You can collect both unemployment and Social Security, but one payment may reduce the other

Yes, you can receive unemployment benefits and Social Security at the same time. However, the way they interact depends on which Social Security benefit you are receiving. If you are collecting Social Security retirement or survivor benefits, you can receive unemployment without any reduction. If you are on Social Security Disability Insurance (SSDI), your unemployment benefits do not affect your SSDI payment. But if you are receiving Supplemental Security Income (SSI), any unemployment money you get will reduce your SSI payment dollar-for-dollar, with some exceptions for work incentives.

The key is understanding which Social Security program you are on and how your state's unemployment system treats the combination. Some states also have their own rules about whether receiving Social Security affects your unemployment benefits or how much you can collect.

Key Takeaways

  • Social Security retirement and survivor benefits do not decrease if you collect unemployment at the same time.
  • SSDI (disability) payments continue unchanged when you receive unemployment benefits.
  • SSI (Supplemental Security Income) payments are reduced by most unemployment income, though some work incentive programs may protect part of your payment.
  • Some states reduce your unemployment payment if you are also receiving Social Security, so you should check with your state's unemployment office about their specific rules.
  • You must report all income, including unemployment, to Social Security within the timeframe your program requires.

How Social Security Retirement Benefits Work With Unemployment

If you are receiving Social Security retirement benefits, you can collect unemployment benefits without any reduction to your Social Security payment. The two programs do not interact financially — Social Security will not lower your check because you are unemployed, and unemployment will not be affected by your retirement benefit.

However, some states do reduce your unemployment payment if you are receiving certain Social Security benefits. A few states treat Social Security retirement as "other income" and may lower your weekly unemployment check. Contact your state's unemployment insurance office to ask whether they reduce unemployment payments for people receiving Social Security retirement. The answer varies by state, and knowing this ahead of time helps you plan your budget.

If you are receiving Social Security survivor benefits (as a spouse or child of a deceased worker), the same rule applies: you can collect unemployment without your survivor benefit being reduced. Again, check with your state about whether they reduce unemployment for survivor benefit recipients.

How SSDI Interacts With Unemployment Benefits

Social Security Disability Insurance (SSDI) continues at its full amount when you receive unemployment. Your SSDI payment will not decrease because you are collecting unemployment, and the unemployment office will not reduce your check because you are on SSDI.

However, SSDI has its own work rules. If you are working and earning above the Substantial Gainful Activity (SGA) level — currently $1,550 per month for non-blind individuals and $2,590 for blind individuals — Social Security may determine that you are no longer disabled and stop your SSDI. Unemployment benefits themselves do not count as work earnings, so collecting unemployment while not working does not trigger this limit. But if you are working part-time while also collecting unemployment, your work earnings could affect your SSDI status.

If you return to work and your earnings exceed SGA, report this to Social Security when ready. They have work incentive programs, including a trial work period and extended benefits, that may allow you to keep some SSDI while you test your ability to work.

How SSI Interacts With Unemployment Benefits

Supplemental Security Income (SSI) is different from SSDI. SSI is a needs-based program, meaning your payment depends on your income and resources. When you receive unemployment benefits, most of that money counts as income and reduces your SSI payment dollar-for-dollar.

For example, if your SSI payment is $943 per month and you receive $500 in unemployment benefits, your SSI payment would drop to $443. However, SSI does exclude the first $65 of earned income per month plus half of earnings above that, but unemployment is considered unearned income and does not receive this exclusion.

Some SSI recipients may be able to protect part of their unemployment through work incentive programs. The Plan to Achieve Self-Support (PASS) allows you to set aside income and resources for a specific work goal without losing SSI. If you are on SSI and receiving unemployment, ask Social Security whether a PASS plan could help you keep more of your benefits while you work toward becoming self-sufficient.

State Rules About Social Security and Unemployment

Most states do not reduce unemployment benefits because you are receiving Social Security. However, a small number of states treat Social Security as "other income" and may offset your weekly unemployment payment. These rules vary and can change, so you should contact your state's unemployment insurance office directly to ask how they handle Social Security recipients.

When you file for unemployment, you will be asked about other income sources. Be honest about any Social Security you are receiving. Failing to report it could result in an overpayment that you would have to repay, even if the state does not actually reduce your unemployment check.

If your state does reduce unemployment for Social Security recipients, you can still file. The reduction is usually small, and unemployment may still provide meaningful income. Your state unemployment office can tell you the exact amount you would receive before you decide whether to file.

Reporting Requirements and important date

You must report all income to Social Security, including unemployment benefits. The timing depends on which program you are on. For SSDI and SSI, you typically have 10 days after the end of the month in which you received the income to report it. Missing this important date can result in an overpayment.

You can report income to Social Security by phone, mail, or through your online account at ssa.gov. Keep records of your unemployment payments, including the dates and amounts. If Social Security later questions your income, you will have documentation to show what you reported and when.

For unemployment, you will report your income and work status weekly or bi-weekly, depending on your state. If you are receiving Social Security, mention this when you file your unemployment claim. The unemployment office will note it in your file, and you will not need to repeat it every week unless your situation changes.

What Happens When You Return to Work

If you find a job while collecting both unemployment and Social Security, your situation changes. Your unemployment benefits will end once you are working, but your Social Security continues. If you are on SSDI, your work earnings will be monitored to may support they do not exceed the SGA level. If you are on SSI, your work income will reduce your SSI payment, though the first $65 per month plus half of earnings above that are excluded.

Social Security has work incentive programs designed to help people transition from benefits to work. These include the trial work period for SSDI, which allows you to work and earn without losing benefits for nine months, and the Impairment Related Work Expenses (IRWE) program, which excludes certain disability-related work costs from your earnings calculation. Ask Social Security about these programs before you start working so you understand how your benefits will change.

Frequently Asked Questions

Will Social Security know if I collect unemployment?

Social Security may learn about your unemployment through data matching with state unemployment offices, but you are required to report it yourself within 10 days of receiving it. Reporting it yourself is the safest approach and prevents overpayments. If you do not report and Social Security finds out later, you will owe back the overpaid amount.

Can I collect unemployment if I am on disability?

Yes. SSDI continues at full payment while you collect unemployment. SSI also continues, but your unemployment income will reduce your SSI payment. You must report the unemployment to Social Security. If you are working while on SSDI, make sure your earnings do not exceed the SGA limit, or your disability status may be reviewed.

Does unemployment count as income for SSI?

Yes, unemployment is unearned income for SSI purposes and reduces your payment dollar-for-dollar with no exclusion. Unlike work earnings, which exclude the first $65 per month, unemployment benefits are counted in full. If you are on SSI, ask about the Plan to Achieve Self-Support (PASS) to see if you can protect some income for a work goal.

What if my state reduces unemployment for Social Security recipients?

A few states do reduce unemployment payments for people receiving Social Security. Contact your state unemployment office to find out their specific rule. Even if there is a reduction, unemployment may still be worth collecting. Your state office can tell you the exact amount you would receive.

Do I need to report unemployment to Social Security every month?

You must report unemployment income within 10 days of receiving it for SSDI and SSI. You do not need to report it every month if the amount stays the same, but if your unemployment payment changes, report the new amount. Keep records of all payments in case Social Security asks for proof later.