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 donâ€™t impact oneâ€™s receipt of Social Security disability benefits. Many public disability benefits, on the other hand, do. This means that workers â€˜compensation, civil service disability benefits, and state or local benefits based on disability can all impact oneâ€™s SSDI benefits.Â
There are some exceptions to the rule about public benefits. For instance, veterans receiving benefits through the Veterans Administration donâ€™t have to worry about those benefits impacting their receipt of SSDI. Supplemental Security, a program which provides funds to low-income individuals with disabilities, doesnâ€™t impact SSDI benefits either. Even state and local government benefits donâ€™t always impact SSDI if those taxes were deducted from oneâ€™s earnings.
Exactly how much oneâ€™s SSDI can be reduced is fairly simple. If the total amount of workersâ€™ compensation, public disability benefits and Social Security benefitsâ€”including benefits for family membersâ€”surpasses 80 percent of oneâ€™s average current earnings, the extra amount is deducted from oneâ€™s Social Security benefit. The exact calculation of oneâ€™s current earnings depends on oneâ€™s 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 oneâ€™s rights and interests will be advocated, particularly in the event of an appeal.
Source: Social Security Administration, â€œHow Workersâ€™ Compensation And Other Disability Payments May Affect Your Benefits,â€ Accessed September 4, 2014.Â