Unemployment Benefits & Social Security Disability Benefits

General Rule And Exceptions

Overview. Unemployment benefits may affect your Social Security disability and SSI benefits by way of an offset, amended disability onset date, and reduced back pay because you cannot receive or collect unemployment benefits and Social Security disability benefits at the same time (retirement benefits are different). However, there are two exceptions to this rule.

General Rule. When you receive state unemployment benefits, you tell the state in which you live that you are not disabled and able to work. You search for jobs. You report your job searches to the state. If you allege disability to Social Security during the same time period you received state unemployment benefits, Social Security will determine you are not disabled during that same time period because you told the state in which you live you were not disabled, and you looked for work.

Exception One. The first exception to the general rule is that you told the state paying you unemployment benefits that you had physical or mental/emotional work limitations. In this case, the state will have paid you unemployment benefits despite your limitations, and you looked for work that would accommodate your limitations. In this case, you will need to submit to Social Security your unemployment records documenting that you, in fact, informed the state that you had limitations.

Exception Two. The second exception to the general rule is that Social Security simply ignores the fact that you received state unemployment benefits. It happens, but it is very rare, and why it does happen is a mystery. Therefore, you should not count on this exception happening.

What To Do In Your Social Security Disability Case If You Have Received Unemployment Benefits

You Do Not Meet An Exception. If you do not meet the first exception (most of you), you have three choices. First, you can amend (change) your onset date of disability (when you became disabled) to the day after your state unemployment ended. Second, you can amend your onset date of disability to a date sometime after the day your unemployment ended when your medical records support disabling limitations. Third, you can wait to see if Social Security will ignore the fact you received unemployment benefits. In nearly all circumstances, Social Security will ask you to amend your onset date of disability, and this amended date will usually be to a date wherein your medical records support disabling limitations.

For example, you stopped working January 5, 2020; you received state unemployment benefits until July 1, 2020; and you alleged disability with Social Security as of January 5, 2020. You will need to amend your onset date of disability. It is unlikely you became disabled the day after unemployment benefits ended. Hence, amending your onset date of disability to July 2, 2020 is likely not reasonable. Think about it. You were not disabled July 1, 2020 (the last day of unemployment), and you became disabled the next day, July 2, 2020 (the day after unemployment ended). Probably not. Instead, you should amend your onset date of disability to a date wherein your medical records support disability, and which date is appropriate is often a difficult judgment call. But for nearly all, there is a date after unemployment benefits ended that you became disabled; this should be your amended onset date of disability.

You Meet The First Exception. If you do meet the first exception, you have four choices. First, if you reported disabling limitations to the state, do not amend. Second, amend to the day after your unemployment benefits ended if Social Security allows it. Third, amend to the date your medical records support disabling limitations (this may be the day after your unemployment ended, but it will likely be a later date). Fourth, hope Social Security ignores your receipt of unemployment benefits. Again the date chosen as your onset date of disability is often a difficult judgment call.