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
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BEVERLY H.
I have a question.. I have custody of my two grandsons and I’m recently divorced and I’m on ssi qnd didnt file taxes in 2019 so will I still qualify for my stimulus and the 500.00 for both of my grandchildren I’m so confused with this I did the portal and filled out for my grandchildren ..
A.C.
Hi, Beverly. Treasury, not Social Security, will be making direct payments to eligible people. We cannot determine your eligibility. Continue to check the Internal Revenue Service Coronavirus Tax Relief and Economic Impact Payments page for updates. Thanks.
Gary C.
Im a 100% disabled vet.
I receive SSDI.
I can only work part time. I have a job in mind. It would be seasonal/part time.
How much am I allowed to make?
Do I need to call the Social Security Office before I try to work?
V.V.
Hi Gary, thank you for your question. Social Security has special rules that make it possible for people with disabilities receiving Social Security Disability (SSDI) or Supplemental Security Income (SSI) to work and still receive monthly payments. These are called work incentives.
For SSDI beneficiaries, there is a Trial Work Period (TWP) and then an Extended Period of Eligibility (EPE). The TWP allows you to test your ability to work for at least 9 months. During this period, you will receive your full disability benefit regardless of how much you earn as long as your work activity is reported and you continue to have a disabling impairment. In 2020, any month in which earnings exceed $910 is considered a month of the 9-month trial work period.
Once you’ve completed your TWP, you get a 36-month safety net called the EPE. During the EPE, you get benefits for all months your earnings or work activities are below the Substantial Gainful Activity (SGA) level as long as you continue to have a disabling impairment. Social Security will suspend cash benefits for months earnings are over SGA and start benefits again if earnings fall below the SGA level. In 2020, you are earning SGA if your earnings, after any allowable deductions, are more than $1,260 in a month.
Check out Social Security’s Red Book for descriptions of the many work incentives.
Ray
I recieve SSi (I am 61), but I have worked part time ever so often, and it was determined thta I was eligible for Pandemic Emergency UNemployment benefits for 13 weeks beginning April 25, 2020 and I will draw 23 dollars per week, plus 600 per week. So I reported that on May 6 and instantly my SSA account said, I would not get SSI disability benefits June 1, 2020. Medicaid will stop JUne 1, but I need the medical insurance. So I was wondering if I can just request that the Unemployment benefits stop so my SSI benefits will start up again, or just how does that work? What do I need to do? I Need Medicaid for my health reasons, I can’t afford regular health insurance premiums. I thought the ticket to work program was suppose to help beneficiaries keep their Medicaid. I tried to be honest and report this and now I am being cut off, boy that is something isn’t it? I have been disabled (technically), since 1987, but have been actually all my life. Can someon please shed some light on what am can I do?.
Pamela E.
I am here to say that I hired an attorney for a Workman comp case. My attorneys who are crooked and did nothing to help my situation. Luckily for me I was awarded permanent disability for the rest of my life by the United States government. What they don’t tell you is how they take your income that you paid for by working for a company for 15 to 20 years. So instead of two incomes that by law are your money’s. They make up a lie and reduce your income to one. I have lost my house I have lost my livelihood I have lost my car I have lost everything that I have worked for. Please make sure that you don’t rely on your workman’s comp attorney . Get your facts and assistance from other people that can help you
MARY S.
MY HUSBAND WILL RETIRE AT AGE 62 I AM 58 AND ON SSD HOW AND WHEN WILL THIS EFFECT MY WAGES
V.V.
Hi Mary, thank you for your question. If you are receiving Supplemental Security Income (SSI), you need to report any changes in your household income, including unearned income such as retirement benefits. Please note that we will not consider economic impact payments as income for SSI recipients, and the payments are excluded from resources for 12 months.
For more about reporting income, check out the online booklet, Understanding Supplemental Security Income. To report your income, you can call us at 1-800-772-1213 (TTY 1-800-325-0778) or your local Social Security office. Please look for the general inquiry telephone number at the Social Security Office Locator. The number may appear under Show Additional Office Information. Please be aware that our call wait times are longer than normal. We hope this information helps.
rachel f.
My sister just got into an accident at her work whilst operating one of the machinery, that’s why we’re currently looking for a lawyer that specializes in workers’ compensation. I never knew that public disability statements could affect Social Security benefits. I’m also glad that you were able to state here how disability form private sources such as private pensions, won’t affect the SSD benefits. http://www.timlapointelaw.com/workers-compensation
Sarah
How can I get my social security payments direct deposit into my chase bank account
V.V.
Hi Sarah, thanks for using our blog. Check out our Frequently Asked Questions web page for the various ways you can sign up or update your direct deposit. We hope this helps.
Callie P.
I am permanently disabled, I am turning 64 this year in July, Why can’t i receive Medicare with my Medicaid?
Others i know get both Medicaid and medicare that are younger than me and are not blind.
I wanted to wait till i was 65 to take my SS paid in so the amount would be more but i was made to take it last year
Why can’t i get Medicare if i am getting my SS payments deducted from my SSI check?
I am so confused, I am very grateful for what i get ! But I don’t understand how some people can get Medicaid and Medicare as young as 60?
John W.
Does a loss of earnings lawsuit award get included on Schedule C for someone who was self=employed? (That may be a question for the IRS). And more importantly, the individual is drawing SSDI currently and are medically not expected to recover. Would the lawsuit affect their ability to draw SSDI if the net award is over the SSDI earning limit of $13,200 for one year? The individual is 60 years old.
Terri R.
Can you receive Soc. Sec. Disability and Catastrophic leave benefits (time donated by co-workers) at the same time?
David M.
I just turned to 31, what are the benefits that I can avail?
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