Home Instead Senior Care sponsors Jim Miller's Savvy Senior column

Dear Savvy Senior,

What kinds of programs are available to help low-income seniors with their Medicare costs and other expenses? My 81-year-old mother has gone through her savings and is having a tough time getting by on her Social Security benefits. What can you tell us?

Worried Son

Dear Worried,

There are actually a variety of under-utilized programs that can help lower-income seniors with their Medicare costs, grocery bills, utility expenses and more. Here’s what you should know.

Medicare Savings Programs

For millions of seniors who are having a tough time paying their out-of-pocket healthcare costs, help is available through Medicare Savings Programs (MSPs). These are Medicaid-administered programs that pay Medicare Part B premiums and depending on your mom’s finances may even pick up the tab on her Medicare copayments and deductibles. To qualify, her income must be under $1,246 per month (or $1,675 for a married couple), and her assets must be below $6,680 ($10,020 per couple) not including her house, vehicle, burial fund, furniture or other household items. To find out if she qualifies, or to apply, contact her local Medicaid office – call 800-633-4227 begin_of_the_skype_highlighting 800-633-4227 end_of_the_skype_highlighting for contact information.

Extra Drug Help

If your mom is eligible for a MSP, she’s also eligible for “Extra Help” in paying her Medicare prescription drug plan costs. If, however, she’s not eligible she can still get Extra Help if her annual income is below $16,335 ($22,065 for a married couple living together), and her cash assets are under $12,640 ($25,260 for married couples) excluding her home and vehicle. For more information, call Social Security at 800-772-1213 begin_of_the_skype_highlighting 800-772-1213 end_of_the_skype_highlighting www.ssa.gov/prescriptionhelp.

Food Assistance

In addition to the Medicare programs, your mom may also be able to get some help with her grocery bills. Food assistance programs like SNAP (Supplemental Nutrition Assistance Program) are available to seniors, age 60 and older, with cash assets under $3,000, and a “net income” below $903 per month ($1,215 for a family of two). Net income is figured by taking your mom’s gross income minus allowable deductions like medical expenses, rent or mortgage payments, utility costs, insurance, taxes and more. The average monthly SNAP benefit is currently around $101 per person. To find out if your mom qualifies, use the SNAP pre-screening tool at www.snap-step1.usda.gov or contact her local SNAP office – call 800-221-5689 begin_of_the_skype_highlighting 800-221-5689 end_of_the_skype_highlighting

Utility Assistance

There are also resources available that can help low-income seniors reduce their utility bills. The Low Income Home Energy Assistance Program, as well as local utility companies and charitable organization help millions of Americans each year with their home heating and cooling costs. To search for help go to energynear.org, a web portal that provides information on all energy assistance programs in each state, along with qualification details, how to apply and who to contact. You can also call the National Energy Assistance Referral project at 866-674-6327 begin_of_the_skype_highlighting 866-674-6327 end_of_the_skype_highlighting

Supplemental Income

Another program to check into is SSI or Supplemental Security Income. Administered by the Social Security Administration, SSI provides monthly payments to very low income seniors (age 65 and older), as well as to those who are blind and disabled. To learn more or find out if she’s eligible, visit www.ssa.gov/ssi or call 800-772-1213 begin_of_the_skype_highlighting 800-772-1213 end_of_the_skype_highlighting

Savvy Tip: To search for other assistance programs go to benefitscheckup.org, a comprehensive web service developed by the National Council on Aging, that contains a database of more than 2,000 federal, state and local programs that can help seniors in need. The site will help you locate programs that your mom may be eligible for and will show you how to apply. This service is only available online.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book.

Jim Miller, creator of the syndicated Savvy Senior column

About Jim Miller

Jim Miller is the creator of Savvy Senior, a syndicated information column for older Americans and their families that is published in more than 400 newspapers and magazines nationwide. Jim is also a contributor on NBC’s “Today” show, and is the author of The Savvy Senior, The Ultimate Guide to Health, Family and Finances for Senior Citizens, (Hyperion, 2004).

Jim is frequently quoted in articles about issues affecting senior citizens and has been featured in numerous high profile publications, including Time magazine, USA Today and The New York Times.  In addition, he has made multiple appearances on CNBC, CNN, Retirement Living Television and national public television.

The Savvy Senior column is brought to you by Home Instead Senior Care of Richmond and Tappahannock

Home Instead Senior Care provides extraordinary senior home care, personal care and companionship services to seniors in the Richmond area which includes the counties of Chesterfield, Goochland, Hanover, Henrico and Powhatan.  We also serve all of the Northern Neck out of our Tappahannock office.  For more information, please visit our digital brochure or call our office at 804.527.1100 begin_of_the_skype_highlighting 804.527.1100 end_of_the_skype_highlighting anytime.

Home Instead Senior Care sponsors Jim Miller's Savvy Senior column

Dear Savvy Senior,

Do I have to pay income tax on my Social Security benefits? I just turned 62 and am seriously considering early retirement. What can you tell me?

Ready to Retire

Dear Ready to Retire,

When you start collecting your Social Security retirement benefits, a portion of it might be taxable depending on your total income level and marital status. Here’s what you should know.

Crunch Your Numbers

About one-third of people who get Social Security have to pay income taxes on their benefits. To figure out if your benefits will be taxable, you’ll need to add up all of your taxable income from pensions, wages, interest, dividends and other sources, plus any tax exempt interest you earned (such as interest on municipal bonds) and one-half of your Social Security benefits. (You’ll receive an SSA-1099 form in the mail each January reporting your Social Security benefits for the previous year.)

To help you with the calculations, get a copy of IRS Publication 915 “Social Security and Equivalent Railroad Retirement Benefits,” which provides detailed instructions and worksheets. You can download it at www.irs.gov/pub/irs-pdf/p915.pdf.  Worksheets can also be found in the IRS 1040 (www.irs.gov/pub/irs-pdf/i1040.pdf) and 1040A (www.irs.gov/pub/irs-pdf/i1040a.pdf) instruction booklets. To receive any of these publications via mail, call the IRS at 800-829-3676 and order them.

Taxed or Not

After you do the math, Uncle Sam says that if you’re single and your total income from all of the listed sources is:

• Less that $25,000, your Social Security will not be subject to federal income tax.
• Between $25,000 and $34,000, up to 50 percent of your Social Security benefits will be taxed at your regular income-tax rate.
• More than $34,000, up to 85 percent of your benefits will be taxed.

If you’re married and filing jointly and the total from all sources is:

• Less that $32,000, your Social Security won’t be taxed.
• Between $32,000 and $44,000, up to 50 percent of your Social Security benefits will be taxed.
• More than $44,000, up to 85 percent of your benefits will be taxed.

If you’re married and file a separate return, you probably will pay taxes on your benefits.

How to File

If you find that part of your Social Security benefits will be taxable, you’ll need to file using use Form 1040 or Form 1040A. You cannot use Form 1040EZ. You also need to know that if you do owe Uncle Sam, you’ll need to make quarterly estimated tax payments to the IRS or you can choose to have it automatically withheld from your benefits.

To have it withheld, you’ll need to complete IRS Form W-4V, Voluntary Withholding Request (www.irs.gov/pub/irs-pdf/fw4v.pdf), and file it with your local Social Security office. You can choose to have 7 percent, 10 percent, 15 percent or 25 percent of your total benefit payment withheld. If you subsequently decide you don’t want the taxes withheld, you can file another W-4V to stop the withholding.

State Taxes

In addition to the federal government, 14 states – Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia – tax Social Security benefits to some extent too. For details, check with your state tax agency or visit retirementliving.com – click on “Taxes by State.”

Savvy Tip: For more information on taxable Social Security benefits call the IRS help line at 800-829-1040, or visit an IRS Taxpayer Assistance Center (see www.irs.gov/localcontacts) where you can get face-to-face help.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit http://SavvySenior.org.

About Jim Miller

Jim Miller, creator of syndicated The Savvy Senior column

Jim Miller is the creator of Savvy Senior, a syndicated information column for older Americans and their families that is published in more than 400 newspapers and magazines nationwide. Jim is also a contributor on NBC’s “Today” show, and is the author of The Savvy Senior, The Ultimate Guide to Health, Family and Finances for Senior Citizens, (Hyperion, 2004).  

Jim is frequently quoted in articles about issues affecting senior citizens and has been featured in numerous high profile publications, including Time magazine, USA Today and The New York Times.  In addition, he has made multiple appearances on CNBC, CNN, Retirement Living Television and national public television. 

The Savvy Senior column is brought to you by Home Instead Senior Care of Richmond and Tappahannock

Home Instead Senior Care provides extraordinary senior home care, personal care and companionship services to seniors in the Richmond area which includes the counties of Chesterfield, Goochland, Hanover, Henrico and Powhatan.  We also serve all of the Northern Neck out of our Tappahannock office.  For more information, please visit our digital brochure or call our office at 804.527.1100 anytime.

Dear Savvy Senior,

What do I need to do to get Social Security disability? I’m 58 years old and have back problems that are keeping me from doing my job, but I’ve heard it’s very difficult to actually get disability benefits. What tips can you offer?

Disabled Dave

Jim Miller, creator of Savvy Senior column, answers your questions about senior life.

Dear Dave,

The process of getting Social Security disability benefits can be tricky and time-consuming, but you can help yourself by doing some homework and getting prepared.

Here’s what you should know.

Last year, around 3 million people applied for Social Security disability benefits, but two-thirds of them were denied. Why the high denial rate? Because most applicants fail to provide sufficient medical evidence that prove they’re disabled and can’t work. While there are no magic tips to getting Social Security disability, there are several steps you can take to give yourself a better chance for a favorable decision.

Get Informed

Your first step is to know if your disability meets Uncle Sam’s criteria. Social Security strictly requires that you must be physically or mentally unable to perform “any” substantial work and have a medical condition that’s lasted or is expected to last at least a year or result in death. You must also have worked five out of the last 10 years and be under full retirement age. For more details, see ssa.gov/dibplan/dqualify4.htm and go through the five questions Social Security uses to decide if you’re disabled.

If you think you qualify, your next step is to learn all you can about how the program works. Your best resource is http://SocialSecurity.gov – click on “Disability.”  Or, if you don’t have Internet access, Social Security offers lots of free publications that you can have mailed to you including “Disability Benefits” (publication No. 05-10029) which provides a good comprehensive overview. Call 800-772-1213 to order publications.

Get Prepared

After you bone up, your next step is to gather up your personal, financial and medical information so you can be prepared and organized for the application process. You’ll need your Social Security number; birth certificate; names, addresses and phone numbers of the doctors, hospitals and clinics that took care of you and dates of your visits; names and dosage of all the medicine you take; medical records from your doctors, therapists, hospitals and clinics; lab and test results; documents stating your physician’s objective view of your condition, restrictions and limitations; a summary of where you worked and the kind of work you did; and a copy of your most recent W-2 Form or, if you are self-employed, your federal tax return for the past year.

How to Apply

After you get all your information together, you can then apply either online at ssa.gov/applyfordisability, or call 800-772-1213 to make an appointment to apply at your local Social Security office or to set up an appointment for someone to take your claim over the phone. The whole process lasts about an hour. If you schedule an appointment, a “Disability Starter Kit” that will help you get ready for your interview will be mailed to you. If you apply online, the kit is available at ssa.gov/disability.

Be Patient

It takes three to five months from the initial application to receive either an award or initial denial of disability benefits. The only exception is if you have a chronic illness that qualifies you for a “compassionate allowance,” (see ssa.gov/compassionateallowances) which fast-tracks cases within 10 days.

Be Persistent

If Social Security denies your application for disability, you can request a hearing to appeal the decision, and you’ll be happy to know that roughly 55 percent of cases that go through a round or two of appeals end with benefits being awarded. But the bad news is, with backlog of over 700,000 people currently waiting for a hearing, it will take a year or two for you to get one.

Get Help

If you are having trouble getting your applications in order or need help with your appeal, consider getting an attorney or a Social Security disability claims services company to represent you. A representative can only charge you if they’re successful in getting you benefits. If they do succeed, typical fees are 25 percent of past-due benefits or $6,000, whichever is less.  

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit http://SavvySenior.org.

About Jim Miller

Jim Miller is the creator of Savvy Senior, a syndicated information column for older Americans and their families that is published in more than 400 newspapers and magazines nationwide. Jim is also a contributor on NBC’s “Today” show, and is the author of The Savvy Senior, The Ultimate Guide to Health, Family and Finances for Senior Citizens, (Hyperion, 2004).  

Jim is frequently quoted in articles about issues affecting senior citizens and has been featured in numerous high profile publications, including Time magazine, USA Today and The New York Times.  In addition, he has made multiple appearances on CNBC, CNN, Retirement Living Television and national public television. 

The Savvy Senior column is brought to you by Home Instead Senior Care of Richmond and Tappahannock

Home Instead Senior Care provides extraordinary senior care, personal care and companionship services to seniors in the Richmond area which includes the counties of Chesterfield, Goochland, Hanover, Henrico and Powhatan.  We also service all of the Northern Neck out of our Tappahannock office.  For more information, please visit our digital brochure or call our office at 804.527.1100 anytime.