What you should know about SSDI and SSI
A disability that prevents you from working can have a profound impact on your financial stability and well-being. In the United States there are two main federal programs that offer financial assistance to people with disabilities: Social Security Disability Insurance and Supplemental Security income (SSI). Both programs are designed to help disabled individuals but they have different eligibility criteria and benefits. The Indianapolis attorneys at Frank & Kraft explain what Indiana residents seeking assistance should know about SSI and SSDI.
Overview of SSDI and SSI
Both SSDI and SSI are administered by the Social Security Administration (SSA) and provide financial aid to individuals unable to work due to significant disabilities. To qualify for either program, applicants must meet the federal definition of disability, which includes:
- The inability to perform previous work.
- The inability to adjust to other types of work due to the medical condition.
- A disability expected to last at least 12 months or result in death.
While these criteria apply to both programs, the pathways to eligibility and the benefits provided differ notably.
Distinguishing SSDI from SSI
The primary distinctions between SSDI and SSI lie in their eligibility requirements and the benefits available for eligible applicants. Eligibility requirements for SSI and SSDI are as follows:
- SSDI: Eligibility is based on an individual’s work history and contributions to the Social Security system through payroll taxes. You earn “work credit” as you pay Social Security taxes and work. In 2025, you can earn up to four credits for every $1810 of wages or self employment income. SSDI is generally only available to those who have 40 credits. Of these, 20 must be earned within the last 10 years. However, younger workers may qualify with fewer credits.
- SSI: This is a needs-based program designed for individuals with limited income and resources, regardless of work history. The eligibility depends on meeting strict criteria. In 2025 the limit on resources will be $2,000 for individuals, and $3,000 couples. Some assets, such as your primary residence or personal belongings, are not included in these limits.
The SSDI and SSI benefits differ in many ways, including who is eligible to receive them and the maximum amount that can be received. In 2025, SSDI benefits will be up to $4,018 a month. However, the average payment will be around $1,580. After receiving SSDI for 24 consecutive months, beneficiaries are eligible for Medicare. Your dependents may be eligible if you are found eligible for SSDI. This includes your spouse, ex-spouse, and children. State programs may supplement these amounts, and recipients are often automatically eligible for Medicaid. Children and even grandchildren may also be eligible for benefits if you receive SSI.
- Concurrent Benefits: Receiving Both SSDI and SSIIn certain situations, individuals may qualify for both SSDI and SSI, known as concurrent benefits. This usually occurs when an individual receives a low SSDI benefit and their income and resources are sufficient to meet SSI’s strict criteria. Receiving concurrent benefits can provide additional financial support to cover basic living expenses.
- Common Challenges in the Application ProcessApplying for SSDI or SSI can be complex, and many initial applications are denied. It is important to understand the common reasons why applications are denied. These include:
Incomplete and inaccurate application forms.
Insufficient evidence of the severity of the disabled person’s disability.
Earnings above the substantial gainful activities (SGA) threshold, which will be $1,620 per monthly for non-blind people in 2025. For more information on SSI or SSDI, join us at an upcoming FREE seminar. Contact the Indianapolis estate planning attorneys of
Frank & Kraft
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