Understanding Social Security Benefits (SSI vs SSDI)

What Is SSI?

Supplemental Security Income (SSI) provides monthly payments to people with disabilities who have limited income and resources.

Key Points:

• Children and adults can qualify

• Comes with Medicaid health insurance

• Income and resources must stay below certain limits

 

SSI Payment Details

• Federal base rate: $794/month (2021 – varies by state)

• Payment amount depends on: countable income, living situation, and state

 

Reporting Income for SSI

You must report all income to the Social Security Administration (SSA):

Types of Income:

• Earned income – wages, self-employment

• Unearned income – SSDI, pensions, unemployment, etc.

• In-kind support – free food or shelter from friends/family

• Gifts – money or items of value

• Resources – changes to bank accounts, cars, land, investments

Also report disability-related work expenses.

 

SSI and ABLE Accounts

• Up to $100,000 in a PA ABLE account won’t affect SSI.

• ABLE accounts help cover qualified disability expenses.

• Tip: Don’t deposit full SSI into ABLE—use a regular checking account for food/housing and transfer to ABLE only when appropriate.

More on ABLE accounts »

 

What Counts as a Resource for SSI?

Counted Resources (Can affect SSI):

• Bank accounts

• Cash

• Second vehicles

• Stocks, bonds, and investments

• Vacation homes or land not used as a primary residence

 

Excluded Resources (Won’t affect SSI):

• Primary home and one vehicle

• Personal items, furniture

• Burial spaces and some life insurance

• Health FSAs

• ABLE accounts and some grant/scholarship funds

Learn how trusts affect SSI benefits »

 

Can a Disabled Child Get SSI and Survivor Benefits?

Yes. A child can receive:

• Up to 50% of a living parent's Social Security benefit (retirement/disability)

• Up to 75% of a deceased parent's benefit

 

What Happens When a Parent Retires, Becomes Disabled, or Dies?

SSI may convert to SSCBD (Social Security Childhood Disability Benefits):

• Parent retires or becomes disabled → Adult child may receive 50%

• Parent dies → Adult child may receive 75%

 

What Is SSDI?

Social Security Disability Insurance (SSDI) is for adults with disabilities who have paid into the system through work.

To Qualify:

• Must be over 18 years old

• Must have enough work credits

• If disabled before age 22, child may receive benefits based on a parent's record

What Are Work Credits?

• You can earn up to 4 per year

• Most people need 40 credits (10 years of work)

• Younger individuals may qualify with fewer credits

How to Check Work Credits:

• Go to www.ssa.gov

• Create a my Social Security account to view credits

How Much Does SSDI Pay?

• Average range: $800 – $1,800/month

• Maximum (2020): $3,011/month

• Based on your lifetime earnings

 

What If I Inherit Money While on SSDI?

SSDI is not affected by:

• Inheritance

• Savings or assets

• Spouse's income

Because SSDI is not needs-based, receiving money doesn’t change eligibility.

 

How Long Do SSDI Benefits Last?

• As long as you're disabled

• Once you reach age 65, SSDI converts to retirement benefits