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There are two federal programs that individuals can apply for when they become disabled and are unable to work. Figuring out the difference between these two programs can often be confusing. Here are some basic similarities. Both of these programs — Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) — are funded by the federal government to provide financial support for individuals who are disabled for 12 or more months. In both programs you are required to prove that you are not able to work as a result of a physical or mental condition. For both programs, you must also show that your condition is expected to last for at least 12 months or result in death.
So what is the difference between SSDI and SSI? The major difference between SSDI and SSI is the non-medical proof you must show to qualify.
SSDI is a federal insurance program of the government that is funded by your payroll taxes. That means if you are working and paying taxes, you are paying into this federal insurance program. Your eligibility for SSDI is based on whether you have worked for enough time and paid enough into the system. Generally, if you have worked for 5 of the past 10 years as of the date of onset of disability, you will qualify for SSDI. Younger claimants need to work for less time to become insured by SSDI. Your benefit amount is based on your earnings. By and large, the more you earned, the more benefits you will receive if you qualify for SSDI.
SSI is a needs-based program of the government administered by the Social Security Administration (SSA). To qualify, SSA will evaluate your financial situation, and not your previous work. SSA will assess your financial situation by examining your assets and determining how much SSI benefit you are eligible for based on any income you receive.
In certain circumstances you can receive benefits under both SSDI and SSI. This generally occurs when you apply for and qualify for both programs and your SSDI benefits are under the SSI benefit amount you would be eligible for. As a result, it is generally a good idea for claimants to apply for both SSDI and SSI at the initial stage of the application process to ensure receipt of the maximum benefits.
For help with a Social Security claim at any stage, you should consult with a qualified and experienced Social Security Disability attorney. Consulting with a Social Security Disability attorney early on in the process can often help you make a stronger case for benefits.
If you need an attorney who is experienced in representing clients seeking SOCIAL SECURITY DISABILITY INSURANCE (SSDI) or SUPPLEMENTAL SECURITY INCOME (SSI) benefits, contact Disability Advocates Group today at (800) 935-3170, or online to schedule a free initial consultation.
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Navigating social security benefits can be confusing and overwhelming. Supplemental security income (SSI) and social security disability insurance (SSDI) are two of the most common social security benefits, but what's the difference between them? Which program (SSI vs. SSDI) is suitable for your situation? SSI and SSDI are both federal financial assistance programs overseen by the Social Security Administration (SSA). While SSI and SSDI serve
similar populations, though, they're different programs with different requirements, benefits, and funding sources. SSI is a federal benefit program that provides financial assistance to very low-income Americans who are blind, have a qualifying disability, or are over 65. SSI Eligibility Anyone may apply for SSI. To be eligible, though, you must be a blind, disabled, or elderly American who
also: SSI is a means-tested benefit. You must have limited income and assets
to qualify for SSI. As of June 2022, an individual must have less than $2,000 in financial assets to qualify for SSI. Some assets don't count against this limit, though, like your primary residence and car. The Social Security Administration uses a complex formula to determine if you meet the income eligibility requirements for SSI. Generally, you qualify if your income is $1,767 monthly or less as of 2022. SSI Funding U.S. Treasury general funds fund SSI.
While the Social Security Administration administers the program, it's not funded through social security taxes. Many states supplement federal benefits with additional payments financed by the state. SSI Regulations As a means-tested benefit, a change in your financial situation can change your eligibility for SSI or the amount of financial assistance you receive. You're required to inform social security of any changes in financial circumstances,
including:What Is SSI?
If you marry another SSI recipient, your payments will decrease, as the maximum couple's benefit is less than two individual benefits. Disability activists refer to this reduction in benefits as the 'marriage penalty.' Suppose, on the other hand, that your spouse is not an SSI recipient. In that case, social security will consider their
income when determining eligibility for benefits. SSI Healthcare
If you receive SSI payments, you likely qualify for Medicaid. In many states, SSI recipients automatically receive Medicaid and don't have to apply.
What Is SSDI?
SSDI is an "insurance" program that pays benefits to disabled individuals and certain family members.
SSDI Eligibility
To qualify, you must have worked long enough and recently enough to be considered "insured". The length of time you're required to work varies by age — as you get older, you'll need more years of work to qualify.
Social security credits determine SSDI payments. You earn credits by paying social security taxes. The more you pay in social security taxes, the more credits you get, up to a maximum of four credits per year.
To qualify for SSDI, you must:
- be unable to work due to a medical condition that's expected to last at least one year or result in death
- meet the SSA's definition of a disability
- be younger than your full retirement age
SSDI Funding
SSDI is funded primarily by social security payroll taxes. Employers and employees each pay an SSDI tax of 0.9% on earnings up to social security's tax cap.
SSDI Regulations
SSDI is not means-tested, but you can lose benefits if you earn enough income. If you work while receiving SSDI, you must report your income to the SSA.
Meanwhile, you may be eligible for SSDI without a work history if you meet specific requirements:
- You're a disabled widow, widower, or surviving divorced spouse between age 50 and 60 with a disability that manifested before or within seven years of the spouse's death or divorce.
- You're an adult with a disability that started before age 22. You may be entitled to receive benefits based on your parent's social security earnings record.
SSDI Healthcare
If you receive SSDI payments, you automatically qualify for Medicare, even if you are under age 65. Most SSDI recipients must wait 24 months after disability benefits begin, though, before they are eligible for Medicare.
If you have amyotrophic lateral sclerosis (ALS) or end-stage renal disease, you're exempt from this waiting period.
The differences in SSI vs SSDI benefits include: SSI vs SSDI Eligibility Eligibility for SSI is based on age, blindness, disability, and income level. Eligibility for SSDI is based on disability and work history. SSI vs SSDI Benefit Amount SSI and SSDI have different benefit amounts. The average monthly SSI payment (January 2022) is $624. The
average monthly SSDI payment (as of January 2022) is $1,223. The maximum monthly benefit for SSI in 2022 is $841 for a single person or $1,261 for a married couple. The maximum monthly benefit for SSDI in 2022 is $3,345. SSI vs SSDI Healthcare In most states, people receiving SSI benefits automatically qualify for Medicaid as soon as their benefits begin. SSDI recipients qualify for Medicare after a 24-month waiting period from
the time benefits began — unless they have ALS or end-stage renal disease, in which case there's no waiting period.SSI vs SSDI Benefits