If you are disabled and unable to perform any full-time work, you may want to consider applying for disability benefits through the Social Security Administration. However, as you may be aware, there are so many different disability benefits programs to choose from under the Social Security regulations. Here is a summary of the different types of Social Security programs that are out there so that you can file the correct claim.
- Social Security Disability Insurance Claims (SSDI)
In an SSDI claim, you are filing a claim because you are medically unable to perform any full-time work and you are expected to be unable to work for at least one full year. This is a disability benefits claim for those who have not reached retirement age. You are essentially fighting to receive your full retirement amount early because of your disability.
An SSDI claim can be filed if you have the requisite work history. Generally, you are eligible to apply for SSDI if you have worked and earned credits in 20 of your last 40 quarters (or 5 of the last 10 years). In 2023, a person earns a credit for every $1,640 in gross earnings each year, so it does not take much work for you to earn a credit in each quarter of a year.
Another piece of information that only applies to SSDI cases is the Date Last Insured (DLI). Your DLI is calculated based on your work history and is the last date on which you can be found disabled by the Social Security Administration. You can APPLY for SSDI benefits after this date, but you cannot ALLEGE a date of disability after this date. The DLI can be found on your Social Security earnings record, or by calling the Social Security Administration.
In addition, SSDI claims come with a five-month waiting period; that is, you cannot collect SSDI benefits until you have been found disabled for at least five complete months. Therefore, you will only become entitled to payment of SSDI benefits five complete months after the day the Social Security Administration finds you disabled. For example, if the Social Security Administration finds you disabled as of January 1, 2023, your date of entitlement will be June 1, 2023. You will be entitled to payments from the Administration from June 1, 2023 onward.
Upon winning an SSDI claim, you will also be automatically entitled to Medicare twenty-four (24) months after your date of entitlement (or twenty-nine (29) months after your onset date of disability). Premiums are automatically deducted from your Social Security payments.
Upon reaching full retirement age, your claim will rollover from the SSDI program into Social Security’s old-age retirement program. The benefit amount that you receive should generally remain the same.
- Supplemental Security Income Claims (SSI)
Like an SSDI claim, in an SSI claim you are filing a claim because you are medically unable to perform any full-time work and you are expected to be unable to work for at least one full year. The difference between an SSI and SSDI claim, however, is that SSI is a needs-based program; it is not a program that you qualify for based on your earnings record. Specifically, you must possess less than $2,000.00 in resources (or $3,000.00 if you are married). If you are found disabled under SSI, you would be entitled to the SSI benefit rate, which in 2023 is $940 per month. This amount can be deducted by income that you earn, as well as if you live in another person’s home and have your expenses provided for you.
You may allege disability as of the date of your SSI application and you can apply at any time. SSI benefits are payable as of the date Social Security finds you disabled – there is no five-month waiting period in SSI claims.
SSI claims are subject to the same medical requirements as SSDI claims, and you may apply for both SSDI and SSI claims concurrently if you are eligible to file an application for both claims.
In addition, if you are eligible to apply for SSI benefits, you typically will also qualify for Medicaid coverage.
- Disabled Adult Child Claims (DAC)
Many people don’t know about this third type of disability benefits claim. This is a unique claim for those who have been disabled to work since their childhood and want a higher benefit amount than the amount they would be eligible to receive under the SSDI or SSI programs.
You will need to prove that you have been medically unable to perform any full-time work since prior to your 22nd birthday AND are looking to qualify for disability benefits based on your parent’s earnings record. Your parent must be receiving benefits under the Social Security Act (e.g. SSDI or Old Age Retirement) in order for you to qualify to receive benefits under their earnings record. While you may apply for benefits after your 22nd birthday, you will be barred from recovering on a DAC claim if Social Security finds that you were disabled after your 22nd birthday.
Entitlement to Medicare is the same in DAC cases as in SSDI cases.
- Retirement (Early Retirement and Old-Age Retirement)
Starting at age 62, if you have performed 40 credits or more of work, you are entitled to apply for Early Retirement. While Early Retirement provides certainty if you are no longer able to work, the benefit that you would receive at Early Retirement is significantly less than what you would receive at Old-Age Retirement. Specifically, if you take Early Retirement immediately upon turning 62, you will receive about 40% less than what you would receive at your full retirement age. If you elect Early Retirement, you are stuck with the amount that the Social Security Administration pays you. However, the longer you wait to apply for retirement, the greater the amount you will receive. You can also apply for SSDI benefits while receiving Early Retirement benefits to fight for the difference between your Early Retirement amount and your SSDI amount (which is the same as your Old-Age Retirement amount).
The calculation of your Old-Age Retirement benefit is dependent on your thirty-five (35) highest years of earnings on record. If you have worked less than 35 years, amounts of $0 will be averaged into the years that you did not work. If believe that you are entitled to a higher benefit amount from Social Security, you should request a copy of your earnings records to make sure that there are no missing earnings. If there are any missing earnings, you should submit the tax return that you submitted for that year to attempt to get it corrected.
As you can see, we have only scratched the surface of the complexities surrounding the Social Security Administration’s disability benefits and retirement programs. If you are interested in learning more about what programs you can qualify for, please give my office a call today at 703-558-9311 for a free consultation or fill out our online contact form by clicking here and we will contact you.