SSDI, or Social Security disability insurance, provides income for U.S. workers who have become disabled and are no longer able to engage in substantial gainful activity. SSDI is different from private disability insurance because it is available to anyone who has sufficient work history and is otherwise eligible. And, it’s different from many other types of public benefits because it is not need-based. While too much income from work can disqualify you from receiving SSDI, other types of income are not considered. For instance, you can be the beneficiary of a trust or receive investment income or have significant assets and still be eligible.
There is a five-month waiting period after you become disabled. For most applicants, that period has expired by the time benefits are approved, so monthly payments start soon after approval. You may even receive a lump sum payment for back benefits or retroactive benefits.
Eligibility for Social Security Disability Benefits
To qualify for SSDI, you must have sufficient work credits. The general requirement is 40 work credits–the same number required for Social Security retirement benefits. You can only earn up to four work credits per year, so reaching this threshold requires that you’ve worked in at least 10 different years. However, younger workers won’t need as many work credits.
If you qualify based on work credits, you must also show that you:
Can’t engage in substantial gainful activity (SGA) because of your medical condition, and
Your condition has lasted or is expected to last for at least 1 year or to result in death
In determining whether you are able to engage in substantial gainful activity, the Social Security Administration (SSA) will consider both your ability to do the work you did previously and your ability to adapt to another type of work.
Additional Benefits Associated with SSDI
Once you’ve been receiving Social Security disability benefits for two years, you will be eligible for Medicare, regardless of your age. This can be a significant benefit for someone who has ongoing medical needs and no longer has employer-sponsored insurance.
Depending on your circumstances, other members of your family may also qualify for benefits. Spousal benefits are limited to spouses (and some divorced spouses) who are at least 62 years old and don’t have access to a larger amount of benefits based on their own record. But, your minor children may qualify for additional benefits when you receive SSDI.
Get Help with Your SSDI Claim
To secure Social Security disability benefits, you will have to provide substantial proof of your medical condition and the associated limitations. Most initial SSDI applications are denied, and the appeals process can be long and complex. The earlier in the process, you get help from a knowledgeable disability benefits advocate, the better.
To learn more about how Disability Help Group can assist you in putting together the strongest application or appeal possible, call 800-800-3332 or contact us here.
Can I Receive Unemployment While Collecting Long-Term Disability?
The short answer is “probably not.” While there may be exceptions, long-term disability (LTD) and unemployment insurance are usually mutually exclusive. That’s because LTD benefits are intended for people who are disabled–that is, unable to work. The same is true for Social Security Disability. But, state unemployment insurance programs typically require that recipients be willing, able, and available to work. In other words, it’s usually impossible to fulfill the requirements for both LTD and unemployment insurance.
In fact, applying for both could be risky legally. The two applications might require you to attest to conflicting claims. If you believe you may be qualified for both long-term disability benefits and unemployment, it’s in your best interest to talk to an experienced disability benefits advocate right away, before you file an application for either benefit.
Unemployment Insurance v Long-Term Disability Benefits
How Does Unemployment Insurance Work?
In nearly all U.S. states, employers are required to pay unemployment insurance premiums or pay into a state unemployment program. Employees earn access to these benefits by having sufficient recent earnings from employment. To be eligible, the employee must also have been terminated from employment or quit for one of a small number of acceptable reasons. In most states, an employee terminated for cause will not be eligible.
How Does Long-Term Disability Work?
Long-term disability is a type of insurance, which may be purchased directly or provided by your employer. A long-term disability policy typically pays a percentage of your regular income if you become disabled–usually 50-67%. To qualify, you must meet the policy definition of disabled. LTD policies often include offset provisions, meaning that if you receive SSDI or certain other benefits, your LTD payout may be reduced.
Who May Be Eligible for Both LTD and Unemployment?
The narrow exception that might allow a small percentage of disabled workers to receive both LTD and unemployment hinges on the policy definition of “disabled.” Usually, it will mean that the insured is unable to engage in gainful employment. However, some policies may have more specific definitions, such as being unable to perform your current job duties or being unable to work in a particular industry.
In that case, the disabled worker may technically qualify for both LTD and unemployment insurance. But, it’s important to carefully review the criteria and any set-off provisions or exclusions. For example, a long-term disability policy may include a provision that allows the insurer to reduce benefits if you are receiving certain other types of compensation.
Contact Disability Help Group
To avoid any missteps, consider working with an experienced disability benefits advocate from the beginning.
Disability Help Group was founded by experienced disability experts who have been representing people with disabilities for over 15 years. Our team understands how to work with the Social Security Administration (SSA) in the best interest of the disabled person.
Social Security Disability claims require patience from the claimant, which can be tough when a person’s finances are in question. We understand, and we are here to help.
We have representatives across the country to ensure that your rights are being protected and the disability process is being properly followed.
To learn more, be sure to call one of our Disability Advocates now at (800) 800-3332, or fill out the contact form on this site.
What Does SSDI Consider Substantial Gainful Activity?
If you’re applying for Social Security disability (SSDI), “substantial gainful activity” (SGA) is a very important concept. Part of the standard for being eligible for SSDI is that you are unable to engage in substantial gainful activity. Here’s how the Social Security Administration (SSA) defines substantial gainful activity:
Work activity is “substantial” if it involves significant mental or physical activities (or a combination of the two)
Activity is “gainful” if it:
Is performed for pay or profit,
Is of a type typically performed for pay or profit, or
Is intended for profit, whether or not a profit is actually realized
The clearest and simplest test for SGA is to look at the applicant’s earnings. Someone who is earning more than the SGA cut-off is not eligible for SSDI benefits. That number changes from year to year. In 2023, the cut-off is $1,470/month, or $2,460/month if the applicant is blind.
However, it’s important to note that while having earnings above the threshold is sufficient to disqualify an applicant, having earnings below the threshold doesn’t always mean the applicant is unable to engage in substantial gainful activity. For example:
The SSA may conclude that although the applicant is not currently earning above the threshold, they are capable of doing more work than they currently engage in
The SSA may conclude that the applicant is engaged in SSA if they are working a significant number of hours, even if they are not earning above the threshold
Working While on Social Security Disability
The discussion above is focused on an applicant for SSDI. But, what happens when someone who is already receiving disability benefits engages in work? An SSDI recipient can earn some money from work without jeopardizing benefits. However, the ceiling is lower than it is in the SGA assessment.
In 2023, earnings of $1,050 in a month will trigger a trial work period. The recipient can continue on SSDI and receive all regular benefits until they have nine successful trial months in a 5-year period. Then, they’ll enter a transitional period intended to phase the recipient off of SSDI benefits and back into the workforce. The trial work period system provides a safety net for recipients who want to test out returning to work without jeopardizing benefits. But, it can have unintended consequences for someone who is very occasionally able to engage in work. So, it’s important for anyone receiving benefits to understand their reporting requirements and how trial work periods work.
Talk to An Experienced Disability Benefits Advocate
If your SSDI application has been denied because the SSA says you are able to engage in substantial gainful activity, that isn’t necessarily the end of the road. Call Disability Help Group at (800) 800-3332 or contact us here today to learn more about your rights and options.
How to Speed Up Your Social Security Disability Claim
– MATT SAUERWALD, PRESIDENT, DISABILITY HELP GROUP
Matt Sauerwald is on the nation’s leading Disability Advocates. Across his career, Matt has developed a deep knowledge of Social Security disability law. He is dedicated to helping those who are unable to work due to disability get the benefits they deserve. Matt has successfully represented thousands of disability benefits claimants, and continues to work hard for disabled workers and their families every day.
In this post, Matt shares some of what he’s learned about how to move your SSDI claim forward as quickly as possible.
Top Tips for a Quicker SSDI Decision
Make sure your SSDI application is complete and well-documented.
This may seem obvious, but errors and omissions delay Social Security disability claims, and sometimes even result in avoidable denials. Never cut corners when completing your application or submitting documentation to the Social Security Administration (SSA). An experienced disability benefits advocate can help you avoid common mistakes and ensure that your application is complete, correct, and well-supported.
Take advantage of any shortcuts available.
With most SSDI claims, it takes months to receive an initial determination and then years to work your way through the appeals process. However, there are a few circumstances in which the process can be abbreviated or expedited. The SSA considers a case “critical” and offers special processing if:
The applicant is suffering from a terminal illness
The applicant is a veteran with a 100% permanent and total disability rating from the Veterans Administration
The applicant is a member of the U.S. military or a veteran who sustained the impairment while on active duty after October 1, 2001
Keep your SSDI claim moving forward.
For most people, the SSDI process is multi-step, because most claims are denied at the initial application stage. After each denial, you’ll have 60 days to move your claim to the next stage. If you miss one of those deadlines, you’ll have to start back at the beginning, which could delay your claim by months or even years. Even if you meet the deadlines, waiting out the 60 days each time could add six months to the process. That doesn’t mean you should rush. Take the time to make sure you’ve provided any necessary or helpful information at each stage, but don’t let your Social Security disability claim languish.
Considering requesting review on the record (OTR).
After your claim has been denied at the initial application and reconsideration stages, the next step is to request a hearing before an administrative law judge (ALJ). There are two ways SSA can render a decision at that stage without holding a hearing:
They determine that the record supports a decision fully favorable to you without a hearing, or
You notify them that you do not wish to appear at a hearing and would like a decision made “on the record” (OTR
Since it can take between eight months and two years to get to an ALJ hearing, this option can obviously expedite the process. However, it’s not appropriate for every case. If you’re considering requesting an OTR decision, consult an experienced disability benefits advocate to discuss the pros and cons in your particular case.
Knowledgeable Guidance at Every Step Can Speed Up Your Claim
To learn more about how Disability Help Group can help you navigate the SSDI application and appeals process as quickly as possible, call 800-800-3332 or contact us here right now.
Matt Sauerwald has been a leading voice for the disability community since 2010. In that time, he has handled thousands of hearings for disabled workers and their family members and helped to secure hundreds of millions of dollars in benefits. Since 2015, he has led Disability Help Group, a leading advocacy organization for disabled workers.
Social Security disability benefits (SSDI) can be a lifeline for workers who are no longer able to earn a living due to disability. If you’re in the process of applying for or appealing denial of SSDI benefits, you’re probably wondering how much you can expect to receive if and when your application is approved.
The answer comes in two parts: how much monthly income you will receive from SSDI, and how much money the Social Security Administration (SSA) will owe you by the time your benefits are approved. Back benefits or retroactive benefits depend in part on your monthly benefit, so we’ll start there.
Calculating Monthly Social Security Disability Benefits
The amount of your monthly Social Security disability benefit will be equal to what you would receive at full retirement age. But, that amount depends on your work history. More specifically, your monthly benefit is based on your average indexed monthly earnings (AIME) for your 35 highest-earning years. “Indexed” means the earnings have had a multiplier applied to translate them into equivalent earnings in the present year. For example, someone who earned $15,000 in 1985 would be credited with indexed earnings of $54,012. Without this adjustment, people with a long work history would be penalized by lower-dollar early earnings.
Note that your full monthly income isn’t necessarily included in this calculation–only wages up to the maximum taxable income limit for Social Security are counted.
Once SSA has determined your AIME, a staged formula is applied. In 2023, your monthly benefit amount will be:
90% of AIME up to $1,115, plus
32% of AIME over $1,115 but not more than $6,721, plus
15% of AIME over $6,721
For example, if your AIME is $4,000/month, your benefit amount would be:
$1,115 x .90 = 1003.50, plus
$4,000 – $1,115 = $2,885 x .32 = $923.20
For a total of $1,926.70
Social Security benefits, including SSDI, are rounded down to the nearest dollar. So, your monthly benefit in 2023 would be $1,926. Benefits are subject to an annual cost of living adjustment.
There’s a lot of math involved. Fortunately, the SSA provides online benefits calculators to give you an idea of what you can expect in monthly benefits.
Lump Sum SSDI Payments
Often, it takes several months to two years or more to get approved for Social Security disability benefits. But, that doesn’t mean you’re going to miss out on all those benefits. In fact, in some circumstances, you may qualify for benefits dating back to before you applied for SSDI.
There are two different types of payments that you may receive in a lump sum shortly after your disability benefits are approved: back pay and retroactive pay. Back pay is the benefits you would have been eligible for from the time you applied. Retroactive benefits are benefits you may have been entitled to for up to a year before you filed your application.
There are two important things to know about retroactive pay and back benefits:
Establishing the onset date of your disability matters, even if there was a gap between onset and application, and
It’s important to see through the appeals process instead of reapplying–if you start over, you won’t be eligible for benefits for any time period earlier than the date of your denial.
As you can see, there’s much to think about when applying for SSDI benefits or appealing a denial. And, innocent mistakes can cost you.
At Disability Help Group, we will work with you and provide guidance and expectations to help you through this challenging time. To learn more about how Disability Help Group can help you assemble the strongest application possible, call (800) 800-3332 or fill out the contact form on this site.
