Compensation from a personal injury will not affect your Social Security Disability Insurance (SSDI) payments, but it has potential to significantly influence the Supplemental Security Income (SSI) benefits. This might result in reducing or even abolishing your SSI benefits. A large lump sum received from a worker’s compensation case can lessen your disability payments.

The Social Security Administration (SSA) oversees SSDI and SSI benefits. A substantial settlement from a personal injury lawsuit has a diverse impact on your disability benefits based on the program you’re enrolled in. If you’re receiving SSDI benefits, a settlement typically won’t alter your payments, given that these benefits are derived from your work history, not your personal wealth.

However, if you’re receiving SSI benefits, a large settlement could decrease your weekly payments or perhaps stop them. SSI is intended for less affluent individuals who own minimum personal assets. To continue receiving SSI, you must meet a means test that evaluates all of your income and assets, including settlement money. If your settlement elevates your financial status past the threshold allowed for SSI, your benefits may be reduced or even terminated.

If you’re receiving SSDI benefits and suffer an injury at work, you might also quality for workers’ compensation payments. If the total of these benefits exceeds 80% of your earlier earnings before you became incapacitated, your SSDI payment will be reduced. The reduction is called a benefit offset. It serves to prevent double payment from two separate programs.

The SSA considers most people often receive lump-sum workers’ compensation settlements. They convert this number into monthly payments to apply the SSDI benefit offset for that specific number of months. There are methods to prevent losing too much of your SSDI benefits. Lawyers versed in disability laws can advise on how to retain more of your money.

If you receive disability benefits and then receive a large one-time payment, you are required by law to inform the Social Security Administration (SSA) within 10 days. Failing to report might lead to severe issues. Even though you’re receiving disability benefits, you should not abstain from seeking compensation from other sources, such as personal injury lawsuits. A skilled Social Security attorney can guide you on maintaining your benefits while getting large lump-sum payments.