In the United States, almost 10.9 million people receive Social Security Disability Insurance or SSDI benefits. This benefit offers them an average pay of $12,000 per year.
Despite the benefits SSDI offers, for most of our working lives, SSDI remains a background concern. Most people avoid this insurance program because of how much the federal government charges to run this program.
However, people are now getting aware of the importance SSDI has to offer.
What Is Social Security Disability Insurance?
Social Security Disability Insurance is a federally supported benefit program. The sole purpose of this program is to offer financial assistance to individuals with disabilities.
In general, the SSDI benefits can only be offered to individuals who can no longer work or for at least 12 months because of their disability.
SSDI is an earned benefit. This means that in order to benefit from this program, you must invest in this program and accumulate credit points. The credit points accumulation is also determined by your work history.
Why Does SSDI Matter?
Most people realize the importance when tragedy strikes. When people are unable to continue with their work, they think about how they will support themselves and their families. Guess what? If you have taken SSDI, you wouldn’t have to worry.
After an accident or illness that takes away your capability to work, SSDI becomes the lifeline for those who can no longer work.
SSDI is a federal-controlled program where you pay a certain amount every month. And when you are ill or injured and cannot continue to work, you receive a certain portion of your paycheck to support yourself.
How Is Eligibility Determined?
To qualify for the SSDI benefits, you must –
- Have worked in jobs under the protection of social security.
- Have medical conditions and documents to prove the condition.
The general rule states that if a person is diable and is unable to work for one year, they receive a monthly benefit under the SSDI program.
The benefits continue until you can return back to work and continue working how you used to before disability.
If you want to get a clear view of how this transition happens, get help from a Paducah disability attorney.
What Do We Mean by Disability?
It is important to understand that the definition of disability under the SSDI benefits is different from other programs. SSDI benefits are liable for paying only complete disability. No benefits are payable for any partial or short-term disability.
You can qualify for the benefits under the disability program if the following stands true for you.
- You cannot work or engage in any activity that helps you earn because of your medical condition.
- You cannot work a previous job or any similar job after your current medical condition.
- Your condition has lasted or is expected to last for at least 12 months.
This is the strict definition of disability that SSDI follows. This is because the Social Security program assumes that the person will have access to all the necessary things from their family members, including worker’s compensation, savings, and investment.
| Consider Reading the facts we have shared for which most of the SSD claims get denied |
When Does the SSDI Payment Start?
Under the law, the payment won’t start unless you have been disabling it for 5 full months. That means SSDI payments start from the 6th month.
However, you can avoid the waiting period if your disability originates from Amyotrophic Lateral Sclerosis (ALS) and has the approval of Social Security benefits.
When you receive your confirmation notice, the notice will clearly talk about how much you will receive as a benefit and from which exact date the benefit will start.
How Long Does The Payment Continue?
The tenure of payment is decided on your medical condition. The general rule states that an individual will keep receiving the benefits till they recover and get back to work.
If the medical condition is not improving, they will keep getting benefits. However, the benefits will not continue indefinitely. The official will keep a close eye on what the individual is doing to recover themselves.
That being said, with advanced medical science and rehabilitation techniques, many people recover from injuries and disabilities.
When an individual is receiving the benefits, officials will keep track of them, and the individual will be responsible for answering any question asked by the officials.
Do You Need To Stop Working To Collect The Retirement Benefits?
No, you don’t have to stop working to receive retirement benefits. Once you have crossed the retirement age, you can work and still enjoy the retirement benefits.
But, if you are below full retirement, your monthly benefits will be reduced. Only after you reach retirement age will the reduction be eliminated. And the benefits will be increased to make up for what you have lost over time.
How Can You Boost The Number Of Benefits?
The longer you wait for the payment, the more amount you will receive. Let’s understand this by an example.
Let’s just say you were born in 1960. This means your current age is 62. So, if you start receiving the benefits, it will be 70% of your last paycheck.
However, if you wait for more than 5 years till you reach 67 and then claim the benefits, you will get 100%.
This is because delaying past full retirement age and Social security increases your benefits by 8% per year until you hit 70. After 70, it becomes constant.
Do You Owe Taxes On Social Security?
Social Security Disability benefits are subject to tax. But most people end up not paying taxes on it. The taxation of SSDI benefits depends on your total income.
However, there is a way to avoid paying tax on your SSDI benefits. If your total income – one-half of your disability benefits + tax-exempt interest – is below the bottom line where taxation starts.
If you are single, the threshold of the tax amount is $25,000. And if you are married and file the benefits jointly, the amount increases to $32,000.
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