Social Secuirty Disability (SSDI) vs. Supplemental Security Income (SSI)

SSI (Supplemental Security Income) and SSDI (Disability) are the two disability programs managed by the Social Security Administration (SSA).  To qualify for SSDI (Disability), you must meet the SSA’s definition of disability and have a sufficient amount of credits from previous work to meet the earnings guidelines outlined in the Social Security law.  These credits are related to the FICA (Social Security) taxes you paid when you were able to work; while you were working, you were effectively paying into the SSDI system.

By contrast, SSI benefits are distributed to disabled individuals who do not meet SSDI earnings requirements – typically individuals who do not have a strong work history, have not worked in a long time, or even have not worked at all.

SSDI Earnings Requirements

To qualify for SSDI, your earnings record and work history have to be relatively recent and you should have at least a few years of work history under your belt.  For instance, if you are in your forties or fifties, you should have worked for approximately 5 out of the previous 10 years.  A person can earn up to four credits for every year worked and the total amount of earnings you need for one credit adjusts annually.  In 2006, you needed to have earned $970 in order to earn 1 credit and once you had earned $3,880, you would have been eligible for all four credits.

If you review the amount of money you earned over the past ten years and you see you made approximately $3,000 a year for five of those ten years, then you are more than likely insured.  I posted a SSDI earnings table on my Social Security blog setting out the earnings requirements.

For claimants under the age of forty, you may be eligible for SSDI with a smaller amount of earnings credits.  When I take a case, I request for your earnings and benefit statement.  These documents will tell me if you have actually contributed enough in Social Security taxes to be “insured” for Disability.  Keep in mind, you must have worked and paid Social Security taxes for 5 out of the previous 10 years in order to be insured for SSDI benefits (though there are exceptions).

SSI Eligibility Requirements

Unlike SSDI claimants, SSI claimants are not required to have recent earnings or ANY earnings.  But children, housewives, and any others who have never worked are eligible for SSI disability benefits only if they meet the Social Security definition of disability requirements.  They must be unable to work due to a long-term, medically determinable medical condition that impairs significant activity.

Because SSI is a welfare program of sorts, there are certain requirements.  You must be able to prove to Social Security that you have a very low income and very limited resources.  So, if you have a spouse that works, you more than likely earn too much income for SSI.  Put simply, SSI is reserved for disabled people who are poor.

The amount of money that you get from SSI benefits is set out in the law, adjusts annually, and is typically much less than the amount a similarly disabled SSDI claimant would receive.  SSI benefits adjust annually to account for inflation.  As an example, back in 2006, a disabled SSI claimant would receive $603 monthly and $904 if married.  In 2007, the maximum individual benefit was $623 and a married couple received $934.

Another service that I offer my clients is counseling on how to characterize loans or other support from family members (sometimes known as income offsets).  If you are not careful, Social Security will decrease your SSI check by the “value” of such offsets – the rent, food, and other living expenses provided to you by family members and parents.

You can qualify for both SSDI and SSI benefits.  However, your payment amount will be the higher of the two; you do not receive both benefits.