How Does a Personal Injury Settlement Affect Social Security Disability?

It is tough enough to suffer with a disability that inhibits you from working. Another burden is applied for Social Security Disability benefits. But what happens when you were involved in an accident while receiving Social Security Disability? It is important to receive an injury settlement when you have been wronged in a personal injury case. Does that, however, reduce your Social Security benefits? We address this question below. Our Social Security attorneys at Lovins Law PLLC serve as your compassion team to help you obtain the SSD benefits you need and deserve. We serve our customers from our offices in Dallas and Austin.

First, let us look at the two types of benefits distributed by the Social Security Administration (SSA) for individuals who have disabilities:

Social Security Disability (SSD)

This program serves disabled individuals who have already worked and paid into the Social Security Trust fund – money which has been deducted from their paychecks by their employers or paid as self-employed individuals when paying taxes. In order to receive these benefits, you need to meet certain SSA requirements involving credits accrued and length of work time.

Supplemental Security Income (SSI)

The SSI program is a needs-based program for disabled, aged, blind, and low-income individuals. In rare cases people may receive both SSD and SSI.

If you have suffered a personal injury and received a personal injury settlement, the good news is that the existing Social Security Disability (SSD) benefits you receive will not be affected by the settlement. SSD is not based on your financial circumstances, but rather your work history.

However, if you are currently receiving Supplemental Security Income (SSI), those benefits may likely be affected if you have received a personal injury settlement, particularly if it is large settlement. A personal injury settlement payout will typically reduce your SSI benefits or make you completely ineligible to receive those benefits.

If you need legal representation to help you secure the Social Security Disability or Social Security income benefits you deserve, our team at Lovins Law PLLC is here to help. To schedule a free consultation, give us a call today in Austin at 512-872-5372, or in Dallas at 214-305-6700. Or, you may send us a message through our contact form.