Disclosure: Articles may contain affiliate links. As an Amazon Associate, we earn from qualifying purchases (at no additional cost to you). See our full disclosure here.
Last updated on June 14th, 2024 at 10:07 am
For those with disabilities, financial worries can be particularly severe, especially since certain impairments can make it tougher to earn a good income.
Disability benefits provided by Social Security are a lifeline for many people, but there are also plenty of misconceptions surrounding them. Letโs clear up a few of the main ones. If you or a loved one find yourselves needing this kind of support, you need to know the facts!
Eligibility Criteria: Breaking Down the Myths
Almost nine million people currently receive Social Security Disability benefits, yet many believe only certain, narrowly-defined conditions qualify for support. In reality, the criteria are more inclusive, so letโs dissect a few myths and get to the truth:
Myth: Only severe physical disabilities qualify.
Fact: Mental health issues and less conspicuous impairments can also qualify a person for Social Security Disability benefits.
Myth: Younger individuals canโt qualify.
Fact: Age isnโt a barrier; itโs all about work credits and medical conditions.
Myth: Part-time workers are ineligible.
Fact: As long as you have sufficient work credits, part-time status doesnโt disqualify you.
The Social Security Administration (SSA) looks at:
- Medical condition severity
- Work history
- Your ability to perform any other type of work
Given that it may take up to three to five months to get your disability benefits, and some people spend over a year waiting, applying promptly based on these eligibility criteria is crucial.
The Real Deal on Benefit Amounts
People often misunderstand how Social Security Disability benefits are calculated. Letโs clear up the confusion:
Myth: Benefits are based on financial need.
Fact: Theyโre actually calculated from your earnings history, not financial need.
Myth: Thereโs a fixed amount everyone receives.
Fact: Benefits vary; they depend on your past average earnings.
Key factors influencing your benefit amount include:
- Your lifetime average indexed monthly earnings (AIME)
- Your primary insurance amount (PIA), which determines monthly payouts
- Past contributions to Social Security through payroll taxes
This means the more youโve earned and contributed, the higher your potential benefits.
It’s essential to understand these components if youโre planning ahead or currently applying for Social Security Disability benefits.
Debunking Misconceptions About Income Limits
Many people think you aren’t allowed to earn any income while receiving Social Security Disability benefits. Thatโs not entirely true:
Myth: Earning even a small amount of money disqualifies you.
Fact: You can work and still receive benefits, as long as your earnings are below a certain threshold.
Myth: You must report every dollar earned immediately.
Fact: SSA allows some flexibility; they focus on substantial gainful activity (SGA) limits.
Key points about income limits:
- In 2024, the SGA limit for non-blind individuals is $1,550 per month.
- Blind individuals have an increased SGA limit of $2,590 per month.
- Trial Work Periods (TWP) let you test working without losing benefits right away.
Understanding these guidelines helps ensure you donโt inadvertently jeopardize your eligibility while trying to supplement your income.
Understanding Work Credits and Their Impact
Work credits are a critical component of Social Security Disability benefits. Unfortunately, many people misunderstand their importance:
Myth: Only long-term workers can earn enough credits.
Fact: Even shorter work histories can suffice, depending on your age when you become disabled.
Myth: You need a continuous work history to qualify.
Fact: Non-continuous or varied work periods still count toward earning credits.
Important details about work credits:
- In 2024, you earn one credit for every $1,730 in wages or self-employment income.
- You can earn up to four credits per year.
- Typically, you need 40 credits, with at least 20 earned in the last decade before becoming disabled (if you’re over 31 years old).
Social Security Disability Benefits: Final Thoughts
Applying for disability benefits is not anyone’s idea of fun, but once you understand the process, it becomes less of a burden.
To make the process easier, learn the facts so you can plan your finances based on the actual rules and timelines, instead of relying on guesswork and rumors.
Do you have experience applying for Social Security Disability benefits? Leave us a comment.
Also read:
How to Manage Anxiety After a Car Accident: 5 Tips
Free Self-Care Checklist Printable (20 Ideas You Can Start Now)
How to Support Your Medically Vulnerable Child During the Transition to College
Find MomsWhoSave on Pinterest, Facebook,ย Instagram, andย Twitter, and get our updates!
Leave a Reply