Resources

January 1, 2024

How Much Money Will I Get on SSDI?

If you cannot work due to a disability, you may qualify for Social Security Disability Insurance (SSDI) benefits from the US government. One of the most common questions applicants have is, How much does disability pay? SSDI is based on your taxable earnings. Generally, the more you have paid into Social Security, the higher your potential benefit amount.

At the Law Offices of Jennifer R. Solomon, we help individuals navigate applying for Social Security Disability benefits. Our firm, founded in 2010 by Jennifer Solomon, is dedicated to advocating for those seeking SSDI benefits. With years of experience handling disability claims, we are here to support you.

How Much Does Disability Pay? SSDI Factors

Several factors affect how much you receive in SSDI benefits. Your specific benefit amount depends on these factors and how the Social Security Administration (SSA) applies them to your case. 

Work History

The amount you have paid into Social Security over your working years directly impacts your SSDI benefit. You typically must have worked for at least 5 of the last 10 years in a job that pays into Social Security to qualify for benefits. The SSA considers up to 35 years of work history.

Your Age

SSDI benefits automatically convert to and become Social Security retirement benefits once a recipient reaches full retirement age (FRA), generally between 66 and 67, depending on the year you were born. You can also take early retirement benefits starting at age 62. Yet, taking early retirement benefits before being approved for SSDI can permanently reduce your monthly payments.

On the other hand, younger applicants typically need fewer work credits to qualify for SSDI. For example, individuals under 24 may qualify with just 1.5 years of work history, while older applicants need more credits based on their age at the time of disability.

Receipt of Other Government Benefits

Receiving workers’ compensation or other government disability benefits may reduce your SSDI payment. The SSA offsets the combined amount from SSDI and other disability benefits if they exceed 80% of the average amount you earned before you became disabled. 

Dependent Family Members

The SSA allows certain dependents to receive additional benefits based on the disabled worker’s record, including:

• Spouses if they meet eligibility criteria, such as being age 62 or older, caring for a child under 16, or caring for a child with a disability; 
• Children under 18 years old (up to 19 if still in high school); and 
• Dependent parents if they received at least one-half of their financial support from a disabled worker at the time of the worker’s disability.

These additional payments can make a significant difference for family units.

Cost of Living Adjustments (COLA)

SSDI payments may increase yearly due to cost of living adjustments (COLA). The SSA bases these adjustments on nationwide inflation, so the adjustments do not vary by state. Additionally, you may only qualify for COLA adjustments after age 62.

Taxes 

For individuals and couples filing taxes separately, if your total income exceeds $25,000, up to 50% of SSDI benefits may be taxable. For married couples filing jointly, if total income exceeds $32,000, up to 50% of SSDI benefits may be taxable. 

How Is Disability Calculated?

The SSA calculates SSDI benefits using your average indexed monthly earnings (AIME). Your AIME is the average monthly amount you earned during your highest-earning years, adjusted for inflation. The SSA then applies a percentage-based formula to determine your primary insurance amount (PIA)—your baseline monthly SSDI payment before deductions or adjustments.

Calculating AIME

The SSA first identifies the years you earned the most income, then adjusts those earnings for inflation using the national wage index. Next, the SSA averages your highest-earning years to determine your AIME.

Calculating PIA

To determine PIA, the SSA uses the following tiered percentage system: 

• 90% of the first $1,226 of AIME;
• 32% of the AIME between $1,226 and $7,391; and
• 115% of the AIME above $7,391.

You calculate PIA by adding the above together.

Determining Monthly Benefit

After finding the PIA, round down to the nearest dollar to find your SSDI benefit. The SSA may reduce this amount by any offsets such as Medicare premiums, cost-of-living increases, or corrections to prior earnings records.

Family Benefits (If Applicable)

The Family Maximum Benefit (FMB) limits the total amount of SSDI benefits that can go to a worker and their family members to between 150% and 188% of your PIA. If the combined benefits exceed the Family Maximum Benefit, the SSA proportionally reduces each dependent’s payment. However, the SSA never reduces the worker’s individual SSDI based on the FMB limit.

How to Estimate Your Social Security Disability Benefits Amount

To get a precise estimate of your potential Social Security disability benefits amount, follow these steps:

• Review your most recent Social Security statement, which includes your estimated SSDI benefits based on past earnings;
• Use the SSA’s Online Benefits Calculator; and
• Consult a disability attorney.

Actual payments may differ from estimates based on additional factors, like offsets or benefit recalculations related to updated earnings records, COLA, or changes in SSA policies.

Supplemental Benefits

You may have options to seek additional benefits through your state’s government or Supplemental Security Income (SSI). California offers SSDI benefits through the federal SSDI program and provides state-specific benefits to residents. While receiving other benefits may reduce your SSDI payment, you may receive more overall by combining benefits.

Supplemental Security Income (SSI)

SSI is a program run by the federal government that provides financial assistance to individuals with limited resources who are:

• Elderly, 
• Blind, or 
• Disabled. 

Unlike SSDI, SSI is strictly need-based and does not require prior work experience. Disabled individuals may qualify for both SSI and SSDI, allowing them to receive additional financial support.

State Supplemental Benefits

California offers a State Supplemental Payment (SSP) for individuals who qualify for SSI. Those eligible for both SSDI and SSI may receive additional financial assistance from the state.

California Disability Insurance (SDI)

Many California workers pay into State Disability Insurance (SDI), a short-term disability program administered by the state. Unlike SSDI, SDI provides temporary disability benefits to workers who cannot perform their jobs due to injury or illness. SDI is available for up to 52 weeks and does not require as extensive a work history as SSDI.

California’s High Cost of Living

The cost of living in California can make it more challenging for recipients to meet their financial needs, particularly since SSDI benefits are calculated nationwide without factoring in state-to-state COLA variations. California residents receiving SSDI may be eligible for state and local assistance programs, including housing assistance, food benefits, and healthcare subsidies through Medi-Cal.

Need Help with Your SSDI Claim? Contact Us

Applying for SSDI can be complicated, especially given the ongoing instability at the federal government level. At the Law Offices of Jennifer R. Solomon, we assist clients in applying for SSDI benefits, appealing denials, and ensuring they receive the maximum benefits they are entitled to. If you need assistance with an SSDI application, we offer free 15-minute consultations. Contact us today to learn how we can help.

Resources:

• California Department of Health Care Services, Medi-Cal Program Overview, link.
• California Department of Social Services, Supplemental Security Income/State Supplementary Payment (SSI/SSP), link.
• California Employment Development Department, About the State Disability Insurance Program, link.
• California Employment Development Department, State Disability Insurance, link.
• Social Security Administration, Cost-Of-Living Adjustment (COLA), link.
• Social Security Administration, Disability, link.
• Social Security Administration, Formula for Family Maximum Benefit, link.
• Social Security Administration, How Work Affects Your Benefits, link.
• Social Security Administration, How Workers’ Compensation and Other Disability Payments May Affect Your Benefits, link.
• Social Security Administration, Indexing Factors for Earnings, link.
• Social Security Administration, Online Benefits Calculator, link.
• Social Security Administration, Primary Insurance Amount, link.
• Social Security Administration, Selected Data from Social Security’s Disability Program, link.
• Social Security Administration, Social Security Benefit Amounts, link.
• Social Security Administration, Supplemental Security Income (SSI) Additional Information–2024 Edition, link.
• Social Security Administration, Supplemental Security Income (SSI) in California, link.
• Social Security Administration, Understanding the Benefits, link.