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Understanding the Basics of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI): What’s the Difference?

Applying for Social Security benefits can be confusing, and one of the most common areas of confusion lies in understanding the differences between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). While both programs provide financial assistance to individuals with disabilities, they serve different populations, have distinct eligibility criteria, and use different methods to determine benefits. Below, we break down the key differences to help you determine which program may be right for you. Contact our Indianapolis Social Security Disability lawyers for advice and assistance tailored to your specific needs.

What is SSDI?

SSDI is a federal insurance program designed to provide financial assistance to individuals who have worked and paid into the Social Security system but are now unable to work due to a disability. It is funded through payroll taxes deducted from workers’ earnings under the Federal Insurance Contributions Act (FICA).

Eligibility for SSDI

To qualify for SSDI, you must:

Have a qualifying disability as defined by the Social Security Administration (SSA).
Have earned sufficient work credits through your employment history.
Be unable to engage in substantial gainful activity (SGA) due to your disability.

Work credits are based on your taxable income and the number of years you have worked. Generally, an individual needs 40 credits (approximately 10 years of work), with at least 20 credits earned in the last 10 years before becoming disabled.

How SSDI Benefits Are Calculated

SSDI benefits are based on your average lifetime earnings before your disability. The SSA uses a formula to calculate your monthly benefit, considering your highest-earning years. The more you have paid into Social Security over time, the higher your SSDI benefit will be.

What is SSI?

SSI is a needs-based program that provides financial assistance to individuals who are disabled, blind, or aged 65 and older and have limited income and resources. Unlike SSDI, SSI is not funded by payroll taxes but rather by general tax revenues.

Eligibility for SSI

To qualify for SSI, you must:

Have a qualifying disability, be blind, or be 65 years or older.
Have limited income and financial resources (generally no more than $2,000 in assets for individuals and $3,000 for couples).
Meet U.S. citizenship or legal residency requirements.

Unlike SSDI, SSI eligibility does not depend on work history. It is designed for individuals with little to no income who need assistance covering basic living expenses.

How SSI Benefits Are Calculated

SSI benefits are determined by federal and state regulations. The maximum federal SSI benefit amount changes annually and is reduced based on any countable income an individual receives. Many states, including Indiana, supplement SSI payments, which can increase the total monthly benefit amount.

Key Differences Between SSDI and SSI

SSDI is funded through payroll taxes and is available to individuals with sufficient work history, whereas SSI is a needs-based program for low-income individuals with disabilities or those who are elderly. SSDI benefits are calculated based on prior earnings, while SSI benefits depend on financial need and may vary depending on state supplements.

Can You Qualify for Both SSDI and SSI?

In some cases, individuals may qualify for both SSDI and SSI, a situation known as “concurrent benefits.” This typically happens when a person has a low SSDI payment due to a limited work history, making them eligible for SSI to supplement their income. Receiving both benefits can increase financial assistance and provide access to both Medicare and Medicaid.

Applying for SSDI or SSI in Indianapolis

If you or a loved one are considering applying for SSDI or SSI in Indianapolis, the dedicated team at Lee Cossell & Feagley, LLP can help. Contact us today for a free consultation to discuss your eligibility and legal options.

The application process for SSDI and SSI is complex and strict, requiring medical documentation, work history, and proof of financial need. Many applicants face initial denials and need to go through several steps to get their benefits. Working with an experienced Social Security Disability attorney can improve your chances of a successful claim by ensuring all necessary documentation is submitted correctly and advocating on your behalf.

For help getting the Social Security Disability benefits you need and deserve in Indiana, contact Lee Cossell & Feagley, LLP, in Indianapolis for a free consultation.