Somebody born in 2000 has a few 1 in 4 likelihood of changing into disabled earlier than they attain their full retirement age of 67. For a employee who turns into disabled throughout their working years, Social Safety Incapacity Insurance coverage (SSDI) is a lifeline.
As with Social Safety retirement advantages, Social Safety incapacity advantages can be found solely to staff who’ve earned work credit and paid payroll taxes. In some circumstances, spouses and dependent youngsters can gather both kind of profit based mostly on the insured individual’s work document.
The SSDI utility course of is notoriously tough. Individuals who qualify for advantages should adhere to quite a few strict guidelines, notably in terms of working. On this article, we’ll clarify how SSDI works and reply some generally requested questions on incapacity advantages.
Who Qualifies for SSDI Advantages?
Eligibility for Social Safety Incapacity Insurance coverage is predicated on two standards: whether or not you’ve got a medical analysis that meets Social Safety’s definition of a incapacity and your work historical past.
Medical Prognosis
You’ll should be identified with a bodily or psychological well being situation that can render you unable to work for at the very least a 12 months or is prone to lead to demise. Social Security’s Blue Book contains an intensive record of situations that meet the minimal threshold for incapacity.
However having a number of of the listed situations doesn’t imply you’ll robotically qualify for incapacity advantages. Likewise, in case your situation isn’t listed, you continue to could qualify in case your medical analysis meets Social Safety’s incapacity standards.
Work Historical past
To gather Social Safety, together with incapacity advantages, you’ll sometimes want 40 work credit. In 2023, you’ll want $1,640 of earnings in 1 / 4 to earn one work credit score. You possibly can’t earn greater than 4 credit in any given 12 months.
Youthful staff who’ve paid Social Safety taxes can qualify with fewer credit in the event that they change into disabled, although. You’ll additionally want to satisfy a latest work take a look at, that means you earned work credit within the interval instantly earlier than you turned disabled. For instance, in case you’re 31 or older, you’ll have to have labored in 5 of the ten years earlier than you developed a incapacity.
How Do I Apply for SSDI?
You possibly can apply for Social Safety incapacity online, in individual at your native workplace or by calling 1-800-772-1213 (TTY: 1-800-325-0778).
Together with figuring out paperwork like your beginning certificates (or proof of citizenship or lawful alien standing in case you weren’t born within the U.S.), be ready to current W-2s or self-employment tax data, medical proof and documentation associated to any non permanent or everlasting staff’ compensation-type advantages you’ve obtained.
SSDI advantages have a five-month ready interval. You possibly can’t apply till the sixth month after you turned disabled, recognized in Social Safety parlance as your onset date. On high of that, in 2021, it took a mean of 5 months to course of an SSDI utility, however many states have an extended backlog.
Don’t delay your utility simply since you don’t have all of the paperwork you want. Social Safety workers will allow you to find them.
Do I Want an Legal professional to Apply for SSDI?
No, however it is best to significantly take into account consulting with an lawyer, contemplating that about two-thirds of preliminary SSDI purposes are denied.
Attorneys who characterize SSDI candidates work on contingency, which suggests they receives a commission provided that you win your case. Charging upfront charges to characterize somebody in a incapacity declare is prohibited.
In case your utility is authorized, your lawyer’s charges are capped at whichever is much less: 25% of your first fee (which features a lump sum again fee for advantages starting on the sixth month after the onset date) or $6,000.
What if My Utility Is Denied?
In case your first utility for incapacity advantages is denied, you’ve got 4 alternatives to attraction. You sometimes have a 60-day window to take your case to the subsequent stage after your declare is rejected.
- Ask for reconsideration: You’ll begin by requesting a evaluation of your preliminary utility out of your native Incapacity Willpower Providers, a state-level Social Safety workplace that handles incapacity claims. Throughout this time, you may submit extra proof, reminiscent of medical data, to bolster your declare.
- Request a listening to with an administrative regulation decide: In case your declare is denied, you may request a listening to earlier than an administrative regulation decide.
- Take it to an Appeals Council: If a decide rejects your declare, the subsequent step is to take your case to SSA’s Appeals Council.
- Attraction in federal court docket: If an Appeals Council panel denies your declare, your ultimate possibility is to problem the choice in U.S. District Court docket.
How Are Incapacity Funds Calculated?
The Social Safety Administration calculates your SSDI profit as in case you’ve already reached full retirement age, which is 67 for anybody born in 1960 or later. The utmost SSDI profit is similar as the utmost month-to-month profit for somebody retiring at full retirement age: $3,627 in 2023.
However the common SSDI profit is considerably decrease. In 2023, the typical SSDI beneficiary will obtain simply $1,483 per thirty days versus $1,827 for the typical retired employee.
Incapacity advantages are sometimes decrease than retirement advantages as a result of Social Safety makes use of your common complete yearly wages to calculate your profit. Wages have a tendency to extend over time. As a result of disabled staff typically miss out on their higher-earning years, their common earnings tends to be decrease.
After 24 months of receiving SSDI funds, you’ll sometimes qualify for Medicare no matter your age.
Is Working Whereas Gathering SSDI Allowed?
You possibly can work whereas amassing SSDI, however the limits are strict. Social Safety incapacity advantages cease in case you have interaction in what’s often called substantial gainful exercise, outlined in 2023 as incomes greater than $1,470 in a month in case you’re not blind or $2,460 in case you’re blind.
Nevertheless, you’re allowed a nine-month trial work interval throughout which you’ll take a look at a job with out jeopardizing your SSDI eligibility. You possibly can take your trial work interval months consecutively or unfold them out over seven years. Throughout any trial work interval month, you may earn any quantity with out affecting your advantages, however you need to report your earnings to Social Safety. In 2023, any month during which you earn at the very least $1,050 counts as a trial work month.
What’s the Distinction Between SSDI vs. SSI?
Supplemental Safety Insurance coverage (SSI) is offered to individuals who have a incapacity or are 65 and older, however eligibility is restricted to these with restricted earnings and sources. Not like SSDI recipients, SSI recipients aren’t required to have earned work credit. The utmost month-to-month SSI profit for people is simply $914 in 2023.
Different Ceaselessly Requested Questions (FAQ)
What Occurs to SSDI Advantages When You Attain Retirement Age?
Does Social Safety Acknowledge Partial Incapacity?
No. Whereas staff’ compensation applications and the Veterans Administration pay advantages for partial incapacity, you need to meet Social Safety’s standards for complete incapacity to obtain advantages via SSDI.
Can You Accumulate Your Partner’s or Ex’s SSDI?
As with Social Safety retirement advantages, you might be eligible for spousal advantages in case your present or former partner receives SSDI month-to-month advantages. The utmost you may obtain is 50% of your partner’s major insurance coverage quantity — and provided that it’s larger than your personal Social Safety profit.
Robin Hartill is an authorized monetary planner and a senior author at The PNW. She writes the Pricey Penny private finance recommendation column. Ship your difficult cash inquiries to [email protected]