Differentiating Between SSDI and SSI Benefits
People often confuse Social Security Disability Insurance and Supplemental Security Income. These programs, which the Social Security Administration administers, might appear similar since they offer financial support to people with disabilities. However, they differ significantly in several ways. Understanding the difference between the two is crucial if you are considering applying for disability benefits. In this article, we discuss how these two programs differ. Read on!
Understanding SSDI
Social Security Disability Insurance is a program meant to support disabled individuals. This program provides financial support to individuals and particular members of their family if they meet the following qualifications;
- Have a qualifying disability that prevents them from working.
- Have worked long enough and paid into the Social Security System.
With SSDI, Social Security credits determine how much you get. Credits are determined by your contributions.
Payroll taxes fund SSDI. When people work and earn income, a small part of their paycheck is automatically deducted to help fund the Social Security System. These taxes are collected under the Federal Insurance Contributions Act (FICA) for employees, or the Self-Employment Contributions Act (SECA) for self-employed individuals.
Understanding SSI Benefits
SSI or Supplemental Security Income is a benefit program that targets people who cannot see, have a disability recognized under the law, or are over 65. Blind children or those with a disability may also get SSI benefits. Other qualifications that you must meet to qualify for SSI benefits include;
- Have low income and limited resources
- Be a U.S. citizen or a qualifying alien
- Have limited financial resources
- Must reside in one of the U.S. states, the District of Columbia, or the Northern Mariana Islands
- Must not be absent from the country for 30 or more days
The U.S. Treasury general funds fund SSI. This program is not funded through social security taxes. However, some states supplement the federal SSI benefits.
SSDI vs. SSI Benefits
Below are the major differences between SSDI and SSI;
- Eligibility
- SSDI: Requires a person to have a qualifying disability, have worked long enough, and have paid taxes.
- SSI: Requires a person to have a qualifying disability, be blind, or be aged 65 or above. There is no work history requirement.
- Income and Asset Limits
- SSDI: Even with savings or other assets, you can receive benefits. However, your monthly income cannot exceed a specific limit if you engage in a Substantial Gainful Activity.
- SSI: Strict income and resource limits apply.
- Funding Source
- SSDI: Funded through payroll taxes paid by workers.
- SSI: Funded through general tax revenues.
- Benefits
- SSDI: Benefits are based on your lifetime earnings.
- SSI: Benefits aren’t tied to your past income.
Now that you understand the difference between SSDI and SSI benefits, you are in a better position to determine which program applies to you. If you are still unsure which program you may qualify for, consider speaking to an attorney. A qualified attorney can help you determine the appropriate benefits to seek and apply for the benefits.
Contact a Social Security Disability Lawyer
If you are considering applying for disability benefits, contact our London and Southeast Kentucky Social Security disability attorneys at Cessna & George Law Firm for legal guidance.
Source:
ssa.gov/disability
