SSDI vs. VA Disability: Understanding the Differences and Similarities
When it comes to disability benefits in the United States, two key programs that often come up are Social Security Disability Insurance (SSDI) and Veterans Affairs (VA) Disability Benefits. Both programs offer financial assistance to individuals who can no longer work due to illness or injury, but they are designed for different populations and are governed by different rules. Understanding how SSDI and VA Disability benefits differ, and where they overlap, can help individuals determine which program they may be eligible for and how to navigate the application process.
What is SSDI?
Social Security Disability Insurance (SSDI) is a federal program administered by the Social Security Administration (SSA). It provides financial support to individuals who have become disabled and can no longer work due to a physical or mental health condition. SSDI is based on a person’s work history and the amount of Social Security taxes they have paid during their career.
To qualify for SSDI, applicants must meet the following basic criteria:
- They must have worked a certain number of years and earned enough work credits through paying Social Security taxes (typically, 40 credits, with 20 of those credits earned in the last 10 years).
- They must have a medical condition that is expected to last at least 12 months or result in death.
- Their disability must prevent them from performing substantial gainful activity (SGA), meaning they are unable to earn a certain amount of income (for 2024, this threshold is $1,470 per month).
What is VA Disability?
VA Disability benefits are provided by the Department of Veterans Affairs (VA) to veterans who have become disabled as a result of an injury or illness that occurred or was aggravated during their time in military service. VA Disability benefits are intended to compensate veterans for the loss of earning capacity due to service-connected disabilities.
To qualify for VA Disability benefits, veterans must meet the following criteria:
- They must have a disability that is connected to their military service, meaning the disability was incurred or aggravated during active duty.
- They must have been discharged under conditions other than dishonorable.
- The severity of the disability is rated by the VA, typically on a scale of 0% to 100%, with higher ratings corresponding to greater compensation.
Unlike SSDI, VA Disability benefits do not have a strict work history requirement, and eligibility is based on military service and the connection between the veteran’s disability and their service.
The VA calculates VA disability benefits by:
Assigning a disability rating
The VA rates a veteran’s disability from 0% to 100% in 10% increments based on the severity of their disability. The VA uses evidence from the veteran’s claim or military records to determine the rating.
Calculating the combined rating
If a veteran has multiple disabilities, the VA calculates a combined disability rating. This rating is not simply the sum of the individual ratings. The VA uses a percentage of the veteran’s remaining non-disabled percentage when adding the next disability percentage. The combined rating is important because it determines eligibility for a total disability rating and the amount of monthly compensation a veteran receives.
If a veteran has multiple disabilities, the VA combines their ratings using a specific formula:
- 1. Start with the largest rating and subtract it from 100%.
- 2. Subtract the next rating from the remaining percentage.
- 3. Repeat until all ratings have been subtracted.
- 4. Round the final number to the nearest 10%.
Calculating the compensation rate
The VA uses the disability rating to determine the monthly compensation rate. The amount paid is tax-free and depends on the degree of the veteran’s disability.
Considering dependents
If a veteran has dependents, their compensation rate may increase. For example, each additional child under 18 under the age of 18 may add an additional $69 per month.
The VA also uses the disability rating to help determine eligibility for other benefits, like VA health care.
Additional amounts
A veteran may be eligible for additional amounts if they have:
- Very severe disabilities or loss of limb(s)
- A spouse, child(ren), or dependent parent(s)
- A seriously disabled spouse
Key Differences Between SSDI and VA Disability
While both SSDI and VA Disability provide financial support to individuals who are disabled, they are distinct programs with key differences:
Eligibility Criteria:
SSDI eligibility is based on an individual’s work history and how much they have paid into the Social Security system through payroll taxes.
VA Disability eligibility is based on military service and whether a disability is service-connected, i.e., linked to a veteran’s time in the military.
Work History Requirements:
SSDI requires a certain number of work credits to qualify, which means that the applicant must have a history of paying Social Security taxes through employment.
VA Disability does not have a work history requirement. Veterans only need to show that their disability is connected to their service.
Disability Ratings:
SSDI does not assign disability ratings in the way VA Disability does. The Social Security Administration simply determines whether the applicant’s condition meets the SSA’s definition of disability, which focuses on whether they can perform any substantial gainful activity.
The VA assigns disability ratings to veterans, which are percentages that determine the level of compensation. Ratings range from 0% to 100%, and a veteran’s disability rating affects how much they receive in monthly benefits.
Source of Funding:
SSDI is funded through payroll taxes under the Federal Insurance Contributions Act (FICA).
VA Disability benefits are funded through the Department of Veterans Affairs and are specifically designed for veterans who have served in the military.
Application Process:
SSDI applicants must submit medical evidence proving that their condition meets the SSA’s strict definition of disability. The process can be lengthy and complicated, with many applicants facing initial denials.
VA Disability applicants must file a claim with the VA, providing evidence of their service-connected disability. The process can be lengthy as well, but veterans may be able to expedite claims if they can provide strong evidence of service connection.
Key Similarities Between SSDI and VA Disability
Although SSDI and VA Disability are distinct programs, they share some commonalities:
Income Replacement: Both programs are designed to replace lost income due to disability. SSDI benefits are based on a worker’s previous earnings, while VA Disability compensation is based on the severity of the veteran’s service-connected condition.
Medical Evidence: Both programs require medical evidence to support claims. Applicants must provide documentation from healthcare providers, such as doctors’ notes, medical records, or test results, to prove their disability.
Eligibility for Other Benefits: Veterans who qualify for VA Disability may also be eligible for SSDI if their disability is severe enough to meet the SSA’s criteria. In some cases, individuals may receive both benefits, though the VA Disability benefits may be reduced if the individual is receiving SSDI. However, these benefits can often be combined without a reduction in total income, depending on the situation.
Additional Amounts for Minor Dependents: Both SSDI and VA disability beneficiaries may receive increased monthly benefits for having minor dependents.
Can You Receive SSDI and VA Disability Simultaneously?
Yes, it is possible to receive both SSDI and VA Disability benefits at the same time. In fact, many veterans qualify for both, especially if their disabilities prevent them from working and they have a service-connected condition
Veterans who are receiving SSDI may also apply for VA Disability benefits, and if they are granted a disability rating, they may receive additional compensation from the VA. SSDI and VA disability compensations are not affected by each other, so veterans may be eligible to receive both. However, they must apply for them separately.
To receive expedited processing for their SSDI application, veterans with a 100% Permanent and Total (P&T) disability rating from the VA can:
- Identify themselves as a “Veteran rated 100% P&T” when starting their SSDI application
- Provide the VA rating notification letter to the SSA
The SSA and VA use different impairment classification systems, so comparing impairments across the programs can be imprecise.
Conclusion
While SSDI and VA Disability benefits serve similar purposes—to provide financial support to individuals who are unable to work due to disability—they differ significantly in terms of eligibility, application process, and how they determine the severity of a disability. SSDI is based on an individual’s work history and Social Security contributions, while VA Disability is based on military service and service-connected disabilities. Understanding these differences and similarities can help individuals navigate the application process and determine what benefits they may be eligible for.
Veterans who are struggling with disabilities may find themselves eligible for both programs, and it’s important to understand the benefits and eligibility criteria of each. Consulting with a disability attorney or expert can help guide you through the complexities of these programs, ensuring you receive the benefits you deserve.