Certain Disability Payments and Workers’ Compensation May Affect Your Social Security Benefits
Reading Time: 2 MinutesLast Updated: January 17, 2020
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
Comments
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Brenda L.
I Brenda Jones, do not know if I qualify or not. I receive Railroad Disability since 1998. But I have paid into Social
Security for 15 years. So I am it sure that I now qualify. I applied in the year 1994 and was denied. Now that I am 67 yrs of age. DO IN QUALIFY WITHOUT MESSING WITH MY RAILROAD BENEFITS?
Curtis B.
If I receive a state retirement (public school bus driver) of $400, Will my social security benefits be reduced? By what %?
I live in Louisiana.
Ankit N.
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Patricia R.
I have been on disability for the past several years and now I’m 62 years old and eligible for social security although I want to wait till I can draw full amount. I’m also a widow and am able to draw on that account as well. I need to know what is best for me. I’m single, hardly making it and could use the right advice and helpful hand.
Jason H.
It is true in Nevada that you cannot double dip on disability benefits when you have a workers’ compensation claim. Meaning if you have applied for Social Security Disability but are also collecting permanent total or temporary total disability from workers’ compensation, Social Security can deduct that amount from the benefits you receive from them. Visit my website https://jhwlawoffice.com for more information on laws pertaining to Nevada Workers’ Compensation.
Joy N.
Then why is the amount of offset added to what is paid in SS and then taxed? I’m told workers comp payments are not to be taxed.
akbar
There are only 15 States with reverse offset for workers compensation. Most is not all no longer insure worker compensation benefits and private insurance carriers are responsible for the insurance and payments.
Why does the SSA allow private workers compensation insurance carriers to reverse offset? The 15 States eliminated their liability altogether leaving the federal government taxpayers to shoulder their burden.
These private workers compensation insurance carriers are profiting while the Social Security Disability Insurancs is going broke and has to raise FICA taxes.
William C.
I need a tempary password, letters to SS not answered, phone calls are not productive either. I have a situation where I dont have an address that SS will send a temp password. I had a military address at one time, however problems getting mail resulted in using a mail forwarding service. That also is not allowed by SS, so tell me how do I get a temp password, seems to me comon sense has played out someplace within SS. I live overseas but not full time. However no hard US mail address, Oh! well I am sure you will give me the same story about security of my account, lol. Security is great let me tell you, havent been able to access my account since Sept 2017. I dont expect a reply if its more of the same.
tony
There are only 15 States with reverse offset for workers compensation. Most is not all no longer insure worker compensation benefits and private insurance carriers are responsible for the insurance and payments.
Why does the SSA allow private workers compensation insurance carriers to reverse offset? The 15 States eliminated their liability altogether leaving the federal government taxpayers to shoulder their burden.
These private workers compensation insurance carriers are profiting while the Social Security Disability Insurancs is going broke and has to raise FICA taxes.
tony
Many states workers’ compensation definition of disability is different from the SSA. In order to collect workers compensation, they cannot perform sedentary work.
SSA definition of disability allows medical/vocational rules for older individuals who can perform sedentary and light work.
The states definition of disability is more strict and should not offset the SSA less strict standards. They are not considered disabled under workers compensation. The SSA should be able to offset since the States’ reverse offset doesn’t apply.
tony
Florida’s reverse offset ended for accidents occuring after July 1, 1984. Why does the SSA still allow private workers compensation insurance carriers to reverse offset Social Security benefits?
The department shall have first priority in taking any available social security offsets on dates of accidents occurring before July 1, 1984. See Florida Statutes 440.15(9)(b)
T.J.Johnson
Yeah, I worked multiple jobs in high school and after, but, have an autistic child who was also abused and shaken by his father on a court ordered visit that needs round the clock care and a higher functioning autistic child, I was given the choice, work and sign my son over to the state or stay home and figure out how to support them because, although I’m not working, I “make too much money for state aid.” I did everything I was supposed to do and yesterday, although I pay my own bills and buy my own uninsured items, I got married 3 years ago, notified them they day after, and they said that with my being a kidney patient, my whopping 733.00 a month was safe. Well, yesterday, I got the call, they’re pulling my benefits, want me to pay back 17,000 dollars of their mistake. Yeah, not happening. I’m still a kidney patient only now I’m recovering from sepsis, a PE, bilateral pneumonia, and I’m undergoing tests with an oncologist because my hair is falling out by the handful. So, I no longer qualify for 733.00 a month and insurance. I’ve had to cancel surgery. But, all those times I’ve sat in that social security office and watched people come in with 300.00 sneakers, gold chains hanging around their necks, brand new SUV’s, gold teeth, all name brand clothing but they don’t speak English and they’ve never worked a day in my country and yet, they’re getting huge monthly checks, EBT cards, and they have 5 family members with them who are also collecting their checks as the sit in the waiting room with their 2 iPhones, comparing their hair, nails, clothes, and their latest vacations. I can’t afford a vacation. How is this ok? Why is this ok? Our elderly can’t afford food AND heat so they have to choose. We don’t get subsidized housing. We have a 1500.00 rent, we pay 1500.00, not 25.00. We pay for their electric, groceries, yet we have to try to keep our electric bill low and make our food last. Our refrigerators are empty. Our elderly are cold and hungry and can’t afford medicine. But, these people have enough money to eat, travel, and pay their 25.00 rent, and they get “fuel assistance,” so they don’t know anything else except to hang out on the streets all night, life is one big party. My husband just had to take 2 months of unpaid family medical leave. No EBT card here. No subsidized housing. Nothing to fall back on. “We don’t qualify.” If my husband, an amputee who lost his leg on the job 25 years ago, can work, why can’t they? I should have just lied about everything. It works for them, why not me? Our country is broken. We cater to immigrants who just want benefits and don’t care to learn our language, instead, we give the driving tests in like 30 languages, we get interpreters for them. It’s disgusting. Hey, come to America, you get everything free, you deserve it. I’m ashamed to be an American, because we don’t care about our people. This country has gone to hell and the government is driving. Disgusting, isn’t it?
Kathleen H.
Oh DITTO have a white trashy sis in law well boyfriends sister who never worked a day in her life! Steals from ssi her boyfriend and sells her and his narcotic pain medication and took her now deceased mother to 7 different doctors to get narcotics and the mother allowed her to do it. She’s also lost a 40 year old son to heroine she’s been taking care of his habits for years and years like driving him to get it. She is a thief and she does everything she can to gamble or get Botox or maybe she’s also doing drugs. I know she’s a big sneak with calling her boyfriends bank and then orders atm cards and takes his pay check in and out then borrowing money for the boyfriend to eat and pay bridge fees and so on at least 2 times a month She and the mother and sisters of witch now only 1 left never worked!!! So people like you and I have notta because we are paying bills and food and medical prescriptions and so she is not really dying and was diagnosed with asthma Right don’t bother her at casino or talking to her brother for money and is not paying money back ever. I loaned her hundreds of dollars and I eventually found out that she’s gotten hold of my information and opened aMC credit card and spent over a grand a retired bank of 25 years and so many 2nd & 3rd jobs raised 3 wonderfully responsible adult children and have grown brothers and not 1 has ever asked me or my deceased parents for a penny and well if I did not report the MC as identifiy theft mom and her daughter would have gone to jail !!! I don’t have a mean bone in my body so I paid what I could and they wrecked my credit and then any bank account I cannot get due to check systems as well I was punched in the face a while back by her and she knocked my good dentures out and they broke up in pieces I now have serious issues due to not being able to replace them and can not chew! So I got you ? I should turn the theif in but where will I live till I have enough money to get out of the house I live in now with the boyfriend/ brother??? Working on it but now I am sick can’t tell him anything he gets pissed every time I am admitted to the hospital I have to ask for a ride he says crap like can’t it wait till the morning I don’t want any fn ambulance service or cops here! So when I show him bones sticking out of my wrist or bloody stool from the ischemic colitis he is agitated ? I am really sick and tired my fault for not being a bitch like them. So I Hope this kind of information is seen by ssi and Wells Fargo the sister boyfriend lol and police officers! TY