Social Security Disability Income and Alimony

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Latest post 05-23-2012 2:04 PM by DOCAR. 10 replies.
  • 02-19-2012 11:26 AM

    Social Security Disability Income and Alimony

    Hello all.  I am getting divorced and will be paying alimony.  Wife current receives approx $14,000 per year in social security disability.  The question I have is if she gets a substantial sum of alimony, does it affect her social security disability income?  Thanx all.

  • 02-19-2012 11:54 AM In reply to

    Re: Social Security Disability Income and Alimony

    If she is getting SSDI then alimony is considered income and would be counted which could and probably will reduce her SSDI.  

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • 02-19-2012 12:24 PM In reply to

    • Kivi
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    Re: Social Security Disability Income and Alimony

    Not quite accurate. SSA administers two kinds of disability programs. One is SSDI. Anyone (under full retirement age) who has enough recent work credits under Social Security and who establishes that he or she cannot engage in substantial gainful activity, will get benefits. Those benefits are NOT means tested.

    The other program is SSI. The disability standard is same, but there is no requirement for a certain number of recent credits under Social Security. SSI benefits generally are much lower and there definitely is a welfare component to SSI benefits. I doubt if anyone on SSI gets $14,000 a year. 

    Some relatively low wage earners might qualify for both SSDI and partial SSI. I doubt that is your particular situation.

  • 02-19-2012 7:00 PM In reply to

    Re: Social Security Disability Income and Alimony

    Please do not confuse SSI with SSDI.  Doing some more research it appears that working and getting a W2 form would affect SSDI but alimony will not.  It also appears that any 1099-MISC income also will not affect SSDI.  PLease correct me or confirm, I just want to make sure.

    Thanx all.

  • 02-19-2012 7:50 PM In reply to

    • Kivi
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    Re: Social Security Disability Income and Alimony

    Most misc income would not affect SSDI. It is possible that income that could be considered earned might affect SSDI. For example commission income and self-employment income might be reported on a 1099 instead of a W-2. If the recipient would have a legal obligation to report and pay FICA (not income) taxes on it, then it might affect SSDI. Most people think of FICA taxes as Medicare and SS taxes. Technically, it is just the latter.

    SSDI beneficiaries can have modest amounts of earned income. You would have to check the SSA website for details. I think it is around $1000 a month before it starts affecting SSDI. Alimony would have no bearing on it. Nor would the recipient of alimony have any requirement to pay FICA taxes on such payments. A recipient of alimony could well be obligated to pay income taxes on it.

  • 02-20-2012 8:42 PM In reply to

    Re: Social Security Disability Income and Alimony

    Well wife finally found an apartment and is in the process of moving out. Let the fun and games begin..

  • 05-21-2012 11:27 PM In reply to

    • Sandfay
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    Re: Social Security Disability Income and Alimony

    Tthe Social Security website said that Alimony does count as unearned income but you still will have to report it and this will make your SSDI check less! Worst of all, if your Alimony check is more than your SSDI than you may not get a check at all. View this pdf site for details... www.ssa.gov/pubs/11011.pdf

  • 05-22-2012 12:28 AM In reply to

    Re: Social Security Disability Income and Alimony

    Sandfay,

    The link you provided is for SSI. That is not the same as SSDI. SSI is welfare and is means tested. SSDI is disabilty insurance you pay to for while you are working. Alimony will not reduce benifits.

  • 05-22-2012 8:32 PM In reply to

    • Sandfay
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    Re: Social Security Disability Income and Alimony

    I will be receiving $800 in alimony until I am 65. Currently I have been found disabled and unable to work. So I will be receiving SSDI. The alimony will drop to $500 when I receive my social security retirement at age 62 or 65. But what if my alimony is more than my SSDI what will happen? Plus what is means tested that you keep mentioning?  If you can send me a website that I can read about Alimony and SSDI it would be great. Thanks for explaining the difference.

  • 05-23-2012 1:52 PM In reply to

    Re: Social Security Disability Income and Alimony

    [

    Sandfay:
    Plus what is means tested that you keep mentioning? 

     

    It means your benefits are based on income and assets. SSDI is not, you could be a millionaire and still collect SSDI as long as the income is not from working.

    Sandfay:
    If you can send me a website that I can read about Alimony and SSDI it would be great

     

    I doubt one exist. How much you receive in SSDI is not affected by alimony. How much you receive in alimony is determined by your divorce settlement. If you don't understand it, contact the lawyer who handled your divorce.

  • 05-23-2012 2:04 PM In reply to

    • DOCAR
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    Re: Social Security Disability Income and Alimony

    You can read the publications on the SSA website, but none of them deal directly with Alimony and SSD, because SSD is not affected by unearned income.  Donald Trump could collect SSD and the amount would not be afftected by his rental income, dividend income or income from the sale of stock or real estate. 

    Relax, your SSD is safe.

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