Will My Personal Injury Settlement Affect My Social Security Disability BenefitsBy Kenton Koszdin Law Office on January 3, 2023 | In Blogs
A significant personal injury settlement may have an immediate impact on SSI benefits, but in general, SSDI benefits are unaffected by big personal injury settlements. Benefits for SSDI and SSI are managed by Social Security Administration (SSA). However, the SSI benefits may be reduced or lost as a result of a settlement payment, as SSI payments are need-based. On the other hand, SSDI looks at a person’s qualifying disability and previous work history; therefore, they may remain unchanged.
A successful personal injury case may result in a significant settlement payment. Nevertheless, people can still safeguard their SSI payments from a severe reduction or cancellation if they have a good grasp of earnings and spending options. Seeking professional guidance from an experienced Social Security disability lawyer can also be helpful.
Social Security Disability (SSDI) and Supplemental Security Income (SSI)
It’s critical to differentiate between the SSDI and SSI since, in addition to having distinct eligibility conditions, each is viewed quite differently with regards to settlement.
People with disabilities who have worked and paid into the official trust fund through FICA taxes are eligible for SSDI benefits. A disabled person could occasionally obtain SSDI payments as a result of their spouses’ or parents’ Social Security contributions.
A government financed program, SSI offers challenged and low-wage earners financial help. SSI is regarded as a public benefit based on individual needs.
SSDI provides funding disability benefits, and a person’s eligibility is determined by the number of credits they have obtained during their work history. You are eligible for benefits if you have a genuine disability, have worked the required number of years, and have paid taxes into the program. Consequently, getting significant financial compensation has no bearing on your eligibility.
Now, when you are ready to file a personal injury claim, there are a few things you should be aware of. First off, since you are not employed or are working part-time, your payoff amount will likely be lower than that of any other individuals who have sustained a similar injury but are still employed. If you were getting SSDI benefits at the time of the accident, additional benefits might not be accessible in your case.
A different program called SSI receives funding from general tax receipts rather than from Social Security levies. Eligibility is determined by the recipient’s income and assets rather than by employment experience.
You might go over the asset limit required to be eligible for SSI payments if you were to get a reasonably sizable personal injury settlement. Your benefits could be suspended as a result, which would be disastrous.
An experienced, qualified attorney can help you navigate your options; maintaining your benefits while receiving the compensation you deserve. The Kenton Koszdin Law Office, Social Security attorneys in Van Nuys, can help you navigate the often complicated claim process with ease and the best possible outcome for you and your family. Call 800-438-7734 for your initial free consultation held in our office or from the comfort of your own home.