Gade & Parekh, LLP formerly the Law Office of Elizabeth Gade, Inc. Gade & Parekh, LLP formerly the Law Office of Elizabeth Gade, Inc.

Combining benefits can help you earn more after an injury

If you're hurt on the job, it's possible that you can apply for an also obtain Social Security Disability Insurance. This insurance covers people who cannot return to work, since they then are considered to have a long-term, or permanent, disability.

If you plan to obtain SSDI, it's a good idea to understand how workers' compensation benefits, along with other possible payouts, could affect SSDI now and in the future. Disability payments from workers' compensation and public disability benefits will reduce the amount of your SSDI benefits in some cases. This is because there are limits to how much you can earn or have in monetary support and still qualify for disability insurance payments.

How much can you receive in workers' compensation and public disability benefits when combined with Social Security disability benefits?

You are able to receive up to 80 percent of your average current earnings. That means that you won't be entitled to the full amount of your pay, even when workers' compensation and public benefits are combined. The reason for this is that Social Security disability benefits are not taxed, so the earnings should work out to be the same or similar to what you earned after taxes while working.

What income won't affect your Social Security disability?

While disability benefits can't pay out more than 80 percent of what you earned, you are able to receive additional funds from private sources, like a private pension or insurance benefit. There are also some public benefits that don't affect your SSDI. These include Veterans Administration benefits, Supplemental Security Income and state or local government benefits if Social Security taxes were paid on them.

Social Security disability is paid out until the month when you reach the age of 65. At that time, it converts into retirement. At full retirement, any additional benefits may kick in, which could increase the amount you're given monthly. Every person's situation is different at that time, so it's a good idea to plan in advance with help from an attorney.

If there are changes at any time during the period when you receive SSDI, it's important to let the Social Security Administration know right away. Social Security disability benefits may need to be adjusted based on changes in monthly income or the ability to work, so this is something to address on a case-by-case basis as you get to know your condition and its effect.

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