Understanding Social Security Disability Benefits – Who’s Eligible and How it Works
By Jeremy Vohwinkle with 45 Comments
While I’ve talked about the importance of having disability insurance in the past, a lot of questions still arise regarding Social Security disability benefits. Everyone seems to have a story, or know someone who’s receiving Social Security disability, so there is always some skepticism as to whether or not outside coverage is needed. Think of it this way–if it is easy to qualify for Social Security disability benefits, why is there an army of attorneys and law firms that specialize in Social Security disability claims and appeals?
Go ahead and do a quick web search for these attorneys. You’ll be amazed at what you find, and how many of those sites look about as good as those cheesy local ambulance chaser commercials you see on your local TV station. All cynicism aside, this is a real benefit that is paid for by tax dollars, so let’s take a look at this benefit in a nutshell.
Eligibility
To be entitled to a disability benefit, a worker must:
- Be fully insured at the onset of disability.
- Have worked in Social Security-covered employment for at least five of the previous ten years (20 out of 40 quarters). This applies to disability that begins after age 31. If the disability begins before age 31, you must have worked under Social Security-covered employment for the greater of six quarters, or at least one-half of the quarters between age 21 and the age when disability began.
- Be under Social Security normal retirement age. After normal retirement age, disability benefits become retirement benefits.
- Have a physical or mental impairment that (1) disables the worker from the performance of any substantial work, and (2) is expected to either be terminal or last for at least 12 months.
Benefits
A disabled worker who qualifies for Social Security disability benefits is entitled to the full benefit payable until the earliest of the following:
- The disability ends: benefits are terminated in the second month after the end of disability.
- The worker dies: benefits are terminated in the month prior to the worker’s death (e.g., worker dies in July; no June benefit is paid).
- The worker attains normal retirement age.
Spouse’s benefit. Disability benefits for spouses are calculated in the same way as retirement spousal benefits: 50% of the worker’s benefit, reduced if the spouse is under normal retirement age. Benefits are subject to a family maximum.
Child’s benefit. A child who is under age 18, or under 19 if still in high school, is eligible for a benefit amounting to 50% of the disabled worker’s benefit, again subject to the family maximum.
But how much money would you receive even if you do qualify? Well, the Social Security Administration has a few nice calculators that can help you see how pitiful the benefit would be if you were really unable to work. I went ahead and did the first option of using the quick calculator just to see what my benefits would be, and it wasn’t pretty. My disability benefit would be around 38% of my current salary. And this number is high, because my pay has only been at this relative level for just a few years. Prior to that it was significantly lower. So, in using the detailed estimator, I found out my benefit would be about 23% of my salary.
Go ahead, plug in your numbers and see what it comes up with. I don’t know about you, but even in the rare event I was able to qualify for this disability benefit, my life would certainly not be the same while trying to live on a fraction of my pay.
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Filed Under: Insurance
Have a daughter who was getting SSI and has Diabetes and take seizures. When to a Dr for my daughter eyes that SSI told us to go to. They said notting wrong with her eyes. One week alater she what to our eye dr and they show us she going blind in one eye and has to get shots and a lazer treament and now SSI told here she lossing her benfits which means no medical insures. What should we do
in 2003 I suffered a back injury at work. I was routed to a workmans comp doctor who quickly dismissed my claim. It took 6 months for it to heal. However I became unemployable at that job because of the restrictions my own doctor gave me. I filed for disability and was denied.I decided to keep on trying to work. I held some menial jobs til 2005, where I took a job in a flooring manufacturing company. I sustained a torn meniscus injury and had to have surgery to fix it.In 2006 I took a job in a refrigerated warehouse which resulted in medial epicondylitis and had to have surgery to fix it. I lost my job there because of a work related injury. By then we were up to our necks in this recession. While trying to find work for 5 years I found no one wanted to hire an older worker. I am now disabled and filed for my disability only to find out it isn't there. I paid into social security since I was 18. I guess I can get supplimental security income which is at best $700.00 a month. I feel I'm being punished for trying to do the right thing. If I wait 5 years I can take early ssi, or 10 years for full. I guess I can eat air.
Social Security tells me my son is eligable for auxilary benefits but can not get paid because his dad receives family maximum I do not understand
Man,
I have S.S. Disability at 50 and it's poorer then being poor I'll never see anything above the poverty line until My father in law passes away. I mean he does help Us alot out of love but lifes hard when I have 500.00 in meds a month.
I am 75 yrs old but I only have 31 credits can I qualified for SSI
my huaband passed away in 2008 and I wikk be eligble in july 2011 to get survivor benefits. Since he passing i have applied for disability benefits. I pplied in June 2010. I have more than enough credits. My question is if I am approved for SSD will I still be eligible in July for my survivor benefit,
sorry no and good luck getting on SSD right know it is broke in 2016 as where SSR is good to 2033.
My Mom & step-dad married on 05-20-2006 and he passed away on 03-07-2010.He had 2 grown kids.My step-dad was receiving his Social Security check every month.Is my Mom entitled to his check ? Because if she is,then she's not getting it.It must be going to his son,who doesn't need it.Can someone please give me advice.Thanks.
No you have to be married 10 years. sorry
After 6 years my family member has finaly been awarded SS disability. What is the situation regarding assets and medical? He has never owned anything and could not have any assets except a broken down truck. He received some medical care from a private medical service including very expensive MRI's that helped proved his disability. He will be obtaining back SS but nothing that helps his past hardships. What are the new regulations he will be living under? What is his obligation to repay any food stamps, etc?
My husband age 61 is and has been on Social Security Disability for the past 6 years. I am 58 and currently working. If I were to lose my job and become unemployed would I be eligible for part of his disability to help supplement our income? Is there a dollar amount that will make me uneligible and if there is the $ amount? As I can foresee, with my age, the possibility of me getting a full time job with all the benefits is very minimal. Your help in answering these questions is appreciated.
Thank you Linda
No that is his money.
@David Waters :
Yes, you can back file and calculate up how much you need to pay in taxes to qualify for your 20 credits.
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For everyone else:
For those who get SSI, yes any money you get will count toward the income limit. So, for example, there was one person who was homeless, but was allowed to sleep in someone's garage. The SS office had to estimate the value of that 'lodging' and count it as income. SSI is for VERY LOW INCOME (or no income) people who are disabled. It is meant to bring you up to a certain level. With SSI you can get Medicaid.
SS Disablity is regular social security for the disabled. Retirement and investment income DO NOT COUNT when calculating this type. WORK INCOME does. So if you are working (or if you have any 'earned income'--such as from a business that is in your name as a sole proprietor), then you will not qualify for SS-D. (They do have a program to get you off of SS-D, but that is another post, as the rules are tricky while they let you 'test work.') Other NON-earned income is allowed, such as pensions and stock dividends. SS-D does not rely on total household income to calculate benefits, unlike SSI.
For those getting SSI (and Medicaid)--yes, you can easily get kicked off of SSI and Medicaid, if the person ever gets a job or wins the lottery or inherits. It is based on the value of any income you receive, as it is for those living in poverty. Once you get off of SSI, they swap you to regular SS Disability (and Medicare). Medicaid lets you get enrolled immediately. Medicare takes 2 years after you are declared disabled before you qualify to receive medical coverage. Medicare only covers 80% of bills while Medicaid covers more of medical bills. Medicare also has other limits (like you have to pay for prescription drug coverage, while with Medicaid it is included).
For spouses who get SS-D, yes you can get part of the spouses benefit as early as age 60 (if you have no small children) OR if you have children under the age of 18. You need to discuss how this works with your SS office.
I was in a severe car accident Oct/2005 my neck was broken hangmans frature and C-7, my left knee was damaged had surgery did little help and many back problems . I was on short term disabilty and was cut off after 18months , I was on a un-paid med leave from my job after working since 10/83 for another 18months after that I was forced to retire I had 25yrs of service however I am 49 yrs old .I started recving SS-D 7/09 aprox 2,000 per month and they paid me lump sum that went back 6months after the accident . My question is my penison kicks in when I turn 52 ,will that affect my SS-D payments? I paid SS taxes my entire life
Lump sum dont take it it kills your SSD.
As a former full-time mom, it was really hard to learn that even though I qualify as fully disabled, I don't have enough recent work credits to get disability. While the disability payments would be small, the Medicare kicking in after 24 months would be a huge help, since we pay for all of our health insurance. I'm sorry that disability isn't calculated from lifetime credits, as retirement is.
Medicare would only be for yourself.
It is getting harder for me to work. I have Fibromyalgia. My husband is on SSI for a heart transplant. I what to know if I am eligable for healthcare and or monthly pay?
That is up to your Doctors and SSD.
I am currently on SSDI. I am curious if anyone knows how much money I can make per month before the Social Security Administration pulls my SSDI benefits. My lawyer says $599.00. Does anyone know if there is a higher amount? I have heard $900.00 in the past. If anyone knows the whole story please let me know.
$1000 per month
http://www.ssa.gov/pubs/10003.html
599.00 is right but be careful if you so signs of working all the time you will get the boot from SSD
my brother receives social security disability,he is 50 years old. he has no health ins. should he be getting medicare?
after 24 months on SSD yes if he turned it down it is a mess to get on it later.
I am at the point that it is hard to work anymore. My question is am I eligible for Social Security benefits. I have worked 35 years straight, have diabetes, high blood pressure, high cholesterol, mild COPD, arthritis in the lower back and neck, carpal tunnel syndrome, hearing loss in my right ear. mild sleeping disorder and GURD. I know it is a lot, but cannot afford to stay without an income for too long and take a chance on losing everything I have. It is at the point where I have gotten afraid to drive and it is my primary occupation. My question is what are my chances for Social Security?
SSD goes broke in 2016. Suck it up and just work the next 3.5 years
Social Security granted disability pending review of having 20 credits. I do not have enough, but my tax adviser says that I can pay in enough credits now by back filing for the last 3 years that I did not file. Is this true, can I back file and pay up on credits needed?
No way
My husband is totally disabled on SS, can I recieve benefits also? I have been told that I can recieve about 50% of what my husband gets. How do I find out if I qualify?
No.
I am working with a client who has a spoice on disability income from SSA. Thier son who was in high school also worked while receiving a check.
I would like to know where I can look at the social security laws that govern how much the son can earn while collecting a check under dad's disability income.
I would also like to find out if the disability income is taxable and what the law says about that?
As long as he was a depentent he can make any amount less than Dad
Concerned son in law
http://www.ssa.gov/retire2/credits3.htm
Becoming disabled at 40, you'd need 20 credits. You can only earn 4 credits in a year. So at a minimum she would need 5 years of work just to meet the minimum.
My mother-in-law never worked outside the home, then at 40 (16 years ago) she contracted MS. My father-in-law is self employed and has no insurance. She was told that she does not qualify for SS benefits. What can she do? I was thinking of having her work for me answering phones and emails to have her pay into SS. How long does she have to work before she qualifies for SSI benefits?
Go to the State level for benifits from the state
When it comes to social security and disability I think we should all hope for the best but expect the worst.
I have a close friend whos disabled does he qualify for social security benefits if he has a felony drug charge?
Social Security is not something I'm counting on.
My father gets SS disability and has since November 2004. Last year we found out the he should also be receiving pension because of all his years in the union. He received retroactive pension dating back to his accident on top of his SSI payments. My question is, will his social security payments be affected by his pension? I'm not sure how all this works, so thanks for any help!!
My son is on SSI and just received a medicard card also. I have been covering him on my insurance so that he won't be put in a State hospital when he needs to be hospitalized so now what do I do. Can he be on Medicaid, Medicare and Kaiser or do I drop him from Kaiser so that if something happens to me he will be covered. I really need to talk to someone about all this I do not understand the ramifications of this and do NOT want to hurt his medical coverage. He is 30 years old and Bi polarI with no chance of ever recovering. I am 62. Please help. Thank you Dinah
I just went through this with my daugther who receives social security she was able to apply for Senior Advantage Medicare with Kaiser.. If he wants to keep his Kaiser he should apply.
Brian, I don't think that will have an effect since it is a retirement benefit, not money that is earned through current work, but you'll certainly want to check with the SSA to make sure.
I just received a call on Friday afternoon fron S.S. that said they decided to grant me S.S. disability. Now they want me to meet for a financial interview. During the long time I was out of work and after State disability ran out I had to pull my early union pension so I could pay my bills and still get medical coverage. My pension is less than half of what I made while I was working. will this disqualify me from receiving benefits now, even though I have already been approved for my medical conditions?
I hope that I never have to use this service! From what I understand from friends and family, proving that you are disabled can be very difficult and ofter leads to major frustrations. But at the same time, you want to make sure that there claims are validated to mimimize fraudulent activity!
Very helpful information.
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My late husband was on SSD from age 27 until his death at age 47. The benefits we and our 4 children received were a lifesaver. Although he did not work for long, I thought the benefits were quite fair. Now I am 60, and have worked at a good- paying job for 31years, and before that, I had several years of very minimal income. Since my late spouse's SSD benefits were quite high ( at the time), what should I expect a spousal (widow's) benefit to be? I don't think his "retirement" benefit will be based on his short work history because he was obviously unable to work after getting hurt. Will SS base his "retirement" on an average of what he was making when he became disabled?Sorry/complicated!
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