The Difference Between Social Security Disability Insurance And Supplemental Security Income
The Social Security Administration operates two disability benefits programs. When you apply for disability, you have to be aware of the difference between Social Security Disability Insurance and Supplemental Security Income. SSDI requires a certain amount of work credits while SSI is based off financial needs.
Having the initials of these plans only a letter apart virtually guarantees confusion among those who may not be aware that they are two different disability programs. Yet that one letter is extremely important since there is actually a big difference between the two disability benefit packages.
Social Security Disability Benefits
The Social Security Administration administers the Social Security Disability Insurance and Supplemental Security Income programs. These;programs;have the same definition of disability but have different eligibility requirements.
Social Security Disability ;
Social Security Disability ;is a Federal insurance program designed to help people with disabilities who are no longer able to work because of one or more severe;medical conditions. Disabled workers are eligible to apply for SSDI if they have worked long enough and earned sufficient wages over the past 10 years. ;To be fully insured for purposes of eligibility, a workers Social Security account must be credited with at least 20 quarters of earnings in the past 10 years, or 40 quarters. ;
Supplemental Security Income ;is the SSAs financial needs-based program for disabled individuals with income and assets below a certain level.
A person is disabled according to SSA if they have a severe medical impairment or combination of impairments lasting or expected to last 12 months or more. ;During that year, your condition must prevent you from working and earning what is considered substantial and gainful income. ;While many of our clients are over age 50, injury or illness can impact a person at any stage of their life.
If you have earned sufficient work credits for SSDI or meet the financial need-based criteria for SSI benefits, you may qualify for benefits any time prior to full retirement . ;
Do I Need To Report My Disability Insurance Benefits For Tax Purposes
No, your benefits are not reportable for tax purposes. However, if you are receiving Unemployment Insurance benefits, become unable to work due to a disability, and begin receiving DI benefits, a portion of your DI benefits will be reported for tax purposes.
If this happens, we will send you a notice with your first benefit payment. This notice will tell you that your benefits are being reported to the IRS. In January we will provide you with a 1099G form showing the reportable amounts paid . We will also send a copy of the 1099G to the IRS.
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Whats The Difference Between Ssdi And Ssi
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 and Supplemental Security Income 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.
Social Security Disability Vs Short Term Disability: Which Is Right For Me
When people refer to Social Security disability they are often referring to the Social Security Disability Insurance;program. Sometimes we abbreviate this to;SSD;or;SSDI. However, people with disabilities who have little income and few resources, may also be eligible for disability payments through the;Supplemental Security Income;program. This is often abbreviated;SSI.;A vast majority of disability claimants fall under the;SSDI;and/or the;SSI;disability programs.
Social Security disability is not intended to be a short term disability program. To the contrary, unless your condition lasts or is expected to last more than one year, you are not eligible for Social Security disability.;On the other hand, short term disability and long term disability insurance can provide benefits if you will be disabled for less than one year.
When considering Social Security disability vs short term disability, the length of your disability will often tell us which program is better for you.
Thus, when considering Social Security disability vs short term disability, your eligibility for these programs will also tell us which program is better for you.
It is possible to qualify for both short term disability and Social Security disability if you meet the requirements for both programs. So in some cases, it may not be a question of Social Security disability vs short term disability but Social Security disability AND short term disability.
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We Can Help You Contact Us Today
To make an appointment at one of our Tennessee law offices Knoxville or Nashville call 865-566-0125 or fill out this;contact form. All initial telephone consultations are free and payment is contingency based, meaning no fees until you recover benefits.
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Mr. McKellar represented me in a tax case. He is extremely knowledgable and explained very complicated IRS information to me in a way that I could understand. He was able to resolve my tax debt for a fraction of what the IRS said I owed.
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What Are Social Security Benefits
The Social Security program that we know today originally began in 1935, when the Social Security act was signed into law by President Franklin D. Roosevelt as part of the Second New Deal. ;The primary goal of the Act was to provide financial aid for children, the unemployed, and the elderly. At the time the legislation was passed, the country was still only midway into the Great Depression, and the Social Security Act was accompanied by several other measures designed to jumpstart the economy and provide financial relief to those in need.
Social Security benefits include the following:
- Social Security Disability Income benefits
- Survivor benefits
- Social Security benefits for children
- Supplemental Security Income benefits
- Social Security retirement benefits
What Happens To Disability Payments When You Turn Age 65
Disability payments may be rolled over into retirement payments, paid in lieu of retirement payments, or paid in addition to retirement payments. People receive disability payments from sources including private insurance, Social Security and the U.S. Department of Veterans Affairs . People who receive disability from the VA may also receive disability from Social Security or another program. Disability benefits may or may not be affected when you reach the retirement age of 65.
How Social Security Disability Insurance Can Complement Long
If you purchase a long-term disability insurance policy, you may choose to add a social benefits offset rider to the policy. A rider is additional coverage you can add to a policy that enhances or increases your benefits. The social benefits offset rider allows SSDI to complement your LTDI coverage.
The way it works is that you pay lower premiums on your LTDI policy in the expectation that, if you become disabled, youâll apply for SSDI coverage and receive benefits from the U.S. government that offset the amount the insurance company has to pay. If your LTDI coverage is for $4,000 per month, but the SSA pays you $1,000 per month, the carrier only has to pay $3,000 per month.
Using the above example, if your LTDI policy has a social benefits offset rider but your Social Security benefits claim is rejected, youâll still receive the full $4,000 per month in benefits â it will just come solely from LTDI company.
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Can I Get Disability Insurance If I Go To A Drug Rehabilitation Facility Recommended By My Physician/practitioner
You may qualify for up to 45 days of Disability Insurance benefits if you live at a physician/practitioner-approved drug-free residential rehabilitation facility. An additional 45 days may be paid if you remain a resident of the facility and your physician/practitioner continues to certify to your need for continuing residential services.
How Are Social Security Disability Benefits Calculated
Mathematically speaking, Social Security Disability Insurance is calculated in the same way as Social Security retirement benefits. Both are based on your record of covered earnings work income on which you paid Social Security taxes.
The Social Security Administration starts by figuring your average monthly income across your working life, adjusted for historical wage growth. It then plugs that figure into a formula to determine your primary insurance amount , also known as your full retirement benefit.
The PIA formula is progressive weighted to provide proportionally higher benefits to lower earners and its the same whether youre claiming retirement or disability benefits. What differs is how much income data goes into determining your full benefit and when you can collect it.
For retirees, the SSA uses the 35 highest-earning years to calculate the monthly average income and PIA. You become eligible to claim that full amount at full retirement age, which is 66 and 2 months for people born in 1955 and is gradually rising to 67. Benefits are reduced if you claim earlier by as much as 30 percent if you start taking them at the minimum age of 62.
Exactly how much of your earnings history is included depends on arcane Social Security terms like elapsed years and computation years, but basically, heres how it works.
Regardless of your age, if your SSDI claim is approved, youll be awarded your full benefit 100 percent of your PIA.
Keep in mind
Does Ssi Affect Short Term Disability
Generally, SSI would not affect short term disability. From a practical standpoint, you would receive short term disability benefits well before receiving SSI benefits. Additionally, these programs are intended for different purposes. Short term disability benefits are intended to cover 13 weeks of missed employment. SSI is a long term disability program which requires you to be disabled for a year or more.
Other Facts You Should Know
When you apply for Social Security Disability benefits, you should be screened for both SSDI disability and SSI. If you are awarded SSDI benefits of an amount less than a thousand dollars per month, it would be wise to consult with a representative to check if you may qualify for SSI as well.
When you make a disability claim for SSI, you may also be required by the Social Security Administration to provide financial records which include bank statements, mortgage and lease agreements, savings and other financial data that will let them assess your financial status.
You can seek the help of a Social Security Disability lawyer or advocate to help make the application process for Social Security Disability benefits or appealing a decision much more manageable.
If you have a question regarding your SSI or SSDI case, you can ask in our forum here.
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Information You Need To Apply
Before applying, be ready to provide information about yourself, your medical condition, and your work. We recommend you print and review the . It will help you gather the information you need to complete the application.
Information About You
- Your date and place of birth and Social Security number.
- The name, Social Security number, and date of birth or age of your current spouse and any former spouse. You should also know the dates and places of marriage and dates of divorce or death .
- Names and dates of birth of children not yet 18 years of age.
- Your bank or other and the account number.
Information About Your Medical Condition
- Name, address, and phone number of someone we can contact who knows about your medical conditions and can help with your application.
- Detailed information about your medical illnesses, injuries, or conditions:
- Names, addresses, phone numbers, patient ID numbers, and dates of treatment for all doctors, hospitals, and clinics.
- Names of medicines you are taking and who prescribed them.
- Names and dates of medical tests you have had and who ordered them.
Information About Your Work:
- Award letters, pay stubs, settlement agreements, or other .
We accept photocopies of W-2 forms, self-employment tax returns, or medical documents, but we must see the original of most other documents, such as your birth certificate.
Do not delay applying for benefits because you do not have all the documents. We will help you get them.
State Disability Insurance Offset And Retirement Benefits
The short-term disability offset does not apply to those receiving Social Security retirement benefits. So if you are over age 62 or approaching age 62, you may want to consider filing for early retirement benefits to avoid the SDI offset. However, since retiring early will lower your Social Security retirement payment , youd have to do the numbers both ways to see whether this would benefit you. If youre not sure, ask a disability attorney or contact your local Social Security office for help with the calculation.
Does Social Security Disability Affect Short Term Disability
Generally, Social Security disability does not affect short term disability. Because short term disability applies to such a short period of time, there is no overlap between the programs. Short term disability generally pays benefits for about 13 weeks . Social Security disability on the other hand does not start paying benefits until youve been disabled for five full months.
For this reason, SSD does not generally affect STD benefits. You do not ordinarily have to repay the short term disability carrier because you are typically paid benefits for different periods of time.
What Is A Social Security Card
Your Social Security card is an important piece of identification. You’ll need one to get a job, collect Social Security, or receive other government benefits.
When you apply for a Social Security number , the Social Security Administration will assign you a nine-digit number. This is the same number that is printed on the Social Security card that SSA will issue you. If you change your name, you will need to get a corrected card.
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What Is Social Security Disability
Social Security is a federal government entitlement program that provides benefits to disabled workers as well as people with limited financial means. There are two federal programs: Social Security Disability Insurance and Supplemental Security Income , both of which operate under the purview of the Social Security Administration .
Will Va Benefits Reduce My Unemployment
Another question many veterans have about their benefits is whether unemployment benefits are reduced or otherwise impacted by VA benefits.
The answer is that disability compensation payments from the VA do not reduce the amount of your unemployment benefits. Veterans can receive full unemployment compensation along with full disability payments from the VA.;
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Since Disability Benefits Are Unearned Income Are They Taxed
Your other income besides disability payments determines if your disability benefits are taxed or not. Your benefits are considered together with income from taxable disability plans, investments, and pensions by the IRS. In 2016, a single person may make up to $25,000 a year without being taxed on disability benefits, and a couple may make up to $32,000 a year without any disability benefits being taxed.
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Can You Be Eligible For Ssi And Ssdi
Yes, you can eligible for both programs at once. If your income and assets are low enough and you have the necessary work history, you could potentially qualify for benefits from both programs. Theres even a name for applying for both SSI and SSDI at the same time: The Social Security Administration calls it making a concurrent claim.
There is one tricky thing about receiving both benefits. Any money you receive from SSDI will count toward the income limit for SSI. So, if you receive too much from SSDI, that may disqualify you from SSI benefits.
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