Definition and Purpose

• SSI (Supplemental Security Income):
  SSI is a federal program that provides financial assistance to individuals with disabilities or limited income and resources. Unlike SSDI, SSI is not based on your work history but rather on your financial need.

• SSDI (Social Security Disability Insurance):
  SSDI provides benefits to individuals who have worked and paid into Social Security for a certain number of years but are now unable to work due to a disability. SSDI is an insurance program funded by the Social Security taxes you’ve paid during your working years.

Eligibility Requirements

• SSI Eligibility:
  To qualify for SSI, you must meet the following requirements:
• Be 65 or older, or blind, or have a disability.
• Have limited income and resources (e.g., limited savings, assets, or income from work or other sources).
• Have little or no work history.

• SSDI Eligibility:
  To qualify for SSDI, you must:
• Have worked and paid Social Security taxes for a sufficient number of years.
• Have a disability that prevents you from working, and the disability must last for at least 12 months or be expected to result in death.
• Be under the Social Security earnings limit for substantial gainful activity.
  

Financial Need vs. Work History

• SSI:
  SSI is a need-based program, meaning it primarily focuses on your financial situation. It does not require a work history but instead evaluates your income and assets. If you have limited resources, SSI may be an option for you.

• SSDI:
  SSDI, on the other hand, is based on your work history. You must have worked a certain number of years and paid Social Security taxes during your employment. The amount of SSDI benefits you are eligible for is also based on your past earnings.

Benefit Amounts

• SSI:
  The benefit amount for SSI is based on the Federal Benefit Rate (FBR), which is adjusted each year. It is usually lower than SSDI benefits and may be reduced if you have other sources of income.

• SSDI:
  SSDI benefits are calculated based on your average lifetime earnings. The more you’ve earned and paid into Social Security, the higher your SSDI benefits will be. The maximum SSDI benefit is determined by your work history and contributions to the Social Security system.

Funding Source

• SSI:
  SSI is funded through general tax revenue, which includes income taxes and other federal revenues. It is not linked to your work history, meaning it is funded by taxpayer dollars, regardless of your past earnings.

• SSDI:
  SSDI is funded through payroll taxes paid by workers and their employers. If you’ve worked and paid Social Security taxes (FICA), you’ve contributed to the SSDI program. Your eligibility and benefit amounts depend on your prior contributions.

Impact of Work and Earnings

• SSI:
  With SSI, your eligibility is affected by any income or assets you have. If you start earning money from work, it can reduce or eliminate your SSI benefits. There are strict limits on how much you can earn while receiving SSI benefits.

• SSDI:
  SSDI has a work threshold known as Substantial Gainful Activity (SGA). If you earn more than a certain amount, your SSDI benefits may be stopped. However, you can still receive SSDI if you return to work and earn below the SGA limit. Also, after receiving SSDI for a certain period, you may qualify for work incentives like the Ticket to Work program.

Medicaid vs. Medicare

• SSI:
  SSI recipients automatically qualify for Medicaid, a health insurance program that covers medical costs for low-income individuals, including those with disabilities. Medicaid eligibility in Utah (and other states) is typically tied to your SSI status.

• SSDI:
  SSDI recipients typically qualify for Medicare after 24 months of receiving benefits, regardless of their age. Medicare provides health coverage for individuals over 65 and those with disabilities.

Applying for SSI and SSDI

• SSI Application:
  To apply for SSI, you can visit the Social Security Administration’s website (www.ssa.gov) or apply in person at a local SSA office. You will need to provide proof of your income, resources, and disability.

• SSDI Application:
  To apply for SSDI, you also need to apply through the SSA’s website or in person. You will need to provide your work history, income, and medical documentation regarding your disability.