Residents of Chicago, Illinois, who are considering applying for Social Security Disability (SSD) benefits may have questions about how their place of residence affects their eligibility or the amount of benefits they could receive. One of the most important points to understand is that the city or state where you live does not directly influence the amount of Social Security Disability Insurance (SSDI) benefits you qualify for. The Social Security Administration (SSA) uses a national standard to calculate SSDI benefits based on your individual work history and earnings, not your location.
However, Supplemental Security Income (SSI) applicants may find that their state of residence can play a role in determining the amount of their benefits. This is because some states provide additional funds, known as state supplements, to SSI recipients. It is essential for Illinois residents to know that Illinois does not offer a state supplement for SSI recipients, so individuals receiving SSI in Illinois will only receive the federal benefit amount.
With that distinction clarified, let’s explore how Social Security Disability benefits are calculated for those living in Chicago, Illinois, and what factors determine an individual’s eligibility and benefit amount. The experienced disability lawyers at the GCC Law Firm can help you with all your Social Security disability issues and ensure you receive the full benefits you are entitled to. Call us for more information.
SSDI Eligibility Requirements
SSDI benefits are available to individuals who become disabled and have worked and paid into Social Security through payroll taxes for a certain number of years. To qualify, a claimant must meet two primary criteria: a work credit requirement and a medical requirement.
Work Credit Requirement
The SSA measures your work history in “work credits.” These credits are based on your annual earnings, and you can earn up to four credits per year. In 2024, for example, earning $1,730 in wages or self-employment income would earn you one work credit.
To qualify for SSDI, you need a specific number of work credits depending on your age at the time you became disabled. Most individuals need 40 work credits, 20 of which must have been earned in the last 10 years leading up to their disability. However, younger workers may need fewer credits.
Medical Requirement
In addition to meeting the work credit requirement, you must have a disability that meets the SSA’s definition. This means your condition must be severe enough to prevent you from performing any substantial gainful activity (SGA) for at least 12 months or result in death. The SSA maintains a listing of impairments that automatically qualify for SSDI benefits, but even if your condition is not listed, you may still qualify if it is of equivalent severity.
How SSDI Benefit Amounts Are Determined
Once the SSA confirms your eligibility, the next step is calculating your benefit amount. SSDI benefits are based on your earnings history, which means the more you’ve earned and paid into Social Security during your working years, the higher your potential benefit amount, up to a maximum limit.
The SSA uses a two-step process to calculate your monthly benefit: calculating your Average Indexed Monthly Earnings (AIME) and your Primary Insurance Amount (PIA).
Average Indexed Monthly Earnings (AIME)
The AIME is an average of your 35 highest-earning years of work. The SSA uses an indexing formula to adjust your past earnings for inflation and then averages the highest-earning years. If you haven’t worked for 35 years, the calculation will be based on the years you did work, but having fewer working years can reduce the average and lower your benefit amount.
For example, let’s say John, a Chicago resident, worked for 25 years before becoming disabled. The SSA would adjust John’s earnings for inflation and average his 25 highest-earning years to calculate his AIME.
Primary Insurance Amount (PIA)
Once the AIME is calculated, the SSA uses a formula to determine your PIA, which is the amount you would receive at full retirement age (FRA) if you were not disabled. The PIA is determined using a tiered formula that changes each year.
In 2024, the formula works as follows:
- 90% of the first $1,174 of your AIME
- 32% of your AIME between $1,174 and $7,078
- 15% of any AIME above $7,078
Using John’s example, if his AIME is calculated at $5,000, the SSA would break down the calculation like this:
- 90% of $1,288 = $1,056.60
- 32% of the remaining $3,826 (5,000 – $1,174) = $1,224.32
John’s PIA would be the sum of these amounts: $1,056 + $1,224.32 = $2,280,32. This is the amount John would receive in monthly SSDI benefits, assuming he qualifies for the full amount without any reductions.
It’s important to note that your benefit amount could be subject to reductions if you receive other public disability benefits, such as workers’ compensation.
Supplemental Security Income (SSI) Benefits in Illinois
While SSDI benefits are determined solely by your work history and earnings, SSI is a needs-based program designed to assist low-income individuals who are elderly, blind, or disabled. The SSI program has different eligibility requirements than SSDI, as it is based on financial need rather than work history.
For SSI recipients in Illinois, it’s important to understand that Illinois does not provide any additional state-funded SSI benefits. Therefore, SSI recipients in Illinois will only receive the federal benefit amount, which is set at $914 per month in 2024 for individuals and $1,371 for couples.
Factors That May Impact Your Benefit Amount
Although where you live does not directly affect your SSDI benefit amount, other factors can influence how much you receive. These include annual Cost-of-Living Adjustments (COLA), other disability benefits, or taxation of your benefits. Contact The GCC Law Firm if you have any questions about your Social Security Disability in Chicago.Top of Form