Now that I have SSDI

[flowergarden]

I was approved for long-term disability (LTD) a year and a half ago. They required that I also apply for SSDI, as if I got it they would only have to pay the difference between what they were contracted to pay and what SSDI paid.

I got the SSDI and my backpay was deposited in April.

I figured that since I spent 2/3 of my income on out-of-pocket medical expenses, my income taxes would be little to none if I itemized. Wrong. I still had to pay a pretty penny on the LTD income.

Here's my question: the LTD co. is going to take all of my SSDI back pay to recoup what they already put out (per our contract). I already paid taxes on that. Then next year I will have a large deposit from SSDI to pay taxes on, when in reality that just replaces what I already paid taxes on, but had to return. Does that make sense?

Has anyone been in this position? How did it work out?

I'm feeling rather frantic right now. LTD paid in real time, and SSDI pays in arrears, so I sold my piano to pay for rent this month. I still don't have money for the utilities that are behind, so I'm going to go check out and see what help I qualify for this week.

I'm working slowly but surely to get my place ready to sell. I hope to move into disabled housing by this next winter. ("Disabled" housing is handled differently than is "subsidized" housing. You can get in quicker, too.) By that time I'll be on Medicare, and things should be much easier. I've just got to make it to December.

[raggedyann1]

When you receive your "w2" from social security next year it will show what was arrears and explain that you may adjust prior years income taxes. This would also mean that you will be able to re-adj your LTD income for the portion that is paid back to them out of your back pay. You will be writing them a lump sum check for the amount you owe them. Next year when you go to do your taxes go to a local senior center where they help low income people prepare their taxes for free.

Karen

[bluebecka]

I don't know how things run in Washington, but in Oregon I struggled through a couple months last winter and found out that our family was eligible for food stamps and that the st vincent de paul helps people once every 2 years. $140 toward utilities or rent, you just bring in your disconnect notice. You can also get a note from your doctor stating that it would cause medical complications to you if your gas/elec service is stopped, then they can not stop your service for non-payment. I also got a list of local food banks. I couldn't believe what was available. If you don't have to pay for all your groceries this money can go elsewhere. Good luck and I hope you can find some help soon. Oh... I think there may also be a program through the elec company???
Rebecca in Oregon style_emoticons/<#EMO_DIR#>/wavey.gif

[confused1]

Sue,

It would be well worth your time to look around and see if you can find a free program that helps with tax questions. Some of the universities have programs coming out of their Business Departments. Students will work with "average people" on their tax problems. And if you don't find what you need, for heaven's sake, call your congressman's office. That's what they pay staff for -- to help people who are having problems that could be affected one way or another by the federal government. Call, say: "I'm a disabled constituent and I'm having a horrid problem with SSDI back pay and the IRS. I really need help."

Otherwise, prayer is probably the next best option. style_emoticons/<#EMO_DIR#>/tongue.gif style_emoticons/<#EMO_DIR#>/bigsmile.gif

Seriously, because of the way my SS was awarded I didn't really have any back pay. Nonetheless, a chunk of it was taken for taxes. Whatever. Seems totally unfair to me that they give us a pittance that will just barely stretch to cover some things that have to be covered and then bite into it for taxes. I know, I know....everybody has to pay taxes. On income. Wish we could get our SS classified as "wealth" so we wouldn't have to pay taxes on it. LOL.

Love,
Sunny

[flowergarden]

You three had good advice. Thank you. Karen, I wondered how that would work at the end of the year. It makes sense.

When do they give you the option to have taxes taken out of your SSDI, or is it just SS retirement that allows that? I'm setting up a savings account just for taxes for next year. It seems redundant to have to pay taxes on "insurance"--SSDI--that one has paid into for years.

I just find it absolutely astounding that I have to pay 2/3 of my income in out-of-pocket medical expenses, and it really doesn't count for much. My parents own my mobile home and I only have to pay lot rent, otherwise there would be no money for ANYTHING. I couldn't get a cheaper place around here (except for disabled and subsidized).

I've tried writing to my Congressman, and he is more concerned about other things. I tried three times, asking about problems with health issues. The Senators have both been more open. I'll have to write them specifically about this problem. I did contact an IRS advocacy group that helps the IRS and govt. set rules and regulations.

I'm really tired, and I discovered that my neighbor deliberately trapped my cat and took it to a shelter. It's going to cost a lot of money to get my baby back. Just what I needed. So I'll go try to get some sleep and not worry or count $$'s.

Thank you again! style_emoticons/<#EMO_DIR#>/Thanx.gif

[Pickles]

<span style="font-size:11pt;line-height:100%"><span style="color:#3366FF">

Sue,
style_emoticons/<#EMO_DIR#>/hugbetter.gif First, I'm so sorry to hear about this and then about your cat!!! Why on earth did your neighbor do that??? Didn't they know it was YOUR Cat??? They're our kids and she should have left it alone!!!!!! style_emoticons/<#EMO_DIR#>/hissy1.gif That makes me mad!!!

I thought we didn't pay taxes on soc sec unless we were over a certain amount. Now, I don't know a thing about LTD.. Have you checked out the website www.ssa.gov They may have some kind of answers on there.

Let me tell you about my problem with ssa now. When I received my back pay. Soc Sec went by the wrong amount of my earnings.. They computed my amount higher than it was supposed to be.. HOW was I to know that??? WELL, I got a letter in March saying they were gonna take out the "overpayment" which was about 1200 dollars. Yesterday, I got a letter saying I would get my may check in june in the amount of 245.00...
and they would keep the rest!!!!!!!!!!!! which is what my car pymnt comes out of and lots of other bills. They told me I could appeal within 60 days but I figured they must be right so I didn't. NOW, they are gonna take out 1100.00 dollars at ONE TIME!!!!!!!!!!!! Could they not take out some at a time??? or at least ask me how much I could do without???


I'm sorry Sue, this is your post... I do hope you can solve all of this and I DO HOPE you get your cat back!!!!!!

style_emoticons/<#EMO_DIR#>/wub.gif style_emoticons/<#EMO_DIR#>/hugbetter.gif </span></span>

[raggedyann1]

Pickles,

Can't you call your local office and ask that it be paid back at $100 per check? I would like to think they would do that. I agree that how were you to know that they overpaid you. Please call the local office and see if you cant get it rearranged.

style_emoticons/<#EMO_DIR#>/hugbetter.gif

Karen