What disabled benefits actually are

Disabled benefits is an umbrella term for money the federal government sends to people who cannot work because of a long-term medical condition or injury. The two main programs are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Both are run by the Social Security Administration, but they work differently and have different rules about who can receive them.

SSDI is based on your own work history—you paid into Social Security through payroll taxes, and now that you cannot work, those contributions may have access to you to monthly payments. SSI is based on financial need, not work history. You do not have to have worked to receive it, but your income and assets must fall below certain limits. Some people receive both at the same time.

Neither program is a loan. You do not pay it back. The money comes from a federal trust fund, and the amount you receive each month depends on which program you are on and your personal circumstances.

Key Takeaways

  • SSDI is for people who have worked and paid into Social Security; SSI is for people with low income and assets, regardless of work history.
  • Both programs require that a doctor confirm your condition will prevent you from working for at least 12 months or will result in death.
  • The Social Security Administration decides whether you meet the medical standard, not your own doctor.
  • You can receive both SSDI and SSI at the same time if you meet the rules for each.
  • Processing times vary widely, but most decisions take several months, and many first applications are denied.

The difference between SSDI and SSI

SSDI (Social Security Disability Insurance) requires that you have worked long enough and recently enough to have earned "credits" in the Social Security system. The exact number of credits you need depends on your age when you became disabled. If you are under 24, you may need only six credits earned in the three years before you became disabled. If you are older, you typically need 40 credits total, with at least 20 earned in the ten years before disability began. You earn one credit for every $1,550 of wages (this amount changes each year), up to four credits per year.

SSI (Supplemental Security Income) has no work requirement. Instead, it looks at your income and assets. Your monthly income must be below a certain amount (which varies by state), and your countable assets must be under $2,000 for an individual or $3,000 for a couple. "Countable assets" means money in the bank, stocks, and property you own—but not your home, your car (usually), or certain other items. If you have more than these limits, you do not may have access to for SSI, even if you cannot work.

Some people may have access to for both. If you have worked enough to earn SSDI but your SSDI payment is very low, SSI can top it up to a minimum amount. This is called "concurrent benefits."

What the Social Security Administration looks for

To receive either SSDI or SSI, the Social Security Administration must find that your condition is severe enough that you cannot do any work that exists in the national economy. This is a high bar. Having a diagnosis is not enough. You must show that the condition limits what you can do physically, mentally, or both, and that those limits prevent you from working.

The condition must be expected to last at least 12 months or to result in death. If your doctor thinks you might recover within a year, you will not meet the standard, even if you cannot work right now.

Social Security uses a list called the Blue Book, which describes conditions that automatically meet the standard if your medical records show you have the condition as described. These include advanced cancer, HIV/AIDS, severe arthritis, and many others. If your condition is on the list and your records match it, the decision is usually faster. If your condition is not on the list or does not match exactly, Social Security will look at what you can and cannot do—your "residual functional capacity"—and decide whether that prevents all work.

How the process process works

You can start an SSDI or SSI process online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. You will need to provide your Social Security number, birth certificate, proof of citizenship or legal residency, and medical records showing your condition and treatment.

After you submit your process, Social Security sends it to a state agency called Disability information Services (DDS). DDS requests your medical records from your doctors and hospitals, reviews them, and makes a recommendation to Social Security about whether you meet the medical standard. This process typically takes 3 to 6 months, though it can take longer if your medical records are incomplete or hard to obtain.

Social Security then makes the final decision. If you are denied, you have the right to appeal. Most people are denied on their first process. If you appeal, you can request a reconsideration (which sends your case back to DDS), a hearing before an administrative law judge, or both. Many people are approved on appeal.

What you receive each month

SSDI payments are based on your earnings record. The Social Security Administration calculates your "primary insurance amount" (PIA) using a formula that looks at your highest 35 years of earnings. The longer you worked and the more you earned, the higher your SSDI payment. In 2024, the average SSDI payment is around $1,550 per month, but payments range from a few hundred dollars to over $3,800 depending on your work history.

SSI payments are set by federal law. In 2024, the federal SSI payment is $943 per month for an individual and $1,415 for a couple. Some states add money on top of the federal amount. If you live in one of those states, your payment will be higher than the federal amount.

Both SSDI and SSI payments increase each year if there is a cost-of-living adjustment (COLA). This is automatic and happens in January if inflation has occurred.

Work incentives and what happens if you earn money

Both SSDI and SSI allow you to work and earn some money without losing your entire benefit. The rules are different for each program.

With SSDI, you can earn up to $1,550 per month (in 2024) without affecting your benefits during a nine-month trial work period. After that, you enter an extended may be able to access period where you can earn up to the same amount and still receive a benefit check in any month you earn less. If you earn more than that amount, your benefit is reduced. If you work and earn above the "substantial gainful activity" level (currently $2,590 per month in 2024) for nine months, your benefits will stop, but you can restart them if you stop working or drop below that level.

With SSI, the rules are stricter. You can earn up to $65 per month plus half of anything above that without losing SSI. This means if you earn $200 per month, $65 is not counted, and half of the remaining $135 ($67.50) is not counted, so only $67.50 counts against your SSI payment. Your SSI payment is then reduced by that amount. If your countable income (including the portion of earnings that counts) exceeds the SSI federal payment amount, you lose SSI entirely, though you may still get Medicaid.

How benefits affect other programs

Receiving SSDI does not affect your income taxes, food stamps (SNAP), housing vouchers, or most other means-tested programs. SSDI is not counted as income for those programs.

SSI is different. Because SSI itself is a means-tested program, receiving it may affect your access to other means-tested programs. However, SSI recipients usually remain may be able to access for Medicaid and SNAP, and in many cases receive higher benefits in those programs because SSI counts as income for calculating those benefits.

Both SSDI and SSI recipients are may be able to access for Medicare (after two years on SSDI) or Medicaid (when ready on SSI). This health coverage is often as important as the cash benefit itself.

Frequently Asked Questions

Can I work while receiving disabled benefits?

Yes. Both SSDI and SSI allow you to work and earn money, but the rules differ. SSDI allows higher earnings before benefits are affected. SSI has stricter limits. In both cases, you must report your earnings to Social Security, and your benefit may be reduced or stopped depending on how much you earn.

How long does it take to get a decision?

Most initial decisions take 3 to 6 months. If you are denied and appeal, the timeline depends on which type of appeal you choose. A reconsideration takes another 3 to 6 months. A hearing before a judge can take 6 months to over a year depending on your local office's backlog.

What if I was denied the first time?

You can appeal. You have 60 days from the date on your denial letter to request an appeal. Most people are denied initially, and many are approved on appeal. You do not need a lawyer to appeal, but many people find it helpful to have one, especially for a hearing.

Do I have to use my own doctor's opinion?

No. Social Security makes the decision based on all available medical evidence, not just your doctor's opinion. Social Security may also send you to a doctor they choose for an examination. Your own doctor's records and statements are important, but they are not the final word.

Can I receive both SSDI and SSI?

Yes, if you meet the rules for both. You must have worked enough to earn SSDI, and your SSDI payment must be low enough that adding SSI brings you to the minimum SSI level. This is called concurrent benefits, and it is more common than many people realize.