Can anyone explain to me the difference between regular disability and SSI? One application applied for both, but I don’t really understand what they are relative to each other.
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Sorry, can’t figure out how to attach a screenshot. But it basically says that the decision was made to approve my Disability Application, and my SSI application is 90% processed. But I’ve gotten letters from both SSI and Disability, so I’m pretty confused.
Social Security Disability Insurance is based on your history of earnings covered by Social Security tax; higher earners get more to replace their lost income. It’s effectively what you would get in retirement benefits but you start getting it early because of the disability. Once you start, you’ll keep getting it as long as you remain disabled, until it converts to retirement benefits when you reach retirement age. There are no income limits, although if you have a high income part of the benefits will become taxable.
Supplemental Security Income is based on poverty. There’s no work history requirement. In addition to remaining disabled (or being over 65), you have to report your income and assets every month to prove you’re still eligible. You also have to apply for any other benefits you’re eligible for because it’s meant to be a program of last resort. You can get it in addition to SSDI or retirement benefits, or alone if you don’t qualify for those. SSI is never taxable.
The disability standard and evaluation process for the two is exactly the same. There are some other differences in the timing of when your eligibility starts relative to when you became disabled and filed the application. For the most part, people always apply to both unless they’re sure they’re not eligible for one or the other.
SSDI (what you’re calling disability) payments are based on your work history and how much you made on average before becoming disabled. SSI is not based on work history and can be paid out even if you never worked a day in your life.
SSDI can pay more than SSI and doesn’t have asset caps, while SSI pays a flat amount and to be eligible you can’t have a net worth of more than $2000.
You can qualify for one or both or neither, but payments from SSDI might affect your eligibility for SSI.
Here is a link that goes into much more detail on the differences between the two programs: https://www.nerdwallet.com/article/investing/social-security/ssi-vs-ssdi-difference#:~:text=The%20main%20difference%20between%20Supplemental,benefits%20to%20people%20with%20disabilities.
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