Individuals who suffer severe disabilities can apply for financial assistance through the Social Security Administration.
Individuals can apply for disability benefits through the Social Security Disability Insurance (SSDI) program, which is sponsored by the Social Security Administration (SSA). SSDI is an entitlement program for U.S. citizens who paid into Social Security while they were working. Payment amounts depend on several factors, including the applicants' earnings histories and the length of time they worked. However, there are several eligibility requirements outlined by the SSA that applicants have to meet or they will be denied coverage.
Benefits
SSDI is an alternative way for individuals to receive financial assistance because of illnesses or injuries if they cannot afford or qualify for private disability insurance policies or if they have no access to group-sponsored plans. Unlike disability policies that are sold by insurance companies, there are no premium payments for SSDI. This program also pays benefits to the beneficiaries' family members, including their spouses, dependent and disabled children, and their ex-spouses.
Payments and Taxation
Benefit amounts are determined by how much the applicants earn over their working careers. The SSA sends out yearly statements to those who are eligible to receive SSDI detailing what their benefit amounts would be at the time each statement is issued. Benefit payments from this program aren't considered taxable income unless the incomes of the beneficiaries exceed the program's guidelines. For individuals, benefits are taxed if their total incomes surpass $25,000, and for married couples, it's $32,000. However, taxes cannot exceed 85 percent of the Social Security benefits.
Disability Requirements
Not all disabilities qualify individuals for SSDI. Social Security doesn't cover medical conditions for short periods of time. Applicants must have medical problems that are scheduled to last for a year or longer. SSDI also does not pay benefits to those who are only considered partially disabled. Disabilities that are covered must prevent applicants from doing work that they were previously hired for and inhibit them from doing other work.
Misconceptions
SSDI beneficiaries are able to receive full disability benefits while attempting to work again. Initially, beneficiaries are given trial periods, which are nine months completed within 60-month periods. Qualifying trial months are defined as when beneficiaries (A) earn $720 or more a month or (B) work 80 hours or earn $720 per month after expenses if they're self-employed. After trial periods, SSA will provide beneficiaries with 36-month windows where they collect benefits for any month their earnings dip below certain amounts. As of 2010, that amount is $1,000 per month ($1,640 if blind). Beneficiaries can also keep their Medicare coverage under these work incentive rules as well.
Warning
SSDI beneficiaries must satisfy waiting periods of five months before payments are made to them. The Social Security Administration will request updates from beneficiaries detailing their current medical statuses. These requests are to determine whether they're healthy enough to not be considered disabled. It is also the beneficiaries' responsibility to report any changes to their health. Individuals who make more than $1,000 on a monthly basis are generally ineligible to receive SSDI benefits.
Tags: Social Security, Security Administration, Social Security Administration, disability benefits, financial assistance
