Disability benefits may be paid by the Social Security Administration (SSA) to people who have serious disabilities as assessed by the SSA and who are unable to work for at least 12 months or have a terminal disease. The SSA is a federal agency, so disability benefits are available to approved applicants in all U.S. states, including applicants in New Jersey.
New Jersey disability pay from the SSA is either paid through the Social Security Disability Insurance (SSDI) program or the Supplemental Security Income (SSI) program. SSDI is available to people with sufficient work history and who have accumulated enough work credits from their payroll taxes. SSI is available to people who do not qualify for SSDI and have limited income and assets.
How Much Disability Can You Earn in New Jersey
The maximum amount of SSDI payment possible in New Jersey is $3,822 a month in 2024, but the average monthly payment is much less at $1,537 for a single worker and $2,720 for the worker and his or her family.
SSI maximum monthly payments are $943, but the average is lower at $698. Payments to a disabled person and their family may be higher.
New Jersey also has its own temporary disability benefits system available to workers who are temporarily disabled and unable to work and have been employed by an employer who has temporary disability insurance coverage.
Average Monthly SSDI Payments in New Jersey
The SSA uses a formula to calculate your SSDI monthly payments. The amount calculated is not affected by the degree of severity of your disability or the type of disability. It is not calculated on a state-by-state basis, either, so as long as everything else is equal you should get the same monthly benefit payments in New Jersey or Nevada or any other state.
The amount is determined by calculating the average lifetime earnings you had before you became disabled. Earnings must have been made in a job where you paid contributions to FICA or Social Security in your payroll tax deductions. Basically, the longer you worked and the higher your average earnings, the more you will be paid in benefits.
New Jersey's average SSDI payments of $1,947.46 are greater than the national monthly average of $1,537 in 2024.
SSI Payment Rates in New Jersey
The base federal SSI payment in 2024 is $943 for an individual and $1,415 for a couple. This amount is then reduced if the beneficiary has other sources of income. This is why the average monthly SSI payment in New Jersey is $575.60, which is lower than the national average monthly SSI payment.
New Jersey residents who are receiving federal SSI benefits payments automatically get New Jersey Medicaid.
Factors That Influence Disability Payment Amounts in New Jersey
Work History and Earnings (SSDI)
SSDI payments are calculated according to a formula that takes into account how long you have worked in a job paying social security taxes and how much your average earnings were over that period. There is a minimum work history requirement which depends on your age when you stopped working to qualify for SSDI.
Income and Resources (SSI)
SSI is only available for disabled applicants who earn less than a certain amount of income and earn less than a certain amount of assets. All income is assessed to determine whether SSI is payable. If the applicant lives with a spouse who earns a wage or other income or with other people in a home and does not contribute to the collective living costs such as rent and utilities, then this may reduce the amount of SSI payments that will be paid.
Cost-of-Living Adjustments (COLA) & Taxes in New Jersey
Annual Increases in Benefit Amounts
Each year, the disability benefits payments are increased to take into account the increase in the cost of living. This is known as the cost of living adjustment (COLA). All beneficiaries of SSDI and SSI in New Jersey will have their monthly payments increased according to the COLA at the beginning of each year.
Taxation of SSDI & SSI Benefits
If you are receiving SSDI monthly payments you may still have to pay federal income tax. The amount you are expected to pay is determined by calculating the amount of tax due based on your entire earnings, including SSDI payments.
Neither SSDI nor SSI benefit payments are taxed by New Jersey and are not included in your N.J. state tax return.
How to Estimate Your Disability Benefits in New Jersey
Using DBH Benefits Calculator
The SSA’s DBH benefits calculator can be used to calculate how much SSDI benefits payments you should receive when payments are finally approved. There is always a time lag before an application is approved and this could be several months or years if you need to appeal a decision. Benefits payments may be backdated to the date of your application.
Consulting with a Disability Lawyer or Advocate
If you are confused about how much disability pays per month in New Jersey and want to make sure you are getting the correct amount, you should contact a disability lawyer or advocate to explain how the amount is calculated and assess whether you are getting what you should be getting.
Use the free case evaluation form available below and get connected with a disability lawyer in New Jersey today.
