Tennessee disability attorneys explain and compare Social Security disability and Supplemental Security Income

The Social Security Administration pays disability benefits through two programs: the Social Security disability program and the Supplemental Security Income program. Often our Tennessee disability clients are unsure of what the differences are between Social Security disability and Supplemental Security Income, which is frequently referred to as SSI.

Both programs require that you establish, through sufficient medical evidence, that you are disabled. Social Security law states that you are disabled only if your physical or mental impairment is so severe that you are unable to do your previous work and you cannot, considering your age, education, and work experience, do any other substantial gainful work that exists in the national or local economy. Your ability to work, age, education, and recent jobs are the key factors affecting disability determination. For more information, see our video Will you qualify for Social Security disability benefits?

Generally, it easier to obtain disability benefits when you are older (over 50, 55 or 60), less educated, performed more physical work in the past, and/or have less transferable work skills.
Sometimes, however, these are not important factors. For example, none of these factors are significant if your disability is based on emotional problems, such as depression.

An insurance plan vs. a welfare program

The Social Security disability program acts like an insurance plan. It pays benefits to Tennessee disability applicants who worked long enough and paid Social Security taxes. Social Security disability recipients are eligible for Medicare, but only after they have received Social Security disability for two years, or if they are over 65. Medicare premiums are automatically deducted from the monthly Social Security disability benefits.

The Supplemental Security Income program is a federal welfare program for the disabled, blind and those over 65. It makes monthly payments to people who have little resources and low income. If you are eligible for SSI, you are also entitled to Medicaid, and other social services administered by the state of Tennessee.

While the Social Security Administration manages both programs, SSI is not paid for by Social Security taxes. SSI disability benefits are paid out of the U.S. Government’s general revenues while Social Security disability benefits are paid out of the Social Security trust fund.

Differences between Social Security disability and Supplemental Security Income to consider when you apply for Tennessee disability benefits

Social Security disability and SSI share many of the same concepts and terms, but there are many significant differences between the two programs that must be considered when applying for disability benefits.

Social Security disability program’s insurance requirement

To receive Social Security disability benefits, in addition to meeting the definition of disabled, , you must have paid Social Security taxes over a sufficiently long period and paid such taxes recently enough. For example, if you are 38 years old, you must have worked and paid taxes for five years out of the 10-year period prior to the calendar quarter your disability began. If you were younger than 31 at the time your disability started, your work requirement is reduced. Someone who is disabled prior to age 31 needs to have accumulated one half the number of quarters between the age of 21 and the age at onset of disability, but not less than six quarters. For example, if you became disabled at age 25, you would need eight quarters (two years of work) to qualify for benefits.

To be eligible for SSI disability benefits, you must also be found to be “disabled” using the same definition as is used for the Social Security disability program, but there is no “insured” or earnings requirement. No work history is required. If you do not have the work history for Social Security disability benefits, then you may qualify for SSI disability benefits. However, your income and assets must not exceed the SSI program’s income and asset limitation, which is discussed below.

SSI program’s income limits

For Social Security disability, you will not be found disabled if you are doing “substantial gainful activity.” To the Social Security Administration, substantial gainful activity means work that pays $1,000 per month or more and involves more than minimal duties. Therefore, if you make more than $1,000 per month at a job involving more than minimal duties you will be ineligible for Social Security disability benefits.

SSI is a needs based program. The SSI income limit is based on the monthly SSI benefit amount after several different kinds and amounts of unearned and earned income are not counted. A part of your earned income is not counted under a formula designed to encourage SSI recipients to work. The income amount left after the Social Security Administration has made all of its allowable deductions is referred to as “countable income.” If your monthly countable income is over the SSI benefit amount, you cannot receive benefits. And the more countable income you have, the less your benefit will be. If you qualify for state welfare and/or medical assistance, you will most likely meet the SSI program’s income and resource requirements.

SSI program’s asset limitations

There are no asset limitations to receive Social Security disability benefits. Your assets (things you own) are not assessed by the Social Security Administration.

For SSI benefits, the Social Security Administration will review your assets. There is an asset limitation of $2,000 per individual and $3,000 per couple. Not counted in this limitation are a home of any value and one car of any value, if it is used for work or to obtain medical care.

Amount of each program’s disability benefit

For Social Security disability, the amount you receive is based on your earnings record. This amount may be reduced if an individual is receiving or has received (in the recent past) workers’ compensation benefits, certain pension benefits resulting from earnings for which Social Security taxes were not paid, and/or public disability benefits such as certain state and civil disability benefits. Your other income or assets do not affect this payment amount. Your monthly payment may be adjusted each year to account for changes in cost-of-living.

The SSI amount you receive is a federal amount set by Congress plus a state supplement, if any, set by your state. Your state supplement amount may vary according to your living arrangements. Your countable income will be subtracted from the federal amount before the state supplement is added. The state of Tennessee is one of the few states that does not offer a state SSI supplement. The SSI federal amount is adjusted each year based on cost-of-living changes.

Waiting period to receive disability benefits and retroactivity

You must wait a full five months from the date of the onset of your disability to receive Social Security disability benefits. However, there is a retroactivity period of one year – meaning that you may be eligible for payment of up to 12 months of benefits prior to your application, if you were disabled during that time and all other requirements are met. If you apply for Tennessee disability benefits before the expiration of the five-month waiting period and are awarded benefits, your benefits will not begin until after the five-month waiting period has ended.

There is no waiting period for SSI. Your SSI payment will begin with the first month after all the SSI requirements are met or when the definition of disability is met, whichever is later. But there is no retroactivity period – you will only be eligible for benefits beginning the month after your application.

State SSI supplements

There are no state supplements provided with the Social Security disability program.

Many states pay some individuals who receive SSI benefits an additional state supplement. The amounts and qualifications for these state supplements vary state-to-state. The state of Tennessee is one of the few states that does not offer a state SSI supplement or any additional cash benefit other than the federal SSI benefit. The other states that do not supplement the federal SSI benefit are: Arkansas, Georgia, Kansas, Mississippi, and West Virginia.

Additional disability benefits for children and/or spouses

For Social Security disability, benefits may be paid to your dependent family members if they meet certain conditions. Children are eligible for benefits under this program until the age of 18, or 19, if still in high school. Disabled children over age 19 may also be eligible for Social Security disability benefits. Your spouse can also receive a payment if he or she is caring for children who are under age 16 or are disabled. There is an income limit for your spouse’s payment.

For SSI, only the disabled individual can receive SSI benefits. There is no increased federal payment for a child or spouse, but some state SSI supplements will add money for children and/or spouses. However, the state of Tennessee does not offer a state SSI supplement or any additional cash benefit other than the federal SSI benefit.

Some Tennessee disability claimants are eligible for both Social Security disability and SSI benefits

Many individuals may apply or be eligible for benefits under both programs. Generally, you may receive both Tennessee Social Security disability and SSI benefits if your Social Security disability benefits are low enough. An individual whose Social Security disability benefits are less than the amount of the SSI benefit can apply for SSI to increase the total benefits up to the level that would otherwise be paid by SSI. In these instances, household income and resources will be taken into account in determining whether SSI benefits are payable.

However, even when high Social Security disability benefits disqualify you from receiving SSI, you may get SSI during the five-month waiting period after becoming disabled when no Social Security disability benefits are paid, assuming your assets and any other income are small enough.

Assistance from experienced Tennessee disability attorneys

The decision about when and to which program to apply is an important one. If you want our help with your Social Security disability or Supplemental Security Income claim, please write or call us using the contact information below, or complete and submit the Free Claim Evaluation form to your right.

Teel & Maroney, P.L.C.
Tennessee disability attorneys
E-mail us

Teel & Maroney, P.L.C.
Security Center (Main Office)
87 Murray Guard Drive
Jackson, Tennessee 38305
Telephone: 731-660-7777
Toll-Free: 1-800-424-3777
Fax: 731-664-7057

The Utler Latimer Building
425 E. Baltimore Street
Jackson, Tennessee 38301
Telephone: 731-424-3315
Toll-Free: 1-800-892-3591
Fax: 731-424-3501

Milan, Tennessee Office
P.O. Box 567
3090 Highland Street
Milan, Tennessee 38358
Telephone: 731-668-3076
Fax: 731-686-3471