abbreviations and acronyms when SSA processes a disability or SSI claim for benefits.   AC                  Appeals Council AG                  Attorney General ACE                Average Currant Earnings ALJ                 Administrative Law Judge AOD                Alleged Onset Date ATTY              Attorney   CE                   Consultative Exam CDB                Child Disability Benefit   DAA               Drug addiction and/or Alcoholism DDS                Disability Determination Service DHHS             Department of Health and Human Services DHS                Department of Human Service DI                    Disability Insurance DIB                 Disability Insurance Benefit DO                  District Office DOE                Date of Entitlement DOT                Dictionary of Occupational Titles   EPE                 Eligible Period of Entitlement ER                   Earnings Record   FCE                 Functional Capacity Exam   GAF                Global Assessment Function   HM                  Hearing Monitor HO                  Hearing Office   IME                 Independent

When Your Social Security Disability Application Is Filed

Once the applicant files the initial application and other required documents for Social Security Disability Insurance (SSDI) and/or Supplemental Security Insurance (SSI) with the Social Security Administration, (SSA), SSA will refer to the application as a “Claim” and the applicant as the “Claimant”.  SSA will schedule a telephone conference with the Claimant to review the information provided in the Claim.  If an attorney/representative is assisting the Claimant at the initial application stage, the conference between the Claimant and SSA usually occurs without the attorney/representative.   After the Claimant’s telephone conference with SSA, SSA will request the Claimant’s medical records.  SSA will send the Claimant’s file and medical records to the Disability Determining Service (DDS).  DDS will conduct a medical review of the Claim and determine eligibility.   We provide this information as a public service. The information provided in this material is of a general nature.  All claims for social

Making a Claim for Disability and/or SSI Benefits

To apply for disability benefits or SSI benefits, an application for both programs needs to be filed with the Social Security Administration (SSA). SSA encourages people to file an application on-line through SSA’s webpage, ssa.gov. If the application is filed on-line, the applicant will need to submit to SSA signed medical authorizations and several forms. SSA’s on-line directions will provide the applicant directions on what forms and authorizations the applicant needs to print/complete and send to SSA. After the applicant completes and submits the on-line application, the applicant should print the verification page in the event there is a question as to when the applicant filed the application. Filing an application can also be done by calling SSA. If a person applies by telephone, SSA will send to the applicant a number of forms to be completed and returned to SSA. Failure to submit to SSA all required completed forms

Don’t Count On The Disability Trust Fund Going Bust In 2016 — Or Ever

     Since I noticed that payments from the Social Security Disability Trust Fund have reached near stasis, I’ve been wondering about that projection from Social Security’s Chief Actuary that the Disability Trust Fund will be exhausted in 2016. If you look at that projection, one of the first things you notice is that there isn’t just one prediction. There are three. The one commonly cited is

SAAs, ALJs And OTRs

     From a report by Social Security’s Office of Inspector General (OIG):   The SAA [Staff Attorney Adjudicator] Program [also known as Senior Attorney program] has contributed to both an increase in adjudicative capacity and improved average processing time. However, the number of SAA OTRs[On The Records] peaked in FY [Fiscal Year] 2010, and the decline continued through the first 5 months of

What A Deal!

     From the National Journal (emphasis added): With an anxious eye toward the coming debt-ceiling negotiations, House Republicans are drafting what members call a “menu” of mandatory spending cuts to offer the White House in exchange for raising the country’s borrowing limit. This menu is more a matrix of politically fraught options for the Obama administration to consider: Go small on

Up And Down With The Roller Coaster

      Social Security has issued updated numbers on payments of fees to attorneys and some others for representing Social Security claimants. These fees are withheld and paid by Social Security but come out of the back benefits of the claimants involved. The attorneys and others who have their fees withheld pay a user fee for this privilege. Since these fees are usually paid at the same

SSA Not Yet Implementing DOMA Decision

     Social Security has issued new instructions on dealing with same sex marriage cases. Social Security’s Administrative Law Judges are now instructed to cancel any scheduled hearing dealing with this issue and to not make a decision in any case that has already been heard. I don’t know how many of these cases there may be but I’d bet the vast majority of them are couples who still live in the

Fair And Balanced

     From Media Matters: