Where Does Funding for SSDI Come From?

If you are disabled and need to obtain benefits, you may be able to get monthly income from Social Security Disability Insurance (SSDI). Many people are not sure how this program works, how it is funded, or whether it is a type of entitlement or welfare benefit. The reality is, you pay to fund SSDI and if you are disabled, you deserve to be able to obtain benefits. 

A Los Angeles disability benefits attorney can provide assistance in making a claim for SSDI. And, if your claim is denied, we can help you to fight to obtain the benefits that you deserve. 

​Where Does Funding for SSDI Come From?

​Social Security Disability Insurance (SSDI) is part of Social Security's earned benefits, just like retirement benefits. When you work, you pay FICA taxes and some of the money that you pay in taxes is set aside specifically in a fund to cover disability benefits. 

You earn work credits as you pay into the system, and SSDI is funded by all of the workers throughout the United States who pay in. If you work for an employer, your company withholds the taxes that you pay to fund SSDI from your paycheck and sends them to the federal government. If you work for yourself, you will need to submit estimated taxes throughout the year that includes paying towards SSDI. 

SSDI is distinct from Supplemental Security Income (SSI), which is funded through general government revenue and not through a specific tax intended just to pay for the program.  You earn the benefits that you are entitled to when you qualify for SSDI, and you should never hesitate to make a claim for these benefits if you have a qualifying disability.

A Los Angeles disability benefits attorney can help you to determine if you have earned enough work credits to be eligible for SSDI and can provide you with help securing the benefits you deserve when a disability prevents you from working.