1. SOCIAL SECURITY DISABILITY PROGRAMS -ADVANCED CARDS Flashcards
Scenario:
John is applying for SSDI and has 35 work credits. He stopped working 15 years ago. He believes the SSA will use his entire work history to determine eligibility.
Question:
Can John qualify for SSDI based on his 35 work credits?
Answer:
No, John cannot qualify because he does not have 20 credits earned within the 10 years preceding his disability.
Explanation:
To qualify for SSDI, a claimant must meet the “recent work test”. This requires having earned at least 20 work credits in the 10 years immediately before the disability begins.
Key Resource: SSA Red Book (2025) – Work credits and recent work test.
Key Takeaway:
SSDI eligibility requires meeting both the total and recent work credit tests, with at least 20 credits earned within the last 10 years.
Scenario:
Emma earns $1,460 per month in 2025 and claims she is still eligible for SSDI because she hasn’t worked full-time since her disability began.
Question:
Does Emma qualify under the Substantial Gainful Activity (SGA) rule?
Answer:
Yes, Emma qualifies under the SGA rule because her earnings of $1,460 per month are below the 2025 SGA threshold of $1,470 for non-blind individuals.
Explanation:
The SGA threshold determines whether work activity is considered substantial. Earnings below $1,470 (non-blind) or $2,460 (blind) in 2025 typically do not count as SGA, regardless of whether work is full-time or part-time.
Key Resource: CFR §404.1574 – SGA thresholds.
Key Takeaway:
Earnings below the SGA threshold do not disqualify an SSDI claimant, regardless of part-time or full-time status.
Scenario:
Mark receives SSDI and begins part-time work, earning $1,050 per month in 2025. He is concerned this will end his benefits.
Question:
Does Mark’s income affect his SSDI benefits?
Answer:
No, Mark’s income does not affect his SSDI benefits because his earnings are below the SGA threshold of $1,470 for 2025.
Explanation:
Income below the SGA threshold is not considered substantial. Mark can continue receiving SSDI benefits.
Key Resource: SSA Red Book (2025) – SGA thresholds for non-blind beneficiaries.
Key Takeaway:
Earnings below the SGA threshold do not affect SSDI eligibility.
Scenario:
Sara applies for SSI in 2025 and has $2,300 in savings. She argues this does not affect her eligibility because she uses the funds for medical bills.
Question:
Does Sara qualify for SSI based on the resource limit?
Answer:
No, Sara’s savings exceed the SSI resource limit of $2,000 for individuals in 2025, making her ineligible.
Explanation:
SSI is a needs-based program, and resources above $2,000 disqualify individuals, regardless of how the funds are used.
Key Resource: CFR §416.1205 – SSI resource limits.
Key Takeaway:
SSI eligibility requires countable resources to remain below $2,000 for individuals in 2025.
Here is a list of accounts and resources that can be excluded from the SSI resource limit, according to the Social Security Administration (SSA):
- ABLE Accounts (Achieving a Better Life Experience)
ABLE accounts are savings accounts for individuals with disabilities that allow them to save money without affecting their eligibility for SSI or other public benefits.
The funds in an ABLE account are excluded from the resource limit, as long as the total balance does not exceed the annual contribution limit set by the IRS (which is $17,000 for 2024, with an additional catch-up contribution available for individuals over 50).
However, ABLE account funds are subject to a payback requirement when the beneficiary dies if Medicaid paid for their services. - Special Needs Trusts (SNT)
Special Needs Trusts are designed to hold assets for individuals with disabilities, and the assets in the trust do not count as resources for SSI purposes if the trust is properly set up.
There are two types of Special Needs Trusts:
First-party SNT: Funded with the individual’s own assets (e.g., from a personal injury settlement or inheritance). The assets in the trust are not counted for SSI purposes, but Medicaid may seek repayment from the trust upon the beneficiary’s death.
Third-party SNT: Funded with assets from family members, friends, or others. These assets are also excluded from the SSI resource limit.
Special Needs Trusts must be carefully drafted to meet SSA requirements to ensure the funds do not count as resources. - Qualified Income Trusts (QITs)
A Qualified Income Trust is often used in Medicaid planning to help individuals qualify for Medicaid. While not directly related to SSI, QITs can be used to manage income that would otherwise exceed Medicaid’s income limits.
In certain cases, funds held in a QIT may be excluded from SSI income limits, but they do not typically apply to the SSI resource limits directly. - Retirement Accounts (IRAs, 401(k)s, etc.)
Certain retirement accounts, such as Individual Retirement Accounts (IRAs) or 401(k) plans, are excluded from the SSI resource limit as long as the individual does not have access to the funds. However, if the individual starts withdrawing from these accounts, those withdrawals could count as income and affect eligibility.
The funds are not counted as resources if they are in a retirement account that the individual cannot easily access. - Home and Property
The home where a person lives is not considered a countable resource, regardless of its value. This includes the home itself, the land it sits on, and sometimes certain other properties that meet specific criteria, like a second home used for certain purposes (e.g., farming). - Vehicles
One vehicle is generally excluded from the resource limit if it is used for transportation to work, medical appointments, or other essential purposes. Additional vehicles may be excluded under specific conditions, such as if they are used to generate income. - Life Insurance (Under Specific Conditions)
If the total face value of all life insurance policies owned by the individual does not exceed $1,500, the value of the policy is not counted as a resource. However, if the total value exceeds $1,500, the policy’s cash value is counted against the resource limit. - Funeral and Burial Accounts
Funds set aside in a prepaid funeral plan or a burial account may be excluded from the SSI resource limit, but there are rules about the amount that can be set aside (typically up to $1,500 for a burial fund).
Certain trusts can also be set up to cover funeral expenses, and if properly structured, those funds may not count toward the resource limit. - Household Goods and Personal Effects
Household goods (such as furniture, appliances, and other personal items) and personal effects (such as clothing, jewelry, etc.) are generally not counted as resources. - Cash from Certain Family Gifts or Loans
If the money is designated as a loan or gift to meet specific needs (such as to pay for medical expenses) and is not permanently transferred to the individual, it may be excluded from the resource limit. However, this requires careful documentation to demonstrate that it is a loan or temporary gift.
Scenario:
How many work credits are required to qualify for SSDI at age 50?
Question:
What is the minimum number of work credits required?
Answer:
20 work credits.
Explanation:
For SSDI eligibility, individuals aged 31 and older must have at least 20 credits earned within the last 10 years.
Key Resource: SSA Red Book (2025) – Work credit requirements.
Key Takeaway:
Claimants aged 31 and older must have 20 work credits earned within the last 10 years to qualify for SSDI.
Scenario:
What is the SGA limit for blind individuals in 2025?
Question:
How much can blind beneficiaries earn without exceeding SGA?
Answer:
$2,460 per month.
Explanation:
Blind individuals have a higher SGA threshold than non-blind individuals, reflecting the challenges specific to their impairments.
Key Resource: SSA Red Book (2025) – SGA thresholds for blind beneficiaries.
Key Takeaway:
The SGA threshold for blind individuals in 2025 is $2,460 per month.
Scenario:
Jack worked for 15 years, earning 40 work credits. After being unemployed for 12 years, he becomes disabled and applies for SSDI.
Question:
Does Jack qualify for SSDI?
Answer:
No, Jack does not qualify because he fails the recent work test, which requires earning 20 credits in the 10 years before becoming disabled.
Explanation:
The recent work test ensures that claimants remain connected to the workforce. Jack’s long period of unemployment disqualifies him despite his total work credits.
Key Resource: CFR §404.130 – Work credit requirements.
Key Takeaway:
Claimants must meet both the total and recent work credit tests for SSDI eligibility.
Scenario:
Amy, 25, applies for SSDI after a car accident. She has 8 work credits, all earned in the past 3 years.
Question:
Does Amy qualify for SSDI based on her work history?
Answer:
Yes, Amy qualifies because she meets the “younger worker” rule, which requires 6 credits earned in the 3 years before becoming disabled.
Explanation:
Younger workers have reduced work credit requirements, reflecting their shorter work history.
Key Resource: SSA Red Book (2025) – Work credit requirements for younger workers.
Key Takeaway:
Workers under age 31 can qualify for SSDI with fewer work credits based on their age.
How many work credits does a ssdi applicant need to have in the last 10 years preceding his disability?
To qualify for Social Security Disability Insurance (SSDI), an applicant generally needs to have earned 20 work credits in the 10 years preceding their disability.
A work credit is earned by working a certain amount and paying Social Security taxes. For 2025, one credit is earned for every $1,710 of income, up to a maximum of 4 credits per year. Therefore, an applicant must have earned 20 credits over the last 10 years to be eligible, assuming they have worked in at least 5 of those years.
The exact number of credits required may vary depending on the applicant’s age at the time of disability, but for someone under 31, fewer credits may be needed.
there is a significant difference between the number of credits required for Social Security Disability Insurance (SSDI) and Social Security retirement benefits. Here’s the distinction:
SSDI Work Credits:
To qualify for SSDI, you generally need to have earned 20 work credits during the last 10 years before becoming disabled.
The number of credits required can vary depending on your age at the time of disability. For example:
If you are under 24, you need 6 credits in the 3 years prior to the disability.
If you are 24 to 30, you need 12 credits in the 6 years prior.
If you are 31 or older, you typically need 20 credits in the 10 years prior to your disability.
A work credit is earned by working and paying Social Security taxes, with 4 credits being the maximum you can earn per year.
Retirement Work Credits:
To qualify for Social Security retirement benefits, you also need to earn 40 credits (which typically means about 10 years of work).
However, retirement credits are generally not time-sensitive like SSDI credits. They are based solely on your lifetime earnings, and as long as you have earned 40 credits over your lifetime, you are eligible for retirement benefits, regardless of when those credits were earned.
In general, higher earnings allow you to earn credits faster, but the total number of credits needed to qualify for retirement benefits is fixed at 40 credits.
Key Difference:
SSDI requires recent work history, with a certain number of credits in the last 10 years (or fewer depending on age) before the disability occurred.
Retirement benefits are based on a lifetime of work, requiring a total of 40 credits, regardless of when they were earned.
Thus, for SSDI, the timing of the credits matters, while for retirement, the lifetime total of credits is more important.
For SSDI, you generally need to earn how many work credits during the last 10 years before becoming disabled?
You generally need to have earned 20 work credits during the last 10 years before becoming disabled.
For SSDI, if you are under 24, how many work credits do you need in the 3 years prior to the disability?
if you are under 24, you need 6 credits in the 3 years prior to the disability.
For SSDI, if you are 24 to 30, how many work credits do you need in the 6 years prior to the disabiity?
If you are 24 to 30, you need 12 credits in the 6 years prior to the disability.
For SSDI, if you are 31 or older, how many credits do you need in the 10 years prior to the disability?
If you are 31 or older, you need 20 credits in the 10 years prior to the disability.
To qualify for Social Security Retirement Benefits, you need how many credits?
To qualify for Social Security Retirement Benefits, you need to ern 40 credits (which typically means about 10 years of work).
What are the key differences between SSDI and Social Security Retirement benefits?
- SSDI requires recent work history, with a certain number of credits in the last 10 years (or fewwer depending on age) before the disability occurred.
- Retirement benefits are based on a lifetime of work, requiring a total of 40 credits, regardless of when they were earned.
Thus, for SSDI, the timing ofthe credits matters, while for retirement, the lifetime total of credit is more important.
What is an ABLE Account (Achieving a Better Life Exerience); and can it be excluded from the SSI resources limit?
ABLE accounts are savings accounts for individuals with disabilities that allow them to save money without affecting their eligibility for SSI or other public benefits.
The funds in an ABLE account are excluded from the resource limit, as long as the total balance does not exceed the annual contribution limit set by the IRS (which is $17,000 for 2024, with an additional catch-up contribution available for individuals over 50).
However, ABLE account funds are subject to a payback requirement when the beneficiary dies if Medicaid paid for their services.
Special Needs Trusts (SNT) are designed to hold assets for individuals with disabilities, and the assets in the trust o not cont a resources for SSI purposes if the trust is properly set up. There are two types of Special Needs Trusts; what are they?
There are two types of Special Needs Trusts:
First-party SNT: Funded with the individual’s own assets (e.g., from a personal injury settlement or inheritance). The assets in the trust are not counted for SSI purposes, but Medicaid may seek repayment from the trust upon the beneficiary’s death.
Third-party SNT: Funded with assets from family members, friends, or others. These assets are also excluded from the SSI resource limit.
Special Needs Trusts must be carefully drafted to meet SSA requirements to ensure the funds do not count as resources.
What are Qualified Income Trusts (QITs)?
A** Qualified Income Trust** is often used in Medicaid planning to help individuals qualify for Medicaid. While not directly related to SSI, QITs can be used to manage income that would otherwise exceed Medicaid’s income limits.
In certain cases, funds held in a QIT may be excluded from SSI income limits, but they do not typically apply to the SSI resource limits directly.
Are** Retirement Acconts (IRAs, 401(k)s, etc) **excluded from the SSI resource limit?
Certain retirement accounts, such as Individual Retirement Accounts (IRAs) or 401(k) plans, are excluded from the SSI resource limit** as long as the individual does not have access to the funds**. However, if the individual starts withdrawing from these accounts, those withdrawals could count as income and affect eligibility.
The funds are not counted as resources if they are in a retirement account that the individual cannot easily access.
Is the home and property it sits on considered a countable resource for SSI eligiblility purposes?
The home where a person lives is not considered a countable resource, regardless of its value. This includes the home itself, the land it sits on, and sometimes certain other properties that meet specific criteria, like a second home used for certain purposes (e.g., farming).
Can Vehicles be excluded from the SSI resource limit?
One vehicle is generally excluded from the resource limit if it is used for transportation to work, medical appointments, or other essential purposes. Additional vehicles may be excluded under specific conditions, such as if they are used to generate income.
SSI Resource LimitLife Insurance (Under Specific Conditions
If the Total face vallue of all life insurance policies owned by the individual does not exceed $1,500, does the value count as a resources for SSI eligibility purposes?
If the total face value of all life insurance policies owned by the individual does not exceed $1,500, the value of the policy is not counted as a resource. However, if the total value exceeds $1,500, the policy’s cash value is counted against the resource limit.
SSI Resource Account - Funeral and Burial Accounts
Can Funds se aside in a prepaid funeral plan or a burial account be excluded from the SSI resource limit?
Funds set aside in a prepaid funeral plan or a burial account may be excluded from the SSI resource limit, but there are rules about the amount that can be set aside (typically up to $1,500 for a burial fund).
Certain trusts can also be set up to cover funeral expenses, and if properly structured, those funds may not count toward the resource limit.
SSI Resource Limit - Household Goods and Personal Effects
Are Household Goods and Personal Effects counted as resources for SSI elibility purposes?
Household goods (such as furniture, appliances, and other personal items) and personal effects (such as clothing, jewelry, etc.) are generally not counted as resources.
SSI Resource Limit _ Cash from Certain Family Gifts or Loans.
Can Cash from Certain Family Gifts or Loans be excluded from SSI’s resource count limit?
If the money is designated as a loan or gift to meet specific needs (such as to pay for medical expenses) and is not permanently transferred to the individual, it may be excluded from the resource limit. However, this requires careful documentation to demonstrate that it is a loan or temporary gift.
