DISABIILTY - SSDI vs. SSI

SSDI stands for "Social Security Disability Insurance."  Within the profession it is often called "Title II," or just "disability."

SSI stands for "Supplemental Security Income," a different program which is also administered by the US Social Security Administration.  SSI is often called "Title XVI" benefits.  Here is a skeleton outline of the two programs which may help readers better understand the difference.

SSDI.  Workers are insured for disability by the US government if they have worked enough quarters and paid in a sufficient amount of federal withholding tax (part of what is called FICA tax, deducted from your payroll and matched by your employer).  If you haven't worked enough you are not enrolled in SSDI or Title II and cannot receive benefits when you become disabled (unless you can qualify as a widow/widower or dependent under another wage earner's work record). There are no income or means restrictions on SSDI.  Simply put, a person does not have to be poor to qualify for SSDI.  However, a person may not be working at "substantial gainful activity" while drawing SSDI benefits.  In 2013, "substantial gainful activity" is gross monthly income of at least $1,040. (Most non-earned income, such as pensions, retirement or investment income will not count as being substantial gainful activity). The amount of benefit available depends on the claimant's work history - but the monthly benefit is generally more than the SSI maximum.  Most claimants are better off if they can file an SSDI claim under "Title II."

SSI or Title XVI.  This program is best understood when thought of as a type of federal welfare for individuals with very limited income and limited financial resources.  Unlike SSDI, SSI does not require any work history to qualify.  Even children may qualify for SSI.  However, there are strict income and resource limitations to qualify for SSI. Individuals must not have total resources of more than $2,000 and couples may not have more than $3,000.  This is not income limits - but resource limits.  Resources include cash, bank accounts, cash value in life insurance policies, stocks, bonds, real estate (excluding your home and the property it sits on), and other investments.  The value of one automobile will be excluded and there are some other exclusions.  The maximum federal SSI benefit for 2013 is $710 per month for an individual and $1,066 for a couple.  In some cases, it is possible to qualify for both SSDI and some amount of SSI at the same time.  This would occur when the benefit from SSDI is less than the SSI maximum benefit (less than $710 per month).  So, SSI is offset by benefits from SSDI.  

The medical requirements for SSDI and SSI are the same.  For both programs, an individual must have a medically determinable impairment that is severe enough to prevent work for 12 consecutive months.  In the case of a dependent (widow, widower or child) - the dependent may qualify under the parents' disability.  Children who are disabled will be considered subject to the "household income."