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How Is The Social Security Disability Payment Calculated?

SSDI disability paymentAre you applying for Social Security Disability Insurance (SSDI) benefits in Illinois? If so, you may be wondering: What will my monthly SSDI payment be? The answer depends on your past earnings. In this article, SSDI disability attorney Harold W. Conick provides a more comprehensive explanation of the most important things you need to know about how payments are calculated.

Social Security Disability Payment: How is it Calculated?

There are many myths and misconceptions regarding how Social Security Disability Insurance (SSDI) benefits are determined. Here are four (4) key things you need to know about how SSDI payments are calculated:

  1. The Severity of Your Disability is Not Used to Calculate Your Benefit: Contrary to what some people believe, the severity of your disability is not used to calculate your SSDI benefits. You will need to prove you are disabled to qualify for SSDI benefits. However, the specific nature and severity are not a factor in determining the specific amount of your monthly payment.
  2. SSDI Disability Payments are Calculated Using Lifetime Earnings: Assuming that you are eligible to receive SSDI, the SSA will calculate your monthly payments based on your lifetime earnings. The SSA will consider all “covered earnings” — those being earnings that you paid FICA taxes on, including W-2 wages and self-employment income. The federal agency uses a formula called the “Average Indexed Monthly Earnings (AIME)” to determine exactly how much each applicant should receive. The more you paid into the system, the higher your SSDI benefit.
  3. There is a Maximum Monthly Benefit: SSDI disability payments are subject to statutory limitations — meaning there is a maximum monthly benefit. As of July 2021, the Social Security Administration (SSA) notes the maximum benefit is $3,011 per month. Each year the maximum amount is adjusted to account for inflation.
  4. Other Disability Benefits May or May Not Impact SSDI: Are you receiving other financial benefits related to your disability? If so, they may or may not affect your SSDI payments. As a rule, private disability benefits — such as pension benefits or long-term disability insurance from an employer — will not result in a reduction in your SSDI payments. However, the SSA may reduce your SSDI payment if you are receiving other public assistance, including workers’ compensation benefits.

To help you get a better picture of your specific situation, the Social Security Administration (SSA) provides Online SSDI Benefit Calculators. If you want more information about your eligibility for SSDI benefits, please do not hesitate to reach out to a social security disability lawyer for help.

Call Our Greater Chicago Metropolitan Area SSDI Lawyer for Immediate Assistance

At Harold W. Conick & Associates Ltd., our Greater Chicago Metropolitan Area Social Security disability attorney is focused on helping people and families get the financial support they need. If you have any questions about how disability payments are determined, we can help. Give us a call at (800) 608-8881 or contact us online for your no-cost, no-obligation case evaluation. We handle SSDI claims throughout the greater Chicagoland area.