If you can’t work due to long-term or permanent disabilities, consider applying for Social Security Disability Insurance (SSDI). This federal program offers monthly financial support to those who meet the eligibility requirements.
Understanding SSDI Benefits: What is the criteria to qualify for disability benefits?
SSDI can be a vital income source, but it might not cover all your needs. As of February 2023, the average monthly benefit was $1,686. Many recipients find they need extra financial support. Thankfully, SSDI recipients and their families might be eligible for additional benefits.
Family Benefits
When you receive SSDI, some of your family members can also get benefits based on your work record. Eligible family members include:
- Your spouse
- A former spouse
- Children under 18
- Adult children disabled before 22
Each family member may receive up to 50% of your SSDI award. However, the Social Security Administration (SSA) caps the total family benefit between 150% and 180% of your award. A divorced spouse’s benefits won’t affect this family cap.
Health Insurance
SSDI recipients can also access health insurance through Medicare after a two-year waiting period. You can enroll in:
- Part A hospital insurance
- Part B medical insurance
- Part D prescription drug coverage
Tax Advantages
There are tax benefits for SSDI recipients. According to the SSA, your SSDI payments aren’t taxed if your annual income is less than $25,000 (individual) or $32,000 (couples). However, if your income exceeds these thresholds, you might owe taxes:
- Singles with incomes between $25,000 and $34,000 may pay taxes on up to 50% of their benefits.
- Couples with incomes between $32,000 and $44,000 may owe taxes on up to 50% of their SSDI.
- Individuals earning over $34,000 and couples earning over $44,000 might be taxed on up to 85% of their SSDI benefits.
If you have limited income and assets, you might qualify for SSI in addition to SSDI, a situation known as “concurrent eligibility.” SSI provides extra income to people with limited means, including older adults and people with disabilities. Most SSI recipients qualify due to severe disabilities. SSI is means-tested, requiring assets of no more than $2,000 for individuals and $3,000 for couples.
In 2024, the federal SSI benefit rate is $943 per month for a single person and $1,415 for a couple. Some states add to this amount. However, receiving SSDI might reduce your SSI benefits.
Other Benefits
SSDI recipients may qualify for:
- Medicare: Federal health insurance covering hospital and medical care.
- Medicaid: State-administered healthcare for low-income individuals.
- SNAP: Supplemental Nutrition Assistance Program for food costs.
- LIHEAP: Low Income Home Energy Assistance Program for energy costs.
- VA Disability Benefits: For disabled veterans.