What You Need To Know If You’re Unemployed And Eligible For Social Security Benefits
No one wants to risk losing their Social Security benefits, so many Americans applying for or receiving Social Security benefits, whether through Social Security Disability Insurance are hesitant to apply for unemployment in the event of a job loss.
Is it true that you will lose benefits? If youre wondering how can unemployment benefits affect Social Security disability earnings, then DEF is here to answer your questions.
What Do Disability Lawyers Advise
Many Social Security disability lawyers advise against collecting unemployment benefits when applying for Social Security disability, because ALJs who work for Social Security have been known to look askance at people applying for both benefits at the same time, or even deny the disability claims of those who are collecting unemployment benefits.
Other lawyers point out that there are situations where an older person could be legitimately entitled to disability benefits due to a medical-vocational allowance but be able to work. For instance, if a person is limited to sedentary work , but because of his age, past job skills, and education level, isn’t expected to learn how to do a sedentary job, he should be approved for disability benefits. In that case, theoretically the individual could actually collect disability benefits but work a sedentary job . Similarly, an individual could apply for unemployment benefits if he says he is ready and willing to work a sedentary job.
Will Unemployment Compensation Affect My Social Security Disability Insurance Benefits
There are cases where you can work and receive Social Security Disability Insurance Benefits But what if you lose your job? Are you eligible for Unemployment Compensation?
If you are enrolled in the Social Security Ticket to Work program and you worked for at least six months before you were laid off, you are eligible to collect unemployment benefits and disability benefits at the same time.
Social Security uses Grid Rules based on age, RFC level , education level, and work history and skills to determine disability. If you are over 50 years old and can only do sedentary work, and if you have been seeking sedentary work while collecting unemployment, you may remain eligible for both unemployment and disability. If you are over 55 years old and can only do light work, and you have been seeking light work while collecting unemployment, you may remain eligible for both unemployment and disability.
Unemployment benefits do not affect or reduce retirement and disability benefits. State unemployment compensation payments are not wages because they are paid due to unemployment rather than employment. However, income from Social Security may reduce your unemployment compensation.
Recommended Reading: Army Guard Retirement Calculator
Illinois Unemployment And Social Security Disability Insurance / Supplemental Security Income
We are often asked: Can I collect unemployment while applying for Social Security disability insurance? The short answer is YES, but the road to obtaining SSDI is often two years or more on the long-end and a few months on the short-end. Due to the long wait and the fact that you are not working, and therefore technically unemployed, unemployment benefits are often an attractive option. Although you are unemployed by definition, collecting unemployment benefits while applying for SSDI is somewhere in the gray area of what you should not do.
Unemployment benefits are distributed by the state you reside. In contrast, SSDI is distributed by the federal government. On one hand, when you apply for unemployment benefits you are telling your state government: I am ready, willing, able, and actively seeking employment. On the other hand, when you apply for SSDI you are telling the federal government: I am disabled and unable to work. In situations where you feel you may be able to work part-time , applying for SSDI and unemployment may be an option. By filing for both, you are signaling that while you cannot work full-time you need unemployment benefits to make up for the lack of employment while you search for alterative employment opportunities.
Is It Possible To Collect Disability And Survivor Benefits Simultaneously In Pa
As stated earlier once the disabled surviving spouse reaches the full retirement age his or her disability benefits convert into a retirement benefit. At this point a person may not receive two social security benefits and will be able to opt for the higher monthly payment.
For example, a surviving spouse who is not disabled starts claiming the normal survivor benefits at the age of 60. Once the surviving spouse reaches the full age of retirement, or 67 in this example, he or she becomes eligible to collect their Social Security benefit. At this time the surviving spouse will begin receiving the higher benefit.
If, however, the surviving spouse is disabled and collects disability benefits the situation is slightly different. First of all the surviving spouse can begin claiming the survivor benefits at the age of 50 instead of 60. Secondly, the surviving spouse will not receive the entire survivor benefits in addition to the disability benefits already being received.
You May Like: What Disability Did Forrest Gump Have
How Much Will I Receive From Sdi
Your benefit amount is calculated based on the amount of earnings you had in the highest-earning quarter of your base period, and is about 60-70 percent of your regular earnings. In 2018, the maximum amount of SDI you can receive is $1,216 per week. SDI payments are processed every two weeks.
The entire amount you receive in SDI benefits from a single claim may not exceed the total amount of wages you earned during your base period.
Disability Vs Unemployment Claims
If you are filing for Social Security disability, you are stating that you have been unable to perform substantial work activity for twelve months, or that you anticipate that you’ll be unable to perform substantial work activity for at least twelve months, due to a mental and/or physical impairment. But when filing for unemployment, you are stating you are ready and available to perform work should you be able to find a job that fits your work skills.
You May Like: How To Change Gi Bill Direct Deposit
Filing A Disability Claim While On Unemployment Can Be Risky
Make sure you are doing the right thing and protected from risk. When filing unemployment or disability claims, talk to an attorney who understands both.
If you have any questions about a Social Security claim, contact a disability attorney at any of our offices across Arkansas, Missouri, Kansas, Oklahoma, and Illinois. Call or submit the Contact Form on our website for a free consultation.
How Is Permanent Disability Calculated
Just as your temporary disability rate is determined by your average weekly wage, your rate of permanent disability is also determined by taking two-thirds of the average weekly wage. Since 2014, the maximum permanent disability rate is $290 per week. Example: In the example above, Andy had 8% permanent disability.
Recommended Reading: How To Increase Your Va Disability Rating
If Your Spouse Also Worked Under Social Security
If your spouse is eligible for retirement benefits on their own record, we will always pay that amount first. But, if the spouses benefit that is payable on your record is a higher amount, they will get a combination of the two benefits that equals the higher amount.
Can I Get Benefits If I Am Living In A Residential Alcohol Rehabilitation Facility
You may qualify for up to 30 days of Disability Insurance benefits if you are living at an approved residential alcohol rehabilitation facility that a physician/practitioner recommends. An additional 60 days may be paid if you remain a resident of the facility and your physician/practitioner continues to certify to your need for continuing residential services.
Don’t Miss: How Much Does Disability Pay In California
Can I Receive Benefits If My Employer Is Going To Pay Me Vacation Sick Or Holiday Pay During My Claim
Vacation Pay: Yes, you can receive Disability Insurance benefits at the same time.
Sick Pay: You cannot receive DI benefits for any period that you also receive sick leave wages that are equal to your full salary. If you receive only partial sick leave wages, you may be eligible for full or partial DI benefits. The first seven days of your DI claim is a non-payable waiting period. Any type of wages paid by the employer during the waiting period do not conflict with DI benefits.
Other Pay: All other pay, including holiday pay, must be reported to confirm your eligibility. The first seven days of your DI claim is a non-payable waiting period. Any type of wages paid by the employer during the waiting period do not conflict with DI benefits.
I Am Unemployed Due To Covid
If youve become unemployed due to the economic crisis caused by the COVID-19 pandemic, you can apply for unemployment insurance benefits. Unemployment benefits do not affect or reduce retirement and disability benefits. State unemployment compensation payments are not wages because they are paid due to unemployment rather than employment. However, income from Social Security may reduce your unemployment compensation.
To learn more about receiving unemployment insurance and Social Security benefits at the same time, dont hesitate to contact the unemployment agency in your state or a local disability advocate group in your area. Or, reach out to any of DEFS experienced disability advocates! We are here for you and happy to help answer any of your questions.
Read Also: Can You Get Disability With A Gaf Of 50
What If I Attempt To Return To Work But I End Up Needing To Go Out On Disability Again
If you return to work and are able to perform your regular or customary job for more than 60 days, then your disability benefit period is considered ended. If you stop working again due to disability, you must file a new claim for SDI, and re-establish your eligibility for benefits as of the date of the new claim. If you are eligible for SDI as of the date of your new claim, you are entitled to a new benefit period of up to 52 weeks.
If you return to work for more than 60 days, but do not perform your regular or customary work due to your disability for example, you work only light duty or only part-time you may be able to continue your prior disability claim. You will need to show EDD that you did not perform your regular or customary work when you attempted to return to work.
If you return to work for fewer than 60 days, and stop working due to the same disability, you are considered to be within the same disability benefits period. You may continue receiving benefits under your original claim and the 7-day waiting period required by these claims will be waived.
Filing Late For Benefits
You cannot apply for State Disability Insurance benefits until 9 days after the start of your disability, and you must apply withint 49 days from the date your disability began. Many people don’t know about SDI, so they miss their chance to get benefits because they don’t file by the deadline. If you do file more than 49 days after the start of your disability, include a letter telling SDI why you missed the deadline. You may be able to change the start date of your disability so you can still file your claim.
Recommended Reading: How Much Does Sdi Pay In California
Eligibility Requirements For Unemployment Benefits
If you are out of work and cannot find employment, you may be eligible to receive unemployment benefits if you meet the following requirements:
- Unemployed by no fault of your own
- Earned a minimum amount of wages in the prior 12 months
- Be willing and physically able to work, as well as actively seeking employment
Ei Special Benefits For Self
Self-employed Canadians can now apply for EI special benefits if they are registered with the Canada Employment Insurance Commission for access to the EI program.
For more information or to see if you qualify, visit the Service Canada website or call 1 800 O-Canada . If you have a hearing or speech impairment and use a teletypewriter , call 1-800-926-9105.
Recommended Reading: How Much Does Disability Pay In California
Social Security Disability Programs
State Disability Insurance benefits generally last a year or less. If you and your doctor/medical provider think that you are going to be disabled for longer than a year, you should apply for Social Security Disability Insurance , a federal disability insurance program that you pay into through payroll taxes. If youve paid into the system for a long enough period of time, you can get this benefit. SSDI requires that your disability last longer than a year, so it can pick up where SDI leaves off. If you are on SSDI and SDI at the same time, your SSDI will be reduced.
You should also consider applying for Supplemental Security Income if you expect your disability to last longer than a year, or if you haven’t worked long enough to get SSDI. This is a federal income program that provides a benefit for low-income people who have a disability, are blind, or are at least 65. If you get SSI and SDI at the same time, your SSI benefit goes down.
For both of these programs, you should apply right away, as claims can take more than a year to be processed.
When Does It Make Sense For Me
If you think you might be able to take on a part-time job that doesn’t bring in more than $1,000 a month, you might want to consider applying for SSD and unemployment.
If you’re among those who can collect unemployment benefits while looking for a part-time job, you still need to research how your unemployment benefits might affect any Supplemental Security Income . If you do qualify for unemployment benefits and start receiving monthly payments, those payments can affect your eligibility for the disability program. You can be denied SSI benefits if your unemployment checks cause your monthly income to exceed the limits.
If you go the route of applying for both, you aren’t saying that you can hold down a full-time job but you’re also not saying that you are unwilling to look for a job. In this situation, you state that your disability prevents you from working full-time and that you need unemployment benefits to make up for your lack of a job while you seek other options.
Note that some states require you to be willing to look for a full-time job in order to receive unemployment benefits. You’ll need to check with your state laws ahead of time.
Also Check: How Much Is Ssdi In California
Other Sources Of Disability Benefits
You may also be eligible for benefits from the Canada Pension Plan and the Quebec Pension Plan to add to your income when you’re unable to work.
The CPP disability benefit and QPP disability benefit are available to people who have contributed to those plans and aren’t able to work regularly at any job because of a disability.
Make Sure You Know Your Rights: Get An Experienced Disability Lawyer Today
If you have additional questions about disability and unemployment, you may benefit from a consultation with a Social Security Disability Insurance lawyer. We are able to give sound advice and representation to ensure you are in the best position possible to win your case.
A Grand Rapids and Muskegon Disability lawyer can assist you in contacting and meeting with your medical providers to obtain statements regarding your physical capabilities. Having these statements in your file, and having the statements worded properly, is extremely important for proving your case and winning benefits.
Can You Get Unemployment And Disability At The Same Time
As the end of their unemployment benefits nears and debate over unemployment extensions continues, some people may wonder if other options are available. Also, because the application process for Social Security Disability Insurance benefits can take many months, some people ask whether it is possible to get unemployment benefits and apply for or receive SSDI benefits at the same time.
In short, the answer is yes. However, an apparent contradiction exists in applying for or receiving both unemployment benefits and SSDI benefits concurrently because, to qualify for unemployment benefits, a person must be seeking work, while to qualify for SSDI benefits, an applicant must usually prove that he or she is not able to work.
Exceptions exist, though, for people who attempted to re-enter the workforce through the Social Security Administrations Ticket to Work Program or for people who previously worked full time but now have verifiable medical restrictions that require them to work only part time.
If Your Disability Started Within Four Weeks Of The Last Day You Worked
Who pays benefits: Your employer’s disability benefits insurance carrier.
How to Apply
- File the claim with your employer or insurance carrier, using Notice and Proof of Claim for Disability Benefits .
- Form DB-450 may be obtained using the link above, from your employer, your employers insurance carrier, your health care provider or any Board office.
Also Check: Sdi Vs Ssdi