Retirement Chapter 2: Social Security

Question 1

How long is SS disability benefit waiting period?

Answer 1

5-months

Question 2

What does it mean for another disability policy to be coordinated with Social Security benefits?

Answer 2

The benefit would be offset by Social Security payments

Question 3

Are Social Security benefits subject to federal income tax?

Answer 3

They can be if the taxpayer’s provisional income exceeds the applicable thresholds.

$25,000 (S) / $32,000 (MFJ) / 50% of benefits can be included in taxable income

$34,000 (S) / $44,000 (MFJ) / 85% of benefits can be included in taxable income