Disability

Certain Disability Payments and Workers’ Compensation May Affect Your Social Security Benefits

January 17, 2020 • By

" "Many people working nowadays have more than one job. This means they have several sources of income. It’s important to keep in mind that having multiple sources of income can sometimes affect your Social Security benefits; but, it depends on the source.

Disability payments from private sources, such as private pensions or insurance benefits, don’t affect your Social Security disability benefits. Workers’ compensation and other public disability benefits, however, may reduce what you receive from Social Security. Workers’ compensation benefits are paid to a worker because of a job-related injury or illness. These benefits may be paid by federal or state workers’ compensation agencies, employers, or by insurance companies on behalf of employers.

Public disability payments that may affect your Social Security benefits are those paid from a federal, state, or local government for disabling medical conditions that are not job-related. Examples of these are civil service disability benefits, state temporary disability benefits, and state or local government retirement benefits that are based on disability.

Some public benefits don’t affect your Social Security disability benefits. If you receive Social Security disability benefits, and one of the following types of public benefits, your Social Security benefits will not be reduced:

  • Veterans Administration benefits;
  • State and local government benefits, if Social Security taxes were deducted from your earnings; or
  • Supplemental Security Income (SSI).

You can read How Workers’ Compensation and Other Disability Payments May Affect Your Benefits to find out about the possible ways your benefits might be reduced.

Please be sure to report changes. If there is a change in the amount of your other disability payment, or if those benefits stop, please notify us right away. Tell us if the amount of your workers’ compensation or public disability payment increases or decreases. Any change in the amount or frequency of these benefits is likely to affect the amount of your Social Security benefits.

An unexpected change in benefits can have unintended consequences. You can be better prepared if you’re informed and have financially prepared yourself. Visit our benefits planner for information about your options for securing your future.

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About the Author

Mike Korbey, Deputy Commissioner for Communications

Mike Korbey, Deputy Commissioner for Communications

Mike Korbey, Deputy Commissioner for Communications

Comments

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  1. johnny castle

    so i have a question if we can make 1260 month why on disabilty is that gross 1260 or after taxes taken out can make 1260

    Reply
  2. Jackie

    if someone is receiving ssd and they receive any type of inheritance whether it is money or property how will that affect ones benefits?

    Reply
    • Vonda VanTil, Public Affairs Specialist

      Hi Jackie, thank you for your question. An inheritance does not affect or reduce Social Security retirement and disability benefits. However, if you’re receiving Supplemental Security Income (SSI), an inheritance is considered unearned income and it must be reported to us. To learn more about SSI and how income affects your payment, read What You Need to Know When You Get Supplemental Security Income (SSI).

      Reply
  3. Rebecca May

    Reply
  4. Bubzy

    Amazing!
    Thanks for sharing…

    Reply
  5. Rubab

    They should have given Insurance Payments instead of Disability Payments. Better Career

    Reply

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