Disability Advice is a non-government affiliated organization, dedicated to helping you get compensation for disabilities.
“Have you ever wondered how Social Security Disability benefits are calculated? Understanding this process can help you plan for your financial future. If you’re considering applying for Social Security Disability Insurance, or SSDI, you may want to know how much you could receive each month. Your benefits are based on your work history, earnings, and a formula used by the Social Security Administration. In this video, we will explain how SSDI benefits are calculated, what factors can affect your payment, and why working with Disability Advice can improve your chances of approval.
SSDI benefits are determined by your lifetime earnings before becoming disabled — not by the severity of your condition or financial need. The Social Security Administration uses a formula similar to retirement benefits. First, the SSA looks at your earnings history and adjusts them for inflation. Then, they calculate your Average Indexed Monthly Earnings (AIME), which reflects your highest earning years. Once AIME is determined, the SSA applies a formula to calculate your Primary Insurance Amount (PIA), which is your base monthly benefit.
In 2024, the formula is: 90% of the first $1,174 of AIME, 32% of the amount between $1,174 and $7,078, and 15% of any amount above $7,078. These figures change yearly due to cost-of-living adjustments. Your final benefit amount may be adjusted due to other factors.
Several factors can impact your SSDI payment:
Offsets for other benefits — Receiving workers’ compensation or public disability benefits may reduce your SSDI payment.
Family benefits — Spouses or dependent children may qualify for additional benefits.
Taxes on SSDI — Depending on your overall income, your SSDI benefits may be subject to federal taxes.
If you are applying for SSDI or appealing a denial, you have several options: applying online at the Social Security Administration’s website, calling SSA, or visiting a local office for assistance. If denied, you have 60 days to appeal. Navigating this process can be complex, which is why Disability Advice is here to help.
Many SSDI applications are denied due to incomplete information, errors, or lack of strong medical evidence. Disability Advice can help strengthen your claim, gather supporting documents, and represent you during the appeals process. If you need help with an application or appeal, visit DisabilityAdvice.org to learn how we can assist you. Our team provides expert guidance and support through every step of the SSDI process.”
