Many of those who receive disability benefits through the Social Security disability program also receive other forms of government benefits. Before applying for SSDI, it is important to understand how receipt of other benefits can affect SSDI payments.
Fortunately, disability payments from private sources donât impact oneâs receipt of Social Security disability benefits. Many public disability benefits, on the other hand, do. This means that workers âcompensation, civil service disability benefits, and state or local benefits based on disability can all impact oneâs SSDI benefits.Â
There are some exceptions to the rule about public benefits. For instance, veterans receiving benefits through the Veterans Administration donât have to worry about those benefits impacting their receipt of SSDI. Supplemental Security, a program which provides funds to low-income individuals with disabilities, doesnât impact SSDI benefits either. Even state and local government benefits donât always impact SSDI if those taxes were deducted from oneâs earnings.
Exactly how much oneâs SSDI can be reduced is fairly simple. If the total amount of workersâ compensation, public disability benefits and Social Security benefitsâincluding benefits for family membersâsurpasses 80 percent of oneâs average current earnings, the extra amount is deducted from oneâs Social Security benefit. The exact calculation of oneâs current earnings depends on oneâs circumstances, so there is no single formula.
It is important for those who apply for Social Security disability benefits to work with an experienced attorney when submitting a claim. Doing so ensures that any mistakes by the Social Security Administration will be caught and that oneâs rights and interests will be advocated, particularly in the event of an appeal.
Source: Social Security Administration, âHow Workersâ Compensation And Other Disability Payments May Affect Your Benefits,â Accessed September 4, 2014.Â