If you are involved in an accident that was caused by another person, you may be able to file a lawsuit against them to recover financial compensation for your losses. In most cases, personal injury claims are resolved outside of court, such as through a settlement. If you are currently getting disability benefits, this may raise some concerns about whether this money will impact your eligibility for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).
A personal injury settlement won’t affect your SSDI benefits, as this program is not based on your financial status. However, if you are currently receiving SSI – which is a needs-based program – then your eligibility may be negatively affected. A skilled New Jersey disability benefits lawyer can help you understand how a settlement may impact your benefits, and work with you on a strategy to reduce the likelihood that your SSI benefits will be reduced or eliminated.
At Bross & Frankel, our team of disability benefit attorneys have significant experience handling all types of disability claims, including Social Security disability. We also represent clients in personal injury claims, giving us a unique ability to counsel accident victims on how a settlement or verdict at trial will affect their disability benefits. Reach out to our law offices today to learn more or to schedule a free claim review with a member of our legal team.
How a Personal Injury Settlement Can Impact Your SSDI and/or SSI Benefits
There are two different types of disability benefits offered by the Social Security Administration: SSDI and SSI. Both programs require that an applicant be unable to work due to a medical or mental health condition. However, there are a few big differences between the other requirements for SSDI and SSI. Learning these differences is key to understanding how a personal injury settlement will affect your disability benefits.
Generally, to qualify for SSDI, you must be unable to work due to a disability and you must also have paid into the system by working and paying taxes. If you don’t have enough “work credits,” then you won’t be eligible for SSDI – even if you cannot work due to a disability. There are no income or asset limits for SSDI.
By contrast, SSI does not consider work credits. However, you must meet strict asset and income limits to qualify. The formulas to determine which assets and income count for SSI purposes are a bit complicated, but you typically must have very few assets and very limited income to qualify. It is possible to receive both SSDI and SSI if you meet the requirements for each program.
Because the SSDI program does not have income and asset limits, a personal injury settlement will not affect your eligibility for SSDI. As long as you meet the work history and disability criteria, you will still get SSDI. However, because SSI is a needs-based program, a personal injury settlement could impact your eligibility.
When a person first applies for SSI, they have to prove that they meet the asset and income limits. Even after you are approved for SSI benefits, you will have to demonstrate that you still fall within these limits to maintain eligibility. A settlement from a personal injury case can increase the value of a person’s resources, which may result in reduced SSI benefits. Larger settlements can put an individual over the limit for SSI benefits, which may lead to their benefits being suspended or terminated.
