Navigating the world of Social Security benefits can be mind boggling, especially when it comes to understanding the differences between Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). This article will clarify the distinctions between these two programs and explain whether you can receive both benefits simultaneously.
Understanding SSI and SSDI
Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) are both federal programs designed to provide financial assistance to individuals with disabilities, but they serve different purposes and have distinct eligibility requirements.
Supplemental Security Income (SSI)
SSI is a needs-based program that provides financial assistance to individuals who are aged, blind, or disabled and have limited income and resources. Here are the key features of SSI:
- Eligibility: To qualify for SSI, you must have a disability, be blind, or be aged 65 or older. Additionally, you must have limited income and resources. The resource limits are $2,000 for an individual and $3,000 for a couple.
- Funding: SSI is funded by general tax revenues, not Social Security taxes.
- Benefits: The maximum federal SSI payment in 2024 is $943 per month for an individual and $1,415 for a couple. Some states may provide additional payments.
- Healthcare: In most states, SSI recipients automatically qualify for Medicaid.
Social Security Disability Insurance (SSDI)
SSDI is an insurance program that provides benefits to individuals who have a disability and have worked long enough to earn sufficient work credits. Here are the key features of SSDI:
- Eligibility: To qualify for SSDI, you must have a disability that prevents you from working and have earned enough work credits through paying Social Security taxes. Generally, you need 40 credits, 20 of which were earned in the last 10 years ending with the year you become disabled.
- Funding: SSDI is funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA).
- Benefits: The amount of SSDI benefits is based on your average lifetime earnings. The average monthly SSDI payment in 2023 was approximately $1,352.
- Healthcare: SSDI recipients qualify for Medicare after receiving disability benefits for 24 months.
Key differences between SSI and SSDI
While both programs provide financial assistance to individuals with disabilities, there are several key differences:
- Eligibility criteria: SSI is based on financial need, while SSDI is based on work history and disability.
- Funding sources: SSI is funded by general tax revenues, whereas SSDI is funded by Social Security taxes.
- Benefit amounts: SSI benefits are fixed and uniform, while SSDI benefits are based on your earnings history.
- Healthcare coverage: SSI recipients typically qualify for Medicaid, while SSDI recipients qualify for Medicare after 24 months.
Can you receive both SSI and SSDI?
Yes, it is possible to receive both SSI and SSDI benefits simultaneously. This is known as “concurrent benefits.” However, there are specific conditions under which you can receive both:
- Low SSDI benefits: If your SSDI benefits are low due to a limited work history or low earnings, you may qualify for SSI to supplement your income.
- Income limits: Your total income, including SSDI, must be below the SSI income limits. In 2024, the SSI income limit is $943 per month for individuals and $1,415 for couples.
How concurrent benefits work
When you receive both SSI and SSDI, your SSI payment will be reduced by the amount of your SSDI benefit, minus a $20 exclusion. For example, if you receive $500 in SSDI benefits, your SSI payment will be reduced by $480 ($500 – $20), meaning you would receive $463 in SSI benefits.
