Can I File for Social Security Disability While Receiving Unemployment?

Yes, you can file for Social Security Disability benefits while receiving unemployment benefits. However, the process requires careful consideration because the two programs serve different purposes, and the Social Security Administration (SSA) may view them differently.

• Unemployment Benefits are typically available to individuals who are able to work but are temporarily unemployed through no fault of their own. You must be actively seeking work and able to accept suitable employment.
• Social Security Disability Benefits (SSDI), on the other hand, are for individuals who are unable to work due to a disability expected to last at least 12 months or result in death.

While you can file for SSD benefits while receiving unemployment, the SSA may question your eligibility for SSDI if you are simultaneously claiming that you are unable to work due to a disability and yet able to work enough to qualify for unemployment benefits.

Why Would the SSA Be Concerned?

The SSA may have concerns because unemployment benefits are typically awarded to individuals who are able and willing to work. Filing for unemployment generally requires that you declare yourself as available and capable of seeking work. Conversely, SSDI benefits are meant for individuals who cannot work due to a severe medical condition. The SSA may interpret your receipt of unemployment benefits as an indication that you are capable of working, which could create confusion in your disability claim.

How to Proceed if You’re Receiving Unemployment and Want to Apply for SSDI

While there are potential conflicts between the two programs, you can still pursue your SSDI claim. Here’s how to navigate this situation:

Be Honest About Your Situation

When applying for SSDI, it’s essential to be truthful about your ability to work and the reasons you’re receiving unemployment benefits. If you are currently applying for unemployment because you are unable to find a job due to your condition (even though you may still be capable of performing some work), make sure to explain this clearly in your SSDI application.

• Provide Documentation: If your disability prevents you from performing specific jobs but does not prevent you from performing others, you must be clear about that distinction in your application and provide any supporting medical records.
• Explain Your Situation: In your SSDI claim, you’ll need to explain why you believe you are disabled and unable to work, despite receiving unemployment benefits. For example, you might be able to work in a limited capacity but unable to perform full-time or gainful employment due to your disability.

Understand the Risk of Denial

The SSA may use the fact that you are receiving unemployment benefits as a factor in denying your SSDI claim. This is because, in order to qualify for SSDI, you must demonstrate that your disability prevents you from working in any substantial, gainful activity. If your unemployment claim suggests that you are able to work, this could hurt your SSDI application.

• Be Prepared for Delays or Denials: It's not uncommon for SSDI claims to face delays or denials, especially if you are receiving unemployment benefits at the same time. Be prepared to provide clear evidence that you are not able to work in a full-time or substantial capacity due to your disability.

Work with a Disability Attorney or Advocate

Given the complexities of applying for SSDI while receiving unemployment benefits, you may want to consult with a Social Security Disability attorney or advocate. They can help you present your case clearly and improve your chances of approval.

• Explain Your Disability: A lawyer can assist in framing your case properly, explaining that while you may be able to perform some work, you are unable to maintain full-time or substantial employment due to your medical condition.
• Handle Complications: A legal professional can help you navigate any complications that may arise from the dual receipt of unemployment and SSDI benefits, increasing your chances of success in your claim.

Can I Continue to Receive Unemployment After I Apply for SSDI?

You can continue to receive unemployment benefits while your Social Security Disability claim is pending. However, keep in mind that if you are approved for SSDI, you will no longer be eligible for unemployment benefits because unemployment is meant for those who are able to work, and SSDI is for individuals who are unable to work.

• Unemployment and SSDI Overlap: If your SSDI claim is approved, the SSDI benefits will begin, but you will need to stop receiving unemployment benefits, as they are intended for people actively seeking work.
• Impact on Future Claims: If your unemployment benefits stop and you start receiving SSDI, be aware that there might be a gap in your income during the waiting period between the two benefits.