SSDI Application, Qualifying, and Benefit

What is SSDI Benefit

SSDI (Social Security Disability Insurance) is a federal income benefits program. It provides monthly financial assistance to Americans (or their dependents) with significant illness or impairment (that meet the requirements for a disability) and who are unable to work for at least a year (or their condition may result in death within a year).

SSDI is an earned benefit. It’s based on the disabled worker’s past earnings (as paid through payroll tax) and whether they accumulated enough credits to be eligible.

These benefits are primarily financed by a portion of the Social Security payroll tax. It’s also administered by the Social Security Administration (SSA).

Qualifying for SSDI

In general, you qualify for SSDI, if you meet the following criteria:

• You have done jobs Insured for disability benefits and earned enough credits (ideally, 40 credits, 20 in the last ten years).
• Not able to work or gain any Substantial Gainful Activity (SGA)due to a medical condition or disability.
• The disability is severe and may be a roadblock to engaging in the type of work you did before, or any other type of employment.
• The condition will last for at least 12 months or may result in death(this should be based on clinical findings from acceptable medical authority)

SSDI has a five-month waiting period, Supplemental Security Income(SSI) may be accessible for needy and deserving cases during this waiting period.

 What are the benefits of SSDI

• SSDI is part and parcel of the retirement program.

As a Young American, starting a career, you have a 1 in 3 chance of dying or qualifying for SSDI than collecting the full Social Security at retirement age. SSDI is an earned benefit that will offer vital protection to millions of American workers. 

• A disability may lead to devastating economic consequences if not insured. 

Disability can happen to anyone — more so workers with advanced age — this can significantly harm an employee’s economic circumstances. It will affect a worker’s earnings, total family income, and purchases of essentials (food and housing).

SSDI Benefits dependents

SSDI Benefits for children

This is when children apply for disability benefits as a worker’s dependent.

If a worker is approved for Social Security disability benefits, the children may be eligible to collect the benefit of a dependent (based on your earnings record) until they reach 18 (or longer if they have not graduated or are disabled).

The Social Security Administration pays out between 150 and 180% of the parent’s disability benefits to them and their family.

Single child, they are likely to receive about 50% of their parent’s full monthly SSDI benefits or 75% of their departed parent’s basic Social Security benefit.

Having one child maxes out on the dependent benefits, additional children will have to split on the 50% limit.

However, they will not receive any additional benefits based on any Supplemental Security Income (SSI) payments received by the parent.

The actual benefits received will depend on;

• Parents’ earnings records,
• The benefit amount is based on the number of years the worker paid social security taxes(parents should have worked long enough to draw social security), and
• The number of other qualifying family members who have applied for the same Social Security retirement benefits for the same parent’s work record.

Once a child has been receiving SSDI benefits for 24 months, they are eligible for Medicare health insurance.

Criteria for Children Dependent benefits:

• Should be the child of a worker receiving SSDI (biological, adopted, or dependent stepchild) and not married.
• The child is under 18, or still not graduated from high school and under age 19.
• Have a valid birth certificate and Social Security number.
• Grandchildren (if you have legal custody through the courts.)

Your child will Lose the SSDI Benefits if;

• They start working.
• Have a change in their medical condition and are no longer disabled.
• Have refused to follow doctor-recommended treatments that can improve their ability to work (for example, deciding not to go to recommended physical therapy).
• Changed location but did not update the new address with the Social Security Administration.
• Been convicted and sentenced to more than 30 days in a row in prison.

SSDI Death Benefit

There are Social Security benefits that may be available to a worker’s dependents (the survivor) when they pass on.

Survivor benefits include;

• Disabled Widow(er) Benefits (DWB)
• Mother’s or Father’s Benefits
• Survivors Benefits for Children or
• Survivors Benefits for Divorced Spouses

To qualify for this benefit, the worker must have worked long enough under Social Security.

Younger people require fewer credits to receive survivor’s benefits (as low as 6 credits for one and half years) while older people need more credits (up to a maximum of 40 credits in 10 years).

Disabled Widow(er) Benefits (DWB)  

Widows or widowers may be eligible for survivor benefits if the spouse was fully insured under the SSDI program when they died.

The type of survivor’s benefit to be received depends on;

Your Marital Status

• The widow needs to have been married to the deceased worker for at least nine months before he or she died. The only exception is when you are the parent of your spouse’s child.
• Remarriage will affect your eligibility. You become eligible again if the marriage ends.
• Same-sex marriage only counts as remarriage only if your state recognizes same-sex marriage.
• Remarriage after turning 60 years old (or after 50 years old if disabled) does not affect eligibility.

Your age when the spouse died

• The widow or widower can apply for reduced benefits as early as age 60 and get between 71½ to 99% of the deceased benefits.
• If the application is made at full retirement age, the widow or widower will be able to access 100% of the deceased spouse’s full benefit.

Disability status

• If not disabled you can get full access to the full retirement amount if you wait until your full retirement age (You can still access reduced retirement benefits from the age of 60).
• If you have a disability, you can make an early application at age 50 (through to 59 years) and access 71½% of the deceased benefits.
• You are eligible for DWB if you meet all these requirements:

1. At least 50 years of age.
2. Your Disability has been determined by The SSA.
3. This Disability began between the ages of 50 and 60 years old, and before the spouse passed on or within seven years after they died.

• Eligibility can also be determined by whether you are or not taking care of the spouse’s minor or special needs child.

Mother’s or Father’s Benefits

Eligibility is based on the widow or widower taking care of the deceased spouse’s adopted or biological child who is under the age of 16 or disabled may access 75% of this benefit.

In some cases, care for stepchildren and grandchildren may qualify for benefits.

Requirements for eligibility include.

• The Deceased spouse’s children (age 16 or disabled and are eligible for survivors benefits on the dead spouse’s earnings record) are under your care
• She has not remarried.
• Not accessing a higher benefit amount based on own earnings record, and
• Ineligible for DWB.

Survivors Benefits for Children

• This benefit can be accessed by any unmarried children (biological or legally adopted) of the deceased based on the parent’s earnings history.
• You may be eligible for Survivors Benefits for Children if you meet this requirement:

1. Below 18 years of age (or up to age 19 if a full-time elementary or secondary school student).
2. Regardless of age if they have a disability that began before the age of 22.

Survivors Benefits for Divorced Spouses

• Benefits for divorced spouses (the marriage lasted for 10 years or more) are the same as if you had stayed married.
• The length-of-marriage rule does not apply if you are taking care of the dead spouse’s child (under the age of 16 or disabled).
• You are not remarried (the exception is if you are age 60 or if aged 50 with a disability).
• This benefit cannot equal or more than the benefit amount on your own or someone else’s record.
• Benefits to the surviving divorced spouse do not affect the benefits for other survivors on the worker’s record.

Application for SSDI

Where can you find help when applying for SSDI

• You can get information from advocacy workshops in your area.
• Network with other parents who have family members collecting disability benefits.
• Reach out to lawyers working for nonprofit organizations that are specialized in disability benefits.
• Read the Disability Benefits booklet to get facts and tips on disability benefits and applications.
• Seek help from the child’s caseworker.
• Book an appointment with an agent at your local Social Security Administration office to help with your child’s benefits and application.

 SSDI application online

If you are eligible for SSDI benefits, the application should be made as soon as possible.

Applications to the Social Security Administration can be made online. This can be done by login into your existing Social Security account at https://secure.ssa.gov/RIL/SiView.action

If for any reason you are unable to complete the application online, you can apply via the toll-free number, 1-800-772-1213 (people with hearing difficulties may call our toll-free “TTY” number, 1-800-325-0778), between 8:00 a.m. and 7:00 p.m. Monday through to Friday.

SSDI application form

• These forms are free and can be accessed at https://www.ssa.gov/forms/
• The form can be downloaded, printed, and completed as a paper form. This should be mailed or taken physically to the local Social Security office or the specific office that had made the request from you.

Whats the difference between SSI and SSDI

SSDI pays benefits to a worker and qualified family members who are “insured”. Eligibility is based on having worked long enough and payment of Social Security taxes). SSDI is funded by social taxes.

SSI pays its benefits based on a person’s financial needs. Eligibility is not based on work history, but rather made to individuals who fall between a certain income and resource threshold. SSI is funded by general tax revenues.

Medicare and SSDI

If you are on SSDI, you have a 24-month waiting period before Medicare starts.

During this waiting period, your coverage options include;

• Medicaid(Eligibility may continue even after qualifying for Medicare)
• Private health plan through the Marketplace.

SSDI and Medicare are considered covered under the Affordable Care Act.

Please note that you are not allowed to enroll in a Marketplace plan to replace or supplement your Medicare coverage. However, you might be excepted if the enrollment was before getting Medicare.

In this case, you can keep your Marketplace plan as supplemental insurance at the expense of losing any premium tax credits and other savings for your Marketplace plan.

Can you work while on SSDI

You can work part-time and still get disability benefits.

Please remember, eligibility for SSDI largely depends on the amount you make while working not the time put in. If you make more than $1,350 a month gross, you lose eligibility.

Application for self-employment is a bit complicated. This is because the SSA looks at the income limits as well as time spent doing the job (even if earning below income limits). This makes proving income a bit challenging when making the application.

Does SSDI get COLA

For beneficiaries in the year 2023, the SSA announced an 8.7% (as compared to 5.9% in 2022) cost-of-living adjustment (COLA) to all Social Security monthly payments– the fourth-biggest jump since 1975. The maximum SSDI benefit for 2022 is estimated at $1,364 (as compared to $1,358 in 2022) per month.

The Substantial Gainful Activity (SGA) amount for 2023 was increased to $1,470 (as compared to $1,350 in 2022) per month for non-blind beneficiaries, and $2,460 (as compared to $2,260 in 2022) per month for blind beneficiaries.

Bottom Line

• SSDI benefits auto-convert to retirement benefits when the beneficiaries reach full retirement age, although the amount remains the same
• The benefits being received by a Surviving spouse or qualifying dependent which are based on the deceased’s record will auto-convert to survivor’s benefits as soon as the government gets notice of the death.
• If a parent passes on before being eligible for Social Security retirement or disability benefits, their child cannot access SSDI based on the parent’s earning record.
• Any benefits paid to a deceased person’s account need to be refunded. It’s a federal crime to spend this cash whether the death was reported or not.