Social Security Insurance (SSI) and Social Security Disability Insurance (SSDI) Comparison: Overlaps and Distinctions
In the complex world of social security benefits, two main programmes stand out: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). This article aims to provide a clear and straightforward overview of these programmes.
To qualify for SSDI, you need a work history that demonstrates you have paid into Social Security through payroll or self-employment taxes. This is achieved by earning enough work credits, which are based on your total yearly income reported and taxed for Social Security. You can earn up to 4 credits per year. Most applicants need about 40 credits, with at least 20 earned in the 10 years immediately before their disability began. However, the number of required credits can vary by age.
For self-employed individuals, the credits are earned by paying self-employment tax, which covers both employee and employer portions of Social Security contributions. Continuous reporting and tax payment are critical for qualifying.
Your disability must have lasted or be expected to last at least 12 months or result in death to qualify for SSDI benefits. You must also not be engaged in substantial gainful activity, defined in 2025 as earning more than $1,550 per month for non-blind individuals.
SSDI benefits may end if the medical condition improves or the individual is able to return to work. They are based on an applicant's lifetime average earnings. When the individual reaches full retirement age, SSDI payments convert to Social Security retirement payments.
On the other hand, SSI benefits are set by law and are uniform for all applicants. To be eligible for SSI, you cannot own stocks, cash, or other resources collectively worth more than $2,000 ($3,000 for couples). Exceptions to the SSI asset limit include a home you live in, household goods, burial plots, your wedding ring, one vehicle, property you use in your business or for work, and up to $100,000 in an ABLE account.
Other sources of income that may reduce SSDI benefits include workers' compensation payments and disability payments from a state or local government. The sum of SSDI benefits, workers' compensation, and other government disability payments cannot be more than 80% of the individual's average earnings. Income from other sources, including Social Security retirement, can also lower the amount you receive from SSI.
If the combined income from all sources, including SSDI, exceeds the SSI limit of $914 after exclusions, SSI may be reduced. The 2025 monthly maximum SSI benefit for individuals is $967, and for couples is $1,450.
Both SSDI and SSI are administered by the Social Security Administration (SSA). It's important to note that Social Security taxes fund SSDI, while SSI is funded by income taxes and other taxes.
In conclusion, understanding the eligibility criteria, requirements, and differences between SSDI and SSI is crucial for those seeking social security benefits. It's always recommended to consult the SSA for the most accurate and up-to-date information.
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