Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) provide financial support to individuals who are unable to work due to a disability. Understanding how much money one can make through these programs requires a look at both the benefits provided and the regulations surrounding additional income.
Social Security Disability Insurance (SSDI)
Eligibility and Benefit Calculation
SSDI benefits are available to individuals who have accumulated enough work credits through their employment history. The amount you receive in SSDI benefits is primarily determined by your average lifetime earnings before your disability began. The Social Security Administration (SSA) uses a complex formula to calculate the exact amount, which is designed to replace a portion of your previous earnings.
As of 2024, the average monthly SSDI benefit is approximately $1,537, but this can vary widely. Some recipients may receive more or less depending on their specific work history and earnings record. The maximum SSDI benefit for 2024 is $3,822 per month. To determine your potential benefits, the SSA provides an online calculator that can give you an estimate based on your earnings record.
Work Incentives and Additional Income
While SSDI is meant for individuals who cannot engage in substantial gainful activity (SGA), there are work incentives that allow recipients to attempt to return to work without immediately losing their benefits. The SGA limit for 2024 is $1,550 per month for non-blind individuals and $2,590 per month for blind individuals.
The Ticket to Work program and the trial work period (TWP) are two key incentives. The TWP allows beneficiaries to work for nine months (not necessarily consecutive) within a 60-month period without losing their benefits, regardless of how much they earn. After the TWP, there is a 36-month extended period of eligibility (EPE) during which benefits can continue for any month in which earnings are below the SGA level.
Supplemental Security Income (SSI)
Eligibility and Benefit Calculation
SSI is a needs-based program that provides financial assistance to individuals who are disabled, blind, or aged and have limited income and resources. Unlike SSDI, SSI benefits are not based on prior work history but rather on financial need.
The federal benefit rate (FBR) for SSI in 2024 is $943 per month for an individual and $1,415 per month for a couple. Some states offer additional supplementary payments, which can increase the overall monthly benefit.
Income Limits and Exclusions
SSI has strict income and resource limits. The resource limit is $2,000 for an individual and $3,000 for a couple. The income limits are more complex, as not all income is counted. For instance, the SSA excludes the first $20 of most income received in a month and the first $65 of earnings, plus half of any earnings over $65.
In practical terms, if you have no other income, you can earn up to approximately $1,913 per month from working before your earnings completely offset your SSI benefits. This is because of the earned income exclusions and how the SSA counts income. However, this is a simplified explanation, and actual calculations can be more complex.
Impact of Other Income and Benefits
Both SSDI and SSI have specific rules about how other types of income, such as pensions, workers’ compensation, and other public benefits, affect your disability payments.
SSDI and Other Income
For SSDI, other types of income typically do not affect the amount of your benefit, unless they are from work or are substantial enough to be considered SGA. However, if you receive workers’ compensation or certain other public disability benefits, your SSDI benefits may be reduced because workers comp and SSDI benefits are both to replace some of your lost earned income.
SSI and Other Income
SSI is more sensitive to other types of income. In addition to the exclusions mentioned earlier, other public benefits, pensions, and unearned income can reduce the amount of your SSI benefits dollar-for-dollar after applicable exclusions are applied. For example, if you receive a pension, that amount could be deducted from your SSI benefits, after considering the general income exclusion and other rules.
Resources and Managing Benefits
Understanding and managing SSDI and SSI benefits can be complex. The SSA provides numerous resources, including online calculators and detailed guides, to help individuals understand their benefits. For any important questions or to address problems that arise with your benefits, especially when dealing with appeals or complex income situations.
