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Will receiving workers’ comp impact your SSDI benefits?

On Behalf of | Mar 19, 2022 | Social Security Disability |

Receiving Social Security Disability Insurance depends on factors, including your work history and your ability to work. Therefore, receiving worker’s compensation benefits from an on-the-job injury may affect the earnings you get from the U.S. Social Security Administration.

Understanding how workers’ compensation will affect your SSDI may help you avoid losing the benefits you need and deserve.

Limiting benefits

According to Social Security, the disability benefits program requirements limit the workers’ compensation and SSDI benefits you may receive simultaneously. If you receive both these benefits and the total amounts go over 80% of your average earnings prior to your disability, then your benefits may see a reduction.

Not all public benefits affect disability benefits the way that workers’ compensation does. For instance, you typically will not face reductions for also receiving Supplemental Security Income, Veterans Administration benefits, or certain local and state government coverages.

Determining new benefit amounts

Your Social Security benefits will generally reduce by the amount your benefits exceed the allowed amount by. For example, your average monthly earnings before disability totaled $4,000. You currently receive $2,000 per month in workers’ compensation benefits, and you have eligibility for up to $2,200 per month in SSDI benefits. Together, those benefits would exceed 80% of your average monthly earnings, or $3,200. As such, the SSA would likely reduce your disability benefits by $1,000 to bring your earnings within the allowable level.

If struggling with a disabling injury or illness, you likely depend on SSD and other benefits to help you support yourself and your family until you can go back to work. Thus, you may find it helpful to understand how your benefits work and the things that may affect their amounts.