Social Security disability payments increased by 8.7% in 2023. See how much you can earn in this Social Security Disability Benefits Pay Chart guide.
Good news! The SSA announced an 8.7 percent cost-of-living-adjustment (COLA) for 2023. This is a significant increase from 5.9 percent in 2022.
On average, Social Security benefits will increase by over $140 monthly. If you rely on monthly Social Security benefits, this COLA adjustment should provide relief from rising prices and cost of living.
This guide explains the Social Security Disability benefits pay chart and answers important questions about Social Security benefits. Keep reading to discover how you may benefit from the pay increase.
What Is the Monthly Social Security Disability Pay Chart?
The Social Security Disability pay chart shows cost-of-living increases that apply to Supplemental Security Income (SSI) payments. The latest increase of 8.7% becomes effective January 2023.
The SSA updates this pay chart every year. It will help you know your expected monthly payment amounts.
Social Security Disability Benefits Pay Chart for 2023
When the cost of living rises, Federal benefit rates also increase. The SSA uses the Department of Labor’s Consumer Price Index (CPI-W) to determine pay increases.
For example, higher inflation leads to a higher cost of living. As a result, the cost-of-living adjustment (COLA) can help offset some of these costs.
Every year the Supplemental Security Income payment amounts increase with the COLA increases.
This Social Security Disability pay chart shows the maximum payments calculated for 2022 and 2023.
|Recipient||2022 Annual Amounts||2023 Annual Amounts||2023 Monthly Amounts|
Note: This Social Security disability pay chart applies only to Supplemental Security Income (SSI) payments. It does not apply to benefits through Social Security Disability Insurance (SSDI).
What Is the Maximum Social Security Payment?
The maximum monthly benefits for SSI, SSDI, and retirement in 2023:
- Supplemental Security Income (SSI) – The maximum payment is $914 monthly for individuals and $1,371 monthly for couples.
- Social Security Disability Insurance (SSDI) – The maximum payment is $3,627 a month.
- The maximum family benefit for SSDI is about 150% to 180% of the disabled worker’s benefit.
- The maximum payment at full retirement age is $3,627 monthly. However, if you retire at age 62, your benefit is $2,572. If you retire at age 70, your benefit increases to $4,555.
Note: The maximum amount of earnings subject to the Social Security tax will also increase to $160,200 in 2023.
How to Calculate Social Security SSI Benefits
Supplemental Security Income (SSI) is for low or no-income individuals. It provides money for basic needs. SSI, at its core, is a welfare program for the disabled. For example:
- Individuals must have less than $2,000 in assets
- A married couple must have less than $3,000 in assets
Note: When calculating the assets for a married individual, SSA will count the working spouse’s income toward the $3,000 asset limit.
The monthly maximum SSI Federal Payments amounts for 2023:
- $914 for an eligible individual
- $1,371 for an eligible individual with an eligible spouse
- $458 for an essential person
Note: Maximum Federal Supplemental Security Income (SSI) payment amounts increase with the cost-of-living increases that apply to Social Security benefits. The latest increase was 8.7 percent, effective January 2023.
If you have earnings from a job or other sources of income, it may be deducted from the maximum SSI monthly benefit as shown in the pay chart. It may also result in a reduced payment to you. However, SSI does not count all income.
Examples of income that is not countable against you include the following:
- The first $20 a month of earned or unearned income
- The first $65 of earned monthly income, such as from working at a job
- One-half of the balance remaining of earned income after deducting the first $65 and, if you did not have other earned or unearned income in a month, the $20 exclusion
Note: There may also be deductions because of your living arrangements (i.e., an adult getting free room and board.
How to Calculate Social Security SSDI Benefits
To qualify for Social Security Disability Insurance benefits, you must have worked a minimum of five years within ten years, paying taxes into Social Security. You will not qualify for this benefit if you have not worked the equivalent of five full-time years or you have not paid into the system.
SSDI can get complicated. Two important questions when looking at SSDI benefits are:
- Have you worked long enough to qualify for the insurance?
- When does your disability insurance expire?
Note: Just like any other insurance, you will eventually stop being insured once you stop paying for it.
Any disability insurance you qualify for through working and paying into the system will typically lapse five years after you stop working. To be eligible for DIB, you must prove you met the rules of disability before your disability insurance lapses. These timeframes are calculated for each individual based on their specific work history.
Social Security uses a formula to determine how much you should receive as your monthly SSDI benefit. SSDI payments average is $1,358 per month. The SSA has an online benefits calculator that you can use to estimate your monthly benefits.
The monthly SSDI you receive is based on your lifetime earnings paid into Social Security taxes. Social Security uses your average indexed monthly earnings or AIME to begin the process of calculating your monthly benefit.
The SSA will base your SSDI payment on your average covered earnings over several years, known as your average indexed monthly earnings (AIME). A formula is then applied to your AIME to calculate your primary insurance amount (PIA)—Your PIA is the monthly benefit amount you will receive from SSA for your SSDI payments.
There are several options you can find out what your PIA is from SSA:
- Use SSA’s Online Benefits Calculator
- Create a myssa.com account
- Call your local SSA office
- Or, call the National SSA 1800 number at 1-800-772-1213
It is essential to know that your monthly disability amount is not based on how long you have been disabled and unable to work. Nor is it based on your diagnosis and the severity of that diagnosis. Instead, your Disability Insurance Benefits amount is based on your earnings history that you were taxed on and paid into Social Security.
There are also potential deductions from your SSDI amount that can happen. Reasons SSA may reduce your monthly amounts are:
- Employment income
- Workman’s Compensation offsets
- SSA retirement benefits
- Other insurance benefits
- Outstanding government debt that is in collection status
When Do Social Security Payments Begin?
SSDI (Social Security Disability Insurance) Cases
Social Security disability benefits begin five full months after your disability date, known as your Alleged Onset Date.
Your payment would begin on the 6th month after your Alleged Onset Date. However, the furthest SSA will pay back due benefits on SSDI cases is 12 months before the filing date.
SSI (Supplemental Security Income) Cases
SSI payments begin the first full month after the Alleged Onset Date. However, the furthest SSA will pay back due benefits is to the first month after the protected filing date of the claimant’s SSI application.
Are Social Security Payments Taxed?
Yes and No. First, we are attorneys and not CPAs. Any tax question should be directed at your CPA or your tax preparer.
Generally, the IRS will tax your SSDI benefits when half of your benefits, plus other income, exceeds an income threshold on your tax filing status.
If you’re filing single, head of household, married filing separately, or qualifying widower, the threshold is $25,000.
If you’re filing married and jointing, that threshold is $32,000. And if you’re filing separately but lived with your spouse during the tax year, the threshold is $0
Supplemental Security Income (SSI) Benefits are not taxable.
Note: Visit irs.gov to learn additional information on paying taxes social security benefits.
How Long Does Social Security Disability Last?
Generally, disability benefits do not expire as long as the claimant is disabled and unable to work over Substantial Gainful Activity.
However, once an SSDI recipient reaches their full retirement age, they will be taken off of SSDI and converted to SSA Retirement benefits.
How Does Cost of Living (COLA) Affect Social Security Disability Payments?
The Social Security Administration (SSA) makes payment adjustments each year to people receiving Social Security disability benefits.
The adjustment payments made through Social Security retirement, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) programs reflect cost-of-living (COLA) adjustments.
This COLA increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. The COLA adjustment is 8.7% for 2023.
Establishing Disability First
It is important to remember that to receive SSDI or SSI (before retirement age), you must establish that you are disabled under SSA’s current rules and regulations. You must prove that you cannot work and make more than $1,350 gross income per month due to a severe mental or physical impairment.
Schedule of Social Security Benefit Payments 2023
Please note that every case is unique. We encourage you to contact our Social Security Disability firm at 1-855-360-1010 or firstname.lastname@example.org. Our highly trained Social Security Disability Attorneys will analyze your case to see what you qualify for and how to apply.