If you are unable to work because of a disability, you may wonder whether you can receive Social Security Disability Insurance (SSDI) and unemployment benefits at the same time.
The short answer is: It may be possible to receive both, but collecting unemployment while pursuing or receiving SSDI can create complications with your disability claim.
That is because the two programs generally operate under very different assumptions about your ability to work. Unemployment benefits are generally intended for people who are able and available to work but are unemployed through no fault of their own. SSDI, on the other hand, is intended for people whose medical conditions prevent them from engaging in substantial gainful activity.
If you are receiving or considering unemployment benefits while applying for SSDI, it is important to understand how the two claims can interact.
What Is the Difference Between SSDI and Unemployment?
SSDI and unemployment benefits serve different purposes.
Social Security Disability Insurance (SSDI) is a federal program administered by the Social Security Administration (SSA). To qualify, you generally must have a qualifying disability that prevents you from performing substantial gainful activity and that is expected to last at least 12 months or result in death. You must also have enough qualifying work history to be insured for SSDI.
Unemployment benefits, by contrast, are administered by individual states. While eligibility requirements vary, unemployment generally requires you to be unemployed and able and available to work.
That difference is important.
When you apply for unemployment, you are generally representing that you are capable of working and are seeking employment. When you apply for SSDI, you are asserting that your medical condition prevents you from working at a level that qualifies as substantial gainful activity.
These positions can appear contradictory—even when there are legitimate circumstances that explain why someone received or applied for both benefits.
Can You Get Unemployment and SSDI at the Same Time?
There is no blanket rule that automatically prevents someone from receiving unemployment benefits and SSDI at the same time.
However, receiving unemployment benefits can affect how Social Security evaluates your disability claim.
The issue is often one of timing and the specific circumstances surrounding your unemployment and disability.
For example, someone may lose their job and initially believe they are capable of returning to work. They may apply for unemployment benefits while looking for another job. Later, their medical condition may worsen, or they may realize that their condition prevents them from maintaining employment. They may then apply for SSDI.
That situation is different from someone who is simultaneously telling an unemployment agency that they are ready, willing, and able to work while telling the Social Security Administration that they cannot work because of a disabling condition.
The facts matter.
Why Can Unemployment Affect an SSDI Claim?
One of the biggest issues is the apparent inconsistency between the requirements of the two programs.
When determining whether someone is disabled, Social Security considers whether the person can perform substantial gainful activity. The agency evaluates the person’s medical condition, functional limitations, work history, and other evidence.
If an individual has stated that they are able to work and available for employment, that statement could potentially be considered when Social Security evaluates whether the individual is disabled.
This does not necessarily mean that an SSDI claim will be denied simply because someone received unemployment.
Instead, Social Security may look more closely at what the person actually reported, when they reported it, and what was happening with their medical condition at the time.
For example, there may be a meaningful distinction between:
- Being physically capable of performing some type of work but unable to find a job;
- Being capable of working when unemployment benefits were initially claimed but later becoming disabled;
- Attempting to return to work but being unable to sustain employment because of a medical condition; and
- Claiming to be completely unable to work while simultaneously representing that you are ready and able to accept full-time employment.
Those circumstances can have very different implications for an SSDI claim.
Does Receiving Unemployment Automatically Disqualify You From SSDI?
No.
Receiving unemployment benefits does not automatically mean you are ineligible for SSDI.
However, it can raise questions about your ability to work, particularly if the dates and statements associated with your unemployment claim conflict with the alleged onset date of your disability.
Social Security may consider information from your unemployment claim when evaluating your application.
This is one reason it is important to be accurate and consistent when discussing your ability to work. Your disability claim should explain what changed, when it changed, and why your medical condition prevents you from maintaining substantial employment.
What If You Applied for Unemployment Before Your Disability Began?
This can be an important distinction.
Suppose you lost your job in January and applied for unemployment because you were initially able to work. In March, your medical condition significantly worsened, and you stopped being able to maintain employment.
You may have a legitimate basis for pursuing SSDI based on a later disability onset date.
The fact that you received unemployment earlier does not necessarily mean that you were never disabled.
The key question is often whether the evidence supports the date you became unable to work because of your medical condition.
This is why documenting changes in your condition, work attempts, medical treatment, and functional limitations can be important.
What If You Are Already Receiving SSDI?
If you are already receiving SSDI and later apply for unemployment, you should proceed carefully.
Because unemployment eligibility generally involves being able and available to work, applying for unemployment while receiving SSDI could raise questions about your ability to work.
That does not mean every situation will have the same outcome. State unemployment laws differ, and individual circumstances matter.
If your circumstances have changed and you are considering returning to work, it may be appropriate to explore the work incentives available to SSDI beneficiaries before making decisions that could affect your benefits.
Can You Receive Unemployment While Waiting for an SSDI Decision?
This is one of the situations in which people often have questions.
An SSDI application process can take months or longer to resolve. Someone who has lost their job may need income while waiting for Social Security to make a decision.
Applying for unemployment does not automatically prevent someone from applying for SSDI.
However, the applicant should understand that the two claims may involve different representations about their ability to work.
If you are pursuing both, it is especially important to be truthful and consistent about your circumstances.
Do not change your description of your medical limitations simply to make one application fit the requirements of a particular program.
If your circumstances changed over time, explain that change accurately.
What Should You Do If You Are Receiving Both?
If you are receiving unemployment and are considering applying for SSDI—or if you are already pursuing an SSDI claim—it can be helpful to:
1. Keep your dates straight
Know when you stopped working, when your medical condition became disabling, when you applied for unemployment, and when you applied for SSDI.
2. Be accurate about your ability to work
Do not claim that you are completely unable to work if that is not an accurate description of your circumstances. At the same time, do not minimize your limitations when discussing your disability claim.
3. Understand what you represented in your unemployment application
Statements made during the unemployment process may become relevant to your disability claim.
4. Keep medical documentation
Medical records can help establish when your condition worsened and how it affects your ability to work.
5. Consider speaking with an experienced disability attorney
If you are concerned that your unemployment benefits could affect your SSDI claim, an attorney can review the specific facts, dates, and evidence involved in your case.
What If You Received Unemployment and Your SSDI Claim Was Denied?
A denial does not necessarily mean you cannot pursue SSDI.
Social Security disability claims can be denied for many reasons, including insufficient medical evidence, questions about the severity of a condition, or findings regarding a claimant’s ability to perform work.
If you received unemployment, it may be particularly important to understand why Social Security denied your claim and what evidence was considered.
If you disagree with the decision, you generally have appeal rights and should pay close attention to the deadline listed in your denial notice.
At Parmele Disability Advocates, we focus on helping people pursue disability benefits when they are unable to work because of a disabling condition. If your claim has been denied, our attorneys can review your situation and help you understand your options for appeal.
Attorney Insight
Parmele Disability Advocates’ attorney, Felicia Von Holten, shared the following advice:
“Typically, in order to apply for unemployment, someone has to certify that they are ready, willing, and able to work. When applying for SSDI benefits, you’re stating inability to work. These are contradictory to each other. While SSA won’t automatically disqualify you for applying for unemployment, an explanation to the contradiction may be required. There are ways to argue that applying for unemployment isn’t saying you can work at SGA-level or on a consistent basis, but ultimately, applying for unemployment is an additional hurdle to overcome in a disability case.”
Can You Collect SSDI and Unemployment? Key Takeaways
Can you collect Social Security Disability and unemployment at the same time?
It can be possible, but the combination can create questions about your ability to work.
Unemployment benefits generally require you to be able and available to work, while SSDI requires you to establish that your disability prevents you from engaging in substantial gainful activity.
That does not mean receiving unemployment automatically disqualifies you from SSDI. However, Social Security may consider statements and circumstances related to your unemployment claim when evaluating your disability.
If you have received unemployment while applying for SSDI, the most important thing is to be truthful, consistent, and clear about your medical condition, your ability to work, and when your disability began.
If you have questions about an SSDI denial or your options for appealing a disability decision, Parmele Disability Advocates may be able to help.
Real Compassion. Relentless Advocacy.