SSDI and SSI: Know the differences

| Oct 2, 2019 | Supplemental Security Income

Social Security Disability Income (SSDI) and Supplemental Security Income (SSD) are not the same. In fact, these two programs have significant differences, even though they both help the disabled or those who are unable to work,

The first difference between SSI and SSDI is eligibility. SSDI is only available to people who have paid money toward the system. This money is paid out of their taxable income.

On the other hand, SSI does not rely on taxable income paid into the system by a worker. Instead, it’s designed to provide benefits to those who don’t or can’t qualify for SSDI and who have limited financial means.

How do you pay into Social Security Disability Insurance?

You may pay into SSDI through your payroll taxes. For example, if you’re self-employed, then you may pay taxes toward SSDI when you file your tax return. If you are employed traditionally, then your employer will take out a portion of each paycheck, which will then go toward your SSDI contributions.

How is Supplemental Security Income paid for?

Supplemental Security Income is paid through general taxes. The benefits aren’t based on a past work history, so those who didn’t work enough to qualify for SSDI may qualify for SSI. Monthly payments are based on the applicant’s income and resources.

If you are interested in applying for either of these kinds of benefits or want to learn more about them, visit our website. We have more information on SSDI and SSI, so you can learn about the programs and what they may be able to do for you.