The Social Security Association has several programs for people with disabilities who need financial assistance. But not everyone may be eligible for them. When someone applies for disability benefits, their application goes through several stages of inspection. At every stage, a different individual assesses the application and checks whether the candidate meets the eligibility criteria. Being aware of the requirements and applying carefully increases one’s chances of qualifying for the benefits.
About SSDI and SSI disability benefits
The Social Security Administration has two popular programs to help those with disabilities: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). An individual may qualify for either or both programs.
SSDI provides financial assistance to people who cannot work for a year or more because of their condition. But to qualify, the individual should have paid enough taxes on their past earnings. If the person applying for SSDI is married, some of their family members might also qualify for benefits. This includes minor children and divorced or current spouses.
Like SSDI, SSI helps children and adults with disabilities. That being said, it does not consider an applicant’s work history. Individuals who qualify for and are awarded SSI benefits also get access to free Medicaid. This additional benefit is applicable in almost all states. While those qualifying for SSDI are also eligible for Medicare, they get this benefit only after 24 months of qualifying for disability benefits payments. The only exception to the rule is people diagnosed with amyotrophic lateral sclerosis who receive Medicare immediately.
Eligibility for disability benefits
One must meet certain criteria to be eligible for SSI or SSDI. For example, the person should have a health concern that meets the Social Security Administration’s disability definition. Several health conditions can make one eligible for disability benefits.
- Cancer
- Schizophrenia
- Bone marrow failure
- Musculoskeletal disorders
- Chronic heart failure
- Myocardial ischemia
- Neurodevelopmental disorders
- Chronic obstructive pulmonary disease
- Inflammatory bowel disease
People who cannot work because of visual disability may also be eligible for disability benefits from the government. Individuals who have recently lost a spouse (current or divorced) may also qualify.
One must note that the Social Security Administration approves only those people who are severely impacted by their disabilities and cannot perform basic day-to-day activities due to their condition. It is advised that people check the exhaustive eligibility list available on the agency’s website.
Age limit
The current age bracket for SSDI benefits is 18 to full retirement age, which, depending on one’s birth year, could be 66 or 67. Individuals are eligible for SSI benefits from birth until they reach 65.
Information required for applying
A Social Security disability benefits application can be completed in person, over the phone, or online. To complete the application, individuals must gather the necessary information about their family, work history, education, marriage status, children, health conditions, and military service. One can seek assistance from a healthcare professional, attorney, or Veterans Service Officer to simplify the process and improve their chances of approval.
Maximum benefit
The Social Security Administration has different limits for different disability programs. For SSDI, the maximum monthly amount one can receive is $3,882. This figure is capped at $943 for SSI applicants. Married couples claiming SSI benefits may receive a maximum of $1,415 monthly. That being said, only a few people are given the maximum disability benefit amount.
Impact on retirement benefits
If an individual receives disability benefits until retirement, it does not affect their retirement benefit. The individual’s SSDI benefits are converted into retirement benefits at the appropriate time.
Taxes on SSDI benefits
In some cases, Social Security disability benefits or insurance applicants might be required to pay income tax for the benefits they receive. The decision is based on what the individual’s total income rounds up to. To calculate whether or not one needs to pay taxes, one needs to add up half the benefit amount they receive and the rest of their annual income. Single filers must pay income tax if their total income exceeds $25,000. If a married couple files jointly, they must pay taxes if their income exceeds $32,000.
Grounds for denying a disability benefits application
Many disability benefits applications are denied annually by the Social Security Administration. Applicants who have been denied benefits can appeal within 60 days from the date of being denied or start a new application. One has a higher chance of claim approval if their health has deteriorated since they first applied for disability benefits.
Applying for Social Security disability benefits is a complex process. To increase the chances of qualifying, it is better to seek assistance from a lawyer or an organization well-versed in the correct practices.
