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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Mohammed G.
Sir, the Social Security Office, I ask you to provide me with a service and some inquiries and support about my Social Security number and the security card because I lost my card and I am trying to get my account open again. Can you help me in this matter Thank you very much
Sharon S.
I am receiving SSD from a work injury. I received an award letter from Compensation. How and where do I send or upload a copy to?
Susan
Thanks for your question, Sharon, and for reading our blog. Please mail or fax a copy of your award letter to your local Social Security office. Use our Social Security Office Locator to obtain your local office mailing address, phone number, and fax number. For more information, you may want to review our online pamphlet, “How Workers’ Compensation and Other Disability Payments May Affect Your Benefits.” We hope this information is helpful.
Abraham
if I am receiving SSD, can I still receive any type of 1099 TAX incomes like Saving income, Stock trade investments, Dividends, rental incomes, etc sending 1099 Tax forms to me at the end of year.
whether those incomes affect my SSD benefits or not if that earnings are more than $20K a year?
Linda S.
I receive SSDI, my 94-yr old Mother has a care provider, however she wants me to do personal bathing care. Can I become her additional care provider without affecting my SSDI?
Vonda
Hi Linda, 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 2021, any month in which earnings exceed $940 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 2021, you are earning SGA if your earnings, after any allowable deductions, are more than $1,310 in a month.
Check out Social Security’s Red Book for descriptions of the many work incentives.
Justin P.
My state paid disability has exhausted. How do I notify Social Security of the latter so my SSDI can be increased? Thank you.
Vonda
Hi Justin, thanks for using our blog. Please contact your local Social Security office. 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.
Rubab
They should have given Insurance Payments instead of Disability Payments. Better Career
Bubzy
Amazing!
Thanks for sharing…
Rebecca M.
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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?
Vonda V.
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).
johnny c.
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