Social Security benefits are most commonly used to help retirees cover expenses. But the Social Security Administration (SSA) also has disability benefits available to those who meet certain strict requirements.
In this context, a disabled person is someone who is medically unable to work for at least a year or has been diagnosed with a medical condition that will result in death. To qualify for disability payments, you’ll need to have worked for a specified period of time before being declared disabled. A medical provider will also have to certify that your disability exists.
Let’s go over some of the most commonly asked questions about Social Security disability benefits.
What is the maximum Social Security disability benefit?
What is the maximum Social Security disability benefit?
The maximum Social Security disability benefit you can receive is $3,822 per month in 2024 and increases to $4,018 in 2025. This is the same as the maximum amount available to those receiving Social Security retirement benefits at full retirement age.
Realistically, most people approved for disability claims collect monthly payments of around $1,600. While it’s possible to receive more, you’d need to have been a relatively high earner before you became disabled because you’d have paid more into the system to begin with.
Remember that the Social Security system works much like an insurance company: You pay into the system through payroll taxes over the course of your working career. Then you collect benefits at a later date -- either when you retire or when you become disabled.
What conditions are considered disabilities?
What conditions are considered disabilities?
Many medical conditions are considered disabilities to the extent that they prevent you from effectively completing work-related tasks and are expected to remain severe for the foreseeable future.
Put another way, the SSA considers you to be disabled if your medical condition “significantly limits” your ability to complete work-related activities, such as lifting, standing, walking, sitting, or remembering.
Medical impairments that could be considered disabling include:
- Musculoskeletal disorders
- Sense and speech impairments
- Respiratory disorders
- Digestive disorders
- Genitourinary disorders
- Hematological disorders
- Skin disorders
- Endocrine disorders
- Congenital disorders affecting multiple body systems
- Neurological disorders
- Mental disorders
- Cancer
- Immune system disorders
While there are many different medical conditions that could be considered disabling from the SSA’s perspective, your impairment will need to impact your ability to work productively -- and last for a period of time -- for your claim to be considered.
Are there other benefits associated with Social Security disability?
Are there other benefits associated with Social Security disability?
The main additional benefit that comes with an approved Social Security disability claim is that you’re automatically eligible for health care coverage through Medicare after 24 months. Normally, you won’t qualify for Medicare until your 65th birthday, but those receiving Social Security Disability Insurance (SSDI) are exempt from this requirement. If you became disabled long before your SSDI claim is approved, you may be able to receive retroactive credit toward the 24-month waiting period for Medicare eligibility.
The SSA will conduct periodic reviews to ensure your disability is ongoing and that all coverage and benefit payments are legitimate. Your Medicare coverage will end if you are able to return to work in the future, but the SSA does offer several employment resources called work incentives to those who have either recovered from their condition or are able to work in certain circumstances.
Can you work while on disability?
Can you work while on disability?
The SSA has specific rules regarding your ability to work while on disability, although it should be noted that people on SSDI are initially approved because they are truly unable to work for a variety of reasons.
Since many (if not most) people with disabilities would prefer to work rather than receive benefits, the SSA will allow a nine-month Trial Work Period to determine if your earnings are substantial. A “trial work month” is any month where earnings exceed $1,110 in 2024, or $1,160 in 2025. The trial work period continues until you have nine cumulative trial work months within a 60-month period.
After your trial work period, your benefits will stop if Social Security considers your earnings substantial. In 2024, Social Security considers your earnings substantial if you earn more than $1,550 per month (or $2,590 if you’re blind) over the following 36 months. These thresholds rise to $1,620 per month (or $2,700 if you're blind) in 2025.
At these income levels, you’re considered able enough to gainfully work and will no longer receive cash payments. This is sometimes referred to as “substantial gainful activity,” or SGA.
Remember that if you do decide to go back to work -- or if your medical condition has improved -- you must alert the SSA. While you can earn minimal income while receiving SSDI payments, earning more than the monthly threshold will lead to a more thorough review of your circumstances.
Are Social Security disability benefits taxable?
Are Social Security disability benefits taxable?
Social Security disability benefits may be taxable. The rules are the same as those for standard Social Security retirement benefits. The answer hinges on your provisional (or “combined”) income, which is calculated as:
Provisional income = Adjusted Gross Income (AGI) + Tax-exempt interest + Half of SSDI benefits
If you’re single and your provisional income is less than $25,000, you’ll pay no tax on your SSDI benefits. If your provisional income is between $25,000 and $34,000, you’ll pay taxes on half (50%) of your benefits. And, if your provisional income is greater than $34,000, you’ll pay taxes on up to 85% of your benefits.
If you’re filing a joint return and your provisional income is less than $32,000, you’ll pay no tax on your SSDI benefits. If your provisional income is between $32,000 and $44,000, you’ll pay taxes on half (50%) of your benefits. And, if your provisional income is greater than $44,000, you’ll pay taxes on up to 85% of your benefits.
While the SSA isn’t making this calculation easy on anyone, it’s important to know where you stand when it comes to paying taxes after receiving any amount of disability income.
Related retirement topics
Social Security disability benefits play a key role
Social Security disability benefits are a critical piece of the SSA’s operating activities and provide an essential financial bedrock for those unable to work. Having a disability can be both financially and emotionally draining, so it’s imperative that a backstop exists to support those unable to earn on their own.
If you are living with a disability, consult a medical professional to determine if your circumstances render SSDI payments necessary. Don’t be shy about asking questions if you aren’t sure.
