What’s the Difference Between SSI and SSDI?
Key takeaways:
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are both programs managed by the U.S. Social Security Administration (SSA).
These programs pay monthly benefits to qualifying individuals. SSI is a needs-based program, and SSDI is generally based on work credits.
You may qualify for both SSDI and SSI if you meet the income threshold and have a disability that is expected to last a year or result in death.
Along with administering retirement benefits, the Social Security Administration (SSA) operates other important benefits programs. Social Security Disability Insurance (SSDI) provides disability assistance to over 9.5 million people. There is also the Supplemental Security Income (SSI) program, which provides benefits for the disabled, blind, and those 65 and over who meet the income threshold. The SSI program covers about 8 million people.
It’s understandable why people may confuse SSDI and SSI. Both programs share many aspects, such as strict requirements to qualify for disability. But there are major differences, too.
Below, we’ll review how each program works, the pros and cons, and the calculations for the benefits.
Prescription Savings Are Just the Beginning
See what other benefits you qualify for—from cashback cards to cheaper insurance.
How do Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) work?
Here is an overview of the two programs:
SSI: This program pays monthly benefits to those who have limited income and resources. You may be eligible if you are age 65 and over, blind, or have a disability that prevents you from working for at least a year or result in death. The government finances SSI with income tax revenues.
SSDI: This program pays monthly benefits to disabled family members and those who have sufficient work credits with the SSA. The government finances the program through payroll taxes.
Who qualifies for SSI vs. SSDI?
Both programs have the same definition for disability. This is a person who cannot work because of a physical or mental impairment that is expected to result in death or last for at least 12 months. For those under the age of 18, you must have a physical or mental impairment that leads to functional limitations for at least 12 months or results in death.
The SSDI requires a certain number of work credits with the SSA before you can qualify for benefits. Your work credits are based on your total wages or self-employment income that was subject to Social Security tax.
SSI is available to qualifying individuals who are 65 or older, blind, or disabled. Here are some other requirements that must be met to qualify for SSI:
U.S. citizen or national, or in one of certain categories of aliens
Not confined to an institution (hospital, prison, and so on) at the government’s expense
You must have limited income and resources
Read more like this
Explore these related articles, suggested for readers like you.
What are the advantages of SSI vs. SSDI?
The following are the advantages for both programs:
| SSDI | SSI |
|---|---|
| Qualify for Medicare after 24 months | Benefits not based on your work history with the SSA |
| The monthly benefits are generally higher than SSI’s | Eligible for Medicaid coverage |
| No income restrictions on benefits | Eligible for the Supplemental Nutrition Assistance Program (SNAP) |
| No resource or asset restrictions on benefits | Benefits begin on the first full month after the date you filed the claim |
Are there any disadvantages to SSI or SSDI?
The following are disadvantages for both programs:
| SSDI | SSI |
|---|---|
| Difficult to meet the disability requirements | Difficult to meet the disability requirements |
| Need work credits with the SSA | Requires low income and asset levels |
| Minimum 6 month waiting period for most people to receive benefits | Benefits are generally lower than SSDI |
How are the amounts of SSDI determined?
The SSA calculates SSDI benefits based on the recent work test and duration work test. The recent work test is the number of work credits earned during the past 3 to 10 years before your disability. The SSA bases this on your age when you develop a disability.
| Age when you develop a disability | Estimated work credits needed for disability benefits |
|---|---|
| Under age 24 | You may qualify for benefits if you have at least 6 work credits during the last 3 years before your disability started. |
| Age 24 to 31 | This is for credits earned after age 21 and before your disability began. You must have worked half the time during that period. For example, suppose you become disabled at 25. That’s a 4-year time period from 21 to the start of your disability at age 25. You will need a minimum 2 years of work (equivalent to 8 credits) from age 21 to 25 to qualify for benefits. |
| Age 31 or older | For the past 10 years before your disability started, you may need a minimum of 20 work credits. |
The duration work test is the number of work credits required based on your age when you become disabled. Here are the estimates:
| When you develop a disability | Work credits generally needed |
|---|---|
| Before age 28 | 1.5 years |
| Age 30 | 2 years |
| Age 34 | 3 years |
| Age 38 | 4 years |
| Age 42 | 5 years |
| Age 44 | 5.5 years |
| Age 46 | 6 years |
| Age 48 | 6.5 years |
| Age 50 | 7 years |
| Age 52 | 7.5 years |
| Age 54 | 8 years |
| Age 56 | 8.5 years |
| Age 58 | 9 years |
| Age 60 | 9.5 years |
With these two tests, the SSA has a complex formula for the monthly benefit. It is generally higher the lower the income. For 2022, the SSA paid an average monthly benefit of $1,358 for all disabled workers.
How are the amounts of SSI determined?
For SSI, your countable resources or assets must be lower than $2,000 if you are single, or $3,000 for married couples. The SSA exempts your home, car, and household items.
You must have low countable income. This includes all earned income, unearned income, and deemed income. The SSA provides some exclusions. Examples include tax refunds, SNAP benefits, and need-based assistance from state or local governments.
The SSA excludes $20 per month from unearned income. For earned income, you exclude $65 per month and one-half of the earnings over this limit.
Here’s an example of how it works:
Suppose you receive $200 per month in Social Security, which is considered unearned income.
You subtract $20 from $200 to get $180.
You reduce this amount from the $841 federal benefit rate (FBR).
Your monthly SSI benefit is $661.
Can you receive Supplemental Security Income and Social Security Disability Insurance?
Yes, you can. But you need to meet the requirements for both programs and make separate applications. However, getting SSDI benefits can lower your SSI benefits. The reason is that SSI counts Social Security as countable income.
SSDI has a 6-month waiting period for most people to receive benefits. This means you can collect a higher amount of SSI for this period, and then you can receive SSDI.
How do taxes work with SSI vs. SSDI?
If you have SSI, then there is no tax impact. The reason is the low-income requirements. You will not receive a Form SSA-1099 from the IRS for the SSI benefits. This shows the total amount of Social Security benefits received for the prior year.
For SSDI, you may have tax consequences. It all depends on your income. Up to 85% of your Social Security benefits may be subject to taxes if you exceed the income threshold. The following tables show the income threshold for single and married filers:
| Annual income for an individual | Social security subject to taxes |
|---|---|
| $0-$25,000 | 0% |
| $25,000-$34,000 | 50% |
| Over $34,000 | 85% |
| Annual income for a married couple filing jointly | Social Security subject to taxes |
|---|---|
| $0-$32,000 | 0% |
| $32,000-$44,000 | 50% |
| Over $44,000 | 85% |
For example: You are married and file jointly. Your combined adjusted gross income (AGI) is $33,000, and you receive $15,000 in annual SSDI benefits. You may owe taxes on up to 50% of this amount.
How do you apply for SSI and SSDI?
The application for SSI depends on your age:
Under age 18: You can call 1-800-772-1213 to make an appointment or fill out an online form. You will fill out a disability report for your child and an application for SSI. The SSA provides a Child Disability Starter Kit for common questions and instructions. The process takes about an hour.
Ages 18 to 64: You can apply either by calling 1-800-772-1213 for an appointment or filling out an online form. The SSA provides a guide for the information you will need, such as an Adult Disability Checklist.
Age 65 or older: You call 1-800-772-1213 for an appointment. There is no online form.
You apply for SSDI either by calling 1-800-772-1213 for an appointment or filling out an online form. The Adult Disability Checklist will help you with the process.
If the SSA rejects your application, you have the right to appeal within 60 days.
The bottom line
Both SSI and SSDI share the same requirements for disability. However, SSI is a needs-based program, and you need limited income and assets. If you qualify for benefits, you may be eligible for Medicaid coverage and SNAP. You also get benefits a full month after the date of the filing of the claim.
SSDI requires work credits with the SSA. But there are no income or asset limits. You also qualify for Medicare after 24 months, and the benefits are usually higher than SSI’s.
You can receive benefits from both programs, and they can be helpful if you have a severe disability. But the benefits of SSDI could reduce your SSI.
Why trust our experts?
References
Internal Revenue Service. (2022). Definition of Adjusted Gross Income.
Social Security Administration. (n.d.). Apply online for disability benefits.
Social Security Administration. (n.d.). Checklist for online Adult Disability Application.
Social Security Administration. (n.d.). Countable income for SSI program.
Social Security Administration. (n.d.). Disability benefits.
Social Security Administration. (n.d.). Disability benefits | How you qualify.
Social Security Administration. (n.d.). Example of concurrent benefits with employment supports.
Social Security Administration. (n.d.). How do we define disability?
Social Security Administration. (n.d.). Income exclusions for SSI program.
Social Security Administration. (n.d.). Income taxes and your Social Security benefit.
Social Security Administration. (n.d.). Replacement SSA-1099.
Social Security Administration. (n.d.). Social Security credits.
Social Security Administration. (n.d.). Spotlight on resources -- 2022 edition.
Social Security Administration. (n.d.). SSI Child Disability Starter Kit (for children under age 18).
Social Security Administration. (n.d.). SSI federal payment amounts for 2022.
Social Security Administration. (n.d.). SSI for people age 65 and older.
Social Security Administration. (n.d.). SSI for people ages 18 to 64.
Social Security Administration. (n.d.). Supplemental Security Income (SSI) for children.
Social Security Administration. (n.d.). Understanding Supplemental Security Income SSI eligibility requirements -- 2022 edition.
Social Security Administration. (n.d.). When your benefits start.
Social Security Administration. (2021). Annual Statistical Report on the Social Security Disability Insurance Program, 2020.
Social Security Administration. (2021). SSI Annual Statistical Report, 2020.
Social Security Administration. (2022). 2022 Social Security changes.
