For many Maryland residents, Social Security Disability Insurance (SSDI) provides a crucial source of income when they are unable to work due to a disabling condition. However, understanding how to maximize this benefit can be complex. This article will guide you through key aspects of increasing your SSDI income, including the Primary Insurance Amount (PIA) formula, cost of living adjustments, and the potential to earn additional income while receiving benefits.
Answering the Question: Can a Maryland Resident Increase Social Security Disability Benefits Income?
What is the Primary Insurance Amount Formula?
The Primary Insurance Amount (PIA) is the basic figure used to determine your SSDI benefits. It’s calculated based on your average indexed monthly earnings (AIME) during your highest-earning years. The Social Security Administration (SSA) uses a specific formula to compute the PIA, which includes bend points that change annually.
Example of PIA Calculation:
Let’s say your AIME is $4,000. The PIA formula for 2024 is as follows:
- 90% of the first $1,115 of your AIME.
- 32% of your AIME over $1,115 and through $6,721.
- 15% of your AIME over $6,721.
Calculation:
- 90% of $1,115 = $1,003.50
- 32% of $2,885 ($4,000 – $1,115) = $922.40
Your PIA would be $1,003.50 + $922.40 = $1,925.90. This amount may be adjusted based on other factors, but it forms the basis of your SSDI benefits.
Increasing Your Social Security Disability Benefits Income
Cost of Living Adjustment (COLA): The SSA adjusts SSDI benefits annually based on the cost of living. This adjustment, known as COLA, ensures that your benefits keep pace with inflation. For example, if inflation rises by 2%, your SSDI benefits will increase by the same percentage. These adjustments typically occur in January of each year.
Recalculation of Disability Benefits: If you continue to work after becoming disabled or have additional earnings that were not initially considered, the SSA may recalculate your benefits. This recalibration could potentially increase your monthly SSDI payments if your new earnings are higher than those previously used to calculate your AIME.
Can You Earn Any Income While Receiving Social Security Disability Benefits?
Yes, you can earn income while receiving SSDI benefits, but there are strict limits. The SSA allows you to work and earn up to a certain amount without affecting your benefits. For 2024, the substantial gainful activity (SGA) limit is $1,350 per month for non-blind individuals and $2,260 for blind individuals. Exceeding these limits could lead to a reduction or termination of your benefits.
The SSA also offers a trial work period, allowing you to test your ability to work for at least nine months without losing your benefits, regardless of how much you earn. After the trial work period, the SSA will evaluate your earnings to determine if you can continue receiving SSDI benefits.
Ready to Take the Next Step? Contact Disability Associates for Help
Navigating the complexities of SSDI benefits can be challenging, but you don’t have to do it alone. At Disability Associates, we specialize in helping Maryland residents maximize their Social Security Disability income. Our experienced team can guide you through the process, ensuring you receive the benefits you’re entitled to.
Contact Disability Associates today to schedule a consultation and take the next step towards securing your financial future.