Many people considering filing for Social Security disability often find the financial eligibility rules confusing. In this article, we’ll examine the financial requirements, such as work credits and Substantial Gainful Activity (SGA), so you can understand how they work together in the eligibility process.
What is SSDI?
Social Security Disability Insurance (SSDI) is a federal program that provides financial help to people who cannot work due to a disability. The Social Security Administration (SSA) defines a disability as a medically determinable impairment that prevents someone from performing substantial gainful activity. The impairment can be physical or mental in nature, and must be expected to last at least 12 months or result in death. An impairment is considered medically determinable if it is established by objective medical evidence such as testing or clinical signs.
Meeting these medical requirements is just one part of the process. Because the SSDI program uses payroll taxes collected under the Federal Insurance Contributions Act (FICA), applicants must also meet specific insurance criteria to qualify for SSDI.
You Need Enough Work Credits
Qualifying financially for SSDI requires having enough work credits. These credits are earned by paying taxes on your employment income with a maximum of four credits available each year. The number of credits you need can vary depending on your age when you become disabled.
- Under 24 years old: You need to have earned at least 6 credits within the 3 years before your disability.
- Ages 24 to 30: You must have earned credits for at least half of the period between your 21st birthday and the start of your disability.
- 31 years and older: Generally, you need to have earned at least 20 credits in the 10 years leading up to your disability.
Work Activity Must Be Below SGA
Another important aspect of SSDI eligibility is the concept of Substantial Gainful Activity (SGA). Social Security uses SGA to determine whether an individual can engage in work that provides a certain level of income. Social Security sets the SGA amount at the beginning of each year. If you earn more than the prescribed amount for a given month, you will generally be disqualified from drawing Social Security Disability for that month.
Unlike Supplemental Security Income (SSI), which places strict limits on unearned income and assets, SSDI does not impose such restrictions.
Getting Help with Your Disability Claim
If you have questions about applying for Social Security disability benefits or need assistance navigating the disability process, consider consulting a qualified disability attorney. They offer guidance and ongoing assistance throughout the process.
Contact Brock and Stout for a free evaluation to get help with your disability claim. Let us see how we can assist you in getting the benefits you need.