What’s the Difference Between SSI and SSDI Law?


The chief difference between Social Security Disability (SSD, or SSDI) and Supplemental Security Income (SSI) is the fact that SSD is for workers who have accumulated a sufficient number of work credits, while SSI disability benefits are for low-income individuals who have either never worked or who haven’t earned enough work credits to qualify for SSD.

Though many people don’t or can’t tell the difference between SSI (Supplemental Security Income) and SSDI (Social Security Disability Insurance), they are two completely different governmental programs. While both programs are overseen and managed by the Social Security Administration, and medical eligibility is determined in the same manner for both programs, there are very different aspects between the two.

What Is SSI?If I Move to a Different State Will I Lose My Disability Benefits?

Supplemental Security Income is a program that is stringently need-based, according to income and assets. SSI is funded by general fund taxes. SSI is called a “means-tested program,” which means it has nothing to do with work history, but only with financial need. To meet the SSI income requirements, you must have less than $2,000 in assets (or $3,000 for a couple) and a severly limited income.

Disabled people who are eligible under the income requirements for SSI are also able to receive Medicaid in the state they live in. Many who qualify for SSI will also qualify for food stamps, and the amount an eligible person will receive depends on where they live and the amount of regular, monthly income they have. SSI benefits will begin on the first of the month when you first submit your application.

What Is SSDI?

Social Security Disability Insurance is funded through payroll taxes. SSDI recipients are considered “insured” because they have worked for a certain number of years and have made contributions to the Social Security trust fund in the form of FICA Social Security taxes. SSDI candidates must be younger than 65 and have earned a certain number of “work credits. If a disabled person has received SSDI for two years, they are then eligible for Medicaid.

Under SSDI, the spouse and children dependents of the disabled are eligible to receive partial dependent benefits. These are called auxiliary benefits. Although, only adults over the age of 18 can receive the SSDI disability benefit.

There is a five-month waiting period for benefits. This means that the SSA won’t pay you benefits for the first five months after you become disabled. The amount of the monthly benefit once the waiting period ends depends on your earnings record, a lot like the Social Security retirement benefit.

Do you need help navigating it all? Contact us today.


How Many Work Credits Do I Need for SSDI Eligibility?

How Many Work Credits Do I Need for SSDI Eligibility?

You must have earned enough work credits to have gained insured status in order to be eligible for Social Security Disability Insurance. The units Social Security uses to measure how much claimants have worked are called work credits. In general, one quarter of work is equal to one work credit. To be more specific, in 2013, one work credit was equal to $1160 in work and four work credits was equal to $4640. All four credits (a year's worth of work) can be earned in just one quarter or throughout the year.

Social Security's Recent Work Test is a something you must pass in order to qualify for SSDI benefits. For those at least 31 years of age you must have worked five of the last 10 years (20 of the last 40 quarters). Using the work credit concept, you must have earned 20 credits in the last 10 years before you became disabled. There are, however, special rules for those under 31 years of age that may qualify them for SSDI even if they haven't worked five of the previous 10 years. For those aged 24 to 30, you must have worked at least half of the time that has passed since you turned 21. Similarly, if you're under the age of 24, you must have earned at least six work credits or worked at least 18 months in the last three years before you became disabled.

You must also pass the duration of the work test in order to be eligible for SSDI. Passing this test requires that you have worked a particular number of years based on the age at which you become disabled. To pass this test, your work DOES NOT have to fall within a certain period of time. Find details at http://search.socialsecurity.gov/search?affiliate=ssa&query=work+credits.

Maddox and Laffoon can help! If you need help deciphering if you have enough work credits to be eligible for SSDI, contact us.



Arthritis Sufferers and SSDI Benefits

Arthritis Sufferers and SSDI Benefits

Much of the elderly population in the United States suffers from the disease of arthritis, but were you aware that many young people also are also affected by this debilitating disease? Approximately two thirds of Americans that suffer from arthritis are actually under the age of 65. This means they're working force age and arthritis can be and is affecting their performance at many of their jobs.Arthritis Sufferers and SSDI Benefits

Believe it or not, arthritis is one of the most common causes of disability in the country. Not only is this true, but the Centers for Disease Control and Prevention also expect more Americans to be diagnosed with this condition as time goes on. Arthritis can be quite serious as it places physical limitations on many of its sufferers making it hard or impossible to do some work tasks. It's estimated that one third of people with arthritis suffer from related physical limitations.

Groups like the Arthritis Foundation are trying to raise awareness for the seriousness of this disease and the impact it can have on individuals. These groups say that the disease is not often seen as a big deal because it doesn't have a high mortality rate in comparison to other conditions. This may be so, but people need to be aware of the suffering and hardship that arthritis does cause for those who suffer from it. Arthritis can really affect a person's life and their ability to work.

In fact, arthritis can really be a crippling disease. When younger people suffer from this condition, they often work slower and find it difficult to complete tasks at work due to the pain and physical limitations that it causes. Arthritis sufferers that struggle at work or can't work may be surprised to know but SHOULD realize that they can apply for Social Security Disability Benefits. These benefits can help individuals pay for basic monthly expenses and medical bills that can otherwise be difficult to afford. 

Disability is No Respecter of Age

Disability is No Respecter of Age

A disability can be crippling…and not just to an individual's body but also to their ability to earn a living. Disability can also harm a family's overall financial plan. It can harm it even more so than the death of the "bread winner" in the family. This is so because the disabled individual still has expenses to pay including medical and that of ongoing care.Disability is No Respecter of Age

The answer to such a family tragedy is a thing called disability insurance. However, many family's financial plans don't include this because they simply don't see themselves ever needing it. This is not wise. Disability insurance should be seen as an essential part of the family unit's financial plan.

Did you know that according to the U.S. Census Bureau in 2010, approximately 19% of the U.S population was living with a disability? Additionally, about 40% of those were individuals of the working force age of between 18 and 64 years old. The Social Security Administration projects that one in four of today's 20-somethings will become disabled before they hit their mid 60s.

As you can see, just as important as saving for retirement or college or having an emergency fund, is also having disability insurance. None of us knows what tomorrow has in store. Therefore, obtaining disability insurance is a basic wise and caring action to do for ourselves and loved ones.

There are three types of disability insurance. They are: employer sponsored plans, private individual insurance and government sponsored plans like Social Security Disability.

Most people assume Social Security will automatically take care of them should they become disabled. This is a common misconception. The reality is it can be very hard to get approved for Social Security disability benefits. In fact, in 2010, about 65% of initial Social Security Disability Insurance claims were denied.

A second misconception the majority of people have is that disability occurs due to accidents. In actuality, most disability occurs due to illness.

The fact is disability can happen to ANYONE at ANYTIME and for reasons you might be surprised by. Do the right thing and educate yourself and prepare yourself as well as your family.