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Past Earnings Play Role in Determining SSDI Benefits
Date:7/8/2008

Applicants for Social Security Disability Insurance Should Know Their Income History; Allsup Answers Common Benefits Questions

Belleville, IL (PRWEB) July 8, 2008 -- People who find themselves with a mental or physical disability face many hardships, not the least of which is the emotional struggle to accept that they no longer can work. While everything about a person’s life changes, the past still plays a role in the future, especially when it comes to Social Security Disability Insurance benefits, according to Allsup, which represents people nationwide for SSDI benefits.

The Social Security Administration uses past earnings—most importantly a record of those earnings—to determine how much an SSDI recipient receives each month.

“Knowing your earning history and keeping good records can be valuable when applying for SSDI,” said Paul Gada, a tax attorney and Allsup’s personal financial planning director. “It also pays to be informed about your benefit amount because you are facing a vastly different financial situation.”

Social Security Disability Insurance is a payroll tax-funded, federal insurance program. A portion of the FICA taxes that people pay is set aside for SSDI (as well as Social Security retirement and Medicare). SSDI, which was established in 1954, is designed to provide individuals with income if they are unable to work due to a disability or until their condition improves, and
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