Working Under the Table and Social Security Disability

Many clients ask their Social Security Disability lawyershow working under the table will affect their eligibility for Social Security Disability benefits. Under the table income is not taxed, therefore no deductions are taken from these monies to pay into the Social Security system. For this reason, persons applying for SSDI with a history of working under the table may not have enough credits, or quarters, paid into the system to be eligible for benefits. These applicants may only have the option of applying for Supplemental Security Income (SSI), which is an asset-based program. This is measured based on the amount of money in the bank or the amount of assets (or property) that a person has.

Moreover, under the table work can present some problems during a Social Security Disability Hearing.  Failing to report income and pay taxes can be seen by some judges as a sign of dishonesty.  Nonetheless, it is important to be completely honest from the outset and disclose all work related information to the judge.  In our experience, it is much worse to get caught lying about your work than it is to admit that you performed work under the table.      

In an SSDI case, the judge will ask about the applicant’s work history. It is important to be upfront about all income made in the past 15 years, even if the income was not taxed. Though some work history is not on tax forms, judges can still find out about unreported work and income through other documents. Medical records usually include more than individuals think they do- and doctors, particularly mental health providers, usually ask and take notes about work history.  

It is always a bad strategy to assume that the government doesn’t know about your work history.  In fact, you should make the opposite assumption: --assume that Uncle Sam knows everything about you!  Be aware, claimentsget caught lying about their wages all the time.  For example, many individuals who think that they are being paid under the table are not aware or do not remember that their employers have issued 1099 forms for some or part of the payments made for wages.  This situation can cause some discrepancies between the testimony provided and the actual wages reported.  Another similar problem occurs when a claimant is self-employed and does not report income for purposes of income taxes but then receives a 1099 form from one of his or her clients.  

If you are unsure about your eligibility for SSDI and SSI because your income is under the table, please contact our office for a consultation.

Winning SSD for Clients with POTS and Dysautonomia

Claimants seeking SSDI benefits for POTS and/or dysautonomia often have difficulty finding a disability lawyer who is educated and experienced in these kinds of cases. Ramos Law has successfully worked with clients with POTS who have been able to win their Social Security Disability benefits.  

POTS, or Postural Orthostatic Tachycardia Syndrome, is a type of dysautonomia-- a condition which impacts the body’s ability to perform “automatic” functions, such as heart rate, blood pressure, digestion, and temperature control. People living with POTS can experience the condition in many different ways at different severities. Many POTS patients experience fatigue, headaches, lightheadedness, heart palpitations, exercise intolerance, nausea, diminished concentration, shaking, fainting, coldness or pain in the extremities, chest pain, and shortness of breath. According to Dysautonomia International ( http://www.dysautonomiainternational.org ), approximately 25% of POTS patients are disabled and unable to work, and “symptoms may be so severe that normal life activities, such as bathing, housework, eating, sitting upright, walking or standing can be significantly limited.”

People living with POTS may have a hard time finding a diagnosis, as it is a long process, and doctors specializing in POTS and dysautonomia are uncommon. Many POTS patients are misdiagnosed with anxiety disorders, due to the fact that POTS and severe anxiety disorders have similar symptoms. However, their causes are entirely different. POTS is caused by dysfunction in the autonomic system, and that dysfunction can have many underlying causes. Often, diseases that cause chronic pain such as Ehlers–Danlos syndrome (EDS) can be the source of dysautonomia. Other times, the cause of this syndrome is never known. It is estimated that about 80 percent of the patients suffering from POTS also suffer from Type III EDS.  EDS is a genetic connective tissue disorder that causes chronic pain, constant joint dislocations, arthritis, and vascular disease. 

Because POTS is difficult to diagnose and largely misunderstood, POTS patients seeking disability benefits need to work with a lawyer who is educated about the condition. Judges may dismiss POTS patients’ cases because the patient appears well or because the severity of symptoms may be difficult to measure or prove. This does not mean that the often painful and debilitating nature of POTS isn’t real.  If you are suffering from the debilitating symptoms of POTS and/or dysautonomia and are unable to work, feel free to call our office to see if we can help you win disability benefits.

TrumpCare (AHCA) Will Have a Devastating Impact on Our Clients

Denying millions of more vulnerable Americans health care while cutting taxes for millionaires and billionaires is unacceptable. Ramos Law is strongly opposed to the AHCA and fully supports the actions of those in the disabled community who have voiced their outrage over this “mean” proposal.

The American Health Care Act (AHCA, AKA TrumpCare) received strong opposition, particularly from Americans with disabilities, almost immediately after it was released to the public. One group voicing their strong opposition was disability rights organization ADAPT, which held a protest at Senate Majority Leader Mitch McConnell’s office. ADAPT is run by and for people with disabilities, and has operated for 25 years. At Ramos Law, we were moved by the energy and determination of the ADAPT activists who were arrested for engaging in Civil Disobedience at the Capitol. Here is a video clip showing the protest:

Also, the National Organization of Social Security Claimants’ Representatives (NOSSCR) has issued a statement against the AHCA. For the statement from NOSSCR’s executive director Barbara R. Silverstone click here:
https://www.nosscr.org/news/2017/06/statement-response-senate-health-care-bill

AHCA, if passed, would throw approximately 24 million people off health insurance and raise costs of premiums. Ten million current Medicaid enrollees have disabilities and are now at risk of losing their health insurance. Loss of basic health insurance and healthcare will have devastating repercussions. SSDI claimants who have lost health insurance will lose access to doctors’ visits, making it harder to obtain the medical evidence needed to support their cases.

Medicaid and SSDI work hand in hand in supporting people with disabilities in living independent and healthy lives. Many people rely on both the healthcare they have through medicaid and the supplemental income they receive through SSI and SSDI. In a press release, representatives from ADAPT expressed concerns that with AHCA’s cuts to Medicaid, many Americans with disabilities will be institutionalized against their will because they will no longer be able to afford the resources that they need to live independently.

Mike Oxford, and ADAPT organizer from Kansas, said, “Home and community based services are what allow us to do our jobs, live our lives and raise our families. Without these services many disabled and elderly Americans will die. We won’t let that happen.”

FedEx Long Term Disability Plan Ordered to Pay Ramos Law 40K in Attorney's Fees

Individuals who have been denied LTD benefits often ask their disability lawyer whether they can obtain any punitive damages or penalties against the plan or insurance company for failing to follow the law. Unfortunately, under the law that covers most of these plans (the Employee Retirement Income Security Act of 1974 “ERISA”), these damages are not available.  Given the state of the law, there are very little consequences when a disability plan acts illegally.  The payment of the benefits owed is practically the only remedy available to plaintiffs.  However, even though there are no punitive damages, the Court may force the insurance company and/or LTD plan to pay the plaintiff’s attorney’s fees. In these instances, the imposition of attorney’s fees acts as the only penalty or punitive action that can work to deter LTD plans from violating the law. In a recent case, Ramos Law was successful in obtaining an award of attorney’s fees against the Federal Express Long Term Disability Plan. See Dwinnell v. Fed. Express Long Term Disability Plan, 2017 U.S. Dist. LEXIS 57828 (D. Conn. Apr. 14, 2017)  .

In Dwinnell, the plaintiff brought a case against the benefits plan of her former employer, Federal Express Corporation, and its disability plan administrator, Aetna Life Insurance Company, after she was denied long term disability benefits. Following several years in litigation, the Court found that Aetna acted contrary to the law by failing to conduct a vocational review of the plaintiff’s claim.

In District Courts within the Second Circuit, disability plan administrators are required to conduct a two-step evaluation of disability claims. First, the plan must conduct a medical review.  Once this first level of review is completed, the plan must conduct a second assessment which involves a vocational evaluation of the claim. In Dwinnell, Aetna did not conduct a vocational review and decided the case solely based on the medical evidence. In light of the incomplete review of the claim, District Judge Jeffrey A. Meyer ruled that Aetna’s review process failed to satisfy the standard set forth by the Second Circuit Court of Appeals. The case was remanded back to Aetna with an order to conduct a new review which must include a vocational assessment of the plaintiff’s claim.

After successfully arguing her position, the plaintiff in Dwinnell then filed a motion for attorney’s fees and costs. Judge Meyer granted the motion and found that Attorney Ivan Ramos’ fees of $375 per hour and Paralegal Jessica Smith’s rate of $100 per hour were reasonable. Based on the amount of time spent by Ramos Law working on this case, Judge Meyer ordered FedEx to pay Ramos Law $40,657.75 in Attorney’s fees and $400 in costs.

It must be noted that under ERISA, a plaintiff need not have total success on the merits of his or her case in order to obtain attorney’s fees.  In fact, the law states: “The court in its discretion may allow a reasonable attorney’s fee and costs of action to either party,” appropriate if the party seeking fees has had “some degree of success on the merits.”  Therefore, attorney’s fees can be awarded when the plaintiff gets a second opportunity to have the cases reviewed but does not get his or her benefits reinstated.

Iván Ramos Meets with Congressman Larson to Discuss Social Security Disability

As part of NOSSCR’s spring 2017 conference in Washington, DC, disability lawyer Iván Ramos met with Congressman John Larson of Connecticut’s First Congressional District to discuss legislative issues pertaining SSI and SSDI. During their meeting at Capitol Hill, Larson reiterated his strong commitment to protecting and improving our Social Security Programs. His fierce stance in support of disability beneficiaries, was evidenced by the fact that he took time to sit down and speak with Iván during one of the busiest weeks in Washington-- they met on the same day as the Comey hearings and while many important votes were taking place on the house floor!  

Currently, Congressman Larson sits on the influential House Ways and Means Committee and is the top Democrat in the Social Security Subcommittee.  He is a crucial ally in NOSSCR’s fight to protect Social Security Disability and defeat Trump’s plans to significantly reduce disability benefits.  

Iván Ramos and Congressman Larson discussed the urgency of protecting and improving the Social Security system in this critical time when the Trump administration has proposed massive cuts in benefits. In his Fiscal Year 2018 budget request, Trump proposes 72 billion dollars in Social Security cuts over the next 10 years. This proposal breaks Trump’s repeated campaign promise not to “cut Social Security”.  Some of these proposed cuts include:

• Reducing SSDI retroactive payments to six months before the protected filing date. Currently, SSDI retroactive payments cover recipients for twelve months prior to the filing date. This will take an estimated $9.9 billion over the next ten years from people with disabilities.
• Reducing SSDI benefits when an individual attempts to work, is laid off, and then receives unemployment benefits. This disincentives people with disabilities from trying to work.
• Establishing a one-year probationary period for new Administrative Law Judges in Social Security, which could interfere with their abilities to make independent decisions in granting benefits.
• Limiting SSI payments for individuals living with other SSI recipients. This would interfere with families’ choices about living arrangements, especially when persons with disabilities live with family members who can support them. It would also add complexity to the SSI program (increasing overpayments) and increase poverty.

Larson also expressed his commitment to improving the administrative funding needed to ensure that people are able to navigate the Social Security system and receive the necessary resources from the agency. Currently, the Social Security Administration lacks the appropriate technology and staffing to provide adequate services. Data provided by the Social Security Administration and the Center on Budget and Policy Priorities shows that:

“The average caller to Social Security’s national 800 number waited over 13 minutes to be answered, and it took 110 days for an initial application for disability benefits to be processed. There are now 1.1 million people waiting for Social Security Administrative Law Judge hearings, and the wait time for the hearings is over a year in 167 of the nation’s 169 hearing offices, with the average over 600 days. The consequences of such long waits can be dire: approximately 8,000 people died last year while awaiting a disability benefits hearing.”

During their meeting, Iván Ramos and Congressman Larson also discussed solutions to current and impending issues within the Social Security system. Larson is the co-author of a bill called Social Security 2100, a set of reforms to ensure that Social Security is sustainable and effective now, and is available for future generations.  The plan which is co-authored by Senator Richard Blumenthal (D-CT) provides:

• Increasing benefits
• Protecting low income workers from retiring into poverty
• Cutting taxes on benefits to low and middle class SSI and SSDI recipients
• Requiring millionaires and billionaires to pay the same rate into Social Security as everyone else by lifting the Social Security Cap
• More information can be found on Congressman Larson’s website: https://larson.house.gov/social-security-2100

Ramos Law thanks Congressman Larson, along with the great staffers from Senator Richard Blumenthal’s and Chris Murphy’s offices who set aside to time last Thursday to talk to Iván.  

Ramos Law Will Attend NOSSCR Disability Lawyers’ Conference in DC

Twice a year, the National Organization of Social Security Claimant's Representatives (NOSSCR) hosts a conference where disability attorneys and representatives from all over the nation meet for four days of panel presentations and seminars. This spring, from June 7th to June 10th, our very own Ivan Ramos and new Ramos Law attorney Tere Ramos will be traveling to Washington, DC to build their skillsets and network with other professionals in Social Security Disability advocacy. On June 8th, Ivan and Tere will be participating in NOSSCR’s  Capitol Hill Advocacy Day, where they and other disability lawyers will meet with congresspeople to lobby for legislation benefitting SSI and SSDI programs.

Ramos Law’s Jessica Smith and Ivan Ramos have attended previous NOSSCR conferences in DC, Denver, Philadelphia, and Seattle. There, they further expanded their literacy in Social Security Disability law through intensive workshops, seminars, and meetings. They gained valuable new insights into the field of Social Security Disability advocacy and legislation, which they brought back to the office to share with our clients. We’re looking forward to the new knowledge and connections Ivan and Tere can share with us after they come back from the spring 2017 NOSSCR conference.

We feel confident knowing that Ivan and Tere can bring their first-hand experience to Capitol Hill. Ivan will be an excellent resource for our nation’s lawmakers because of his level of professional expertise combined with his years of building personal relationships with the clients he serves. Tere has worked hard for disability rights for over a decade, advocating for and with families who are commonly marginalized. Both of their unique perspectives will bring a compassionate viewpoint to the congressional debate regarding social security, and make Ramos Law an excellent resource to our nation’s lawmakers.

The Different Types of Social Security Disability Programs

When a prospective clients calls my office looking for help, my staff tries to determine right away whether the caller meets the non-medical requirements of any of the Social Security Disability programs.  This is why in the initial consultation process, my office always asks extensive questions about the callers' work history and financial resources.   

Essentially, there are two different types of Social Security disability programs: Title II and Title XVI. Both programs use the same medical requirements. However, these programs have different non-medical requirements.  Before we agree to take a case, we need to determine whether the person meets the non-medical requirements. Unfortunately, we cannot be of any help unless the person meets the non-medicals.  

The be eligible for Title II, a person must have worked long enough and recently enough.  Generally, a person must have worked 5 out of the last 10 years.  Therefore, a person who calls our office looking for help for the first time should be ready to provide us with a fairly accurate work history. In an initial consultation, it is ideal to obtain a fairly good notion of how long the person worked in each one of his or her jobs in the last ten years.  Gaps in work, reduced hours and periods of unemployment can affect eligibility for Title II.  

Title XVI is a needs based program which is generally available for persons who are poor and have not been able to work.  To be eligible for Title XVI a person must have less than $2,000 dollars, one car and one house.  Bear in mind that sources of income and assets such as pensions and 401K plans can affect eligibility for Title XVI benefits.  More importantly, if a person has a spouse who works or has significant assets, he or she might not be eligible.  For these reasons, anyone who calls our office for the first time looking for help with a Title XVI case should be ready to give us information about their finances.  

Here is a brief explanation of Title II and Title XVI benefits and the sub-types of benefits available under each program:

Title II: Also Called Title 2 or DIB or SSDI (Social Security Disability Insurance)

A person is only eligible for Title II benefits if he or she has a sufficient work record (generally must have worked 5 out of the last 10 years.) Usually, the work record is of their own, but it can be that of a disabled or deceased parent(s) or spouse.

Different Sub-Types of Title II Benefits:

DIB-Disability Insurance Benefits

This is the most common type of benefit.  This is a claim on the applicants own employment record and social security taxes paid.

CDB-Childhood Disability Benefits

An individual may be eligible for CDB benefits if they are found disabled between the ages of 18 and 22 and they are the child of a wage earner who is receiving retirement benefits, disability benefits, or is deceased. They must also be or had been dependent on the wage earner and unmarried.

DWB—Disabled Widow’s Benefits

Surviving disabled widows or widowers may be eligible for disability benefits based on a deceased or surviving divorced spouse’s record.

Title 16: Also Called Title XVI, DI or SSI (Supplemental Security Income)

Persons applying for Ttitle XVI benefits must meet an income and resource test prior to qualifying for benefits. The Social Security Office determines eligibility.

Different Sub-Types of Title XVI Benefits:

DI—Disabled Individual

This is the most common type of Title XVI benefit. The claimant or applicant qualifies for benefits based on their limited income and resources.

DS—Disabled Spouse

A claim labeled as DS serves as an indicator that the claimant’s spouse is disabled and receiving benefits. The claim is worked the same as a DI claim.

DC—Disabled Child or Children's SSI

A DC claim is a disability claim for a disabled child under the age of 18. The child’s parents or guardian’s income and resources must be limited for the child to qualify for benefits.