ASSISTANCE FOR THE

DISABLED

Understanding SSI and SSDI

CURTIS J. FORD ILLINOIS ATTORNEY

Both the Social Security Disability Insurance, or SSDI, Program and the Supplemental Security Income, or SSI,

Program May Be Able to Help Should You Become Disabled

Assistance for the Disabled – Understanding SSI and SSDI www.nashbeanford.com 2

No one likes to consider the possibility of becoming disabled; yet, the odds of it

happening are probably higher than you realize. Studies show that a 20 year old

today has a one in five chance of becoming temporarily or permanently disabled

prior to reaching retirement age. Whether it is because of a serious workplace

accident, a devastating illness, or a tragic car accident, the reality is that you

could become disabled tomorrow. While your family might be able to get by for a

short period of time without your income, what happens if the disability endures

for moths, even years? The good news in all of this is that there are federal

programs available to the disabled that can provide much needed financial

assistance. Specifically, both the Social Security Disability Insurance, or SSDI,

program and the Supplemental Security Income, or SSI, program may be able to

Assistance for the Disabled – Understanding SSI and SSDI www.nashbeanford.com 3

help. Understanding both programs may be beneficial to you or a loved one at

some point in the future.

WHAT QUALIFIES AS DISABLED?

To qualify for benefits under either the SSI or SSDI program you must first meet

the federal definition of “disabled”.

Because both programs are intended to

provide benefits for individuals with

long-term disability, the definition rules

out people suffering from short-term

disability issues such as a broken leg.

Both the SSI and SSDI program are

primarily funded by the Social Security

Administration, or SSA. As such, the SSA defines “disability” for purposes of

eligibility for either program. According to the SSA, you are disabled for purposes

of SSI or SSDI benefits if:

You cannot do work that you did before;

You cannot adjust to other work because of your medical condition(s);

and

Your disability has lasted or is expected to last for at least one year or to

result in death.

Assistance for the Disabled – Understanding SSI and SSDI www.nashbeanford.com 4

If you fail to meet the definition of disabled you will not be eligible for either SSI

or SSDI.

THE SUPPLEMENTAL SECURITY INCOME PROGRAM AND

BENEFITS

The SSI program is a “means test” program, meaning that an applicant’s income

and assets will be considered when determining eligibility. The SSI program is

intended to assist low income disabled individuals by providing a monthly

monetary benefit for those who qualify. Although your income and assets will be

scrutinized when determining eligibility for SSI, you are not required to have an

earnings record as you are for the SSDI program.

As a general rule, monthly SSI benefits are less than monthly SSDI benefits

because SSDI benefits are based on the applicant’s earnings record. For 2014,

Assistance for the Disabled – Understanding SSI and SSDI www.nashbeanford.com 5

the maximum monthly SSI benefit for an individual is $721 and for a couple the

maximum monthly benefit amount is $1082. In addition, up to another $356 may

be available from the federal government for an “essential person”, defined by

the SSA as “someone who was identified as essential to your welfare under a

State program that preceded the SSI program.” Some states, including Illinois,

also supplement the SSI program at the state level, meaning that an additional

monthly benefit amount could be available through the State of Illinois for

individuals who qualify for SSI benefits.

If you are approved for SSI benefits, any income you receive in a given month

could affect your SSI benefits; however, some income sources are excluded from

SSI program income calculations, such as:

the first $20 of most income received in a month;

the first $65 of earnings and one–half of earnings over $65 received in a

month;

small amounts of income received irregularly or infrequently;

interest or dividends earned on countable resources or resources

excluded under other Federal laws;

grants, scholarships, fellowships or gifts used for tuition and educational

expenses

income tax refunds

Assistance for the Disabled – Understanding SSI and SSDI www.nashbeanford.com 6

If you are eligible for both SSDI and SSI, your SSDI benefits will affect your SSI

benefits. For examples, if you are entitled to $350 in SSDI and the maximum

amount of SSI benefits, your SSI benefits would be reduced by $330 because the

first $20 of your SSDI benefits are not counted.

The State of Illinois may supplement the amount you receive from the federal

government. Referred to as the “State Supplemental Payment”, or SSP, this

amount is calculated by subtracting your “monthly maintenance costs” from the

amount of your SSI payment and any other income you have each month. If

your monthly maintenance costs are higher than your combined income you may

qualify for a SSP.

THE SOCIAL SECURITY DISABILITY INCOME PROGRAM AND

BENEFITS

Although the SSDI program also provides a monthly monetary benefit to disabled

individuals, eligibility for the program is based on your work history or that of a

spouse/ex-spouse. Unlike the SSI program, your income and assets do not

determine eligibility. Instead, the money you paid in to the SSDI program over

the course of your lifetime (or that of a spouse) is what matters. During your

lifetime you earn “credits” based on your income. As of 2013, $1,200 worth of

income or self-employment earns you one “credit”. Up to four credits may be

earned in a year. The general rule is that you need to have earned 40 credits,

with 20 of those being earned within the last ten years, to qualify for SSDI. The

rules are different, however, for younger applicants.

Assistance for the Disabled – Understanding SSI and SSDI www.nashbeanford.com 7

The SSI program also differs from SSI in that other members of your immediate

family may also qualify for benefits based on your earnings record and disability.

The following people could be entitled to SSDO benefits based on your eligibility:

• Your spouse, if he or she is age 62 or older

• Your spouse, at any age if he or she is caring for a child of yours who is

younger than age 16 or disabled

• Your unmarried child, including an adopted child, or, in some cases, a

stepchild or grandchild. The child must be younger than age 18 or

younger than 19 if in elementary or secondary school full time

• Your unmarried child, age 18 or older, if he or she has a disability that

started before age 22. (The child’s disability also must meet the

definition of disability for adults.)

• A divorced spouse if you were married for at least 10 years, he or she is

unmarried, and is at least 62 years old

The amount of benefits you receive each month also depends on your lifetime

earnings up to a maximum of $2,642 as of 2014. An eligible family member may

then be entitled to a monthly benefit amount of up to 50 percent of your benefit

amount; however, there is also a combined family maximum that is typically

somewhere between 150 and 180 percent of your monthly benefit amount.

Assistance for the Disabled – Understanding SSI and SSDI www.nashbeanford.com 8

APPLYING (AND APPEALING) FOR BENEFITS

The application process for either SSI or SSDI can be long and complicated. Not

surprisingly, the approval rate for initial SSI and SSDI applications is only about

35 percent. That means that almost two out of three applicants are denied and

forced to appeal the denial. The next step is the “reconsideration” stage which

essentially just asks the agency to look at the same application again. Few

applications are approved at this stage. The good news, however, is that almost

half of all appeals are approved by an administrative law judge, or ALJ. One

reason for this is that most applicants retain the services of an experienced

Illinois disability attorney before attending the ALJ hearing.

If you believe that you meet the definition of disabled, contact an experienced

Illinois disability attorney right away to find out what benefits you might be

entitled to because of your disability.

REFERENCES

Social Security, Benefits for People with Disabilities

Social Security, Supplemental Security (SSI) Income Benefits

Social Security, Disability Benefits

U.S. Social Security Administration, Illinois

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About the Author

Robert N. Nash

Robert N. Nash is a partner in the law firm of Nash Nash Bean & Ford, LLP. The law firm has

offices in Geneseo and Moline, Illinois and conference facilities available throughout

Northwestern Illinois. Mr. Nash chose the estate and business planning arena because he

believes it provides a positive force in his clients’ lives. He practices preventative, rather

than remedial law. Robert Nash focuses on all aspects of estate planning, including estate,

gift and income taxes, trust and probate administration, real estate, and business.

Nash Nash Bean & Ford, LLP

www.nashbeanford.com

Geneseo 445 US Highway 6 East

Geneseo, IL 61254 Phone: (309) 944-2188

Fax: (309) 944-3960

Moline 5030 38th Avenue, Suite 2

Moline, IL 61265 Phone: (309) 762-9368

Fax: (309) 944-3960