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 an Attorney
If you seek disability benefits, an attorney can prove indispensable. A special needs planning attorney near you 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 5-year rule eliminates that 5-month waiting period to receive benefits, if you are re-applying for Social Security Disability within 5 years of previously receiving them.
What is the five year rule on social security disability? ›
There's no official “five-year rule,” but the phrase refers to a process called “expedited reinstatement,” or EXR. You can file for EXR if you received disability benefits within the past five years, stopped collecting those benefits and need to apply for disability benefits again.
What illness automatically qualifies for disability? ›
Do Any Conditions Automatically Qualify for Social Security Disability?
- Musculoskeletal Disorders, such as arthritis, fibromyalgia, and back pain.
- Special Senses and Speech, such as blindness and hearing loss.
- Respiratory Disorders, such as cystic fibrosis and respiratory failure.
5-Year Rule:
According to this rule, if a veteran's disability rating remains unchanged for five years, it becomes a stabilized rating and cannot be reduced unless all evidence of the record shows there was sustained improvement of the disability.
What is the 5/10 rule for SSDI? ›
Generally, you must have worked for at least 5 of the last 10 years to qualify for Disability.
At what age does Social Security Disability stop reviewing? ›
There is no specific age at which continuing disability reviews automatically stop. Instead, it depends on several factors. The frequency of CDRs generally depends on the likelihood of a medical improvement. If improvement is designated by SSA as “expected,” they will schedule reviews every 6 to 18 months.
At what age do 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 gives 100% disability? ›
The 100 percent disability rating is often awarded to veterans with two or more limbs that have been amputated or paralyzed or for veterans with active service-related diseases such as cancer, severe cardiac conditions, or psychiatric conditions such as PTSD, bipolar, depression, or schizophrenia.
What are the most approved disabilities? ›
Various conditions can qualify you for disability benefits. Among disabled workers, the most commonly approved conditions are musculoskeletal issues and nervous system and sense organ issues.
What disabilities are hard to prove? ›
What Disabilities Are Hard to Prove? Your Guide to Hard-to-Prove Disabilities
- Chronic Pain.
- Fibromyalgia.
- Mental Health Conditions.
- Migraine Headaches.
- Traumatic Brain Injury (TBI)
- Ehlers-Danlos Syndrome (EDS)
- Chronic Fatigue Syndrome (CFS)
- How Can I Qualify with a Disability That Is Hard to Prove?
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 is the new Social Security law for 2024? ›
Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024. Read more about the Social Security Cost-of-Living adjustment for 2024. The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600.
What are the new rules for social security disability? ›
A DAC must not have substantial earnings. The amount of earnings we consider substantial increases each year. In 2024, this means working and earning more than $1,550 (or $2,590 if you're blind) a month.
What is the 55 rule for SSDI? ›
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 are the exceptions to the 5 year rule for SSDI? ›
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 are the new Social Security rules for 2024? ›
Read more about the Social Security Cost-of-Living adjustment for 2024. The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600. The earnings limit for workers who are younger than "full" retirement age (see Full Retirement Age Chart) will increase to $22,320.
What is the max amount you can receive from Social Security 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 the maximum back payment for SSDI? ›
How Far Back Will SSDI Cover? Minus the five-month waiting period, you should receive back payments for any delays. The maximum SSDI will provide in back payments is 12 months. Your disability would have to start 12 months before you applied to receive the maximum in SSDI benefits.
How much money can you make without it affecting your SSI disability? ›
If you have a disability, you'll also need to prove you've earned less than $1,550 from work per month in the month you're applying.
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. 