If you have been awarded Social Security Disability benefits, one of your main concerns will likely be how much your monthly payment will be. While it is important to note that the calculation of your monthly payment is quite complicated, this blog post will attempt to explain the basics. To start, the type of benefits you are eligible for and awarded directly impact your monthly Social Security Disability payment. The two basic types of benefits you may be eligible for are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
To put it simply, SSDI is based on an individual’s work history/credits as you paid into the system while SSI is based solely on an individual’s financial need. This means a person could never work in their life and still be eligible for SSI if they had limited assets and met the specific financial criteria. This blog post will focus on explaining the basic monthly payment calculation for SSI benefits.
If you are awarded SSI, it is important to note that the maximum monthly SSI payment for 2024 is $943. This maximum amount then deducts all your countable income to come up with the exact monthly amount you will receive. But what is countable income? Countable income can include several types of income. First and most obviously, any earned wages/income you receive from doing a job. Social Security does not count the first $65 of your monthly income and then only counts half of your earnings above that amount. A second type of counted income that will be considered is any payments, disability benefits, or other sources income sources that aren’t from working a job this could include pensions, unemployment benefits, payments from state programs, and other Social Security benefits. A third type of counted income includes is the value of food, housing, and housing maintenance that you get for free or less than market value. For example, if you live rent-free in a home or apartment, Social Security will figure out how much that residence would rent for on the open market and deduct that portion. If you live in someone else’s residence (this does not include your spouse or parents if you are a minor) they can also reduce your SSI monthly benefit by 33%. Therefore, this could apply if you live with a sibling, friend, or other family member. Finally, Social Security will also consider any income that you may have a share of because you live with the individual who earns it. For example, if you live with your spouse and they work, their income will count against your monthly SSI amount. Overall, the calculation for SSI monthly payments are complex, and consider many factors. Therefore, it is important that you be able to explain and have documentation regarding your personal situation and countable income that might affect your monthly SSI payment.
