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Ask Lane Your Own Question
Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 12679
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I was needing help with when I can file

Customer Question

Hi, I was needing help with when I can file for SSD
Submitted: 1 year ago.
Category: Social Security
Customer: replied 1 year ago.
I was told I could get the money out the day after I put it into a special account. I'm still unable to work, I have no income.
Expert:  Lane replied 1 year ago.

Hi,

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When a workers' compensation law provides for periodic payments but permits a lump-sum settlement that discharges the liability of the insurer or the employer, the settlement is subject to the offset.

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In this case, the lump sum is prorated to reflect the monthly rate that would have been paid had the lump-sum award not been made. (Medical and legal expenses incurred by the worker in connection with workers' compensation may be excluded when computing the offset).

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So as you can see, it's not as simple as 30 days (UNLESS this was specifically an awarded lump sum... as opposed to a periodic payment award that "discharges the liability of the insurer or the employer."

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You really should get with your attorney and ask about the nature of the award (periodic, but allowed aas a lump sum to release company's liability OR pure lump sum)

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The rule that Social Security will use is as follows:

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"If you receive workers’ compensation or other public disability benefits, AND Social Security disability benefits, the total amount of these benefits can’t exceed 80 percent of your average current earnings before you became disabled."

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So issues such as the time for which the WC award covered will also come into play.

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If you attorney can state categorically that the benefit was for past benefits and would only cover up to one month going forward (or 80% of average pay that would have occured diuring that time)... then you are likely OK to file after 30 days,

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If there are foing to be ancillary benefits (benefits for spouse and/oir children as well... becasue of your disability) from Social Security, that TOTAL benefit is taken into consideration in appl;ying the 80% rule:

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here's an example from Social Security:

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" Before you became disabled, your average earnings were $4,000 a month. You, your spouse, and your two children would be eligible to receive a total of $2,200 a month in Social Security disability benefits. You also receive $2,000 a month from workers’ compensation.

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Because the total amount of benefits you would receive ($4,200) is more than 80 percent ($3,200) of your average current earnings ($4,000), your family’s Social Security benefits will be reduced by $1,000 ($4,200 - $3,200)."

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Your Social Security benefit will be reduced until the month you reach age 65, or the month your other benefits stop, whichever comes first. Starting December 19, 2015, due to a change in the law, your benefits will continue to be reduced until you reach your full retirement age.

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So, again, what that WC settlement represents in terms of time frame AND how that PLUS the SSDI compare to your past earnings ALL come into play.

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Hopefully this gives you enough to ask specific questions of your attorney about WHY he said thirsty days. I would also ask if the 30 days gets to the place where there is an offfset OR if it relates to something else about the case itself.

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Lane

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I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.