SOCIAL SECURITY DISABILITY INSURANCE (SSDI) BENEFITS (MAM)

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Social Security Disability Insurance (SSDI) benefits are administered by the Social Security Administration (SSA) under Title II of the Social Security Act. SSDI payments are made to disabled individuals, as well as certain disabled dependents of the individuals, who have contributed to Social Security long enough to be considered "insured" for Social Security Benefits.

There are three basic categories of individuals who can qualify for SSDI benefits on the basis of disability:

· a disabled "insured" worker under 65;

· a person disabled since childhood (before age 22) who is a dependent of a deceased "insured" parent or a parent entitled to SSDI or SSA retirement benefits; or

· a disabled widow or widower, age 50-60, if the deceased spouse was "insured" under Social Security.

Treatment: Depends upon the type of medical assistance (MA) received and, if receiving MAGI MA, the tax filing status of the individual:

· Non-MAGI categories of MA: treat SSDI benefits as unearned Income.

· MAGI categories of MA: treat SSDI benefits as:

- Unearned Income for tax filers; and

- Unearned income for tax dependents, only if the tax dependent is required to file taxes. The dependent is required to file taxes if one-half of all SSA income, including SSDI, plus all other income of the dependent exceeds $25,000. If a dependent child is not required to file a tax return, the child’s SSA income (including SSDI income) is not included in the MAGI household’s income.

Exception: For individuals who are claimed as a tax dependent by someone other than a parent or a spouse, regardless of whether he or she is required to file taxes, all of the individual’s income, including all Social Security benefits, counts toward his or her eligibility, regardless of whether he or she meets the tax-filing threshold.