The Social Security Administration administers two programs for disabled individuals: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).  Both SSDI and SSI use the same medical standard to determine who is disabled.  They differ on non-medical parts requirements. 

SSDI provides benefits to disabled individuals who have enough past work to be insured for disability.  While working, FICA taxes are withheld from wages.  Part of those taxes is a premium for disability insurance.  Generally, a person must have worked five of the last ten years before becoming disabled to be insured (a different rule applies to people under age 30).  In some cases, disabled adult children and widows or widowers can receive disability benefits based on the work of a parent or their deceased spouse. 

SSI makes cash payments to aged, blind, and disabled people (including children under 18) who have limited income and resources.  No prior work history or contributions to an insurance fund are necessary. 

Both SSDI and SSI have built in work incentives. 

SSDI Work Incentives

Before the Social Security Administration decides you are disabled you can attempt to work.  During the first 12 months you are disabled, if you perform what Social Security calls “substantial gainful activity” (SGA) you will most likely lose your claim.  SGA was $1350 per month in gross wages in 2022 and is $1470 a month in 2023.  

In some cases we can argue the work in the first 12 months is an Unsuccessful Work Attempt.  The work must last less than 6 months and end because of your condition or because of the elimination of special services or assistance you received which you needed to work.  If you are working again after applying for disability call Kirsch and Clark to discuss your work and earnings. 

After the first 12 months of disability (and no work!), if you have applied for SSDI, you may be eligible for a trial work period.  A trial work period is up to 9 months during which you can work and still receive a disability benefit regardless of how much you earn.  If you earn $1050 or more in gross wages in a month in 2023 that will be a trial work month.  After 9 trial work months, Social Security can use your earnings as evidence you are not disabled.  During a trial work month, you can earn any amount (even over SGA) and your earnings will not be used as evidence your disability has ended (but, Social Security can use other evidence, like medical records, to show your disability has ended). 

SSI Work Incentives

SSI does not have a trial work period.  However, SSI has other work incentives. 

In 2022, the maximum monthly SSI benefit was $841; it is $914 in 2023.  This may be reduced by countable income you receive.  Countable income is things like gross wages you earn; the value of free food and/or shelter provided to you; a spouse’s earnings, other income like VA disability or retirement, pensions, Workers Compensation, unemployment benefits, etc. 

SSI does not count the first $65 of earned income in a month.  SSI will count half of the remaining earnings.  During the first 12 months after you become disabled but before SSI is awarded, if you earn more than $1470 (in 2023) per month (gross wages), you will be denied SSI.  In 2023 after SSI decides you are disabled, you can earn up to $1892 in a month (gross wages) and still receive $1 of SSI, and be eligible for Medicaid health coverage. 

This is different if you also have unearned income like SSDI benefits. 

An example will make this clearer.   Suppose Gladys, a single person, was found disabled and eligible for SSI starting January 2023; SSI is her only income.  In March 2023 she finds a part-time job which pays $1000 a month gross wage.  SSI ignores the first $65 and subtracts half of the remaining earnings from the monthly SSI benefit.  $1000 – $65 = $935; Half of $935 = $467.50; $914 – $467.50 = $446.50.  So, in February 2023, Gladys will earn $1000 and SSI will pay her $446.50 for a total monthly income of $1446.50.  She is much better off working this job than if she only had SSI. 

Generally, at Kirsch and Clark, we encourage our clients to attempt to work if they can.  In most cases you will be better off working than on SSDI or SSI benefits.  If you attempt to work, and it is unsuccessful, it is evidence to strengthen your disability claim.  However, we need to know about the work to be able to evaluate it in your individual situation.  Please call to discuss your work plans with Mr. Clark. 

            If you earn SGA ($1470 in 2023) during the first 12 months of your disability you may potentially jeopardize your SSDI or SSI claim.  If you are working you must send copies of your monthly wage stubs or other record of your work and earnings to Kirsch and Clark. 

            This is a complicated area of disability law.  This handout does not cover all work incentives or rules regarding work and disability.  Please call Kirsch and Clark if you have questions.  You can also consult the Social Security web page for additional information.  https://www.ssa.gov/pubs/EN-05-10095.pdf  or https://www.ssa.gov/disabilityresearch/wi/generalinfo.htm

The Social Security Administration’s average wait time for an initial disability decision hit an all-time high in August 2022 of more than six months, or 198 days — almost three times higher than it was a decade ago. The AARP recently noted wait times of about 31 minutes on Social Security’s 800 number, about 10 times longer than they were in 2012. Meanwhile, the average disability claimant today waits more than two years for a final decision, while more than 10,000 people die each year without an answer, the nonpartisan organization said in its letter. Experts says that much of SSA’s ability to keep up with their workload will depend on Congress’ upcoming continuing resolution to keep the government funded into the next fiscal year. Budget cutting has squeezed SSA’s operating budget from an already low 0.9 percent of overall Social Security spending in 2010 to just 0.6 percent in 2021. Plainly speaking, they give out $99.40 dollars in benefits to people, for every $.60 they use to keep the organization running. Compare this amount to health insurance companies, who commonly spend up to 20% of their collected funds on administration — for every $80 they spend paying your medical bills, they keep $20 to keep their organization running. If you are concerned, please contact your members of Congress.

The Acting Commissioner of the Social Security Administration, Dr. Kilolo Kijakazi, recently announced an increase in the fee cap for attorneys helping claimants. The former fee cap, set in 2009, was $6,000. It will be raised to $7,200 on November 30, 2022.
What a raise in the fee cap means for claimants:
• The fee for attorney services, set by the Social Security Administration, is the lesser of ¼ of past due benefits or the fee cap. Most claimants’ past due benefits are less than $24,000, and therefore will be unaffected. Those whose past-due benefits are greater than $24,000 will now pay a little bit more.
• It may be a little easier to find a lawyer, since the low fees for services has resulted in many lawyers leaving this area of law.
What a raise in the fee cap means for lawyers:
• Lawyers doing Social Security cases have not gotten a pay raise since 2009. With the cost of inflation, higher wage costs, and the lower rate of approval of claimants, it has been financially difficult for Social Security lawyers to keep going. While the fee cap would have to be raised to $8000 to make up for inflation between 2009 and 2022, this increase does help a little.

Authors and researchers, Hilary Hoynes, Nicole Maestas, and Alexander Strand, recently examined the value of legal representation for claimants and the Social Security Administration and found the following results:

• When lawyers submit claimants’ initial application for disability benefits, they increased the probability of an award of disability at the initial level (without having to appeal) by 23%. 
• When lawyers win benefits for claimants earlier, it saves money for the Social Security Administration who will otherwise pay staff, outside medical and vocational experts, and adjudicators as the case progresses through appeals and a hearing. 

At Kirsch & Clark, a growing number of our Social Security clients join us at the initial level.  In 2020, we helped 60% of our clients file an initial claim for benefits.  The other 40% were in various stages of appealing a denial.  We have had good success in resolving cases at the initial level, so that benefits can be received earlier.  We take pride in submitting detailed applications with the relevant information so that the Social Security Administration can make the right decision earlier. 

The Commissioner of the Social Security Administration posted this on 4/3/2020:

The Department of the Treasury (Treasury) announced on April 1 that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an economic impact payment. The Internal Revenue Service (IRS) will use the information on the Form SSA-1099 to generate $1,200 economic impact payments to Social Security beneficiaries who did not file tax returns in 2018 or 2019.

The Treasury, not Social Security, will make automatic payments to Social Security beneficiaries. Beneficiaries will receive these payments by direct deposit or by paper check, just as they would normally receive their Social Security benefits.

Please note that we will not consider economic impact payments as income for SSI recipients, and the payments are excluded from resources for 12 months.

Kirsch & Clark also found this additional information:

Economic Impact Payments will not be taken away to reduce overpayments; however, they can be taken away to pay overdue child support.