Washington disability attorney explains the similarities and differences between Social Security disability and Supplemental Security Income

When I speak to Washington disability claimants, they often ask: “What’s the difference between Social Security disability and Supplemental Security Income?” “Will I qualify for benefits under both programs?” “Should I apply for both?” Many applicants for Washington Social Security disability benefits don’t know the difference between Social Security disability and Supplemental Security Income, which is often referred to as SSI.

The Social Security Administration pays disabled people benefits through two programs: the Social Security disability insurance program and the SSI program. You may apply for benefits under both programs. Social Security disability is a program for people who become disabled and who have “paid into the system” while SSI is for people who become disabled, have not paid into the system, and meet certain income and resource requirements.

Generally, you only receive both Social Security disability and SSI benefits if the amount of your Social Security disability benefits is small enough. However, I let my Washington Social Security disability claimants know that even if high Social Security disability benefits disqualify them from receiving SSI benefits, they may get SSI during the five-month waiting period after becoming disabled when no Social Security disability benefits are paid, assuming assets and any other income are small enough.

An insurance plan vs. a welfare program

Social Security disability – an insurance plan

Social Security disability acts like an insurance plan. You must be “insured” to be eligible to receive Social Security disability benefits. To have this insurance, you must have paid Social Security taxes over a long enough period of time and paid such taxes recently enough. Social Security disability payments are paid out of the Social Security trust fund.

The U.S. Social Security system is based on a theory of pooled risk. It serves both as a retirement system and as a disability insurance system. When you have Social Security withheld from your wages or you pay self-employment taxes, you are paying for this security. Most people, hopefully, will reach retirement age without becoming legally disabled. However, some people are not so lucky. If you have paid into the system adequately and become disabled, you can receive Social Security disability benefits prior to reaching retirement age.

Most people who are wage earners receive a yearly Social Security statement showing how much money they would receive upon retiring and how much they would receive per month if they were to become disabled. Normally, if you have not paid into the system to qualify for Social Security disability benefits, the statement will indicate how many more credit hours of work you would need to qualify for disability benefits.

After you stop working (and stop paying Social Security taxes), your insured status will lapse at a certain time, just like a private insurance plan. Generally speaking, you have about five years of insurance after you stop working if you have paid Social Security taxes long enough to be “insured.” This does not mean that you have to apply within five years of stopping work. It just means that you would have to prove that you became disabled during that five-year period.

SSI – a welfare program

Some people have not paid enough into the system to receive Social Security disability benefits. They either have limited work experience or stopped working a long time ago and became disabled later on. These individuals may qualify for SSI benefits through the SSI program, which is a welfare program for the blind, disabled, and those over 65. SSI benefits are paid out of the U.S. Government’s general revenues.

The SSI program makes monthly payments to people who have few assets and low income. The SSI monthly payments are often lower than the Social Security disability payments. The SSI program is intended for people who are indigent, and to qualify you must meet certain low income and asset requirements.

The SSI program uses the same criteria for disability as the Social Security disability program. Many states, including the state of Washington, add money to the basic federal SSI benefit. The state benefit amount varies state-to-state.

Important differences between the Social Security disability and SSI programs

The Social Security disability and SSI programs are both managed by the Social Security Administration and have many of the same terms and ideas. However, there are important differences between the two programs that must be considered when you apply for Washington disability benefits.

The following table lays out some important differences between the two programs:

Issue Social Security disability Supplemental Security Income (SSI)
Qualification requirements You must meet the Social Security Administration’s criteria for being “disabled.” The Social Security Administration has its own definition of “disabled,” which differs from the requirements of other government programs. You are disabled only if your medically determinable physical or mental impairment or combination of impairments is so severe that you are unable to do your previous work and you cannot, considering your age, education, and work experience, do any other substantial gainful work that exists in the national or local economy.

For more information, see my video Will you qualify for Social Security disability benefits?

You must also be “insured” (you must have paid Social Security taxes over a long enough period of time and have paid such taxes recently enough).

You must be found to be “disabled” using the same definition as is used for the Social Security disability program.

There is no “insured” or earnings requirement.

However, your income and assets must not exceed the SSI program’s income and asset limitations. See below for more information.

Asset limitations None. However, workers’ compensation and/or other federal or state or insurance payments may affect Social Security disability benefits. There is an asset limitation of $3,000 per couple and $2,000 per individual. This does not include a home of any value and one car of any value, if it is used for work or to obtain medical care.
Income limitations If you make more than $1,000 per month at a job involving more than minimal duties you will be ineligible for Social Security disability benefits. This is a needs-based program. Its income limit is based on the monthly SSI benefit amount after several different kinds and amounts of unearned and earned income are not counted; this income is referred to as “countable income.” If your monthly countable income is over the SSI benefit amount, you cannot receive benefits. And the more countable income you have, the less your benefit will be.
Benefit payment amount The benefit amount you receive is based on your earnings record. This amount may be reduced based on worker’s compensation payments and/or public disability benefits (for example, certain state and civil disability benefits). Your other income or assets do not affect this payment amount. Your monthly payment may be adjusted each year to account for changes in cost-of-living. The benefit amount you receive is a federal amount set by Congress plus a state supplement, if any, set by your state. The state of Washington provides a state supplement to the federal SSI benefit payment. The Washington SSI state supplement amount may vary according to your living arrangements. Your countable income will be subtracted from the federal amount before the Washington SSI state supplement is added. The SSI federal amount is adjusted each year based on cost-of-living changes.
Waiting period You must wait a full five months from the date of the onset of your disability. There is no waiting period. Your SSI payment will begin with the first month after all the SSI requirements are met or when the definition of disability is met, whichever is later.
Retroactivity You may be eligible for payment of up to 12 months of benefits prior to your application, if you were disabled during that time and all other requirements are met. There is no retroactivity period – you will never receive benefits for any time before the date of your SSI application.
Health insurance coverage Medicare coverage begins after receipt of 24 months of benefits. In most states, Medicaid coverage begins with entitlement to SSI (sometimes three months before).
Time limit for reopening earlier application Four years from the date of the notice of the initial determination. Good cause is required. Two years from the date of the notice of the initial determination. Good cause is required.
Source of benefit Social Security trust fund. U.S. Government’s general revenues.
State supplements None. Many states, including the state of Washington, pay an additional state supplement. The amounts and qualifications vary state-to-state. The Washington SSI state supplement amount varies according to your living arrangements.

You may be eligible for disability benefits under both Social Security insurance disability and SSI

You may be eligible for either Washington Social Security disability benefits or SSI, or some combination of the two. If you qualify for both, you may lose SSI benefits or received a reduced SSI amount, depending on the amount of your Social Security disability benefits.

Or you may now only be eligible for SSI benefits, but you could later become eligible for Social Security disability benefits once you’ve paid enough Social Security taxes.

Although two applications are required (one for each program), the Social Security Administration will determine when you apply for disability benefits which program you are eligible for or if you are eligible for both.

As an experienced Washington Social Security lawyer, I can provide you assistance

If you want my help with your Social Security disability or SSI claim, please give me a brief description of your situation using the form to the right. Or contact me at:

Truitt & Lyons, Attorneys at Law
Christopher Lyons, Esq.
Washington disability lawyer
E-mail me

640 E. Whidbey Avenue
Oak Harbor, Washington 98277
Toll-free: 1-888-615-2050
Local: 360-675-9310

Representing Washington State Social Security disability claimants and veterans with disability benefits claims throughout Western Washington.