15 Fast Facts About Social Security Disability Insurance

If a severe disability causes you to leave the workforce before you planned, you might qualify for Social Security Disability Insurance (SSDI). 

However, SSDI has relatively rigid requirements, rules, and restrictions. Understanding its benefits — and whether you do or don't qualify — can be complicated.

To find out if you qualify, and to help lower your financial stress, here are 15 things you must know about SSDI. 

Social Security Disability Insurance (SSDI) pays benefits to workers who paid Social Security taxes throughout their careers. 

The monthly allowance is intended to help workers stay afloat if a serious disability forces them to leave the workforce earlier than expected.

Although it can help you cover necessary expenses, SSDI benefits typically aren't high enough to replace your total income. You may still be able to earn extra cash while on SSDI, but you'll have to adhere to a particular set of guidelines.

Like regular Social Security benefits, your SSDI benefit is determined by how much you were earning when your illness or disability caused you to leave the workforce. 

However, only wages subject to Social Security taxes are considered when calculating your total monthly SSDI benefit.

As of December 2023, the average SSDI benefit paid to disabled workers was $1,483 per month.

Disabled workers who meet the Social Security Administration's definition of a disability and who have earned at least 40 Social Security work credits may qualify for SSDI benefits. 

At least half of those work credits must have been earned in the decade directly prior to your qualifying disability or illness.

Spouses of disabled workers and their dependents may also apply to receive SSDI benefits based on the disabled individual's earnings and disability. 

In some cases, ex-spouses also qualify for benefits. In the event of the qualifying individual's death, benefits may also be claimed by their surviving spouse and dependents.

For the most part, you need 40 Social Security work credits to qualify for SSDI. Individuals can earn up to four credits a year and accumulate credits by making a certain amount of taxable income per quarter. 

Put another way, most disabled workers need to have earned Social Security wages for at least 10 years to qualify for SSDI benefits.

The exact income amount needed to earn a credit varies from year to year. For the 2024 tax year, you earn one credit for every $1,730 in taxable income. 

Since you can't earn more than four credits a year, only your first $6,560 of Social Security wages for the year count toward your annual work credits.

While 40 credits are considered the standard number needed to qualify, younger workers may qualify with fewer credits. 

For instance, workers younger than 24 can qualify with as few as six credits as long as those credits were earned during the three years directly before their qualifying disability or illness.

According to data from the federal government, 8.9 million disabled workers were receiving SSDI benefits at the end of 2022.

The Social Security Act lays out a relatively strict definition of what counts as a qualifying disability. As a result, plenty of disabled workers don't receive SSDI benefits.

To qualify, you must have a "severe" medical injury or illness that has already lasted for a year, is expected to last at least a year, or is expected to result in death. 

Plus, the disability must directly interfere with your ability to carry out your typical work tasks and interfere with your ability to find work in a different field.

You should start the process of applying for SSDI benefits as soon as you become unable to work. If you're approved for SSDI benefits, you won't start receiving monthly benefit payouts until the start of the sixth full month after your qualifying injury or illness occurred.

Remember that the six-month countdown won't start until the first full month after your disability occurred. 

For instance, if you became officially disabled on September 15, your six-month countdown period wouldn't start until October 1. The earliest you'll start receiving benefits would be March 1 of the following year.

The five-month waiting period can only be waived if you've been diagnosed with ALS, also known as Lou Gehrig's disease. 

Because ALS progresses rapidly and drastically decreases your ability to function without assistance, SSDI benefits kick in immediately after a diagnosis.

You can't receive SSDI and regular Social Security benefits simultaneously. If you've been receiving SSDI benefits, you'll automatically start receiving traditional Social Security retirement benefits once you reach your full retirement age (67 for anyone born from 1960 onward).

You can start your SSDI application process online via the Social Security Administration's official website. If you can't apply online, call the bureau directly at 1-800-772-1213 (or TTY number 1-800-325-0778). 

Alternatively, find your local Social Security office using the SSA's office location finder, then call your nearest office to schedule an appointment.

Applying for SSDI benefits requires you to submit in-depth information about your condition. You'll want the names and phone numbers of all the doctors you've seen, copies of medical documents like test results, and dates of any medical visits.

The Social Security Administration will evaluate the information you submit and decide whether your mental or physical condition qualifies you for SSDI. 

If your claim is denied, you can appeal the decision, so don't give up if you get an initial denial but believe you have a qualifying claim.

Yes, you can continue to earn money while receiving SSDI benefits. However, your benefit might be reduced depending on how much you make. 

You'll want to read the Social Security Administration's guide to working while disabled to ensure that getting a job while receiving disability benefits will help save money and lower your financial stress.

While understanding and applying for SSDI benefits adds some initial challenges upfront, it should pay off once you start receiving your supplemental disability check. 

If you think you qualify for SSDI benefits, start your application process as soon as possible to maximize your retirement savings if you can no longer work.