Waiting for a decision on Social Security Disability Insurance (SSDI) can be very stressful, especially when you need the benefits to meet your daily living expenses. For many individuals, Supplemental Security Income (SSI) can provide a much-needed financial lifeline during this period. However, eligibility and benefit amounts are determined by specific financial rules, and understanding how these related but distinct programs interact is essential.
Qualifying for SSI While Waiting for SSDI
SSI and SSDI serve different purposes but are often interconnected for individuals with disabilities. SSI is a needs-based program designed to assist people with minimal income and limited resources. Unlike SSDI which is not needs-based and is based on your work history and contributions to Social Security, SSI does not depend on your prior employment record.
Applications for SSDI often take many months before they are approved and you receive your benefits payment. You could qualify for SSI benefits while waiting for SSDI if your financial resources meet the strict eligibility requirements for SSI. This typically means you have little to no income and limited assets. Many individuals applying for SSDI find themselves in financial hardship due to their inability to work, making SSI a valuable option during the SSDI waiting period.
Disability applicants often apply for both programs at the same time. This strategy allows SSI to act as a temporary source of income while the SSDI application undergoes review, which can take many months or longer.
How SSI Benefits Are Calculated
SSI benefits are determined by the federal benefit rate (FBR), which sets the maximum monthly payment. For 2024, the FBR is $942 for an individual and $1,415 for a couple. In 2025, the SSI federal benefit rate will increase to $967 and $1,450. However, the amount you receive will vary based on your income, living situation, and specific benefits provided by the state you live in.
The Role of Income in SSI Payments
Income plays a significant role in determining your SSI benefits. The Social Security Administration (SSA) calculates your monthly benefit by subtracting your countable income from the starting federal benefit rate (FBR). Countable income includes wages, unearned income like unemployment benefits, and certain forms of in-kind support, such as free housing. In September 2024, the Social Security Administration stopped counting food provided to benefits recipients as countable income.
Certain exclusions apply when calculating income. For example, the first $20 of most unearned income and the first $65 of earned income are not counted. After these exclusions, the SSA reduces your SSI payment by $1 for every $2 of earned income.
State Supplements to SSI
Most states (except Arizona, North Dakota, Mississippi, and West Virginia) offer additional payments to SSI recipients. These state supplements vary widely in amount and eligibility requirements. In states where the cost of living is higher, the additional funds significantly increase the total SSI benefits.
What Happens to SSI When SSDI Is Approved?
When your SSDI application is approved, your benefits will probably change. SSDI payments are based on your work history and the amount you paid into the Social Security system through taxes. These payments usually exceed SSI benefits, so SSI payments may stop once SSDI begins.
However, if your SSDI benefit is low, you may still qualify for concurrent benefits. In this case, SSI can supplement your SSDI payments up to the FBR. For instance, if your SSDI payment is $700 per month, SSI might add $214, bringing your total income to the $967 maximum for an individual in 2025 (assuming no other countable income).
Retroactive SSDI Payments and Adjustments
SSDI benefits also usually include retroactive payments, covering the time between your established disability onset date and the date your SSDI application is approved. However, if you have been receiving SSI during the same period, this will affect the amount you receive in retroactive SSDI payments.
The SSA requires reimbursement of any SSI payments that overlap with retroactive SSDI benefits. This is known as an overpayment adjustment. The retroactive SSDI payment will usually account for the SSI amounts already received, so you won’t be paid twice for the same period.
Reporting changes in your financial situation to the SSA promptly, such as letting the agency know about the approval of your SSDI, can help avoid issues with overpayments.
The Role of National Disability Experts
The process of applying for SSI and SSDI can be overwhelming. National Disability Experts focuses our legal practice exclusively on helping individuals secure and maintain the benefits they need. Our experienced team is skilled in managing complex applications and ensuring that claims are processed efficiently.
If you’re receiving SSI while awaiting SSDI, the firm’s advocates can help you understand how your benefits may change once your SSDI application is approved. We also provide support in handling retroactive payments and overpayment adjustments, ensuring you are treated fairly by the SSA.
Transitioning from SSI to SSDI
While the waiting period for SSDI can be financially challenging, SSI offers a temporary solution for those who qualify. Understanding how SSI is calculated and how it interacts with SSDI is an important step in managing your finances during this time.
National Disability Experts is committed to helping individuals through every stage of the process, from initial applications to benefit adjustments. By seeking professional guidance, you can focus on your physical and mental well-being while ensuring your benefits are handled correctly.