How are Disability Benefits from Social Security Calculated_

How are Disability Benefits from Social Security Calculated?

How are Disability Benefits from Social Security Calculated_Unfortunately, some people are injured and have a premature end to their career. They rely on this income to keep themselves and their family afloat; however, this income disappears if they stop working. Fortunately, there are Social Security Disability benefits available. When people have worked for a significant number of years, they build up credits by properly paying their FICA taxes. If this is the case, they are eligible for Social Security Disability Insurance benefits, also called SSDI.

How Much Will I Receive?

The amount of money that people will receive under this benefit is termed the PIA, also known as the Primary Insurance Amount. There are a number of factors that will go into how much money the individual will receive. Examples of factors that will play a role in the calculation include:

  • The amount of time the individual has worked
  • The amount of FICA taxes that have been paid
  • The amount of money that people have made

How is it Calculated?

In general, the longer people have worked and the more taxes that have been paid, the larger the award. For example, someone who works for many years making a large salary would qualify for a larger PIA than someone who hasn’t worked as long or who has only worked part-time. The benefits that people might receive can range from around $200 to just over the maximum (in 2016) of $2,600. For those who work but don’t pay their taxes, they may not receive anything. This process can be confusing and anyone with questions should contact Match and Farnsworth today to learn about their options.

 

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One Comment

  1. I had no idea that the amount of money that one received under this benefit was the PIA. This primary insurance amount must be really important to those who collect it. When my friend talked about getting a social security disability lawyer, I wanted to research a little and I am sure that she would love knowing this.

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