One of the questions we are as frequently is “how much will I get if my claim is approved.” The answer to this question, like most things in the Social Security disability world, is more complicated than it would first appear.
The first thing to realize is that the amount of a disability payment varies from person to person and depends on the type of claim that you have. Most people who file for disability qualify for Title II benefits, otherwise known as Disability Insurance Benefits. The amount of benefit depends upon how much you have paid into Social Security through your payroll taxes. The national average benefit is about $1,100. Social Security provides several ways for you to find out what you would be eligible for.
The best way is to create a my Social Security account online. After creating an account, you can verify your earnings and get your Social Security Statement. Social Security mails Social Security Statements annually to workers who are age 60 and over, aren’t currently receiving Social Security benefits and don’t have a my Social Security account. Social Security also provides several calculators you can use to determine your own benefit based on different scenarios.
Once you have your statement or have logged in to your online account you want to look for the line that tells you whether you have earned enough credits to qualify for disability and provide the amount. That amount is the best estimate for what you would receive if you are approved for disability benefits.
We are often asked what effect other assets or income will have on your disability benefit. With Title II benefits other assets or income do not affect the amount of your benefit as long as those assets or income are not from earned income related to your work activity. For example, if you receive $100 a month from an annuity it will not affect the amount of your disability payment.
If you are filing for Supplemental Security Income (“SSI”) things are a bit different. SSI is designed to help individuals who have little or no income, few resources, and are aged, blind, or disabled. The federal maximum SSI benefit is adjusted annually. For 2018 it is $750 and the maximum couple benefit is $1,125. Therefore, any assets or income available to the individual receiving the SSI benefits will be counted against the SSI the person receives. The rules for calculation of the SSI amount get quite complicated and are beyond the scope of this article. Just realize that SSI benefits get offset by any resources the individual receiving the benefit might have access to including land, vehicles, cash whether in bank accounts or at home, gold, or any other assets that can be turned into cash. Social Security also imputes income from other family members such as a spouse or parent, so a person’s eligibility for SSI can be reduced or eliminated if a spouse’s income is too high. The one major exception to this rule is that Social Security will exclude one house (if you live in it) and one car, no matter their value, from this resources reduction.
One common situation is for someone to receive both SSI and Title II benefits at the same time. This can only happen if the amount of your Title II benefit is less than the federal maximum SSI benefit because there is a dollar for dollar offset. For example, if you receive $349 in Title II benefits you can receive up to $401 in SSI benefits. Thus, if your Title II exceeds $750, you will not be eligible for ongoing SSI benefits.
This explanation of the benefit amounts and the rules affecting those amounts is very simplified. Specific situations will be different for each individual and can fluctuate from month to month. However, this should provide you with a good understanding of the amount you may be eligible for.