Disability Vs Unemployment Claims
If you are filing for Social Security disability, you are stating that you have been unable to perform substantial work activity for twelve months, or that you anticipate that you’ll be unable to perform substantial work activity for at least twelve months, due to a mental and/or physical impairment. But when filing for unemployment, you are stating you are ready and available to perform work should you be able to find a job that fits your work skills.
The Quick Answer: You Can But Its Not That Simple
This article was updated on Nov. 8, 2017, and originally published on Oct. 9, 2016.
No matter how long you’ve been working, it’s easy to get caught off guard if you suddenly find yourself out of a job. But becoming unemployed can be especially tough on older workers. According to research out of Boston College, unemployed workers who are 55 and over are less likely to find new jobs than unemployed younger workers.
The good news is there are a couple of programs in place to help older Americans stay afloat financially following the loss of a job. The first, unemployment insurance, is available to workers of all ages who meet the program’s criteria. The second, Social Security, is limited to those who are 62 and older. And if you’re eligible for both options, here’s some good news: You can collect Social Security and unemployment at the same time. Whether you should, however, is another story, especially since you may come to find that one benefit reduces the other.
Collecting Both Social Security And Unemployment
In most states it is possible to collect both your full unemployment insurance benefits as well as the entire amount of social security to which you are entitled. Contact your state unemployment office to find out if you are subject to the social security offset law that can cause your unemployment benefits to be reduced by as much as 50% of the social security payment you receive each month. That may result in it making more financial sense for you to wait until you qualify for full social security benefits before you apply. It can mean hundreds of dollars more for you each month.
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Collecting Both Types Of Benefits
The reason a person is eligible to both draw unemployment insurance benefits and Social Security retirement benefits for old age is that only income from work counts against the earnings test for unemployment benefits. Social Security benefits for old age are not wages, and unemployment benefits are not counted as wages under Social Securitys annual earnings limit.
What Does The Ssa Say
Social Security’s official stance is that receiving unemployment benefits does not prevent someone from receiving Social Security disability benefits, but that a disability claims examiner or ALJ can count the unemployment filing as one of the factors in considering whether an applicant is disabled. For instance, if a worker is collecting unemployment benefits and telling the state employment department that she has applied for certain jobs, the ALJ can take into account what those jobs were. If they were jobs requiring physical labor that the applicant claims she cannot do, Social Security can take that into account.
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Social Security And Noncitizens
A person who is not a U.S. citizen, but in the U.S. legally, may be eligible for Social Security benefits under certain circumstances. The noncitizen should apply for public benefits like Social Security through the Systematic Alien Verification for Entitlements program.
A noncitizen may also be eligible for SSI. They must fit one or more of seven qualifying alien categories to receive SSI. The categories include being a person who is lawfully admitted for permanent residence , a refugee, or someone granted asylum. A noncitizen must meet other rules for SSI eligibility, including limits on income and resources.
When a noncitizen has a sponsor, the Social Security Administration generally counts the sponsors income and resources as the applicants income and resources.
Learn More About Your Options
There are other ways it may be possible to collect both unemployment compensation and SSDI benefits, but going about it the wrong way can lead to serious legal consequences, including heavy fines, prison time, and even a felony charge for unemployment fraud.
It’s important to consult an attorney knowledgeable in SSDI benefits and unemployment when considering collecting both. To schedule a consultation with the attorneys of Foley Law Firm, please call 342-8194.
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The Discretion Of Disability And Unemployment Examiners And Administrative Law Judges
Can you collect unemployment and social security disability benefits by relying on persuasive advocacy in front of an examiner or an administrative law judge?
It is certainly possible.
After all, some of the foregoing loopholes rely on legal interpretations that have never before been tested in court.
In cases such as these, administrative law judges enjoy broad discretion in agreeing or disagreeing that you can collect unemployment and social security disability simultaneously.
Even if the interpretation of the law that you are advancing appears to be supported by precedent , an administrative law judge enjoys a certain amount of discretion in interpreting the meaning of these cases, and he may disagree with your conclusion that you can collect unemployment and disability. Different judges may view your argument in different ways.
Ultimately, the persuasive abilities of your lawyer can be critically important.
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.
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Can I File A Ssdi Claim While Receiving Unemployment Benefits
Employees who have been fired or laid off may consider filing for unemployment benefits. However, sometimes a job termination may be related to the employees disability. Perhaps the employee worked for an employer that allowed certain accommodations for the disability that other employers might not allow. For example, an employer might allow a disabled employee to take longer breaks, perform light duties only, or be excused from overly strenuous tasks. As Missouri disability attorneys, we have seen those employees have greater difficulty finding a new job. While they look, they may file a SSDI claim, but could they also be eligible for unemployment benefits?
Can You Get Unemployment While On Social Security
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In a Nutshell
If you are collecting Social Security benefits and have also recently lost your job due to company layoffs, the coronavirus pandemic, or other factors, you may be wondering if you can collect unemployment benefits on top of your Social Security benefits. The good news is that you can collect both types of benefits at once. These two types of benefits come from completely different sources and receiving one of them does not disqualify you from applying for the other one as well. Read on to learn more.
If you are collecting Social Security benefits and have also recently lost your job due to company layoffs, the coronavirus pandemic, or other factors, you may be wondering if you can collect unemployment benefits on top of your Social Security benefits. The good news is that you can collect both types of benefits at once. These two types of benefits come from completely different sources and receiving one of them does not disqualify you from applying for the other one as well. Read on to learn more.
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Where Can I Go For Help
Admittedly, the stakes are now higher when it comes to knowing what decision you want to make.
That is because the Social Security Administration, like many businesses, is running on a reduced capacity in the wake of COVID-19.
The agency’s offices are currently closed to the public. And while there is help available by phone, individuals with critical issues are taking a priority.
“You can apply online for benefits, and you don’t have to go to any office, which is good news,” Freitag said. “You just have to have the right information about your filing strategy.”
The Social Security Administration’s website has an abundance of tips on the ins and outs of retirement benefits.
It may also help to use a Social Security calculator to understand how your decision will impact your finances.
Can You Collect Unemployment And Social Security
September 8th, 2010 | Published inRetirement, Social Security |
With the unemployment rate being so high many people are wondering whether they can collect Social Security and unemployment benefits. The simple answer is yes. You can collect both unemployment and Social Security retirement benefits. However, in five states Illinois, Louisiana, South Dakota, Utah, and Virginia your unemployment benefits are reduced when you are receiving Social Security retirement benefits. Most of these have a 50 percent offset which means for every dollar in Social Security retirement benefits you receive your unemployment benefit is reduced by 50 cents. This could result in ones unemployment benefits being reduced to zero.
Since many states are paying out a lot in unemployment benefits and are looking for ways to reduce their expenses it is possible that more states will pass offset laws. You should check with your state to see if it has an offset law.
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Will Applying For Social Security Benefits Affect Unemployment
While unemployment benefits will not affect Social Security payment amounts, unless the payments exceed the SSI maximum, the opposite is true under some circumstances. Funds received through one of Social Security benefit programs may end up reducing a persons unemployment benefits, depending on the state in which the recipient lives.
Social Security benefits only affect unemployment benefit amounts in the following states: Illinois, Louisiana, Minnesota, and South Dakota .
This wasnt always the case. In the early 2000s, 20 states and the District of Columbia had Social Security offset laws. States began repealing them in 2003 amid advocacy efforts on the issue. The most recent state to do so was Illinois, which repealed its offset law in 2015.
Minnesota still has partial offset laws regarding Social Security and unemployment compensation. For residents who receive both benefits, Minnesota reduces unemployment insurance by half of your Social Security benefits. There are determining factors, such as when you started receiving disability payments and the length of time between filing for Social Security and filing for unemployment.
Is It Possible To Collect Both
Trying to collect unemployment compensation and Social Security benefits for a disability at the same time can be difficult due to the inherent contradiction between the two services.
In order to collect unemployment benefits, you must be actively looking for a job and be willing to work. Social Security Disability Insurance requires the opposite: you must be unable to work.
Despite the contradictory nature between unemployment and Social Security, it is sometimes possible to collect both.
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Learn More About Your Social Security
One way to learn more about your social security situation and how social security benefits might affect your unemployment benefits is to create a my Social Security Account.” It is an online account run by the Social Security Administration. You can create an online account, whether or not you currently receive social security benefits.
With a my Social Security Account, you can estimate your future benefits and get an estimate on the social security taxes you have paid so far.
You can also receive a benefit verification letter. This letter will state whether or not you are currently receiving, or have ever received social security benefits. It will also state whether you have applied for benefits but have not received them yet. The letter will also include the dates you have received these benefits.
The information contained in this article is not legal advice and is not a substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your own states laws or the most recent changes to the law.
Here Are The Rules For Getting Social Security While On Unemployment
If you’re hoping to collect both Social Security and unemployment, you’re in luck: There’s nothing standing in your way of getting both.
As long as you qualify for unemployment under your state’s requirements, you can get these benefits even if you’re on Social Security. And while unemployment benefits can be reduced under state rules if you earn income from doing work while you’re receiving them, you won’t see your checks reduced based on money coming from the Social Security Administration. Although some states did dock benefits in the past, they’ve all repealed rules allowing that.
And money from unemployment also won’t count as wages that affect the amount of your Social Security checks, so there will be no reduction in your retirement benefits based on your jobless benefits.
In short, you can get the full amount of both unemployment and Social Security that you’re entitled to under each program, which can really go a long way toward helping you make ends meet.
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Minnesota Has Unique Rules
Minnesota is the only state where collecting Social Security monthly payments will reduce the amount of unemployment benefits. The date on which the UI claimant began receiving Social Security, and the date on which they filed for unemployment benefits are important. If the effective date of the Social Security claim for old age benefits is before the start of the person’s UI base period, the Social Security payment will not affect unemployment benefit payments. If the effective date of the Social Security claim is after the start of the base period, half of the weekly Social Security amount will be deducted from the benefit payment.
With respect to Social Security disability benefits, if the effective date of the Social Security disability claim is before the start of the base period, the Social Security payment does not affect unemployment benefit payments. If the effective date of the Social Security disability claim is after the start of the base period, half of the current or potential Social Security disability benefit is deducted from the benefit payment. Claimants must provide medical evidence that they are able to work. In Minnesota, SSI and survivors or dependent Social Security benefits do not reduce unemployment benefit payments.
Can I Collect Unemployment And Social Security In Connecticut
Can I Collect Unemployment And Social Security In Connecticut. The department collects information on your four most recent quarters of employment, averages the earnings from the two quarters where you earned the highest wages and provides you. Potential candidates may wonder how to apply for unemployment online in connecticut or where they can access these applications in person.
However your unemployment benefit may be reduced if you receive benefits from social security at the same time with your unemployment benefits. At the time of filing you will need information including your social security number, separation packet, if one was provided by your employer. Many states, such as connecticut, allow unemployed individuals to file a claim for unemployment insurance payments while they may also be collecting any severance payments from their former company, kardas says. You have two options for receiving your weekly benefits: The connecticut department of labor provides unemployment benefits to workers who lost their jobs.
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Social Security Disability And Ui
Unemployment benefits are paid to people who’ve lost their jobs, and Social Security Disability Insurance benefits are paid to those unable to work. Applying for UI benefits while collecting SSDI therefore is a relatively uncommon event. Some SSDI applicants apply for UI benefits while their SSDI applications are pending, a process that sometimes takes years. In other cases, SSDI recipients working in a limited capacity who are receiving reduced disability payments may lose their jobs and thus be eligible to file for UI benefits. If you are receiving SSDI payments and file for Illinois unemployment benefits, the base period on which your unemployment benefits are calculated might be adjusted.
The Substantial Gainful Activity Loophole
If you work but earn less than $1,220 per month, you will be eligible for disability and partial unemployment benefits.
The potential problem with this approach, other than the reduction in the amount of your unemployment benefits, is that Pennsylvania will require you to continue seeking full-time work, yet your disability payments are based on the assumption that your disability prevents you from working full-time.
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Fraudulent Disability Claim Or Unemployment Claim
Government agencies like the Department of Labor, the Social Security Administration, and state unemployment agencies watch for potentially fraudulent behavior.
For example, unemployment beneficiaries may be asked if they are actively seeking work, but also be asked if they have filed a disability claim. Personnel reviewing an unemployment application claim may red flag someone who says they have filed for disability. If the agency determines that the individual has received benefits in error, the individual typically has to repay the benefits.
