Guide to Social Security Income (SSI) and Disability Benefits
Navigating the intricacies of Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) can be daunting, but it is crucial for those in need of financial support due to disability or low income.
What is Social Security?
When people think of social security, they might imagine the monthly payments they’ll receive once they retire, typically through Supplemental Security Income (SSI). However, the Social Security Administration supports a broader range of individuals beyond retirees.
The Social Security Act, and the Social Security Administration have established various programs designed to assist people with low incomes, including children, and those who have had to stop working due to medical conditions or disabilities. A person may receive monthly payments from the Social Security Administration if the following apply:
- Retirement: Monthly payments intended to partially replace income when a person stops working full-time, or altogether
- Disability: Monthly payments provided to people unable or limited in their ability to work due to a disability.
- Survivor: If a family member has passed away, having worked and paid social security taxes before they passed, eligible surviving family members may receive monthly payments.
- Family: This monthly payment benefit is provided to certain family members of people eligible for retirement or disability benefits.
What Does SSA Stand For?
The Social Security Administration (SSA) plays a pivotal role in administering benefits, ensuring eligibility criteria are adhered to, and benefits are distributed accurately. Knowing the differences between SSI and Social SSDI is vital, as each program supports different demographics and has varying qualification standards.
What is the Difference Between SSI and SSDI?
Both SSI and SSDI can assist individuals with disabilities who have limited income and resources. SSI is designed to provide financial aid to individuals who are age 65 or older, blind, or disabled. SSDI offers support based on an individual's accumulated work history, with individuals qualifying if they have a proven record of employment during which they contributed to Social Security. A person who receives SSDI must be unable to work due to medical conditions.
What Makes Someone Eligible for SSDI?
A person is generally eligible for SSDI If they:
- Have previously worked in jobs covered by Social Security.
- Have a medical condition that meets Social Security's definition of disability.
- Are unable to work for a year or more due to disability.
The above eligibility requirements are not exhaustive, it's recommended to visit the Social Security Administration website or visit your local Social Security Administration office to inquire about benefits and eligibility. Note, appointments are required when visiting a local Social Security Office.
Can I Work While On SSDI?
SSDI is designed to support individuals with limited income and resources, so there are specific thresholds on how much a person can earn while still receiving benefits. If you wish to work while on SSDI, it’s important to remain aware of income limits to avoid losing SSDI benefits.
What Makes a Person Eligible for SSI?
Generally, SSI recipients qualify for benefits because they are:
- Age 65 or Older
- Blind
- Disabled
If one of the above categories applies to an individual, they must also meet the following requirements to be eligible for SSI:
- Have limited Income and resources
- Be a U.S. citizen, national, or a noncitizen who falls into specific immigration categories recognized by the Department of Homeland Security (DHS).
- Be a resident of the 50 States, D.C., or Northern Mariana Islands.
- Not be confined to an institution at the government's expense (ex. hospitals, prisons).
- Apply for other cash benefits.
- Allow SSA to contact financial institutions.
- File an application and meet other requirements.
What Qualifies a Child for SSI?
Unlike Social Security Disability Insurance, which requires a work history, SSI is available to people without a work history, including children who meet specific criteria. generally, a child must be:
- Under 18; or 22 if regularly attending school
- Blind
- Disabled
- Living with a disability that results in severe functional limitations and is expected to last at least 12 months or result in death.
There is no minimum age requirement for a child to qualify for SSI, making it possible for them to qualify from birth until the age of 18. A key component in determining SSI eligibility for children is known as 'deeming'. The Social Security Administration considers a portion of the parents' income and resources as available to the child. The SSA makes deductions from deemed income for parents, considering other children living in the home, and the remaining amount is used to determine if the child meets the limited income and resource requirements for a monthly benefit.
SSI distinguishes between earned and unearned income. Earned income includes money received from working, such as wages or self-employment earnings, while unearned income encompasses all non-work-related income, such as Social Security benefits, pensions, and gifts. The SSA provides guidelines on the maximum income levels for households to determine SSI eligibility. These limits ensure the child's family has limited income and resources, which is a requirement for SSI benefits. If a family's income exceeds these thresholds, their child may not qualify for SSI.
In most states, a child receiving SSI can also qualify for Medicaid, providing essential healthcare coverage. However, even if a child does not qualify for SSI, they may still be eligible for Medicaid, depending on state-specific rules.
Can a Person Get Both SSI and SSDI?
It's possible to receive both SSI and SSDI simultaneously, known as "concurrent benefits," but this requires meeting specific eligibility criteria for each program. Qualifying for both often means the total income exceeds the thresholds set by the Social Security Administration, which can reduce or offset payments. However, receiving concurrent benefits provides more comprehensive support, with monthly payments offered through both SSI and SSDI. Additionally, most individuals who qualify for SSDI are also eligible for Medicare, which provides insurance coverage.
What Qualifies as Disability?
The Social Security Administration (SSA) defines disability as, "the inability to engage in any substantial gainful activity (SGA) because of a medically determinable physical or mental disability(ies) that has lasted or is expected to last for a continuous period of at least 12 months or is expected to result in death."
The Types of Disabilities Eligible for SSI
The Social Security Administration website contains in-depth details about each of the following categories of disability, and whether specific types of disability or severities are considered eligible. If a person has a diagnosis listed below, they may qualify for SSI:
- Musculoskeletal Disorders
- Special Senses and Speech
- Respiratory Disorders
- Cardiovascular System Disorders
- Digestive Disorders
- Genitourinary Disorders
- Hematological Disorders
- Skin Disorders
- Endocrine Disorders
- Congenital Disorders that Affect Multiple Body Systems
- Neurological Disorders
- Mental Disorders
- Immune System Disorders
Additional Category for Children:
Low Birth Weight and Failure to Thrive
Social Security Payment Structure
The amount of monthly payment a person receives can change from year to year and is also dependent on their relationship status. For children qualifying for SSI, the relationship status of their primary caregiver is important, as having two primary caregivers contributing to family income generally equates to greater income, which affects the amount of monthly payment received. A person who qualifies for SSDI can receive monthly payments and generally qualify for health insurance through Medicare. The amount a person receives per month under SSDI is determined by how much they earned while working in jobs where they contributed to Social Security.
Social security benefits and payments can change from year to year. For the most current information on benefits for people with disabilities, visit the Social Security Administration website.
