To qualify for disability benefits through the Social Security Disability Insurance and Supplemental Security Income programs available through the Social Security Administration, you must be unable to work. The question posed by the title of this article appears to be a simple one answerable with a “yes” or “no,” but nothing to do with Social Security is ever that simple.
As you continue reading, this explains how unemployment may affect someone’s ability to receive and qualify for disability benefits because of their eligibility requirements other than being unable to work. You’ll learn about how work credit requirements for SSDI and income limitations for SSI may be affected by your unemployment.
Work Requirements For SSDI Benefits
The SSDI program allows workers to receive the equivalent of their Social Security retirement benefits before retirement age when they cannot work because of a disability. To be eligible for SSDI benefits, you must have worked at jobs where Social Security taxes were paid on your earnings.
You must have worked long enough and recently enough to be eligible for benefits. The Social Security Administration uses work credits to determine if you meet the work requirements. You earn one work credit for every calendar quarter based on your earnings up to an annual maximum of four credits.
One work credit is earned for each $1,730 in earnings in 2024. The earnings amount changes yearly, so you must earn $1,810 for a work credit in 2025.
The number of work credits needed to qualify for disability benefits depends on how old you are at the onset of the disability. You generally need 40 credits, with 20 earned within 10 years before becoming disabled. This is where unemployment may affect your eligibility for SSDI benefits.
How Does Unemployment Affect SSDI Disability Benefits?
There are two ways being unemployed may affect your eligibility for disability benefits through the SSDI program:
- It could leave you without enough total credits.
- It could prevent you from having enough recently earned credits.
The lack of work credits or recently earned credits may not be an issue depending on your age. Younger workers may qualify for SSDI with fewer credits.
For example, workers younger than 24 years of age when their disability starts may be eligible for SSDI benefits with only six work credits earned within three years of the onset of disability. If you do not have the work credits required to qualify for disability benefits through the SSDI, SSI benefits may be an option.
Unemployment And Disability Benefits
SSI does not have a work requirement for eligibility because it is a needs-based program for people with limited income and resources. Resources are assets you own, such as cash, real estate, and cars, that can be converted into cash to pay for shelter, food, and other essentials. The value of all resources you own cannot exceed $2,000 for individuals and $3,000 for couples.
If you are eligible for unemployment benefits, it could affect your ability to qualify for SSI benefits. Unemployment benefits count as income to determine eligibility for SSI and reduce the amount of the monthly SSI benefits you receive.
The current maximum monthly federal benefit payment through SSI is $943 for individuals and $1,542 for eligible couples. Unemployment benefits you receive count as unearned income except for a $20 monthly exclusion. If you receive $400 monthly in unemployment benefits, the $943 SSI benefit payment you could receive each month is reduced by $380 for as long as the unemployment benefits continue.
Unemployment benefits do not affect SSDI benefits as they do SSI, but receiving them may cast doubt on your claim of being disabled and unable to work. As a condition of receiving unemployment benefits, you must actively look for work.
If you are disabled, contact a disability benefits lawyer before applying for unemployment benefits. The lawyer can review your situation and advise you about the best way to proceed.
