Disabilities can happen to anyone. Whether due to an injury or a serious medical condition, a disability could strike when no one is expecting it. In fact, the Social Security Administration reports that one out of every four 20-year-old adults will become disabled before they reach retirement.

Whether you were hurt on the job and no longer can work to support yourself or you developed an illness or injury that has disabled you, you may be interested in applying for Social Security Disability Insurance benefits. Social Security Disability Insurance benefits are benefits that you can receive if you meet the qualifications set by law. If you have worked for long enough and can no longer work to support yourself, SSDI may be a helpful method of getting the benefits you need to support yourself. Then, when you reach the age for retirement, your benefits will automatically convert to retirement benefits.

There are many myths about Social Security Disability as well as complex features of this system to discuss. Having a better understanding of what the Social Security Administration expects from you and what qualifies as a disability may help you make the decision about whether applying for benefits is right for you. Here is the ultimate guide to understanding if you may qualify for SSDI, what it takes to apply for SSDI, and more.

The Basics About Disability Benefits

If you have ever worked a job, then you may be familiar with the annual taxes that you pay to the Social Security Administration. Social Security taxes are used to support benefits systems such as retirement and Social Security Disability. SSDI coverage is coverage that workers earn by paying into this system. If you are terminally ill, disabled, and cannot work, then this coverage could provide you with financial support by replacing at least a portion of your lost wages.

The Social Security Disability Insurance (SSDI) program is designed to give assistance to those who are living with disabilities so that they can meet their basic needs.In 2021, the average monthly benefit paid out to recipients of Social Security Disability insurance was $1,280.

The system requires individuals to apply for benefits, but they need to meet certain qualifications before they can.

Generally speaking, the Social Security Disability Insurance program pays you and, in some cases, your family members if you are “insured” through the program. You’ll be insured through the program if you’ve worked long enough to qualify. You will have needed to have paid into the Social Security system through the taxes on your earnings and to have paid into the program for long enough to get assistance.

There is a secondary program called the Supplemental Security Income program, or SSI, that covers adults or children with disabilities when they have limited resources or income. For those individuals, the credit system and work requirements may not apply.

Social Security Disability Insurance can be difficult to qualify for, because there are medical requirements, work requirements and other qualifications that you will need to meet. If you can meet both the medical and nonmedical requirements and have an illness or injury that is terminal or expected to last for at least a year, then you may be able to qualify.

Additionally, even if you can work a small amount, you could still be able to qualify for SSDI so long as you are not earning more than the maximum monthly allowance. Once you’re on Social Security Disability, you won’t need to work. If you do and can slowly return to working enough to support yourself, you can opt into the Ticket to Work program, which helps you keep your benefits as you adjust to going back to work. This encourages people to try to return to work when it’s feasible to do so.

Some People Can Get Benefits Without a Wait

Usually, applicants waiting for Social Security Disability benefits do have to wait for a period of five months before they can receive their approved benefits. That means that if you’re hurt now, apply for benefits, and are approved in a month, you’ll still need to wait another five months after the date that the SSA decided your disability began before you’ll receive payments.

It is necessary to note that some people are able to get Social Security Disability benefits without having to go through the traditional application process or waiting period. There is no waiting period for those who are approved for SSDI benefits on or after July 23, 2020, and who have amyotrophic lateral sclerosis (ALS).

How You Can Qualify for SSDI

Before you can get Social Security Disability Insurance, you will need to be sure you qualify. Qualifying begins with making sure you have the work history necessary to seek benefits through this system. To qualify, you have to show that you:

• Worked jobs that were covered by Social Security
• Currently have a medical condition that meets the Social Security Administration’s definition of a disability

Usually, people who cannot work for at least a year are the ones who will qualify for disability insurance, because their condition is severe enough to make them unable to support themselves for the foreseeable future. Then, once they are in recovery and are starting to heal to the point of being able to work again (which may or may not happen), there is the possibility to keep those benefits until they are able to work on a regular basis again.

Work incentives are in place to encourage people to return to work when they are able to do so without losing all of their benefits. That way, they can try to transition back into the workplace but still have a safety net if they are unable to do so safely.

Remember that to qualify for SSDI, you will need to have enough work credits. The total number of credits you need will depend on your age at the time of your serious illness or disability.

The Disability Starter Kit Is Available from the Social Security Administration

It can be difficult to apply for Social Security Disability Insurance coverage, because it is such a long, multistep process. The good news is that the Social Security Administration understands how complex the process can be and has created the Disability Starter Kit for people who are thinking about applying.

These kits help people who wish to apply for SSDI prepare for their disability interview or online applications, so they can understand what to expect. These kits provide information on the documents that will be needed as well as what the SSA expects from you. Additionally, the kits include information on what the SSA considers when determining if your claim will be approved or denied.

Make Sure You Have Enough Work Credits

On the subject of work credits, you will need to show that you not only meet the definition of having a disability but also that you have worked long enough to qualify for support through the Social Security Disability Insurance system. If you have not worked long enough or paid in enough money, you may not qualify for benefits even if you are disabled.

How do social security credits work? In general, they are based on the total yearly wages you’ve earned. If you were self-employed in the past, the Social Security payments you made on your taxes will also apply towards earning the credits that you need for Social Security disability benefits.

Each year, the number of credits you need could change. How much you have to earn to equal one credit will change, too. For example, in 2022, you will need to earn $1,510 in self-employment income if you want to get a single credit.

You can only earn up to four credits each year, so it’s not difficult to earn enough to get credits for Social Security disability. If you’re short a few credits and can continue to attempt to work a little longer, you may be able to collect enough to qualify for the benefits that you need. You will need to show that you have the right number of work credits earned within a specific period of time determined by the Social Security Administration before you can qualify. If you qualified in the past but stopped working, not working could have a negative impact on your ability to qualify now.

How Work Credits Are Calculated

Work credits are calculated based on your age and how much you’ve worked and earned over the course of the last 10 years. Younger people may qualify with fewer credits since they may not yet have been able to work long enough to collect all the credits an older worker should have.

The number of credits you will need is, in general, 40. However, only 20 of those have to have been earned in the last 10 years (ending with the year when your disability started).

Since 1978, you’ve only been able to earn a maximum of four credits annually. For those who are under the age of 31, the qualifications vary a little.

• If you are younger than 24, you can qualify with as few as six credits as long as you earned them in the previous three years before your disability began
• If you’re between the ages of 24 and 31, you may be able to qualify by working half of the time between the time when you started working at age 21 and when the disability occurred. For example, if you’re 27, then you know that there were six years that you could have worked. During that time, you will have been expected to have worked three years. The maximum credits you’d have during that time (in three years) is only 12. So, at 27, you could qualify for Social Security Disability with just 12 credits.
• For those who are 31 or older, the requirement for 40 credits generally stands. At least 20 will need to be from the last 10 years.

How To Medically Qualify For Social Security Disability Insurance (SSDI)

Medically qualifying for Social Security Disability Insurance requires you to have a disability or illness that is expected to last for at least 12 months or longer. You need to show that you cannot work because you have a medical condition that meets that Social Security Administration’s definition of a disability, which can be found in the Social Security Administration’s Blue Book. The illness or disability itself doesn’t necessarily have to be in the SSA’s Blue Book, but it does need to be qualified based on its severity or the fact that it is terminal.

To qualify for SSDI, you will need to provide evidence to support your claim of being disabled. Your injuries or illness must not be only a short-term or partial disability. Instead, this kind of insurance benefit is paid out to those with severe disabilities or terminal illnesses when they can no longer work to sustain themselves.

You can look at the SSA’s Benefit Eligibility Screening Tool to determine if you may medically qualify for Social Security Disability Insurance.

To be eligible for disability benefits, remember that you must:

• Be younger than retirement age (62)
• Meet the Social Security Administration’s definition of a person with a disability
• Be unable to work due to the medical condition
• Not have a short-term or partial disability

This screening tool will go over information such as the day you were born, whether or not you’re married, which state you live in, and more to determine if you may be qualified to apply for SSDI. If you are not yet qualified or you think there is a mistake, this is when you may want to reach out to the Social Security Administration or an attorney for more support.

The Social Security Blue Book

Remember, too, that the Social Security Administration uses the Blue Book to determine who qualifies for Social Security Disability benefits. This book is important because it was prepared by physicians and other professionals in healthcare to create a basis for disability claims. Each part of the book gives details on how to qualify based on your symptoms and the conditions that affect your body.

The one thing to become familiar with is the Listing of Impairments, which has information about how the Social Security Administration decides if someone is disabled based on the specific reason for their application. For adults, the SSA considers:

• Past work experience
• The severity of the current health conditions
• Education level
• Age
• Work skills/qualifications

The listings are available for children (under 18) as well as adults.

The adult listings are called “Part A” and include illnesses and diseases that affect different parts of the body. They are broken down into 14 categories. Please note that you may still be able to qualify for SSDI even if your medical problem isn’t listed under one of these categories. This is because the Social Security Administration has compassionate allowances that may apply to rarer conditions and unique cases.

The following categories may contain your specific condition and the qualifications that you will need to meet if you wish to get Social Security Disability benefits:

• Musculoskeletal Disorders
• Special Senses and Speech
• Respiratory Disorders
• Cardiovascular System
• Digestive System
• Genitourinary Disorders
• Hematological Disorders
• Skin Disorders
• Endocrine Disorders
• Congenital Disorders Affecting Multiple Systems
• Neurological Disorders
• Mental Disorders
• Cancer (Malignant Neoplastic Diseases)
• Immune System Disorders

The Disability Application Process

The process of applying for Social Security Disability Insurance is relatively straightforward, but you do have to gather many documents and go through evaluations to see if you qualify. You can apply by phone, in person, or online, which is helpful for those who may not be physically able to apply in one way or another.

There is a helpful disability checklist available from the Social Security Administration that goes over the information that you will need to complete your application. You may also want to discuss your application with an attorney and your doctors, because these individuals will have experience helping people apply for and seek Social Security Disability Insurance.

A basic breakdown of what you need to do to apply for Social Security Disability includes:

1. Gathering documents and information about your disability. Use the checklist mentioned above to gather as much information about your disability or illness as you can. If you complete all parts of the checklist, you should have a thorough collection of documents to support your claim.
2. Complete the basic application. Be careful not to omit any details or make any errors, because doing so could hurt your chances of having your application approved.
3. Submit your application and wait for the Social Security Administration to review it.

The Social Security Administration will go through your information to see if you have collected enough work credits to qualify for SSDI. The SSA will also look at any work that you are currently doing to see if you are working too much to qualify. Remember, if you can be gainfully employed to the point that you’re supporting yourself, you may not qualify for SSDI even if you have a disability of some kind.

How To Check The Status

If you have applied for Social Security Disability benefits, you may be eager to get those benefits paid out to you. You can check the status of your claim by going online and logging into your My Social Security account. There, you should find details about what your claim status is. If you cannot check the status of your claim online, then you have the option of calling the Social Security Administration directly.

You can reach the Social Security Administration by calling 1-800-772-1213. The TTY number is 1-800-325-0778.

If you would rather speak with someone in person, you can do so if you contact a representative at your nearby Social Security office. Others who may have information on the status of your claim could include your attorney (if you hired one to help with your application) or the disability examiner assigned to your case. The disability examiner will be able to talk to you about if the decision is still pending or if it is complete, but they won’t have information on approvals or denials.

How To Appeal An SSDI Decision

It is common for a person’s Social Security Disability benefits application to be denied the first time. If your application for Social Security benefits was denied, then you have a right to seek an appeal. An appeal needs to be requested within 60 days after you receive the notice of the initial decision. You can then go through up to four levels of appeal.

If you would like to have your application reconsidered, you have the option to ask for reconsideration online. You can also ask for a hearing with an administrative law judge or the Appeals Council online. It doesn’t matter if you live within the United States or not, these options are open to you.

To decide which level of appeal to select, look at the letter that explains the Social Security Administration’s initial denial. It will provide additional information on which level appeal is right for you based on the reason for the denial.

The four levels of appeal include:

• Reconsideration
• A hearing with an administrative law judge
• A review by the Appeals Council
• A review by the Federal Court

Reconsideration

One option you have is to request a reconsideration for a medical determination that you don’t agree with. You can use this if you’ve recently had your initial application for SSDI denied.

The reconsideration is always performed by someone who wasn’t involved in the original determination. That way, you can be sure that the person is unbiased.

They’ll go over the evidence that you originally submitted. If you submit new evidence before the reconsideration (which is usually a good idea), the person reviewing your claim application this time will consider that evidence as well.

Administrative Law Judge Hearing

The next option you have is to request a hearing with an administrative law judge. Like with the reconsideration, this judge won’t have any background knowledge of your claim before holding the hearing. They will conduct the hearing in an unbiased manner.

It is beneficial if you can come to this hearing in person, but if you cannot, there may be some cases where you can attend via video. For example, if you are in a hospital, your attorney could go to the hearing in person and you could attend through video.

Usually, this hearing is held within 75 miles of your home. Sometimes, you can choose a preferred location, too.

After you decide to seek a hearing with the administrative law judge, you should wait for a package that confirms what to do next and the first available date and time for the hearing at a location nearest to you.

Appeals Council Review

Your next opportunity to appeal is by requesting an Appeals Council review. If the administrative law judge decided to deny your claim again, you can request this appeal. The Appeals Council normally denies hearings if it believes that the hearing was held correctly and that all laws and regulations were upheld.

Federal Court Review

Your last opportunity to appeal is through a Federal Court appeal. This is the highest level of appeal and is uncommon. You use this type of appeal if you don’t agree with the third denial of your benefits. You need to file for this type of appeal in person or by calling.

Information You Need to Apply for SSDI

If you would like to apply for Social Security Disability Insurance benefits, then you will need to providing the right information on your application. There are several documents that are required by the Social Security Administration and that absolutely must be included with your application. If these are missing or filled out incorrectly, your claim could be delayed or denied.

The documents that you need to provide include:

• Proof of U.S. citizenship or that you are a lawful alien if you weren’t born in the country
• Your birth certificate (or other form recognising your birth)
• An Adult Disability Report, which collects information about the medical condition for which you’ll be applying as well as your work history and other medical information that you’d like to disclose
• Medical evidence of your disability, such as doctor’s reports, medical records, test results, and others
• W-2 forms for the last year. If you don’t have those because you’re self-employed, you’ll need your self-employment tax returns instead
• Discharge papers from the U.S. military if you were a military member before 1968
• Any pay stubs, awards, or settlement agreements you have to show that you received workers’ compensation or temproary benefits for your condition

For most of these items, a photocopy is going to be acceptable. For others, you’ll need to send the originals. For example, your birth certificate should be in its original form. If you don’t have some of these documents, you can reach out to the Social Security Administration or other organizations to get new documents.

The paperwork will also ask for some basic information. You should fill out the application with the following:

• Your name
• Your gender
• Your Social Security number
• Your birth name (if it’s not the same as your current name)
• Your citizenship status
• Details about any Social Security benefits that you or someone else has filed for in your name or on your behalf
• Details about other Social Security numbers if you have more than one
• Information about you and your spouse, such as if you’ve worked for the railroad
• Information about past military service
• The names of any children you have who are unmarried and under 18
• Information on any earnings made between 1978 and today
• Information about black lung, workers’ compensation, or other similar benefits

These are just some of the many things that will be asked for on your application. Prepare as much information as you can in advance, so you have the best opportunity to have your claim approved the first time.

Information About You

The Social Security Administration will ask for some basic information about you before you can make your claim. You’ll need to fill out the basics, such as your name, address, Social Security number, daytime phone number and an alternate phone number. If you cannot speak English, you should let the SSA know which languages you do speak, because interpreters are available to help you.

On the Adult Disability Report, the SSA also asks for contact information for people other than your doctors who can answer questions about you. Think of these people as references. You want to choose people who can give a good explanation of the condition you’re living with and how it affects you.

Information About Your Medical Condition

You do need to provide information about your medical condition to the Social Security Administration. The Adult Disability Report goes over many of the basic questions that you need to answer. Additionally, you should attach copies of any and all statements or medical documents discussing your injury for the SSA to go through.

On this report, list out every medical condition you have including both physical and psychological conditions. Mental health also plays a role in the SSA’s decision, so don’t think that only your physical symptoms apply.

Along with the basic information about your health, you will need to add any emotional or learning problems. This information gives the Social Security Administration more to work with to understand your circumstances.

Information About Your Work

Now that you have your basic information written down, you have to provide information about your work. If you have not stopped working yet, you need to let the SSA know at what point you started to believe that your injury or illness was too severe to keep working. If you did already stop working, then you should provide the date that you stopped working and the reasoning for doing so.

For example, some people may stop working completely because of their health. Others will push through until retirement. Still others may stop working because of being laid off or due to the business closing.

Along with this information, you should provide information about how your health condition impacts your ability to work. For instance, does it affect your pay? Does it impact the hours you can work? What kinds of job duties can you no longer do?

The Social Security Administration will also want to know if you’ve been able to earn more than $1,180 within a month at any time since you thought your were disabled. The reason for this is to determine if you can perform gainful employment. If you cannot, then it is clearer that you cannot support yourself easily without the benefits you’re looking to obtain.

Documents You Need to Provide

With any disability claim, your best bet is to provide as much documentation of your injuries or illness as you can. You’ll need basic documents such as:

• Your birth certificate
• Proof of citizenship or legal status
• Military discharge paperwork
• W-2 forms

These are important for proving who you are. The other documents that you will need are those that help support your claim. Some common documents to include with your application include:

• Copies of medical exam reports
• Copies of X-rays, MRIs, CT scans or other testing
• The stage of cancer that you’re living with and the prognosis (if applying with cancer)
• Letters from medical providers that detail what they think you can or cannot do
• Information from friends or family members that discuss how your health has impacted your ability to work and participate in normal daily activities

More or less, you’ll want to include as many documents as you can to show that you are truly disabled and cannot work. If the SSA finds that you can complete substantial gainful activity or that you don’t have enough evidence of a disability included with your application, then your claim may be denied.

How To Apply For Benefits Online

Applying for Social Security Disability benefits online is one of the easiest ways to start your application. You can go to this application page to get started. When you agree to the Social Security Administration’s terms and conditions, you will be taken to an application page where you can start a new application or return to an application that you already started.

The Social Security Administration points out that applying for benefits may take anywhere from one to two hours if you already have the paperwork and documents that you need. You are able to save your application while you’re working on it, so you can spread out the time it takes across multiple days or weeks if you wish.

Applying for Social Security Disability benefits is a multistep process. That means that you need to meet the requirements, gather information, and then apply. After you’ve applied, keep your username and password for the My Social Security account, so you can check on your claims’ status at any time.

Other Ways You Can Apply for SSDI

If you don’t want to apply for Social Security Disability insurance online, you have the option to do so by phone or in person. Many people choose to apply through methods other than going online, because they feel uncomfortable submitting personal information on the internet. For others, they may have questions that can be answered by the Social Security Administration admins at a local office.

If you want to apply in person or by phone, remember that representatives won’t be available around the clock. You will be able to call from Monday through Friday from 7:00 AM to 7:00 PM. The hours of your local Social Security office may vary, so you should search for it here.

If you are not currently living in the United States, you can still apply for SSDI. To do so, you’ll need to reach out to the local U.S. Embassy, a nearby Social Security office, or your local consulate.

How To Apply With Your Local Office

If you would like to apply for Social Security Disability, you can apply locally at your nearby Social Security office. You will need to make an appointment if you want to apply in person. To find your local office, type in your current ZIP code into this form. This will find all the local Social Security offices.

As of March 2022, all face-to-face services have been suspended at field offices and hearing offices. An alternative, until these offices reopen, is to apply online, by fax, or by phone.

How To Apply By Phone

Applying for Social Security benefits by phone is another option for most people. The national 800 number is 1-800-772-1213. The Social Security Administration does have a phone number available for those who are hard of hearing or deaf. They may call directly at TTY 1-800-325-0778.

Usually, these lines are open from 7:00 AM to 7:00 PM. Sometimes, they may not be available until 8:00 AM. Representatives are available to take calls every day from Monday through Friday. Their offices are closed on the weekends.

If You Do Not Live in the U.S. Or One of Its Territories

Did you know that any U.S. citizen can get Social Security Disability benefits so long as they qualify? It doesn’t matter if you live within the country or outside the United States.

There are some restrictions, though. For example, there are some locations that the SSA can’t mail checks to, and payments may not be able to be made to those in the USA who could get the benefits to you in a foreign country.

Remember that you do need to report if you’re going to be moving out of the United States for over 30 days. This is a requirement set by the Social Security Administration to make sure it has your change of address information.

Usually, you can continue to get your benefits while you live outside of the country. Dependents and beneficiaries are in a different position, though. In most cases, they may only continue to get benefits so long as they have not been outside of the United States for over six months (or have not been in a restricted country).

You absolutely cannot get benefits in:

• Cuba
• North Korea

There are no exceptions.

Mailing Your Documents

If you need to send mail to the Social Security Administration, you should include all your documents in a mailing envelope. You should not write anything on your original documents if you choose to mail them to the SSA. Instead, add your Social Security number to an additional sheet of paper included inside the envelope.

Keep in mind that you cannot mail certain items such as your birth records if you are an immigrant to the United States. This is because certain documents are required to be kept on your person at all times.

It is better to send documents digitally through the electronic mailing process or to take them to the Social Security office nearest to you.

Information for Advocates, Attorneys, and Third Parties

For others who are helping someone else apply for Social Security Disability, it is important to know that you can get help from the Social Security Administration. The SSA knows that it is often friends and family members who help people apply for SSDI due to their loved ones’ disabilities.

If you would like to help someone get assistance and they are aged, disabled or blind and on limited income, you may be able to help them get Supplemental Security Income and Social Security Disability benefits if they meet the qualifications.

To find out more about the basics of SSI and SSDI, you can visit these pages put together by the Social Security Administration.

If your loved one has a condition that meets the SSA’s Compassionate Allowances program, you may be able to assist them in getting benefits more quickly than through the traditional application process. To look into this, please visit the Compassionate Allowances program page. This program is designed for those with certain cancers, rare disorders, and brain disorders.

To get legal assistance or advocacy help, you can reach out to the local Social Security Administration office near you. It may have lists of legal referral services as well as the names of nonprofit organizations that help people in your situation.

If you have to represent someone throughout the claims process, this page provides more information on what you need to do. You will need to become an appointed representative and to sign an electronic fee agreement (e1693) with the Social Security Administration. With this process, up to six representatives can be named.

In Conclusion

To conclude, there is much to know about applying for Social Security Disability. Since the process can be confusing and require extensive documentation, it may be a good idea to work with an advocate who can assist you as you put together your claim. If you have worked for long enough and have a medical history that shows you have a real disability or terminal illness, these benefits are there for you. They’re designed to help you support yourself while you focus on taking care of your health.

You must submit an application to receive Social Security disability benefits. However, benefits might not start right away, even after you are approved for benefits. Instead, you might have to wait to receive your first check. This waiting period is called an “elimination period.”

The elimination period is five months—and they have to be full calendar months. This period sets out that you have to be disabled for a period of at least five months before you can start receiving benefits. It starts as of the date that your injury or illness became disabling. This date is often called the “disability onset date.”

Essentially, the elimination period starts the first full month after you become disabled and meet the requirements to be insured by Social Security based on the level of your earnings. Benefits then actually begin in the sixth month after you become disabled.

Below are a few of the most frequently asked questions relating to the elimination period for Social Security benefits.

Why Does the Elimination Period Exist?

The elimination period or waiting period is required because the Social Security Administration (SSA) only provides benefits for long-term disabilities. The SSA considers any disability that lasts under five months to be a short-term disability. Essentially, if your disability ends before the end of the five-month waiting period, then you will not qualify for SSDI benefits.

Keep in mind that SSDI benefits are a form of insurance. Many private disability insurance companies have similar waiting periods when they also only cover long-term disabilities.

What Are the Exceptions to the Five-Month Elimination Period?

While the elimination period is required in most cases, there are some exceptions to the rule. When an exception applies, you can start receiving benefits as soon as your application is approved. There are three exceptions to the elimination period.

1. Supplemental Security Income (SSI) Benefits.

There is no waiting period for SSI benefits. If you applied for SSI benefits instead of SSDI benefits, you could start getting payments the first month after your application.

Keep in mind that SSI benefits are lower than SSDI benefits, and SSI benefits are only available to those who are disabled or older and have limited income and resources. SSDI benefits, on the other hand, are based on disability status and prior work credits.

2. Reinstating SSDI Benefits.

You also do not have to wait for SSDI benefits if the Social Security Administration has already approved your application previously. This exception is generally only available to those who are reinstating their benefits.

3. Amyotrophic Lateral Sclerosis (ALS) Diagnosis.

There is no waiting period for those who have become disabled because of ALS. However, you have to be approved for SSDI benefits on or after July 23, 2020 for this exception to apply.

Applying During the Elimination Period

SSA will tell you that you should apply for benefits as soon as you become disabled. You do not have to wait for the elimination period to apply for benefits.

Should I Wait to Apply for Benefits Until After My Elimination Period Is Over?

In general, it will take three to five months for the SSA to process an SSDI application, so you might as well go ahead and apply, even if you are still in the elimination period.

Waiting without income for several months can be very difficult, so the sooner you apply, the better. You will only end up waiting longer for a decision if you wait until after the elimination period to start the application process.

Where Can I Get Help with My Claim?

The Social Security Administration provides several resources on its website to help with disability claims. A few examples of helpful resources, all SSA publications, are included below.

• Disability Benefits
• Adult Disability Checklist
• Online SSA Benefit Application
• Check the Status of an Application
• Benefits Eligibility Screening Tool

You can also speak with an experienced disability attorney about your claim. A disability attorney can often help you with your application or help you work through an appeal if your claim has been denied. Many attorneys offer free consultations so you can talk through your claim and get advice on what you should do next.

Am I Allowed to Have an Attorney at All Stages of the Social Security Disability Process?

You are allowed to have an attorney help you at every stage of the Social Security disability process, from your initial application through the appeal process. While you are not required to have an attorney at any stage in the disability process, having a disability lawyer can increase your chances of approval for SSDI or SSI benefits.

An experienced attorney will know what the SSA examiners are looking for when they review applications. Having the right “buzz words” and including the right level of detail will help you not only through an initial claim but also through your appeal if you are denied at the first level of the application process.

Can I Keep My Benefits If I Move Out of the U.S.?

Whether you can keep your disability benefits after you move out the United States depends on the unique facts of your situation. For example, what kind of benefits you have will affect whether they will continue.

• Social Security Disability Insurance: You will continue receiving benefits as normal as long as they are from your own work credits, and you did not move to a prohibited country. The benefits will continue for at least six months.
• Supplemental Security Income: Your benefits will stop after 30 days of being outside the United States. They will not restart unless you return to the U.S.

U.S. Treasury sanctions might also limit whether you can receive SSA benefits while in a specific country. In general, SSA will not send benefits if you are in the following countries unless you qualify for an exception.

• Azerbaijan
• Belarus
• Kazakhstan
• Kyrgyzstan
• Moldova
• Tajikistan
• Turkmenistan
• Uzbekistan

You do not waive your rights to benefit payments while in these countries. Instead, your payments will simply be withheld until you go to a country where payments can be sent.

Additional residency requirements might also need to be met if you reside in a specific country. You can contact the Federal Benefits Unit near you to address specific questions about your situation.

When you have to make the shift from working for a living to applying for Social Security Disability Insurance, you probably have a lot of questions and just as many concerns. One of the most common is how long does it take to get Social Security Disability benefits so that you can ensure that your life will go on as close to normal as it has in the past. This is especially important to those who were not anticipating using Social Security Disability income following a long decline, but who have been injured on the job or are suddenly facing a serious illness. 

How Long Does It Take To Get Social Security Disability

How Long Does It Take To Get Disability Benefits?

For SSDI benefits, it’s fairly common to have a wait of several months to a year for your initial application to be processed, depending on your location and how busy the local office is. However, that doesn’t mean that you’ll get benefits at the same time. It’s fairly common for an initial application to be denied, often due to lack of medical evidence. In many cases, as your disability progresses, you may lose insurance coverage or stop going to the doctor as frequently because it’s too expensive or takes too much time when you’re dealing with a range of other concerns at the same time. 

Disability Claims’ Timeline

So what happens when you file for disability benefits? To start, you’ll need to fill out an application. Because it can be a long, complex form, we recommend that you talk to a disability attorney to help keep things moving smoothly throughout the entire process. This ensures that the paperwork is filled out properly, that the appropriate medical terminology and conditions are mentioned to smooth out the process, and that the application goes in quickly. Depending on the caseload at your local Social Security office, you may have a wait for your appeals hearing of six months to two years from your initial application.

When Your Benefits Start

Once you’ve either been approved on your initial application or have won your Social Security Disability hearing, your benefits will typically start after a five-month waiting period from your initial application. Because of some of the potential delays in the process, this means that there’s a good chance benefits will start within a month or two of your being approved. To speed up the process, you’ll want to choose to have your SSDI benefits direct deposited into your checking or savings account so that they’re available as soon as possible. In some situations, the benefits will deposit the night before they are due, depending on your bank and Social Security’s deposit schedule. It can be beneficial to set up any automatic payments for your expenses shortly after the last possible date of deposit in the month, typically the 28th.

Compassionate Allowances

One exception to this is what’s called a compassionate allowance, which happens when you have a terminal illness or a serious condition that is automatically recognized by the Social Security Administration as disabling. In this situation, the process is accelerated, so that the individual filing for benefits can receive them in a timely fashion. Compassionate allowances are provided for many cancers, some brain disorders and numerous rare disorders in children. Though the SSA has an existing list of diseases it approves quickly under this program, there is also an option to submit a disease for consideration to add to the list. For compassionate allowances, there is no waiting period prior to receiving benefits.

How Much You Will Receive

How much you receive will depend on how much you made and have paid into Social Security over the years. You can find this information by going to the Social Security website and requesting your latest statement through their automated online system, which will provide you details on how much you would receive if you became disabled. Though there are some factors that can reduce your SSDI benefit, which we’ll discuss below, this would at least give you a ballpark figure of where you stand.

But what if you haven’t worked long enough to have enough work credits for SSDI? In this situation, another program called Supplemental Security Income will provide some assistance. Because it is based on income, there are many factors that contribute to calculating how much you would receive from that program. You can determine if you’re eligible for SSI at the benefits website here.

Contributing Factors When It Comes To How Long It Takes To Get Disability

Wait times are very frustrating when you’re watching your bank account spin down, especially when you may have significantly higher medical bills to pay due to your disability. This is among the reasons why it’s so important to work with a disability lawyer as early as possible. Issues that can delay your disability benefits can include making mistakes on the forms, not including all of your medical conditions, not including how those conditions limit your daily life, failing to appeal a negative decision, and many more. Similarly, the number of cases that the office is handling can impact how quickly your application and appeal are processed. Working with a disability attorney ensures that these issues are not missed and that you are properly represented at every step along the way.

Back Pay

If your disability case has gone on for a while, or you became disabled and can prove it prior to applying for SSDI, you may be eligible for back cash benefits, also referred to as back pay. This payment can go back several years if needs be, provided that the disability can be proven. Back pay is often delayed behind the start of your benefits, but would be received in many cases as one lump sum. Many individuals who have had a long journey to receive their SSDI benefits have put the lump sum towards home improvements, a vehicle or medical equipment that will improve their quality of life. 

Other Payments May Affect Your Disability Benefits

There are some situations in which other payments that you receive can impact your SSDI benefits. These payments typically include worker’s compensation, pensions for work that was not covered by Social Security or public disability benefits that have otherwise come into play. These types of payments can reduce how much you’ll receive in Social Security Disability Insurance payments. Similarly, if you have private disability insurance, the amount you would be paid may include SSDI benefits, so if you have private disability insurance coverage of $60,000 per year, or $5,000 per month, and your SSDI benefit is $1,500 a month, the private disability insurance would pay you $3,500 a month.

Signs You Will Be Approved for Disability

Though nobody can guarantee that your disability case will be approved, there are several situations in which it’s more likely. If you’re over 50 or 55, you’re considered to be of “advanced age”, which shifts the grid of work you’re expected to be able to do, making approval easier. If you’re able to strongly document the progression of your disability through medical records, you’re also more likely to be approved for disability, because you’ve provided solid evidence to back up your claim. If you earn less than the Substantial Gainful Activity amount, you’re more likely to have your claim approved. If you’ve been out of work for over 12 months or work due to health concerns, you’re likely to be approved.

Tips For Getting Approved Fast

If you’re currently going through health care issues that you think may end in an SSDI claim to keep your income steady, it’s important to document everything. Start making a list of concerns you have outside commonly asked questions you may find answers to on the internet. Look at whether you have other disability pay options that you can take advantage of to maintain your income during the waiting period and time while awaiting approval. It’s also important to apply as soon as possible while obtaining evidence of when your disability started, so that you can maximize your back pay during the process.

Hope For Those Waiting To Get Disability

Though the waiting period you encounter when waiting for your SSDI benefits to be paid can seem endless from your initial application process, it’s important to approach the process correctly. As we mentioned above, it’s pretty common to have your initial disability claim denied, at which point you’ll need to appeal for a disability hearing. Rather than worrying about the process on top of your medical conditions, most people working through the long wait will hire a disability lawyer to work with you through the appeals process and their appearance before an appeals council. A disability attorney should offer you a free consultation so that you understand where you stand and how long it might take to resolve your case and help improve your odds of a positive decision at your hearing.

If you are receiving Supplemental Security Income (SSI) through the Social Security Administration (SSA) Disability Benefits program, you likely know that the SSA will periodically conduct a continuing disability review of your case to see if you still qualify for benefits. Questions often arise about what triggers the review, how long does social security disability review take, and what you can do if your social security benefits are terminated.

What Is a Continuing Disability Review (CDR)?

The SSA conducts a periodic review of your case to determine if you still have the disabling condition that initially qualified you for benefits. It is called a continuing disability review (CDR) and includes a review of:

• Your current medical condition.
• Your income.
• Resources available to you.
• Your living arrangements.

If the SSA determines you still have the disabling condition, and that disabling condition prevents you from working, you will continue to receive benefits.

What Triggers a CDR?

When the SSA initially approves your application for social security benefits, it establishes a review schedule depending on the nature of your disability. It bases the timing of the review on the nature of your disabling condition.

• If you are expected to experience medical improvement, a review will be within six to 18 months of the decision to award you benefits.
• If improvement is possible, but might not occur, then the CDR will occur about every three years.
• If your disabling condition is such that no improvement is expected, a review will occur about every seven years.

What is the Standard for Evaluating Medical Improvement?

The SSA will send you a letter telling you that it is conducting a medical review to determine if you still qualify for social security disability. Soon after you receive the notice, someone from the SS office near you will contact you to explain to you what is involved in the process.

The SS representative will explain to you your rights and ask you to provide information about your medical treatment and current medical condition within 30 days of the notice so the SSA can evaluate your medical condition. You will also be asked about any work you may have done since you first started receiving benefits.

You will be given the opportunity to explain in your own words how you are feeling in general and if you feel like you are still disabled. You can explain how your condition affects your ability to work.

You need to inform the SSA about all doctors you have seen and all medical treatment you have received. Your doctors will be asked to provide your records to the SSA for review. It is not enough for your doctors to say you are disabled. They must explain what your disability is and how that disability affects your ability to work.

A team consisting of a doctor and disability examiner at your state’s Disability Determination Office will review your medical records. You may be asked to submit to an independent medical exam (IME) by a doctor hired by the SSA. The SSA will pay for the exam and also pay for your transportation to the location.

The team will decide if you still have a disabling condition and if so, how does that affect your ability to do the work you did in the past, and whether there is any job you might be able to work at according to the findings of the review. They will also consider whether you have followed a recommended treatment plan and have complied with the recommendations of your treating physicians.

After reviewing your medical records, and the results of the IME if one was required, the SSA will make a decision. If it deems you are still disabled, your benefits will continue. If it decides you are no longer disabled, your benefits will be terminated three months after the SSA decides your disability ended.

How Long Does Social Security Disability Review Take?

How long it takes the SSA to process a CDR depends on whether your case is selected for a full medical review which requires a review of your records by a team. If you are required to submit to an IME, that will take longer.

If your benefits are terminated, and you request a hearing in front of an administrative law judge, the SSA must give you 75-days’ notice of the hearing date.

You can speed up the process by promptly returning any forms you are sent and by waiving the 75-days notice requirement.

If the result of the CDR is the termination of your benefits, you have the right to appeal, which may according to the SSA may be a “lengthy” process.

You Have the Right to Appeal if the SSA Terminates Your Benefits

If the SSA informs you that your benefits are denied, you have the right to appeal within 60 days of the day you get notice your benefits have been terminated. There are four levels of appeal, and you have 60 days to appeal to the next level after each denial. The levels are:

• Reconsideration. This means you simply ask for a reconsideration. This means a different team will review your case. The original team will have no part in this second review. A hearing officer may be designated to hold a disability hearing where you can appear in person and argue your case.
• Administrative Hearing. If you are again denied, you can request a hearing before an administrative law judge. At the hearing, you may present witnesses to support your case. In turn, the judge may call witnesses, such as a vocational counselor, treating physician, or independent medical examiner to ask questions. If the judge denies you benefits, you can appeal your case to the Appeals Council.
• Appeals Council. The Appeals Council will do another independent review of your case and of the decision issued by the administrative law judge. If the Council agrees with the judge that your benefits should be terminated, your last recourse is to file a civil lawsuit in federal court.
• File a civil lawsuit in federal court. If the Appeals Council denies you benefits, your only recourse is to then file a lawsuit in federal court.

What Happens If I Don’t Reply to the CDR Notice?

The CDR notice gives you 30 days to respond. The SSA sends a follow-up notice within 15 days to remind you that you need to respond. If you do not respond to that notice or phone calls, the SSA must try to locate you.

This includes checking with third parties, your financial institution, the post office, or your employer. If the SSA cannot locate you or communicate with you, and they do not hear from you, your benefits will be suspended 45 days after the day the SSA notifies you it is conducting a CDR.

What Must I Report to the SSA While I am Receiving Disability Benefits?

To keep in good standing with the SSA and keep your benefits coming, there are requirements you must meet. You must report, by phone, mail, or in person, the following to the SSA:

• If you work while receiving benefits. This requires reporting no matter how little money you earn. You are to report how many hours you work, when you start, and when you stop. You are given a trial work period and can still receive benefits for up to nine months. Tell the SSA if you have expenses associated with work, such as a wheelchair or prescription drugs.
• If you receive other disability benefits. This means any benefits you receive from any other source based on your disability, whether government or private, or proceeds from a lawsuit. Also, report if you stop receiving any other benefit.
•  If you are working under the Ticket to Work program. This is a voluntary program, but if you take advantage of it, report it to the SSA.
• If you move. The SSA needs your new address and phone number and any other contact information you can provide. This is true even if you have direct deposit of your benefits. If the SSA tries to contact you, and your phone number and address are not accurate, your benefits will be terminated.
• If you open a different bank account for direct deposit. You can do this online or with a telephone call.
• You cannot manage your benefits. If you admit you are unable to manage your money, you can name a personal representative who you can ask to do this for you, and SSA will evaluate that person and determine if they are suitable. If so, your benefit check will be sent to your designee.
• If you get a pension from a job that did not pay into SS. Civil service jobs and jobs with state governments do not pay into SS. Receiving this pension may result in a reduction of your SS disability benefits.
• If you get married or divorced. Your marital status may affect your disability benefits.
• If you change your name.
• If you have a warrant for your arrest.
• If you are convicted of a crime.
• If you move out of the country. You can still receive your disability benefits, but there are some countries where SSI checks cannot be sent.

If you fail to inform the SSA about any of the changes for which it requires notice, your benefits will be terrminated.

Whether you’re considering applying for disability or already receiving payment, if you can make some money, you may want to do so. Given the fact that social security disability insurance only pays a percentage of your previous salary, it’s natural to wonder if you could earn some supplemental income and still claim benefits.

If so, how much can I earn while on social security disability? Below we’ll explore those answers. 

What Is Social Security Disability Insurance (SSDI)?

Per the Social Security Administration’s official website SSA.gov, SSDI benefits pay a person who is disabled or a family member (in some cases) cash benefits. In order to qualify for these insurance benefits, you must have worked a minimum number of years, with each year earning work credits.  On this work, you must have paid social security taxes — through your employer or in the form of self-employment taxes.

To apply for SSDI benefits, you will submit medical records and other information. Specialized personnel will review your application to determine if you meet the Social Security Administration’s definition of disability.

Who Is SSDI For? SSDI Is for People Who Cannot Earn a Living

SSDI is intended for people who cannot earn a living because of a mental or physical disability. Unlike those on short-term disability insurance, when you receive social security benefits, it means that you are likely to be unable to earn a living over an extended period. This doesn’t, however, completely preclude you from earning some income if you are able to do so.

In fact, it’s encouraged through work incentives.

For example, you may have suffered a personal injury, involving the loss of your hand. Whether you need to type or operate machinery, if you use your hands to work, this may significantly impact your ability to make a living. You may qualify for SSDI benefits.

Even if you can earn some additional income without losing your benefits, it’s important to remember that this is an entitlement program designed to help people who cannot make a living. It doesn’t replace all income lost, and taking disability may require a reduction in your standard of living. 

Suppose you are capable of making a living despite your disability. In that case, social security disability benefits are not intended for you, and you should leave them for those who really need them. The goal should always be to make a living income if you are able and accept the help, knowing you paid for it through your social security taxes, if you cannot.

Substantial Gainful Activity (SGA) & Disability Benefits

While receiving SSDI benefits, you may engage in substantial gainful activity (SGA) but only up to a limit. For 2022, that SGA limit is $1350 for most people. Those who are statutorily blind may make $2260. For blind individuals, this SGA does not apply to supplemental security insurance SSI benefits, a different type of social security. However, for non-blind people, the SGA limit applies to both SSI and Social Security retirement (not usually applicable). In neither case your spouse’s income will not impact your qualification for SSDI benefits. 

This seems rather straightforward, but here’s where this can get a little more complex.

What Are Social Security Work Incentives / Trial Work Period?

If a sudden — or suddenly worsening — condition led to your disability, then applying for disability benefits may have seemed your only or best option at the time. However, once you’ve become accustomed to your disability and have had an opportunity to explore other options, it may look like you can return to work.

With that said, many people are afraid that they may not be able to make an adequate income, so they don’t attempt to do it despite wanting to work. What if they lose their benefits and can’t get them back? That’s a valid fear.

For this reason, SSA  has created an incentive for you to try to work after you start receiving benefits. It’s called the “trial work period“. During this time, you may earn income and receive benefits, as you test your ability to make more income through working versus receiving benefits. 

You can complete a trial work period for up to nine consecutive or non-consecutive months over a rolling 60-month timeframe before you’re considered to “not have a disability” requiring benefits. In any of these work months, if you exceed $970 (in 2022), then it counts toward the nine months in 5 years. 

In other words, even though a non-blind person with a disability can earn $1350 in additional income from gainful employment and stay on disability, you shouldn’t expect that you’ll be allowed to reach this limit every month. For all but nine months in 60 months, the actual limit is $970.

It’s also important to note here, that even if you have no plans to get off disability, you can still take advantage of this trial work period when it makes sense for you. For example, you do some gig work for a couple of months, so you can buy your spouse a nice birthday present you could normally not afford. It’s not a regular thing, and you don’t plan to make a job out of it, but you have an opportunity to make some money within your abilities and do something nice for someone you love. You earn between $970 and $1350 in a month for this work. This won’t get you immediately kicked off disability because it will be treated as a trial work period.

What If Your Countable Income Goes Above the SSI Income Limit?

Supplemental Security Insurance (SSI) pays out based on financial need and is not the same as SSDI, although overlap in those who qualify exists. SSI is for people who are:

• Blind
• Disabled
• Aged

But they also have little or no income or financial assets. We fund it through taxes, not someone’s income, so adults with disabilities who have never worked may qualify for it.

It’s not intended to replace income, but to help a person cover the basics when they don’t have the means to do so:

• Food
• Shelter
• Clothing

Your countable assets (resource limit) can’t exceed $2000 for an individual or $3000 for a couple to get SSI. However, many assets are not counted like your:

• Primary residence
• ABLE accounts
• Primary vehicle if you or a family member use it for transportation

The SSI countable income limit is the same as SSDI (discussed above). However, if you are not blind, SSI and the Social Security you get at retirement age will count toward your income limit. Be sure to subtract these amounts to determine the upper limit for your monthly income from gainful employment.

You can use the Benefits Eligibility Screening Tool on SSA.gov to determine what you or a loved one may qualify for SSDI, SSI or both.

How Does Self-Employed Income Impact SSDI & SGA?

If you are self-employed, don’t forget to deduct work expenses on your Schedule C, home office, and depreciation, as applicable. These reduce your taxable income. However, the SSA does state it looks at self-employed income differently. They do not “consider income alone” when deciding if you qualify for disability or are entitled to stay on disability because self-employed income can be delayed. They will also “evaluate your work activity based on the value of your services to the business, regardless of whether you receive an immediate income for your services.” In other words, knowing your income limit can get tricky for some.

How Much Money Can You Make on Social Security Disability?

Using the above information, we can now summarize to answer this question. You can make up to $970 per month on an ongoing basis without worrying about losing your disability benefits. However, you can make over this amount for nine months in a rolling 60 month period in what is considered a trial work period.

But don’t forget about SSI. Suppose you also receive SSI or regular Social Security Retirement income. In that case, those amounts count as income unless you’re blind, so you should subtract those amounts from the $970/mo or $1350/mo, depending on your disability income earning strategy. This allows you to determine how much work income you can make without threatening your benefits.

What Are the Income Limits in Order to Not Qualify for Benefits?

If you are currently exceeding the SGA limit of $1350/mo for the year after the disability occurred, then you will not be approved for disability because you won’t qualify. But let’s say that you did qualify and started receiving benefits. Now, you must be careful not to exceed the income limit calculated above, so you can continue to receive your disability benefits. Unless, of course, you intend to return to full-time gainful activity as an employee or self-employed person — if you’re capable of doing so.

Most people asking the question, “How much can I earn while on social security disability” want to stay on disability but also want to take advantage of the trial work incentive to increase their income. That’s certainly okay, but if you choose to do this, it’s vital that you know your upper limit. While the upper limit is the same for most people, if you receive SSI, social security retirement income, or are self-employed, you have some math to do, and you don’t want to get that math wrong. It’s certainly advisable to discuss this with a disability lawyer, and they may offer a free consultation.

Understanding how Social Security Disability Insurance works when you receive (or plan on receiving) a lump sum settlement can save you a lot of hassle and stress.

Following are some commonly asked questions on the topic along with helpful answers to enable you to make smart financial decisions?

Will I lose my SS Disability Insurance if I get a settlement or win a lawsuit?

You won’t automatically lose your Social Security Disability Insurance upon receiving a settlement. In fact, up to 17% of all SSDI recipients have a connection to either workers’ compensation or public disability benefits. However, the amount you receive from SSDI could be lowered due to receiving a settlement or winning a lawsuit, in some cases significantly so.

How does a lump sum settlement affect Social Security Disability Insurance?

Social Security Disability Insurance doesn’t cover more than 80% of a person’s typical earnings before he or she became disabled due to an illness or injury. If you receive a lump sum settlement, SSDI will usually prorate the settlement, dividing the money you receive from the settlement by the number of months you are expected to be on SSDI; that is, until you are able to go back to work or you reach retirement age, at which point SSDI payments automatically switch to a Social Security retirement payment and SSDI offset rules no longer apply.

In some states, the lump-sum payment a person receives when on SSDI is reduced to ensure a person is not receiving more than 80% of his or her former salary. This means that a person who is receiving the full 80% of his or her former salary will receive money from a lump sum worker’s compensation settlement; however, those who are receiving less than 80% of their former salary will receive some settlement money. Once again, this only applies to individuals under the age of 62; those of retirement age receive retirement payments and so will receive the full 100% of their lump sum payment without a reduction to their monthly SS payments.

Following are two examples that clarify the rules.

Clarissa earned $5,000 a month before becoming permanently disabled due to an on-the-job accident. She began to receive Social Security Disability Insurance on her sixtieth birthday and currently receives $4,000 a month in payments, which is 80% of her former salary. She then received a lump-sum settlement of $10,000 from her employer one year later (on her sixty-first birthday). The $10,000 is then divided by twelve (as it is only twelve months before she turns 62, which is retirement age), which comes to about $833 a month. This sum is subtracted from her SSDI payments for the coming year, which means she will only receive about $3,267 a month from SSDI.

Tony, on the other hand, is 42 years old. He used to earn $10,000 a month but became ill and now only receives $5,000 in monthly SSDI payments. This comes to 50% of his former income. If it is determined that Tony’s employer is partly responsible for Tony’s illness and Tony receives a $1,000,000 lump sum settlement, this is divided by 240 months (the number of months until Tony turns 62). Tony would receive the equivalent of $4,166 a month but because he is on SSDI, the state only pays out the equivalent of $3,000 a month to cover up to 80% of Tony’s former salary. Put simply, this means he would only see $720,000 of his settlement money.

What income affects Social Security disability benefits?

Not all payments affect Social Security disability benefits. Some payments that aren’t covered by Social Security’s offset rules include: 

• Veterans Affairs benefits
• Needs-based benefits
• Federal, state, or local disability benefits based on employment covered by Social Security
• Private pensions
• Private insurance benefits
• Supplemental Security income

Can You Receive Social Security Disability and Workers’ Compensation at The Same Time?

You can receive Social Security disability and lump-sum or monthly workers’ comp payments at the same time. However, the workers’ compensation payments are subject to the rules outlined above, and in some states you may not receive any workers’ compensation payments if you already receive 80% of your former salary via SSDI benefits. 

How can I minimize the offset amount?

There are some things you can do to minimize the offset amount of a lump-sum settlement or lawsuit payment:

• You can have the money paid as an annuity instead of all at once. Put simply, this means you’ll receive a set amount of money per year rather than the entire sum in one sitting. This option may work well for people who are close to retirement age and/or are not receiving the full 80% benefit from SSDI.
• You can have the settlement or lawsuit payment deferred so you start receiving an annuity at a future date instead of right now. This is ideal for anyone who receives 80% of his or her former salary from SSDI but still wants the full lump-sum payment from the lawsuit or settlement. By deferring payment until retirement age, a person can receive both SSDI and the full settlement/lawsuit payment. 

These options have their flaws, and may not be suitable for everyone. Talk to a lawyer about your options to ensure your financial decisions meet your current and future financial needs.

Are there exclusions for certain expenses? 

Any medical and legal expenses you incur in connection with receiving workers’ compensation can be excluded when Social Security (or your state) decides on how much money you’ll receive in monthly payments. Let’s take a look at a couple of examples:

Mary, who is 60 years old, earned $10,000 a month but lost her job due to an on-the-job injury. She receives $4,000 in SSDI payments and was awarded $200,000 in a recent lawsuit. This sum divided between 24 months would come to about $8,333 a month, but Mary would only be eligible for an extra $4,000 a month due to SSDI rules. However, if she has to pay about $5,000 a month in medical expenses, she would receive the full benefit with no exclusions as she would only be getting an extra $3,333 a month after medical expenses are covered. 

Tony is 40 years old. He used to earn $10,000 a month but got sick due to exposure to chemicals at work and is now unemployed, receiving only $5,000 a month from SSDI. He won a lawsuit against his former employer and received $1 million on compensation but has to pay 25% of this money ($250,000) to his personal injury lawyer. What’s more, his medical expenses will be about $5,000 a month for the next 10 years. This comes to $600,000 in personal medical bills. These expenses are deducted from his lump-sum payment before Social Security calculates how much money Tony would get from his settlement. He only has $150,000 after qualifying expenses, which comes to about $568 a month for the next 22 years until Tony reaches retirement age. Thus, Tony would receive his full lump-sum payment as it does not exceed 80% of his former income once expenses are calculated into the equation.

How can I calculate average current earnings? 

There are three ways in which average current earnings (ACE) can be calculated:

• Your average monthly earnings from the work or business you engaged in the year before you became disabled. To calculate this, add up your annual income and divide it by twelve.
• Average your monthly earnings from the five years in which you earned the most income before you became disabled. To calculate this, add up the annual income from these five years and divide it by sixty.
• Go over your income from the last five years before you became disabled, find the year in which you earned the most money, and divide that year’s income by twelve.

Naturally, you’ll get different answers from each of these calculations. The number that is the highest is the one that Social Security will use to calculate your SSDI payments. 

A lump-sum payment from a settlement or a lawsuit payment can be a huge boon to anyone on SSDI; however, it’s important to be aware that you may not see much or even any of this money if you don’t have a financial plan in place to ensure your SSDI income isn’t offset by too much as a result of your new source of income.

If you have received a lump-sum payment or expect to receive one in the near future, consider the information outlined above and seek legal or expert help if need be in order to keep as much of your lump-sum payment as possible, without lowering your SSDI income. 

The transition from Social Security Disability Payments to Social Security retirement payments can be scary for many SSDI recipients.

Many worry that they will lose income right when they need it most, others are concerned about the paperwork they may need to fill out to complete the transition while still others are unsure of when their SSDI payments will switch over to regular SS payments.

Following are some detailed answers to commonly asked questions along these lines.

Will My Social Security Disability Change When I Turn 66?

Your SSDI benefits will automatically change when you reach full retirement age. However, “full retirement age” varies depending on the year in which you were born.

• Those born in 1956 will reach full retirement age at 66 years, 4 months
• Those born in 1957 will reach full retirement age at 66 years, 6 months
• Those born in 1958 will reach full retirement age at 66 years, 8 months
• Those born in 1959 will reach full retirement age at 66 years, 10 months
• Anyone born after 1960 will reach full retirement age at 67 years

If you happen to have been born on January 1 of any given year, your full retirement age would be the year before you were born. For instance, an individual who was born on January 1, 1960, would be treated as a person who was born in 1959 and would be at full retirement age at 66 years, 10 months, rather than at 67 years.

What Happens with Social Security Disability Recipients at Retirement Age?

You cannot receive SS disability payments and SS retirement benefits at the same time. Once you start receiving SS retirement benefits, your disability payments will automatically end. There is only one expectation to this rule, and that is for those who became disabled and applied for SSDI but then signed up for early SS retirement benefits before their SSDI application is approved. In such an instance, a person will receive SSDI payments along with retirement payments until their full SSDI payment allotment is completed. As an added benefit, a person in this position is entitled to full retirement benefits even though he or she filed for early benefits.

What do I Need to do to Switch from SSDI to Retirement Benefits?

You don’t need to do anything. Social Security will automatically switch your payments from disability payments to retirement payments. 

Will My Income Go Up or Down When I Start Receiving SS Benefits?

Many people worry that they will lose income when they switch from SSDI to SS retirement benefits, as Social Security bases monthly benefit payments on 35 years of earnings. However, this is not the case for recipients of Social Security Disability payments who have worked fewer than 35 years in their lifetime, as Social Security uses a special formula to calculate average monthly earnings for individuals in this category. 

If you are on SSDI payments, Social Security will calculate the number of years you have worked since you were 21 years old and then subtract one-fifth (or 20%) of your total working years or five years from the total, depending on which sum is less. The final sum is the number of years that will be used to calculate both your SSDI and SS payments. Following are two examples of ways in which this formula is used to calculate payments:

John started working when he was 21 years old. He became disabled when he was 41 years old, which means he worked for 20 years. Social Security will subtract 20% of John’s total working years, which comes to four years. John’s SS disability and retirement payments would then be based on fifteen years of earnings.

Trisha, on the other hand, started working when she was 21 years old and became disabled when she was 51 years old. She worked thirty years, so Social Security will subtract 20% from 30, which comes to 6 years. However, the maximum number of years that can be subtracted from one’s working years is five, so Social Security will base Trisha’s payments on 25 years of work history. 

In both of the above examples, Trisha and John would notice no change in the amount of money they receive each month. This holds true for almost all SSDI recipients; however, there are some instances in which a person may more money when on SS retirement benefits than they did when on SSDI. 

Social Security Disability Insurance automatically cuts money from payments when a person on SSDI has received a settlement or won compensation as a result of a lawsuit. This cut does not apply to a person who is on SS retirement benefits. If you have your lump sum payment deferred until after you reach full retirement age, or opt to have the money paid as an annuity rather than immediately, you will earn more money from your settlement even though you have to wait longer to receive it than you would have otherwise. Here is an example to illustrate the point:

Tony is 60 years old, and he is on SSDI payments due to a workplace injury that makes it impossible for him to hold down a job. He wins a settlement from his former employer, which provides him $500,000 in compensation. Once medical costs and legal costs are deducted from this bill, he has $350,000 left. Social Security Disability Insurance would calculate the amount of money he receives each month from the time he received the settlement until he reaches retirement age nearly eight years later. This sum comes to $3,645, which would be subtracted from his SSDI payments each month in most states (in other states, the money is subtracted from the settlement or lawsuit money rather than the SSDI payments).

If Tony does not need the money right away, he could opt to have it deferred until he reaches full retirement age, at which point he could keep all the settlement money without a reduction in his monthly retirement payments. Alternatively, if he needs some of the money right away, he could opt for annuity payments paid over a ten or twenty-year period. In such an instance, SSDI would only calculate the extra income he would receive from now until he reaches full retirement age. Legal and medical expenses from the next eight years are deducted from the bill, which means Tony would not see a significant reduction in his benefits. If, for instance, he opts to have payments of $50,000 a year made over a ten-year period, Social Security would discount $100,000 in payments that are made after Tony reaches full retirement age along with the $150,000 in expenses outlined above, as the money would be spent before Tony’s full retirement age. Instead of a $3,645 reduction in monthly benefits, Tony’s benefits would only be lowered by $2,604 a month.

Are There Limits on Earnings or Additional Income When I Start Receiving SS Retirement Benefits?

When you reach full retirement age, your earnings or additional income won’t impact your benefits no matter how much money you earn. 

Can I Convert My SSDI Payments to Retirement Payments Before I Reach Full Retirement Age?

You cannot convert your Social Security Disability Insurance to retirement benefits before you reach full retirement age. However, you can make the switch from SSDI to retirement benefits at any point after your sixty-second birthday. This switch is not made automatically; you’ll have to apply to stop receiving SSDI benefits and instead receive SS retirement benefits. However, if you switch from SSDI to retirement benefits you could lose up to 28% of your annual income as Social Security reduces retirement benefits for those who apply for early payments. The amount of money you lose depends on when you apply for SS retirement benefits and the age at which you would be considered “full retirement age”. 

Generally speaking, switching from SSDI to SS earlier than necessary is not a smart financial move. However, it can be the best option for people in special circumstances:

• If you are set to receive a lump sum settlement or win a lot of money from a lawsuit, you could lose some or even all your SSDI benefits if you receive immediate payment. In such an instance, switching to SS retirement benefits will enable you to keep your full lump-sum payment even if you do lose some of your SS income as a result. 
• Perhaps you’ve started your own business while on SSDI and the money you’ve earned so far hasn’t impacted your SSDI payments. Now, however, your business is taking off, and you want to keep all your earnings. If so, switching to retirement payments can help you bring in more money per month than you would have otherwise.
• Your wife or child could qualify for a higher benefit rate if you switch from SSDI to retirement benefits. 

The decision to start collecting early benefits is one that will have a lasting impact on your retirement income. Once you’ve applied for Social Security retirement income, you can’t change your mind and defer payments until a later date. This same point applies to the spouse of a person who is SSDI income and who wants to receive early retirement benefits. If you’re thinking about applying for early SS retirement income, it may be wise to schedule a consultation with a disability attorney who specializes in Social Security. 

How are a Spouse’s Social Security Payments Impacted by the Switch to Retirement Income?

In most instances, spousal Social Security payments remain the same once a person who is on SSDI switches to SS retirement payments upon reaching full retirement age. However, if your spouse filed for Social Security retirement benefits before reaching full retirement age, he or she may want to file for spousal benefits once you reach full retirement age and switch from SSDI to SS retirement income. In such an instance, the person who files for spousal benefits could receive the same amount of money as you do. Here is an example that illustrates this point: 

Kathy and Bob are both 62 years old. Bob is on SSDI; Kathy is not. Kathy opts to file for early SS retirement benefits, and currently receives $1,000 a month. When Bob reaches full retirement age, he will receive $1,200 a month. At this point in time. Kathy can file for spousal benefits; then, she will receive $1,200 a month as well. This is the total sum of her monthly SS payment, not a payment added to the previous $1,000 a month she was receiving before applying for spousal benefits.

Alternatively, a person who is on SSDI could switch to spousal benefits if his or her spouse is the one who is set to receive the most money. If Bob, for instance, is currently earning $1,000 a month in SSDI income but Kathy, who reaches full retirement age before he does, would receive $1,500 a month in SS retirement income, Bob could apply to switch from SSDI payments to SS spousal benefits. 

Bear in mind, however, that while a spouse can apply for spousal benefits, he or she cannot switch from spousal benefits to his or her own benefit later on. To use the above example, if Kathy delays her SS retirement until she reaches full retirement age and applies for spousal benefits at this time, she can’t change her mind later and apply for her own benefit at a later date. The amount she receives is permanently connected to her husband’s SSI retirement income permanently. 

A person on Social Security Disability Insurance doesn’t need to do anything to keep the monthly payments coming, as the payments are automatically switched to SS retirement income once a person reaches full retirement age. However, that does not necessarily mean an individual on SSDI should simply sit back and allow the switch to happen in due time.

There are cases when taking action before or even after reaching full retirement age could be in a person’s best interest and enable him or her to receive more monthly income than would otherwise be possible.

If you find the information above doesn’t cover our personal situation, or you feel you qualify for more income than you are currently receiving, seek legal help from a disability lawyer and/or a tax planning professional as soon as possible in order to receive the compensation that is your due.

Continuing to receive Social Security Disability Insurance (SSDI) benefits depends on whether you remain disabled or if your condition improves.

If you receive SSDI benefits, Social Security will periodically conduct a review of your case file to ensure that you still qualify. If your disability might improve, this review happens about every three years. If the expectation is that your disability will not improve, this review happens every seven years.

Suppose your case review finds that your medical condition has not improved sufficiently to allow you to work. In that case, your social security disability benefits will continue until you reach full retirement age. Your full retirement age is when you are 65 to 67 years old, depending on your birth year.

However, if your case review finds that your medical condition improved sufficiently to allow you to perform regular work, then the social security disability payments will stop. If you disagree with the conclusion of your case review, you have the right to appeal the decision.

Here are some frequently asked questions about Social Security disability benefits and retirement:

What is the difference between SSDI and SSI?

Sometimes these two programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), are confused with each other. They are both managed by the Social Security Administration, yet are different programs.

Occasionally, you may also see the use of SSI to represent ordinary Social Security income. This alternative use of the acronym is another source of confusion because Social Security income is retirement income. In contrast, Supplemental Security Income is for those with limited resources, not solely retirement income.

Social Security Disability Insurance (SSDI) is an insurance program paid for by the payroll tax deductions for Social Security. The current Social Security tax rate for 2022 is 6.2% paid by the employer and 6.2% paid by the employee, equaling a total of 12.4%. If you have Social Security taxes withheld from your earned income, you will have this insurance coverage.

SSDI payments require SSA approval of disability status, and the amount paid depends on your work history. If you become disabled and qualify for SSDI, you will receive monthly payments that are the same amount as you would get if you were already at full retirement age.

Related Topic:

https://www.everydayresources.com/posts/benefits-and-insurance-for-people-with-disabilities

Supplemental Security Income (SSI) is based on age OR disability and having very limited income and financial resources. SSI does not depend on any work history.

Is it possible to get SSDI and SSI at the same time?

Yes, it is possible to receive payments from both programs if the amounts of both are small enough. SSDI payments cause a reduction in the amount of SSI. If the SSDI payments you receive are high enough, this can disqualify you from getting SSI payments.

SSDI payments are, on average, higher than SSI payments. SSDI payments do not depend on having limited financial resources.

Here are the main differences between SSI and SSDI:

• Eligibility: SSI is available for those 65 or older with or without a disability and at any age for those who are blind or disabled with no work history requirement. SSDI is available for those who are disabled and have sufficient work history to qualify.
• Average Monthly Benefits: SSI payments in 2022, average $604 per month (maximum is $841 for an individual and $1261 for a couple). SSDI payments in 2022, average $1,358 per month with a maximum of $3,345 per month.
• Financial Limits: SSI requires having very limited financial resources (under $2,000 for an individual and $3,000 for a couple) and unearned/earned income limits. For example, under $861 per month for unearned income for an individual and $1,281 for a couple. Higher amounts are allowed under the SSI program for countable earned income. SSDI does not have financial resource limits but has an earned income limit in 2022 of $1,350 per month for those who are disabled but not blind and $2,260 per month for those who are blind.

If you are 65 or older with very limited resources and income, you may qualify for SSI payments without needing to be disabled. You may also be eligible for Medicaid health insurance coverage and the Supplemental Nutrition Assistance Program (SNAP), commonly known as “food stamps.” Some states supplement the SSI payments to pay higher amounts than the federal payments.

When is the full retirement age for me?

Full retirement age (FRA) increased by law in 1983 from 65 years old up to a maximum of 67 years old now.

FRA depends on the year of your birth, according to this chart:

Year of Birth	Full Retirement Age
1937	65
1938	65 and two months
1939	65 and four months
1940	65 and six months
1941	65 and eight months
1942	65 and ten months
1943 to 1954	66
1955	66 and two months
1956	66 and four months
1957	66 and six months
1958	66 and eight months
1959	66 and ten months
1960 and later	67

The Social Security Administration has a useful online tool to calculate your full retirement age.

How about Medicare at age 65?

When you reach 65, that is still the same year you qualify for Medicare. Be sure to apply for Medicare when you turn 65 to avoid paying the penalty to join later. Medicare Part A is free, and you have options to consider about paying an insurance premium to get Medicare Part B. You may want to consider paid supplemental insurance such as Medicare Advantage programs.

Will my disability payment increase if my disability gets worse as I get older?

No. Your monthly SSDI payment does not change if your condition becomes worse. The benefits are calculated based on your earnings history. The amount of disability payment is the amount you would receive if you were at full retirement age when you became disabled.

The Social Security Administration (SSA) approves a disability claim based on your inability to perform work due to a disability expected to last 12 months or longer or result in death. Approval of disability status is the same as being fully disabled, even if your condition subsequently deteriorates more.

If your condition improves, you must inform the SSA, especially if you can go back to work. You must also undergo a case review about every three years for a disability that might improve and about every seven years for a permanent disability. Losing disability status means your monthly SSDI payments will stop.

What happens with my SSDI when I hit full retirement age?

If you still qualify as disabled, your disability benefits automatically convert to retirement benefits when you reach full retirement age. You need to do nothing as this process happens internally in the Social Security Administration’s system.

Will full retirement age change my benefit amount?

Social Security benefits from disability insurance calculations have the same basis as if the disabled person reached full retirement age when they became disabled. If you become disabled when younger than full retirement age, you can think of this Social Security disability payment as equal to early retirement with full Social Security benefits.

When you reach full retirement age, you qualify for 100% of the retirement benefits even if you are not disabled as long as you have sufficient work history.

Usually, you do not see any change when the SSDI benefits convert to retirement benefits when you reach full retirement age.

It is helpful to check your work history record and see your Social Security deductions taken from your paychecks (and matched by your employer) for each year you earned income. You can do this easily by getting an online MySocialSecurity account.

The same applies to your spouse receiving benefits based on your work record. Those benefits automatically change from disability to retirement benefits when you reach full retirement age. However, if your spouse takes these benefits before your spouse reaches full retirement age, their benefits are lower.

It is helpful to work with a financial professional who understands the Social Security rules to make the best decisions about when to take retirement benefits if you (or your spouse, if you have one) qualify for them.

There is one exception. The exception applies if, in addition to receiving disability benefits, you also receive worker’s compensation payments or another government payment such as public disability benefits from a government job.

Since you do not pay social security taxes on these other disability payments, your disability benefits from Social Security are reduced by them. This reduction ends at full retirement age, so your total benefits would increase when you reach your full Social Security retirement age.

Can I increase my benefits when I reach retirement age?

If you reach retirement age and are still collecting Social Security benefits by receiving SSDI, your benefits cannot increase by taking any action on your part. Your SSDI monthly benefits covert to a retirement benefit for the same amount.

Another automatic change happens if you receive worker’s compensation or public disability benefits from a government job. Before reaching full retirement age, those payments reduce your SSDI benefits. After full retirement age, those reductions are not necessary, so your total monthly benefit payments would increase.

Can I work if I receive SSDI benefits?

When you collect social security disability payments, any earned income may reduce the amount of your monthly benefits. However, when you reach full retirement age, you are no longer hindered by limits on your earned income. After reaching full retirement age, any amount you make from working does not lower your monthly Social Security benefits.

What happens to my benefits when I reach retirement age if I return to work?

If you can work before the full retirement age, there is a possibility of increasing your Social Security retirement benefits. This increase may happen if your earnings improve your Social Security monthly benefits calculations.

The Social Security Administration has a free, voluntary Ticket to Work program that helps disabled people who want to find work. Under this program, it may be possible to test your ability to work for up to nine months without reducing your SSDI benefits.

What’s required for me to make the transition to full retirement?

Transitioning from receiving Social Security disability insurance payment to collecting Social Security retirement benefits is automatic when you reach full retirement age.

Your monthly benefit payments will not change; however, you will no longer be subject to any of the rules for SSI disability payments. You will not need to have any further case reviews after reaching full retirement age. You will still get your monthly payments when you reach retirement age, even if your disability improves.

What about SSD and early retirement?

You cannot take early retirement at age 62 if you receive Social Security disability payments. You would not want to do this because your early retirement payment would be up to 30% lower than the SSDI monthly benefits, which come from the rate calculated for your full retirement payments.

You might only consider changing to early retirement pay if you lose disability status. If you lose your disabled status at age 62, you would have the option to request early retirement payments from Social Security if you qualify for them. Losing your disabled status from a case review at age 62 would be a valid reason to consider early retirement.

Your monthly check from early retirement would be lower than the amount you receive as disability benefits; however, this might be preferable to not receiving any payments. In this circumstance, you would also have the option to wait until full retirement age to receive all your benefits that match the disability payment amount you were getting before you lost your disability status. That wait may be many years.

Additionally, you have the option to delay receiving benefits to age 70 to receive an increased monthly payment from Social Security. Depending on your year of birth, your retirement benefits payments may increase by up to 32% above the full retirement pay. It may be helpful to work with a financial professional to understand these options. The best choice for you depends on your particular circumstances.

How does early retirement impact spousal benefits?

Social Security disability payments come from the amounts projected for your full retirement age. A spousal benefit paid out based on your work history record is not automatically upgraded to the level paid at full retirement age.

If your spouse applies for the spousal benefit before the spouse reaches full retirement age, then benefits will be based on the early retirement amount (up to 30% lower), which is a permanent reduction.

Can I switch from Social Security retirement benefits to Social Security disability benefits?

Yes, it is possible to switch from Social Security retirement benefits to Social Security disability benefits under certain circumstances. Suppose you filed for early retirement benefits and started receiving Social Security payments when you were only 62. Then, you became disabled.

Since you are not yet full retirement age, you may receive a higher payment if you are qualified as disabled. The difference is that disability payments would be at your full retirement age, which are up to 30% higher than early retirement payments.

In this special circumstance, it is worth evaluating if you should apply for disability for the few years between the early retirement age of 62 and your full retirement age based on your birth year that could be from 65 to 67 years old.

If you retire early and then later realize that a medical condition qualifies you for disability benefits, it is possible to claim disability payments retroactively.

Disability claims may take many months, sometimes years, for approval and might face denial. You may want to apply for early retirement benefits while waiting for your disability claim to be approved or denied to have some Social Security income in the meantime.

It is also wise to consider working with a disability attorney for a complex case. A Social Security disability attorney is a specialist in working with Social Security benefits. A disability lawyer may help if your disability claim faces a denial and the decision needs an appeal.

The rules regarding Social Security disability benefits are complex and constantly changing. It is helpful to work with a financial professional who understands the current regulations and check with the Social Security Administration website for the most recent information about Social Security disability benefits.

Children who have a disability that renders them unable to work may be eligible for Social Security disability benefits under special provisions. The benefits they might qualify for are Supplemental Security Income (SSI) payments, which are income-restricted.

What Are the Medical Qualifications for Children to Receive SSI Payments?

Supplemental Security Income payments are different from welfare, and one of the major differences is the medical requirement. Children are only eligible for SSI payments if they suffer from a disabling medical condition that causes “marked and severe functional limitations.” The medical condition must have resulted in disabling functional limitations for at least 12 months, or the condition must be terminal.

Medical professionals and a Social Security disability attorney can help determine whether a child’s condition meets the medical qualifications for SSI.

What Are the Income Limits for Social Security Disability for a Child?

Financial qualifications apply both to a child’s earnings and their family’s income. In order to qualify for Social Security Disability through Supplemental Security Income, both income limits must be met.

What Income Limits Apply to Disability Benefits for a Child?

The child themselves generally cannot earn more than $1,350 per month, and the calculations are on a month-to-month rather than an annual basis. Their income can’t be more than $2,260 if they are blind. The federal government recognizes blindness as a uniquely challenging disability in such a visually oriented world, and thus allows blind children and adults higher income limits.

As far as the child’s income limit is concerned, the $1,350 (or $2,260) monthly maximum takes into account only income that’s earned from “substantial gainful activity” — work. Children who are fortunate to receive earnings from investments, interest or other assets usually don’t have to include these when calculating their individual income. All income must be included in the family calculations, however.

(All figures provided are for 2022. Figures vary slightly from year to year, most often increasing a nominal amount.)

What Family Income Limits Apply to Disability Benefits for a Child?

Family income limit calculations primarily focus on the parents’ income, for parents are typically the ones who claim their child as a dependent. They also have the highest incomes within a family in the vast majority of cases.

The Social Security Administration takes into account both the patients earned income (from substantial gainful activity) and unearned income (from non-work sources). 

Parents’ income is likewise considered on a monthly rather than annual basis. Adding up all income within a month is a fairly straightforward process, even if doing so requires checking income from many sources. 

Child Benefit Standard Calculation

The gross income isn’t what the SSA looks at, though. Several numbers are subtracted from the parents’ gross income:

1. Government Payments: All income earned through government programs (e.g. food stamps, welfare, stimulus checks, etc.) is subtracted. SSA benefits such as SSDI are one government program that doesn’t get subtracted.
2. Tax Refunds: Any federal or state tax refunds are subtracted (including advance payments for the Child Tax Credit). This keeps refunds from messing up income limits in any one month.
3. A flat amount of $397 is subtracted for each non-disabled child in the family. This is subtracted first from non-earned income, and then from earned income once non-earned has been exhausted. It’s the same amount as the difference between individual and couple SSI limits.
4. A flat amount of $20 is subtracted (regardless of whether there are one or two parental income earners). This again is subtracted from non-earned income if available.
5. A flat amount of $65 is subtracted. This is subtracted from earned income, regardless of whether any non-earned remains.
6. The total earned income at this point is reduced by 50 percent, halving the amount of income from actual work.
7. The SSI benefit rate for the parents is subtracted from non-earned and earned income remaining. This is $794 for children who live with a single parent, and $1,191 for children who live with both parents/a parent and a stepparent.
8. The remaining earned and non-earned parent income is then divided equally among all disabled children in the household. The entire amount is attributed to the child if they’re the only child in the family who is disabled. The amount is proportionally deemed if there are multiple disabled children.

Approval and Allowance Calculation

The resulting amount that’s deemed to the child must not exceed the individual maximum income of $1,350 (or $2,260). This amount is added to any earned income that the child personally receives when checking the maximum allowances.

The child should be approved for Supplemental Security Income if their earned and deemed income is less than the maximum. 

Cash benefits payments are normally made immediately if the child suffers from total blindness, total deafness, muscular dystrophy, cerebral palsy, severe intellectual disability (for children 4 or older), symptomatic HIV, down syndrome, and birth weight less than 2 pounds 10 ounces (for children 3 or younger). Any other medical condition can take three to five months to review before payments are made.

A review is conducted at least every three years, or more often in some cases.

Child Benefits With Child Support Calculations

For parents who receive child support, one-third or the payments received are included in the parents’ income when calculating SSI eligibility for a child. Thus, the child support received within a month should be divided by 3 before adding it to income.

This is included before anything is subtracted, and thus is subject to the flat amount deductions, halving and non-disabled child deductions as noted above.

Child Benefits Received from Disabled Parents’ Calculations

Any Social Security Disability Income (SSDI) or Supplemental Security Income (SSI) payments that parents receive are included as normal parent income for the purposes of calculations.

SSDI/SSI payments are included at the full amount received (and not divided by 3), but they are subject to the flat amount deductions, halving and non-disabled child deductions noted.

Child Benefits With Alimony Calculations

Alimony is included as parent income when determining eligibility. Unlike child support, it’s included at the full amount received. Alimony is still subject to the flat amount deductions, halving and non-disabled child deduction, though.

Child Benefits for Disabled Children in Medical Facilities

For disabled children who are in a medical facility that health insurance pays for, SSI benefits are normally set at $30. This assumes that the child’s income qualifies, of course.

How Deeming Affects a Child’s Eligibility for SSD Benefits

The amount that remains after all of the calculations have been completed gets assigned to the disabled child. The assigning is referred to as “deeming.”

Any deemed money is considered income for the child, and gets added to any earned income that they have. The total amount is then used to determine eligibility, with the child receiving SSI benefits if the amount is under the maximum allowance (provided their medical condition qualifies). 

Again, the maximum disability determination allowance is $1,350 for most disabilities and $2,260 for complete blindness. This is for each disabled child within a family.

Get Help Navigating SSI Benefits for a Disabled Child

As this rather lengthy explanation shows, the income eligibility calculations required for a disabled child to receive Supplemental Security Income payments are lengthy and involved. All income sources must be correctly tabulated, and then all applicable deductions must be taken.

Because this process is complex, parents should consult a knowledgeable Social Security Disability attorney for assistance with determining eligibility. Eligibility must not only be calculated correctly to determine qualification, but also so there are no delays or other issues due to inaccurate calculations. An SSDI attorney will be familiar with these calculations, having done disability benefits calculations many times. 

Of course, an attorney can also assist with determining whether a medical condition qualifies. Contact an attorney now for a consultation, so you can apply and begin receiving payments as quickly as possible.