Social Security Disability Insurance (SSDI) provides financial assistance to workers who become disabled and their families. The Center on Budget and Policy Priorities reports that 7.4 million Americans received Social Security disability benefits in 2023.
Unlike Supplemental Security Income (SSI), which supports people with disabilities or of advanced age who have limited means regardless of work history, SSDI is an earned benefit. Before becoming disabled, the worker must have paid into the Social Security program through taxes to be eligible for benefits.
When you apply or reapply for SSDI benefits, there are two five-year rules to remember: One concerns the work credit requirement. The other involves reapplying for benefits.
Qualifying for Social Security Disability Insurance
The eligibility criteria for SSDI involve disability, income, and work history.
Your disability must meet the Social Security Administration’s strict standards.
Your income must be below the substantial gainful activity (SGA) amount. For 2024, the SGA is $1,550 per month for people with disabilities other than blindness (For blind people, it is $2,590 per month.)
You must also have earned sufficient work credits and worked recently enough. You must have earned enough work credits before you became disabled relative to your age.
The Five-Year Rule for Work Credits
The five-year rule for work credits helps people aged 31 and older determine whether they have enough credits to qualify for SSDI.
Depending on your income, you can earn up to four credits a year. In 2024, workers earn one Social Security and Medicare credit for $1,730 in covered earnings.
Under the five-year rule, people 31 and older must have worked at least five out of the last 10 years to be eligible for SSDI.
You may work for less than an entire year and still earn the maximum credits. As long as you earned four credits through your income, it does not matter if you earned that income through seasonal work or worked all year. Also, high earners may earn all four credits after only a month of work.
So, per the five-year rule, individuals aged 31 and older must have earned at least the maximum work credits for five out of the past 10 years to be eligible for disability benefits. During that time, they must have accumulated at least 20 credits to qualify.
If you are 30 or under, you’ll need to use a different test to determine whether you have enough work credits to receive Social Security disability benefits. The Social Security Administration determines your eligibility for benefits based on your age, and there are different rules for different age groups.
- Those under age 24 need at least six credits earned in the three years before the onset of the disability.
- People between 24 and 31 are eligible if they worked half the time between the age of 21 and when they became disabled.
For example, a person who became disabled at age 27 must have worked at least three years, earning 12 credits, in the past six years.
- Individuals 31 or older must have earned at least 20 credits in the last 10 years before the disability. This is known as the five-year rule.
The Five-Year Exception for Reinstating Benefits
In addition to the rule that helps people aged 31 and older find out whether they have enough work credits, a second five-year rule applies to past SSDI recipients seeking to reapply.
Per federal regulations, you must have a disability for five months before qualifying for benefits. But, this regulation provides an exception. There is no waiting period if you were previously entitled to disability benefits or had a period of disability within five years of the month you became disabled again.
Because of this five-year rule, you do not have to wait five months to receive benefits. However, the exception does not apply if a drug or alcohol addiction contributed to your disability.
Speak With YourAttorney
If you seek disability benefits, your special needs planning attorney can prove indispensable. They can explain the rules to you, help you determine whether you could qualify for benefits, and assist you with your application.
Created date: 01/10/2024
FAQs
The Social Security five-year rule is the time period in which you can file for an expedited reinstatement after your Social Security disability benefits have been terminated completely due to work.
What are the exceptions to the 5 year rule for Social Security disability? ›
Exemptions to the five-year rule apply for people younger than 31 years of age, with disability onset before age 22, the blind, certain severe medical conditions and veterans with service-related disabilities. The rule doesn't eliminate the application process or the medical review.
What is considered to be a permanent disability? ›
Permanent disability (PD) is any lasting disability from your work injury or illness that affects your ability to earn a living.
What is the 5/10 rule for SSDI? ›
Under the five-year rule, people 31 and older must have worked at least five out of the last 10 years to be eligible for SSDI. You may work for less than an entire year and still earn the maximum credits.
At what age does Social Security disability payments stop? ›
Your period of disability ends on the last day of the month before the month in which you become 65 years old or, if earlier, the last day of the second month following the month in which your disability ended. (1) The month before the month in which you attain full retirement age as defined in § 404.409.
What is the most approved disability? ›
What Is the Most Approved Disability? Arthritis and other musculoskeletal system disabilities make up the most commonly approved conditions for social security disability benefits. This is because arthritis is so common. In the United States, over 58 million people suffer from arthritis.
What can you not say to Social Security disability? ›
Don't Bring Up Irrelevant Information. During your hearing, it's crucial to stay focused on the facts that pertain to your disability. Sharing unrelated personal issues, such as financial problems or marital troubles, may distract the ALJ from the critical aspects of your case.
What disabilities are considered permanent and totally disabling? ›
The permanent loss or loss of use of both hands, or of both feet, or of one hand and one foot, or of the sight of both eyes, or becoming permanently helpless or bedridden constitutes permanent total disability.
What's the most you can make on permanent disability? ›
Social Security Disability Insurance (SSDI) – The maximum payment is $3,822 a month (up from $3,627 in 2023). The maximum family benefit for SSDI is about 85% to 150% of the disabled worker's benefit. The maximum payment at full retirement age is $3,822 monthly. However, if you retire at age 62, your benefit is $2,710.
What is an example of permanent impairment? ›
Here are a few examples of permanent impairments: permanent scarring from burns. loss of hearing. disfiguring facial injuries.
If you're older than 55, you may qualify for disability benefits if you have an RFC of “light” or “sedentary.” This means that the medical evidence supports that you can only do “light” or “sedentary” work. You must also not have transferable skills or an education that enables you to perform skilled work.
What is the 20 40 rule for SSDI? ›
You have disability insured status if you: Have at least 20 credits during a 40-calendar quarter period (the 20/40 rule); The 40-calendar quarter period ends with the quarter that you are determined to be disabled; and. You are fully insured in that calendar quarter as explained in §203.
What is the 55 rule for disability? ›
Based on the results of the exam, your disability rating may increase, decrease, or stay the same. Once you turn 55, you are typically "protected" and will no longer have to attend an exam to prove that your condition has not changed unless there is reason to suspect fraud. This is sometimes called the 55-year rule.
What are the negatives of Social Security disability? ›
One of the primary disadvantages of Social Security disability is the limited income it provides. SSDI benefits are calculated based on your average lifetime earnings before your disability began, and the amount you receive may be significantly lower than your previous income.
Can you collect both Social Security and disability? ›
Social Security disability benefits automatically change to retirement benefits when disability beneficiaries become full retirement age. The law does not allow a person to receive both retirement and disability benefits on one earnings record at the same time.
At what age does SSDI become permanent? ›
No, your disability benefits will continue until you hit your full Social Security retirement age, which is between 66 and 67, depending on your birth year. When you reach your full retirement age, your SSDI benefits will automatically transition to Social Security retirement benefits.
Are there exceptions to the 5 month waiting period for SSDI? ›
Yes, there are exceptions to the five month waiting period. For example, the five month waiting period does not apply if ALS or Lou Gehrig's disease. Your SSDI benefits can begin on the date of your application for benefits.
What is the 5 out of 10 year rule for Social Security? ›
If you become disabled before your full retirement age, you might qualify for Social Security disability benefits. You must have worked and paid Social Security taxes in five of the last 10 years.
What would cause short-term disability to be denied? ›
Lack of sufficient medical evidence is a common reason for claim denial. An individual must be under a medical professional's care to receive disability benefits. Other factors that can affect eligibility include: Whether a worker has quit their job.
What conditions are not considered a disability? ›
Some examples of impairments not covered under ADA may be: appendicitis, short bouts of depression, weight conditions within normal ranges, normal height deviations, traits and behaviors, cultural or economic disadvantages, normal pregnancies, quick temper, poor judgment, irritability, physical characteristics such as ...
Social Security Disability Insurance (SSDI) provides financial assistance to workers who become disabled and their families. The Center on Budget and Policy Priorities reports that 7.4 million Americans received Social Security disability benefits in 2023. 