What is SSDI?

Social Security Disability Insurance is determined according to Social Security (SS) regulations and Federal law. Disability means that you are so severely impaired physically or mentally that you cannot perform any substantial and gainful work.  This impairment must last, or be expected to last, at least twelve months or must be expected to result in death. 

If you meet this criteria, you may qualify to receive monthly cash disability benefits.  The disability determination for SS is independent of any disability determination for workers’ compensation, automobile accidents or under any other law.

Work History

In addition to meeting SS disability rules, in order to qualify for disability benefits you must also meet special insurance requirements.  First, you must be fully insured.  This means that you have worked enough over your entire work history and enough in each year to have earned sufficient credits. This requirement  varies by your age.  

Second, you must be disability insured.  For people over 30 years  old this means you must have worked in five of the ten years before your disability begins and earned a sufficient amount in each year.  For people 30 years old or younger the rules are somewhat different. Ask your lawyer concerning these rules.

The Waiting Period

Disability benefits are not paid for the first five full months that you are disabled.  For example, if you become disabled on January 1st, the first month for which benefits are payable is June.  Once you are found to qualify for disability benefits, benefits may be paid retroactively excluding the first five months of disability.

Before SS will award you benefits, they first must determine if you are, in fact, disabled. Federal law requires a very strict definition of disability, and their decision is based upon the information SS receives in the following categories:

1)       Are you working?

If you are working and your earnings average more than a certain amount, SS will generally not consider you disabled. If you are not working, or your monthly earnings average less than a certain amount, SS will then look at your physical or mental condition.

2)        Is your medical condition “severe?”

For SS to decide that you are disabled, your medical condition must significantly limit your ability to do basic work activities– such as walking, sitting, and remembering for at least one year. If your condition is not that severe, SS may not consider you disabled.

3)       Is your medical condition on the List of Impairments?

SS regulations has a list of impairments that describes medical conditions that are considered so severe that they automatically mean that your are disabled as defined by law. If the severity of your medical condition meets or equals that of a listed impairment SS will decide that you are disabled. If it does not, SS goes on to the next step.

4)       Can you do the work that you did before?

If your medical condition does not prevent you from being able to do the work that you did before, SS will decide that you are not disabled.

5)    Can you do any other type of work?

If you cannot do the work you did in the past, SS looks to see if you would be able to do other work. It evaluates your medical condition, your age, education, past work experience and any skills you may have that could be used to do other work. If you cannot do other work, SS will decide that you are disabled.

Do I have to pay income tax on my Social Security benefits?

Some people who get Social Security will have to pay taxes on their benefits. You will have to pay federal taxes on your benefits if you file a federal tax return as an "individual" and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000. (These amounts are subject to change)

Am I eligible for Medicare?

Medicare is a federal health insurance program available to some recipients of Social Security. Once SS determines you to be disabled, you become entitled to Medicare benefits 24 months after the date your cash benefits begin.  You automatically apply for Medicare when you apply for disability benefits.

Will my Social Security benefits change when I reach full retirement age?

When you reach full retirement age, nothing will change, except for Social Security purposes, your benefits will be called retirement benefits instead of disability benefits.  You do not need to take any action.

     There are provisions under the SS regulations that allow you to work but still receive your SS benefits at the same time.  The law states that you may work up to nine months, which do not have to be consecutive, but must occur within a five year period, and still receive your full SS award.  This is to encourage you to find some work that you can do despite your impairments.  Generally, if while working you earn less than a certain amount (which changes every year) this does not count as one of the nine trial months.  After completing your trial work period, your SS benefit will stop, but you have a right to a re-entitlement period.