Each year there are slight adjustments to Social Security disability programs. There are typically annual increases in pay for disability beneficiaries, based on the cost-of-living adjustment (COLA), which is the annual program change most people are interested in, but there are also adjustments to the technical rules Social Security employs to determine beneficiary eligibility.
The COLA increase for Social Security beneficiaries is 5.9 percent, which is one of the largest pay increases for beneficiaries in quite some time. There were also adjustments to the maximum taxable earnings amount, and new guidelines for working while applying for Social Security disability and for the Supplemental Security Income (SSI) program. Below is a list of some of Social Security’s more significant changes in 2022.
SSI
The SSI program is a federal income supplemental program designed to assist the elderly and disabled who have limited income and assets. In 2021 the maximum allowable monthly benefit amount for SSI was $794, but that increases to $841 a month in 2022. For married couples who both receive SSI the calculations are a bit different. A married couple that receives SSI restricts a total monthly benefit amount to $1,261, which is an increase of $70 per month compared to the previous year.
SGA
Substantial Gainful Activity (SGA) is a term Social Security uses for a claimant when the claimant is earning work income. The agency puts limits on how much money a claimant or beneficiary can make and meet the technical rules of the program. In 2021 that was $1,310 and will increase to $1,350 in 2022. This is the gross monthly work income limit amount. If a worker earns this amount or more they will likely not qualify for disability programs based on income even before a medical determination is made.
Disability Average
The average disabled worker, who is receiving Social Security Disability Insurance (SSDI) benefits, will receive $1,358 per month. This is an increase from $1,282 in 2021. An SSDI beneficiary’s benefit rate is based on their previous earnings while they were working. A higher wage worker will have a higher monthly benefit mount.
Taxable Earnings
Social Security relies on employee and self-employment taxes to fund its programs. The tax rate for benefits in 2022 will be 7.65 percent, but only the first $147,000 a person earns is subject to Social Security taxes. All income earned over that amount would not be eligible to be taxed by Social Security.
Quarter Coverage
To be eligible for SSDI a worker has to earn enough income to earn work credits. A certain amount of work credits are needed based on a worker’s age, to meet the technical requirements of SSDI. In 2021 a worker needed to earn $1,470 in a quarter (a three-month period) to earn a credit’s worth of coverage. In 2022 it will be a bit more difficult to earn a work credit as the amount will increase to $1,510.
Keeping track of annual Social Security changes is important because it can impact eligibility. For a complete list of the 2022 Social Security changes click here.
