Does collecting unemployment affect your social security

Unemployment Insurance (UI)

About UI

• Eligibility is state-based.
• Generally, eligibility requires that you are unemployed due to no fault of your own, which means that you lost the job due to lack of available work.
• You must also meet work and wage requirements, sometimes called a base period. The “standard” base period uses the wages earned in the first four of the last five completed calendar quarters prior to the beginning date of the unemployment claim.

COVID-19

• During the pandemic, some eligibility requirements are being waived and some benefits are being extended or expanded.  
• Always check with your state’s unemployment office for details about eligibility.
• As of December 2020: 
  • Those who qualify for unemployment benefits will receive an additional $300 per week for 11 weeks, starting at the end of December through March 14.
  • An additional 11 weeks have also been added to the total number of weeks people can collect unemployment benefits (on top of the 13 week extension that had been added by the CARES Act in March 2020).
  • States may also begin offering an additional federal benefit of $100 per week to people who have earned at least $5,000 a year in self-employment income. This would also end on March 14.

Unemployment Insurance (UI) and SSI/SSDI

Supplemental Security Income (SSI)

• SSI is a needs-based program.
• Recipients are required to apply for any other benefit they may be eligible to receive which includes UI
• Recipients may be eligible for more income through UI than SSI
• SSI would be suspended while receiving UI over the Federal Benefit Rate

Social Security Disability Insurance (SSDI)

• SSDI is an insurance program
• Unearned income and resources do not impact eligibility
• Recipients may be eligible to receive both UI and SSDI
• UI has no impact on the SSDI benefit amount or eligibility

Economic Impact (Stimulus) Payments

About Economic Impact Payments

• The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) authorized Economic Impact Payments, commonly referred to as stimulus payments.
• Stimulus payments through CARES are not taxable.
• Eligible individuals received the first stimulus payment of $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child in March 2020.
• The second stimulus payment of $600 ($1,200 if married filing jointly) plus $600 for each qualifying child was sent to eligible individuals in December 2020.
• In March 2021, eligible individuals received the third stimulus payment of $1,400 ($2,800 if filing jointly) plus $1,400 for each dependent claimed on their tax return (including adult dependents).
  • Some people will receive this payment in the form of an Economic Impact Payment (EIP) prepaid card.
• The National Health Care for the Homeless Council has a helpful FAQ document on the Economic Impact Payments: https://nhchc.org/wp-content/uploads/2020/04/FAQ-on-Economic-Impact-Payments.pdf

Eligibility

• Most U.S. citizens and permanent residents who are not dependents of another taxpayer and also have an adjusted gross income or earnings under a certain threshold are eligible.
• Eligible individuals who did not receive any payments or got less than the full amounts may qualify for the Recovery Rebate Credit even if they don’t normally file taxes.
• Eligible individuals experiencing homelessness who do not have a permanent address or bank account can still receive stimulus payments and other tax benefits. 
• Read more at https://www.irs.gov/coronavirus/economic-impact-payments.

Stimulus Payments and SSI/SSDI

Supplemental Security Income (SSI)

• The stimulus payments will not count as income for that month
• The stimulus payments will not be counted as a “resource” for twelve months from the month of receipt
• SSI recipients do not need to do anything to receive stimulus payments

Social Security Disability Insurance (SSDI)

• The stimulus payments are categorized as unearned income
• SSDI benefits are not impacted by unearned income
• The stimulus payments will not have an impact on SSDI or Social Security Retirement benefits
• The stimulus payments will also have no impact on Medicare premiums or eligibility
• SSDI recipients do not need to do anything to receive stimulus payments

Can you get unemployment benefits if you are getting social security? Laid-off workers who receive social security benefits should be able to collect unemployment if they lose their job, as long as they meet the eligibility requirements. In most cases, you can receive both social security and unemployment benefits.

Collecting Social Security and Unemployment

Full unemployment insurance benefits are available for eligible workers who are collecting social security in most states. In the past, there were exceptions in some states where the amount of unemployment compensation was offset by some of the social security benefits that were received.

Note

Eligibility requirements to qualify for unemployment compensation vary from state to state. In most states, you can collect both full unemployment benefits and social security. Check with your state unemployment office for details.

Social Security Offset Law

Previously, in some states, the amount of unemployment compensation was partially offset by the sum of social security payments that were received. In those locations, unemployment could have been reduced by 50% of your social security benefit.

It is called the "offset law" and, in the states where it was in effect, part of social security payments are counted as disqualifying income when calculating unemployment benefits.

Unemployment Benefits' Impact on Social Security

While social security benefits might reduce your unemployment benefits (depending on which state you live in), collecting unemployment compensation won't reduce your social security benefits. That's because social security only counts wages as income when calculating benefits. Unemployment is not considered salary and, therefore, it is not counted.

Social Security's Impact on Unemployment Compensation

If you are collecting unemployment and receiving social security, check with your state unemployment office for information on how your unemployment compensation benefits are impacted. It's possible that the income you receive from social security may impact the amount of unemployment you receive.

Disqualifications for Unemployment

There are also circumstances when you might be completely disqualified from unemployment benefits. These include insufficient earnings, being fired for cause, or quitting without a good cause. Other disqualifications include being self-employed or leaving to attend school. Click here for an even longer list of unemployment benefit disqualifications.

If you file for unemployment and your claim is turned down, you can choose to file an unemployment appeal if you believe you should receive unemployment. The process varies depending on the state, but the general steps are the same.

When you file an unemployment appeal, you will attend a hearing (an informal trial held before an unemployment appeals board or judge) and testify as to why you believe you are entitled to unemployment insurance benefits. Your former employer will also testify. Here is more information on how to file an unemployment appeal.

How to File for Unemployment

Eligibility for unemployment, the length of time one can receive unemployment, and the total amount of benefits received, vary state by state. The amount you will receive also depends on how much you earned at your former job.

You need to open a claim to apply for and begin collecting unemployment. For more information, check your state unemployment office website for information on what's required to file a claim in your state.

Learn More About Your Social Security

One way to learn more about your social security situation and how social security benefits might affect your unemployment benefits is to create a “my Social Security Account." It is an online account run by the Social Security Administration. You can create an online account, whether or not you currently receive social security benefits.

With a “my Social Security Account,” you can estimate your future benefits and get an estimate on the social security taxes you have paid so far.

You can also receive a benefit verification letter. This letter will state whether or not you are currently receiving, or have ever received social security benefits. It will also state whether you have applied for benefits but have not received them yet. The letter will include the dates you have received these benefits.

The information contained in this article is not legal advice and is not a substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your own state’s laws or the most recent changes to the law. 

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