Collecting Unemployment And Social Security Disability Benefits Simultaneously
Contrary to what you might think, it is possible to collect Social Security disability insurance and unemployment benefits at the same time. Of course, it is rather difficult to qualify for both of these benefits at the same time because the eligibility criteria are fundamentally at odds. To qualify for unemployment, you must be actively looking for a job. To qualify for a disability claim with SSDI, you must be permanently and totally disabled. Only a small handful of applicants can meet both of these criteria.
If you receive unemployment benefits, the Social Security Administration will take them into account when they examine your SSDI application. It is your responsibility to prove to the SSA that thereâs no conflict between the two benefits.
The same is true for Supplemental Security Income benefits, which are paid to disabled persons. While it is theoretically possible to receive this benefit alongside unemployment benefits, the criteria for the two programs are again largely at odds with each other. Unlike receiving Social Security retirement benefits and SSDI, receiving unemployment benefits may reduce your Supplemental Security Income benefit. Claimants should consult with a qualified disability attorney in either of these cases in order to ensure that they are following the rules and receiving every benefit that they qualify for.
Does Unemployment Count Against Social Security
Related
Workers in the U.S. pay Social Security “payroll” taxes to enroll in a system of retirement benefits and disability insurance. Unemployment insurance is a state-run system, to which employers contribute a percentage of the salaries they pay workers. If you are out of work, you may draw on this unemployment insurance; when you retire, or if you are disabled, you may be entitled to Social Security benefits. In most cases, the former benefit does not affect eligibility for the latter, nor does it affect the Social Security benefit amount.
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.;
You May Like: Can You Apply For Partial Disability
What Is The Ideal Situation In Which Id Receive Both Types Of Benefits
An ideal case for receiving both types of benefits is if you are under 62 years of age, currently receiving SSI benefits, and actively pursuing work .
Another case in which a person could receive both Social Security benefits and unemployment benefits is if the recipient is disabled to such a degree that they cannot work full-time and receive SSDI benefits, but are still looking for some work to generate income.
Note: SSDI benefits will only continue if a beneficiarys monthly earnings do not exceed $1,260 per month in 2020. Once a beneficiary receiving both types of benefits finds work and makes over that amount – regardless of whether its from unemployment insurance or other sources of income -; SSDI benefits will be discontinued.
Learn More About Unemployment Compensation And Social Security Benefits
Summary: Even though receipt of unemployment benefits is not supposed to affect your eligibility for Social Security Disability benefits, individual judges may not follow this policy. As such, if you are affected, it is vital to contact our firm before applying for unemployment benefits.
Many clients work as long as they can, even with existing medical conditions and limitations. Then they get laid off, or when the company downsizes, they are first to lose their job. And, while we all know how long it takes from the time a claimant files a claim for Social Security until there is a hearing and decision, most clients do not have the financial resources to last two to three years with no income. To keep their home, to pay their bills and to just try to survive, they file for unemployment insurance benefits .
SSA official policy on receipt of UIB seems pretty clear:
This is a reminder that the receipt of unemployment insurance benefits does not preclude the receipt of Social Security benefits. The receipt of unemployment benefits is only one of many factors that must be considered in determining whether the claimant is disabled. See 20 CFR 404.1512 and 416.912.
See, Memorandum from Chief ALJ Frank A. Cristaudo: Receipt of Unemployment Insurance Benefits by Claimant Applying for Disability Benefits INFORMATION . Click here for a copy.
You May Like: What Is The Medical Model Of Disability
Information About Unemployment Benefits For Ssi And Ssdi Recipients
Especially during the Covid-19 pandemic, many people in New York have been receiving unemployment benefits. A person is allowed to receive unemployment benefits and disability benefits at the same time. However, the Social Security Administration is allowed to consider a persons unemployment benefits when deciding whether or not that person is disabled. When a person receives unemployment benefits, the person is certifying he or she is ready, willing, and able to work. This certification could be considered as evidence that a person is not disabled. On the other hand, a person can qualify for disability benefits even though he or she is capable of performing some work, so receiving unemployment benefits would not automatically disqualify a person from receiving disability benefits.;
When a person is receiving disability benefits the Social Security Administration will periodically conduct a review of your condition to make sure you still qualify for disability benefits. If a person received unemployment benefits since the last review, that may be considered in a continuing disability review.
Because unemployment benefits may impact a persons eligibility for disability benefits, it is wise to speak to an attorney if you plan on receiving both.
If you receive Social Security Disability Insurance , unemployment benefits will not affect the amount of the SSDI payment, but, as stated above, it may be considered in determining whether you are disabled.
Other Retirement Payments Impact On Unemployment Compensation
Income that is drawn from a qualified retirement plan, annuity, or IRA can reduce your unemployment compensation in many states. If you are taking distributions from your 401 plan or receive a pension every month, this amount may be used to offset your unemployment benefits.
Youâll need to contact your stateâs unemployment office to find out what the rules are for where you live. In some states, your unemployment benefits may be reduced if you have a pension or retirement income. In other states, such as California, retirement income is exempted.
It should also be noted that IRA contributions cannot be made from unemployment benefits, because it is not considered to be earned income by the IRS.
Also Check: How To Apply For Michigan Disability Benefits
Explanations For Collecting Unemployment Benefits
If you have collected unemployment benefits and you attend an appeal hearing, be prepared to explain why you’re collecting unemployment benefits, or why you collected them recently. The judge may ask what jobs you applied for while you were collecting unemployment . If the jobs were ones that your stated limitations say you aren’t capable of doing , you may have a problem. You may want to offer to amend your alleged onset date to a date after you stopped collecting unemployment benefits.
Likewise, if you applied for a full-time desk job but are telling the judge you can’t sustain any full-time work, you may also have a problem. You could argue that you probably could not have been able to sustain full-time work for more than a few weeks without great pain or other symptoms or without getting fired. As federal judges have stated in the past, “A desire to work does not mean that a claimant can actually work,” and “Receipt of unemployment insurance benefits does not prove ability to work.”
If you have a valid argument that there is no legal conflict between your collecting unemployment benefits and disability benefits, tell the judge. Here are some examples:
When Will Ssdi Coverage Lapse
You must meet the recent work test and the duration of work test in order to qualify for SSDI. Heres the recent work test: Typically, if you are 31 or older, you must have worked at least 5 of the last 10 years to keep up your SSDI coverage. Put another way, you will need to have earned 20 credits in the 10 years immediately before you became disabled. There is an exception to this rule for certain blind applicants.
Self-help services may not be permitted in all states. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. Do Not Sell My Personal Information
Read Also: How To Apply For Short Term Disability In Ma
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.
Does Unemployment Affect Social Security Disability
Receiving unemployment benefits can hurt your Social Security disability case. Because you generally need to state that you are ready, willing, and able to work when you apply for unemployment benefits, the Social Security Administration may view that as an admission that you can work. If youre able to work, you are not disabled. Thus, they can use this to deny your claim.
To be clear, Social Security ALJs have been advised that there is no direct conflict between unemployment and disability. In fact, they have received this memorandum. Nevertheless, ALJs are human. Some will view unemployment as an admission you can work.
We generally can excuse unemployment in some situations. For example, you may be ready, willing, and able to work part time. Since Social Security disability requires you to prove you cannot work full time, an admission you can work part-time does not necessarily destroy your claim. Even so, this tactic should be used with caution. You should discuss this with your Social Security disability lawyer.
It may also be true that if you are over 50 years old that you simply cant do highly physical work anymore. You may be ready, willing, and able to work in a sedentary capacity. Technically, this would still allow you to be eligible for both programs. Again though, this should be used with caution.
Generally, we advise our clients to be very wary of applying for both types of benefits at the same time.
Recommended Reading: How Do You Qualify For Disability
Going Back To Work Can Affect Social Security Benefits
If you are able to find another job and start working again after filing early for Social Security benefits, your earnings have the potential to reduce your Social Security retirement benefits until you reach full retirement age. If you earn over a certain amount each year, your retirement benefits will be reduced according to a formula found on the Social Security website. Check the website to find out exactly how much you can earn without this happening and how much your benefits will be reduced if you earn more than this amount each year. Once you have reached full retirement age, there is no earnings limit that will lead to a reduction in your benefits.
Can You Get Unemployment And Social Security Disability
Technically, you can receive both types of benefits, but you should proceed with caution. You should discuss this with a lawyer if you are considering Social Security disability vs unemployment compensation.
The Social Security Administration has stated that Receipt of unemployment benefits does not preclude the receipt of Social Security disability benefits. The receipt of unemployment benefits is only one of many factors that must be considered in determining whether theclaimant is disabled. Moreover, it is SSAs position that individuals need not choose between applying for unemploymentinsurance and Social Security disability benefits.
So at least on its face, it may not be a question of Social Security disability vs unemployment compensation. Its possible to receive both. This doesnt end the inquiry though.
Application for unemployment benefits is evidence that the ALJ must consider together with all of the medical and other evidence. In other words, the Administrative Law Judges will look at the totality of the circumstances in determining the significance of the application for unemployment benefits and related efforts to obtain employment.
So you can see this is not a cut and dry issue. You should never make the decision of Social Security disability vs unemployment compensation without speaking to a Social Security disability lawyer first. This will help you to avoid destroying both of your claims.
Recommended Reading: Can You Work On Disability In Texas
What Is Social Security
Social Security is one of the most widely used benefits the federal government offers. Each month, the SSA pays out benefits to nearly 70 million eligible citizens. Most of these payments are for seniors who have reached retirement age and no longer work, though a significant number of program participants are spouses and survivors of enrollees who have passed away, or U.S. citizens whose disabilities make them unable to work. The program interacts in some way with over 170 million Americans, most of whom are either currently enrolled or eligible for future participation.
Social Security benefits are funded through payroll withholding taxes. Each pay period, 6.5% of a worker’s gross pay comes out to fund their eventual Social Security benefit. Employers pay an additional 6.5%, with self-employed workers required to pay the full 13% as a flat tax. Workers become eligible for a monthly payment when they earn 40 work credits over a working life of at least 10 years, with the benefit amount set by law. Work eligibility requirements are relaxed for younger adults who develop a disability before age 65.
Yes You Can Receive Unemployment And Social Security At The Same Time
- May 19th, 2020
The COVID-19 pandemic has sent unemployment to its highest levels since the Great Depression, and older workers have been particularly hard hit, with one in five over age 55 now out of work, according to one estimate.
Many people continue to work beyond retirement age, either by choice or out of necessity, at the same time that they receive Social Security benefits. Other older workers are now being forced to take their benefits early after losing their jobs .
Local Elder Law Attorneys in Your City
City, State
If you are already receiving Social Security, are you also eligible for full unemployment benefits? Until recently, the answer was not necessarily.; Many states reduced unemployment benefits of those receiving Social Security retirement benefits by up to 50 percent, something called the Social Security offset. But after AARP and the National Unemployment Law Project pushed to have these laws overturned, this is no longer the case. In 2015, Illinois became the last state to repeal the Social Security offset.
These two benefits are not duplicate payments,the Law Project said at the time. Older workers who must work or choose to work should not have their unemployment benefits cut or eliminated simply because they have reached the age to qualify for Social Security.
Unemployment insurance is administered by the states.; For information on filing for unemployment insurance and to find your states office, .
Don’t Miss: Can You Attend College While On Disability
Types Of Disability Policies
There are two types of disability policies.
-
Short-term policies may pay for up to two years. Most last for a few months to a year.
-
Long-term policies may pay benefits for a few years or until the disability ends.
Employers who offer coverage may provide short-term coverage, long-term coverage, or both.
If you plan to buy your own policy, shop around and ask:
-
How is disability defined?
-
How long do benefits last?
-
How much money will the policy pay?
Are There Exceptions To The Rule
As with most things, there are certain exceptions to the rule. For example, an individual might have lost their job and be receiving unemployment benefits, and then become disabled. These individuals might continue to collect unemployment while applying for disability benefits. In other unique circumstances, an individual over the age of fifty might have a disability that prevents them from keeping their previous job, and yet may still be capable of performing other work for which they have not been trained.
Still, these circumstances are rare. In fact, a 2012 report from the Government Accountability Office showed that fewer than one percent of SSDI beneficiaries also receive unemployment insurance benefits at the same time.
Don’t Miss: How To Check Status Of Disability Claim