If you have a long-term disability, you may be eligible for Social Security Disability Insurance (SSDI) to cover expenses like housing or medical costs. However, navigating the SSDI system can be difficult, especially for those new to it.
To help you understand what to expect from disability insurance benefits, we’ve compiled some frequently asked questions and answers below.
What is Social Security Disability Insurance?
Social Security disability insurance helps Americans who have a medical condition that prevents them from working. Those who qualify for these Social Security benefits will receive a monthly benefit that they can use for anything they need to support themselves or their families.
The money that funds the Social Security Disability Insurance program comes from payroll taxes. Each worker pays into the program. Therefore, if they need SSDI later, the money is there for them to collect. This is why the program requires workers to earn a minimum number of work credits to qualify for a cash benefit if needed.
How many credits you collect depends on how much you work and earn in a year. For the 2023 work year, each worker gets a maximum of four credits when they earn $6,560.
How to qualify for SSDI?
To be eligible for disability benefits under the SSDI program, applicants typically must have a work history that qualifies them for benefits. This work history is determined by work credits earned, with up to four credits available per year based on the amount worked. To qualify for benefits, an applicant generally needs at least 40 credits, with 20 earned within the 10 years preceding the award of Social Security disability income.
In addition to work history, the SSA considers an applicant’s income to determine eligibility based on financial need. In 2022, an individual’s earnings from employment cannot exceed $1,470 per month in order to qualify for disability payments.
Most importantly, an applicant’s disability must meet the SSA’s criteria for a defined disability. A medical condition that falls under this criteria is necessary for an applicant to be eligible for benefits.
The SSA considers the following factors when determining eligibility:
- Your medical condition prevents you from doing the work you used to do.
- Your condition must fall within the SSA’s list of defined disabilities.
- Your condition prevents you from completing specific activities, like standing or walking, that you would need for SGA for at least 12 months.
- You’re unable to perform work that’s considered substantial gainful activity (SGA).
- Generally, the SSA decides whether your work is SGA based on how much you work and earn.
- If your condition prevents you from doing your previous work, but you’re unable to do other types of work to perform SGA, you could qualify for SSDI benefit pay.
Who decides if I’m approved for SSDI benefits?
The Social Security Administration has multiple departments to assist with tasks related to SSDI benefits. For SSDI disability claims, the Disability Determination Service is responsible for determining eligibility. Each state has its own Disability Determination Service.
When you apply for SSDI, your application is sent to your state’s Disability Determination Service. You may apply through your local SSA office, which then forwards your application to the DDS for disability determination. The DDS reviews your application based on the SSA’s requirements, assessing whether you meet the SSDI income limits, have a qualifying disability, and have enough work credits to receive Social Security benefits.
What is considered income when determining SSDI eligibility?
The Social Security Administration has set specific income limits for those applying for Social Security disability benefits through the SSDI program in 2023. To qualify, most applicants cannot earn more than $1,470 per month, while the limit for blind applicants is $2,460 per month.
When evaluating eligibility for SSDI benefits, the SSA only considers earned income, which includes wages or self-employment income. Other forms of unearned income, such as rental property or investment income, are not included in the determination. The SSA focuses on an applicant’s ability to work, which is primarily determined by their earned income. For example, even if an applicant has additional unearned income from sources like rental property or investments, the SSA will only consider the earned income from their job when evaluating their eligibility for SSDI benefits.
How to apply for SSDI?
If you prefer to complete a paper application, you can request one from your local SSA office. Fill out the forms and attach medical evidence of your disability with your claim. When you’re done, return all documents and the application to your local SSA office or send them by mail.
The SSA also offers phone applications, which is a good option for people who need assistance filling out their claims. The phone representative will ask all necessary questions and input your answers to send to the DDS to process your claim.
Alternatively, you may apply for SSDI online if you are 18 or older and have not been denied benefits in the past 60 days. First, print out the Adult Disability Checklist, which will help you learn what you will need to provide for the application. Then, set up a mySocialSecurity account, which will give you access to all the digital documents you need to fill out to apply.
Can SSDI be used for a short-term disability?
No, Social Security disability benefits are only for individuals with long-term disabilities that are expected to last for at least one year. The SSDI program does not cover partial disabilities, as the medical condition must meet the SSA’s qualifying disability criteria to make someone an SSDI beneficiary.
However, you may be eligible for short-term disability insurance through your employer or health insurance company. If your condition worsens and becomes a long-term disability, you may then be able to qualify for SSDI.
If you are unsure about what type of disability benefits you may be eligible for or how they may affect each other, it’s recommended to consult with a disability lawyer for assistance.
How long does it take for a decision?
To receive Social Security disability benefits, you will likely need to wait 3-5 months for the SSA to review your claim and medical evidence to make a decision.
Once your claim is approved, there is an additional waiting period of five months before you can begin receiving payments. This waiting period is in place for most claimants and ensures that payments begin on the sixth full month of disability.
For example, if your claim was approved on March 1st, 2023, and you became disabled on November 1st, 2022, your first payment would be for August 2023, which is the sixth full month of your disability. Since the SSA pays for the month following the month in which you are due benefits, you would receive your first payment in September 2023.
What are Quick Disability Determinations?
Quick Disability Determinations (QDD) is a process used by the Social Security Administration to determine eligibility in a faster manner. QDD uses advanced technology to screen applications for specific wording and conditions that could indicate eligibility for benefits.
This speeds up the approval process, reducing the waiting time for a decision. Even if your claim is denied, it can be used to start the appeals process. It typically takes only a few days or weeks, compared to the 3-5-month wait time required for most SSI benefit claims to be processed.
What are Compassionate Allowances?
Compassionate Allowances (CAL) are a way for the Social Security Administration to fast-track disability compensation for those with specific medical conditions. This streamlined process is designed for those with conditions that can be easily verified by the SSA, such as certain types of cancer or brain disorders, allowing them to receive benefits more quickly.
When someone applies for Social Security disability benefits, the DDS determines whether they qualify for a compassionate allowance based on their condition. This is often done through digital screenings that identify conditions that may be eligible for CAL. However, CAL applicants must still meet the same eligibility requirements as non-CAL claimants when the DDS decides whether their disability qualifies for compensation.
How much does SSDI pay?
Social Security Disability Insurance (SSDI) payments vary depending on how much the recipient earned through employment or self-employment prior to becoming disabled. On average, the SSA paid disabled workers $1,358 per month in 2022. However, the amount can increase or decrease based on the recipient’s lifetime earnings. Essentially, the more the recipient earned throughout their life, the higher their benefit will be.
It’s worth noting that the severity of the recipient’s disability does not impact the amount they receive from SSDI benefits. In other words, individuals with more severe disabilities do not receive higher payments than those with less severe disabilities.
Receiving the first month’s compensation can take several months after submitting an SSDI benefits application. However, some individuals may also qualify for back pay if they were disabled for several months before being approved.
Is SSI the same as Social Security Disability?
No. SSI does not require Social Security credits, but it does require a qualifying disability and limited income. Both adults and children with disabilities may qualify for SSI.
Which pays more, SSI or SSDI?
SSDI (Social Security Disability Insurance) typically pays more than SSI. SSDI benefits are based on how much a person has earned throughout their lifetime, while SSI benefits are income-based. In 2022, the average SSI payout for individuals is $914 a month, while SSDI pays, on average, $1,358 per month.
Can I Work While Receiving Social Security Disability Benefits?
Yes, individuals who qualify for Social Security disability benefits can work to an extent. However, there is a limit to how much they can earn before the Social Security Administration considers them capable of maintaining substantial gainful activity. For most people, this amount is $1,470 in 2023, while for blind individuals, it’s $2,460. You can work while applying for benefits or after you begin receiving them. The SSA may also help you return to work without disrupting your benefits by offering a work trial period.
What Is an Extended Period of Eligibility?
An extended period of eligibility (EPE) is available to SSDI beneficiaries who want to return to work after the SSA’s work trial period. The EPE lasts for 36 months after the work trial period ends and helps protect SSDI benefits for those who are returning to work.
During this period, the beneficiary must report their earnings to the SSA. If their income exceeds substantial gainful activity, they get a three-month grace period of payments. After this grace period, they’ll only receive an SSDI check for the months in which their income qualifies them for it based on their substantial gainful activity income.
Are Social Security Disability Payments Subject to Taxes?
Generally, Social Security disability benefits are not taxable. However, beneficiaries may have to pay taxes if they earn other income or live with someone who earns a lot. This happens when their combined income exceeds a certain threshold.
The filing status of the beneficiary also affects whether their benefits are taxable. For instance, single and head-of-household filers may have a portion of their benefits taxed if their income and one-half of their SSDI benefits exceed $25,000 a year. Married and filing jointly filers may have their benefits taxed if one-half of their benefits plus their other income exceeds $32,000 a year.
To determine whether their Social Security disability benefits are taxable, the best approach is to use the IRS calculator.
Can I collect Social Security disability and retirement benefits at the same time?
No, beneficiaries cannot collect Social Security disability benefits and retirement benefits simultaneously. Social Security disability benefits convert to retirement benefits automatically when a person reaches retirement age.
The exception to this is if a person files for early retirement before reaching full retirement age and later becomes approved for SSDI. In this case, they may receive SSDI and retirement benefits until they reach full retirement age.
However, some people receive both Supplemental Security Income and retirement benefits at the same time if their unearned income from retirement does not push them above the SSI income threshold. As of January 2023, the average retirement benefit from the SSA was $1,827 per month.
How long will my Social Security Disability Insurance benefits last?
In most cases, SSDI benefits last until the beneficiary reaches full retirement age or is no longer disabled. However, the SSA may review cases in which a medical condition is expected to improve and require beneficiaries to provide medical evidence and answer questions to continue receiving benefits. Beneficiaries with conditions that are not expected to improve may still need to complete reviews every 5-7 years.
What is SSDI back pay?
SSDI back pay is compensation for the months that a person was disabled and waited for approval, minus the five-month waiting period for benefits to start. If the SSA determines that the person was disabled during this waiting period, they may receive back pay.
Example:
You applied for benefits on May 1st, 2021.
The SSA approved your claim on May 1st, 2022, but considered you disabled since May 1st, 2020.
As a result, you’re eligible for the 11 months you waited for approval, minus the five-month required waiting period.
Therefore, you could get six months of back pay from the SSA.
In some cases, the back pay is paid within 60 days of claim approval, and disability lawyer fees may be deducted from this lump sum.
Can I get SSI and SSDI at the same time?
It is possible to receive both Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) benefits at the same time if someone qualifies for both programs. However, it’s important to note that receiving SSDI will likely decrease the amount of SSI payment, potentially resulting in a lower payment or no payment at all.
What is a Disability Update Report?
A Disability Update Report is a mandatory report that the SSA requires to review the status of someone’s disability. It includes questions and may require medical information to determine whether the individual still qualifies for benefits. The SSA will notify the individual when they need to complete the report, and it can be submitted online or through the mail.
What happens if my SSDI claim is denied?
If your Social Security Disability Insurance claim gets denied, you have the option to appeal the decision. The SSA’s denial letter will explain the steps that can be taken to appeal the decision.
Sometimes, all that’s necessary is to send in more medical evidence that supports your claim. However, beneficiaries can also choose a reconsideration, which asks the SSA to review the claim again.
It’s also possible to ask for an appeal, which sends the case to an administrative law judge and court hearing. At any step of the appeals process, you can hire a disability lawyer to represent and assist you.
Do I need a disability lawyer?
While it’s not mandatory to have a disability attorney when applying for Social Security disability benefits, having one can prove to be extremely advantageous for your claim.
A disability lawyer can aid you in completing your application, gathering the necessary medical evidence, submitting any additional documentation, and even filing an appeal if your initial claim is denied. They can also offer valuable support and guidance as you navigate through the complex system, providing you with a better understanding of each step of the process.
Understanding your Social Security disability benefits
The Social Security Administration offers two programs, SSDI and SSI, to help people with disabilities pay for their basic needs like housing, clothing, and food. While SSI is available for both children and adults, only those who have earned enough work credits can qualify for SSDI.
There is only one application for both programs, so that makes it easier to apply. The SSA uses the same information to determine eligibility. However, if you find the application process daunting, you may want to consider hiring a disability lawyer. In most cases, you won’t have to pay them until you start receiving benefits.