SSDI and SSI: Similar but Different Disability Programs

If you find yourself unable to work, it is important to know what your claim options are.

As a Louisiana Social Security disability lawyer who talks to people every day about their options for disability benefits, I realize many people don’t understand the differences between Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).

Both programs are overseen and/or managed by the Social Security Administration. Both SSI and SSDI employ identical medical eligibility to evaluate disability, ensuring that eligibility is based on consistent medical evidence and functional abilities.

Although the forms may differ, both programs use a shared application process and rely on a single disability determination.

However, that’s about as far as the commonalities go, as they are two different governmental programs.

Two of the largest differences between the two programs are:

• SSDI has a work history component, while SSI does not.
• SSI has strict household income and asset limits, while SSDI does not.

What are the Differences Between SSI and SSDI?

Social Security Disability Insurance (SSDI) is available to people who are medically eligible AND have a work history of paying into the Social Security program. There are no household asset or income limits.

Supplemental Security Income (SSI) is available to people who are medically eligible but do not have a sufficient work history. SSI is need-based and only available to those who fall under strict income and asset limits.

Who Can Apply for Disability?

SSDI:

• Disabled workers under 65
• Widows, widowers, adults disabled since childhood
• Applicants must have paid FICA Social Security taxes

SSI:

• Individuals who are blind, disabled, or aged 65+
• Individuals with insufficient work history for SSDI
• Individuals with low income and limited resources

What are the Work Requirements for Disability?

• SSDI: Requires sufficient work credits
• SSI: No past work requirements

What are the Income and Asset Limits for Disability?

Social Security Disability Insurance (SSDI):

• Assets:
  • No asset limits
• Income:
  • No limits on household income
• Work Earnings:
  • Strict limits on how much the applicant can earn from working while receiving benefits
  • Applicants typically must not engage in substantial gainful activity (SGA) to receive benefits
  • No limits on work earnings from others in the household

Supplemental Security Income (SSI):

• Assets:
  • Individuals: Must have less than $2,000 in assets
  • Couples: Must have less than $3,000 in assets
• Income:
  • Strict household income limits apply
  • Only available to those with very limited income
• Work Earnings:
  • Earnings from work while on benefits are strictly limited to maintain eligibility
  • Earnings limits apply not only to the applicant but everyone in the household

Key Differences:

• SSDI does not have limits on assets or household income but restricts the earnings from work to ensure the applicant is considered disabled under the program’s rules.
• SSI has stringent limits on both assets and income, making it a need-based program for individuals with low income and limited resources.

What are the Medical Requirements for Disability?

The medical requirements for Social Security Disability (SSDI) and Supplemental Security Income (SSI) are the same.

To qualify for SSI or SSDI, the applicant must pass Social Security's evaluation process to determine disability eligibility.

For disabled workers, your disability must keep you from doing any work ("Substantial Gainful Activity") and be expected to last for 12 months or result in death.

How is the Benefit Amount Determined for Social Security Disability?

The benefit amount for Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) involves a few key factors.

SSI Benefits:

• Each year, Congress determines the federal benefit amount, which may be supplemented by some states offering additional financial assistance to recipients. This ensures that aid keeps pace with economic changes and cost-of-living adjustments.

SSDI Benefits:

• The amount is primarily based on your lifetime earnings from jobs where you paid into Social Security through Federal Insurance Contributions Act (FICA) taxes. Essentially, the more you have contributed over your working years, the higher your potential SSDI benefits.

How is the Date of Eligibility Determined for SSI and SSDI?

The determination of eligibility dates for Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) involves several key factors. Understanding these can help navigate the application process more effectively.

1. Protective Filing Date (PFD)

• SSI and SSDI eligibility often considers the Protective Filing Date. This is essentially the date when the applicant or a representative contacts the Social Security Administration (SSA) to express the intent to apply for benefits.
• Establishing this date is crucial as it can influence when benefits may start, setting a timeframe for future payments.

2. Date of Onset

• For SSDI specifically, the "date of onset" plays a significant role. This is identified by the Disability Determination Services (DDS) and marks when the individual became disabled.
• Benefits typically begin five months after this onset date, reflecting a mandatory waiting period inherent in SSDI applications.

By paying attention to these two components, applicants can gain a clearer understanding of how their eligibility dates are calculated, which is vital for managing expectations and financial planning.

What Documentation is Required for SSDI Applications?

When applying for Social Security Disability Insurance (SSDI), it's crucial to have specific documentation ready to strengthen your application. Here's a breakdown of the essential documents you'll need:

• Recent Income Records: Ensure you have evidence of your latest wages. This could include recent pay stubs or tax forms like your W-2.

• Work and Earnings History: Compile a detailed record of your past employment and earnings history. This documentation helps to establish your work credits and eligibility.

Having these documents organized and ready will streamline the application process and improve your chances of approval.

What Documentation is Required for SSI Applications?

When applying for Supplemental Security Income (SSI), there is a set of essential documentation you need to provide to streamline the process and enhance the probability of approval. Here's a comprehensive guide on what you'll need to gather:

1. Proof of Income
   You must provide documentation that verifies your income from various sources. This includes wages, pensions, and any government benefits you receive. Pay stubs, tax returns, and bank statements are typically required.

2. Details of Living Arrangements
   Information about your current living situation is essential. This involves providing a lease agreement, mortgage statement, or utility bills that demonstrate where and how you live.

3. Personal Resources and Assets
   A comprehensive list of your personal financial resources is necessary. This means detailing assets such as bank accounts, vehicles, life insurance policies, or properties.

By preparing these documents ahead of time, you can ensure a smoother application process and help the SSI office make an informed decision regarding your eligibility. Remember to check the latest requirements, as these can evolve over time.

Social Security Disability Insurance Program Overview

Social Security Disability (SSDI) is available to workers who have accumulated a sufficient number of work credits, which are funded through payroll taxes under Title II of the Social Security Act.

SSDI recipients are considered “insured” and have contributed to social security trust funds in the form of FICA Social Security taxes. (State and local government and school board employees generally pay into a separate retirement system and not into the Social Security program.) 

Who is Eligible: SSDI monthly cash benefits and Medicare entitlements are payable to disabled workers, widows, widowers, and adults disabled since childhood if they are otherwise eligible and younger than 65. You cannot be on SSDI disability once you hit full retirement age.

Under SSDI, the recipient’s family (e.g., spouse/children) are eligible to receive partial dependent benefits known as “auxiliary benefits.”

Work Requirements: To qualify for SSDI, the worker must earn a certain level of credits based on taxable work. Generally, you must have worked and paid into Social Security for at least 5 out of the last 10 years prior to the date you became disabled. If you were paid "under the table," were a government or school board employee, or it has been too long since you last worked, you may not be currently insured even if you meet the general 5 out of 10-year rule.

If you are under the age of 30, separate rules may apply.

Based on Earnings: Eligibility for SSDI is partly determined by contributions to the Social Security Trust Fund, as authorized by the Federal Insurance Contributions Act (FICA). Both employees and employers pay into this fund, underscoring the importance of documented work history.

Date of Eligibility: The timeline for when benefits can begin is crucial. This is based on the “date of onset,” which is when the individual became disabled as determined by the Disability Determination Services (DDS). Notably, eligibility for benefits starts five months after this onset date, providing a clear framework for when assistance can be expected.

Income and Asset Limits: SSDI has no asset limits and no limits on household income.

However, there are strict limits on how much the applicant can be working and earning. If the applicant is still working, it is unlikely that they will be found disabled under Social Security's rules no matter how severe their impairments may be.

Benefit Amount: Under this program, monthly disability payments are based on your individual earning record. The amount of your benefit will be calculated using a formula based on your average earnings for all of the years you have been working, not just your most recent salary.

Medicare: In cases of SSDI applicants, disabled persons generally become eligible for Medicare when they have received SSDI for two years.

Supplemental Security Income Program Overview

Supplemental Security Income (SSI) is a federal financial assistance program under Title XVI of the Social Security Act that is strictly need-based. This means that applications are considered based on two factors before medical evidence is ever considered: income and assets.

The Social Security Administration manages the SSI program, but SSI is not paid for by Social Security taxes. SSI is paid for by U.S. Treasury general funds.

Who is Eligible: SSI makes monthly payments to people who are blind, disabled, or age 65 or older who have low income and limited resources, meet certain living arrangement requirements, and are otherwise eligible.

Disabled or blind children and those who have never worked or whose work history has not earned them enough credits to qualify for SSDI may receive consideration for disability benefits under the SSI program.

Understanding Need: Eligibility is determined through a comprehensive evaluation of an individual's need, which includes several key factors:

• Income: Assessing earnings and financial support is crucial to establish an individual's financial standing.

• Living Arrangement: The conditions and location of where you live can significantly influence eligibility.

• Personal Resources: Assets and available resources are carefully considered to ensure they fall within the required limits.

Income and Asset Limits: To meet the SSI income requirements, individual applicants must have less than $2,000 in assets (or $3,000 for couples), in addition to very limited household income.

Work Requirements: SSI has no past work requirements. SSI disability benefits are available to low-income individuals who have either never worked or who haven’t earned enough work credits to qualify for SSDI.

Benefit Amount: The amount an eligible person can receive is largely dependent on where they live, and the amount of regular, monthly income they maintain. SSI payments are capped in most states at $914 (for 2023) and deductions can be made from that for income and in-kind support. The amount you receive for SSI does not change based on your age or the reason you are receiving benefits.

Waiting Period: SSI benefits begin on the first of the month of your submitted application.

Medicaid: When it comes to SSI, disabled people who are eligible under the income requirements for SSI can typically receive Medicaid in the state they reside in.

Food Stamps: In most cases, those who qualify for SSI can also qualify for food stamps.

How do I know if I have enough work credits for SSDI?

You can check your SSDI eligibility in two ways.

1. You can visit my Social Security to see if you have enough work credits to qualify for SSDI. Scroll down, and look under “More Benefits."
2. You can also call Social Security directly at 1-800-772-1213 and ask them for your “Date Last Insured” or "DLI"

If you did not become disabled before your DLI, you are likely not eligible for SSDI benefits on your own record.

If you are not eligible for SSDI benefits, then you will need to apply for SSI. Keep in mind that for SSI, you must meet the strict income and asset requirements as defined by the Social Security Administration.

SSI vs SSDI: An Infographic