Question

Is long-term disability benefits received prior to the minimum retirement age considered earned income?

Answer 1

Long-term disability benefits received before minimum retirement age are not considered earned income; they are part of Social Security's disability payout designed to support workers who are unable to work due to disability.

Step-by-step explanation:

Long-term disability benefits received prior to the minimum retirement age are not considered earned income. These benefits are provided to workers who become unable to work due to a disability, with qualification requiring demonstration that the injury or incapacitation will last at least twelve months.

Social Security provides such benefits through a disability payout. Earned income typically refers to wages, salaries, tips, and other taxable employee pay. Social Security benefits, on the other hand, are a form of entitlement program guaranteed to a particular group that meets certain conditions.

Such as having met a minimum work requirement and reaching a set retirement age or being unable to work due to a disability. It is important to note that the full retirement age was originally set at 65 but has been gradually increased; the full retirement age will reach 67 for workers born after 1959 by the year 2027.

The benefits paid under the Social Security disability insurance program are not designed as earned income but as a safety net provision for those who can no longer work.

Answer 2

Long-term disability benefits before minimum retirement age are not earned income. They are designed to assist individuals who cannot work due to disability and form a critical part of the Social Security program's support structure.

Step-by-step explanation:

Long-term disability benefits received prior to the minimum retirement age are not considered earned income because they do not come from current employment activity.

Instead, disability benefits through Social Security are intended to support those who are unable to work due to a disability.

The Social Security Act provides not just retirement benefits but also disability payouts and Supplemental Security Income for those who meet specific qualification criteria, including having a disability that is expected to last at least twelve months.

This support is crucial for many retired Americans, including the 46 million who rely on these benefits for their living expenses, and in some cases, as their sole income.