There are so many myths and stereotypes surrounding Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). These myths often include: “individuals receiving disability benefits cannot work,” or “I have benefits and if I go to work, I will lose them.”
Here is a simple breakdown of both programs:
- SSDI (Social Security Disability Insurance):
- Eligibility: Requires a work history and sufficient Social Security contributions.
- Benefit Calculation: Based on prior earnings. It generally provides a higher monthly benefit than SSI.
- Work Incentives:
- Trial Work Period (TWP): This period allows individuals to test their ability to work for a limited time (9 months) without losing benefits, regardless of earnings.
- Extended Period of Eligibility (EPE): Provides continued benefits for a period (at least 36 months) after the TWP if earnings are below
the substantial gainful activity (SGA) level. - Impairment-Related Work Expenses (IRWEs): Expenses for items or services needed for work due to a disability can be deducted from
earnings when determining benefit amounts.
- SSI (Supplemental Security Income):
- Eligibility: Needs-based, focusing on low income and limited resources, regardless of work history.
- Benefit Calculation: Based on financial need, with a monthly payment amount that varies depending on income and resources.
- Work Incentives:
- General Income Exclusion: A portion of earned income is excluded when determining SSI benefits.
- Student Earned Income Exclusion: For students under 22, a portion of earned income is excluded.
- Plan to Achieve Self-Support (PASS): Allow an individual to set aside income and resources to pursue education or training. The goal is to become self-supporting.