Many people working nowadays have more than one job, so it’s not uncommon for them to have several sources of income. Owning multiple small businesses, seasonal jobs, and the gig economy add to the mix—and complexity—of our modern-day economy. It’s important to keep in mind that having multiple sources of income can sometimes affect your Social Security benefits.
Disability payments from private sources, such as private pensions or insurance benefits, don’t affect your Social Security disability benefits. Workers’ Compensation and other public disability benefits, however, may reduce your Social Security benefits. Workers’ Compensation benefits are paid to a worker because of a job-related injury or illness. These benefits may be paid by Federal or state Workers’ Compensation agencies, employers, or by insurance companies on behalf of employers.
Public disability payments that may affect your Social Security benefits are those paid from a Federal, state, or local government for disabling medical conditions that are not job-related. Examples of these are civil-service disability benefits, state temporary disability benefits, and state or local government retirement benefits that are based on disability.
Some public benefits don’t affect your Social Security disability benefits. If you receive Social Security disability benefits, and one of the following types of public benefits, your Social Security benefits will not be reduced:
• Veterans Administration benefits;
• State and local government benefits, if Social Security taxes were deducted from your earnings; or
• Supplemental Security Income (SSI).
You can read more about the possible ways your benefits might be reduced here.
Please be sure to report changes. If there is a change in the amount of your other disability payment, or if those benefits stop, let us know. Tell us if the amount of your Workers’ Compensation or public disability payment increases or decreases. Any change in the amount or frequency of these benefits is likely to affect the amount of your Social Security benefits.
An unexpected change in benefits can have unintended consequences, but not if you’re informed and have financially prepared yourself. Visit our benefits planner webpage here for information about your options for securing your future.
Mr. Flow is District Manager of the Social Security Administration’s Downtown New York Office.
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