Types of Income/Benefits That May Reduce Social Security Disability Benefits

January 22, 2019
Dayes Law Firm

Are you receiving a pension or public or government benefits? If you want to apply for Social Security Disability benefits or you already have, you should learn about how different types of benefits like these can affect your Social Security Disability Insurance benefits.

Below, our experienced Phoenix Social Security Disability attorneys discuss the types of income that do not affect your benefits, as well as those that do. If you need assistance with your disability claim, contact us for a free, no obligation consultation right now.

Benefits That Do Not Reduce Social Security Disability

There are a few different types of income that will not decrease your disability benefits. These types of income include:

  • State and local government retirement benefits based on disability
  • Private pensions
  • Private insurance benefits
  • Veterans Administration (VA) benefits
  • Unemployment benefits
  • Supplemental Security Income (SSI)
  • Paid sick leave
  • Settlements from a case concerning negligence or other tort
  • Railroad Unemployment Insurance Act (RUIA) payments
  • Federal Employer’s Liability Act (FELA) claim payments
  • Jones Act claim payments

Income That Will Decrease Disability Benefits

Certain types of income will reduce the amount of your disability benefits. These income types include:

  • Workers’ compensation payments
  • Retirement benefits from state and local governments
  • State temporary disability benefits
  • Civil service disability benefits

However, when all of the benefits you receive are greater than 80 percent of your average current earnings, your Social Security Disability payments will be reduced to offset the excess amount of money. For example, if your total amount of benefits is 85 percent of your average current earnings, the extra five percent would be deducted from your Social Security Disability benefits. Your disability benefit will be decreased until the month you reach full retirement age or the month your additional benefits end – whichever occurs first.

Working While Receiving Benefits

You can still work and receive Social Security Disability benefits. The exception is if you earn more than the limit for substantial gainful activity (SGA). In 2019, this number is $1,220 per month and $2,040 if you are blind.

However, you are entitled to test your ability to work while still receiving full benefits. You can have a nine-month trial period where you work and can earn more than the SGA limit and continue receiving benefits. For the next 36 months after that trial period, you can receive benefits for any month where your earnings fell below the SGA threshold.

Another thing to keep in mind is that there is a five-year period after the nine-month trial period when you can have your benefits reinstated if you become too disabled to work, and you will not have to file a new application.

Contact Our Disability Attorneys for Help

If you need help with your disability claim or appealing a decision, our skilled disability attorneys are here to help. Our attorneys know which benefit types affect your disability payments and we will work to ensure you receive the maximum benefit amount possible. We will review your claim and inform you of the legal options that may be available for pursuing the benefits you qualify for.

Request a free, no obligation consultation today. There are no upfront fees and payment is only owed if we recover compensation for you.

Call 1-800-503-2000 or fill out our Free Case Review form now.

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