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What Effect Does Other Income, Including Other Benefits, Have On The Amount Of The Benefit Payable By Social Security Disability Insurance?


When determining how much to pay you, Social Security will deduct the following payments from your Social Security Disability Insurance (SSDI) award:

  • Workers' Compensation payments. Workers' compensation benefits are paid to a worker because of a job-related injury or illness. They may be paid by federal or state workers' compensation agencies, employers or by insurance companies on behalf of employers. For more information, see Workers Compensation.
  • Any other disability payment required by statute, whether, federal, state or local that are not job-related. For example, civil service disability payments, military disability payments, and state or local government retirement benefits that are based on disability.

If the payment from one of these programs, when added to the SSDI payment, exceeds 80% of your "Average Current Earnings" prior to going on disability, Social Security will reduce your SSDI payment so that the total you receive is no more than 80% of your "Average Current Earnings." See How to Calculate Reduction In SSDI Due To Other Benefits.

If you get a lump-sum disability payment either from workers' compensation or other disability payment described above, in addition to or instead of a monthly benefit, the amount of the SSDI benefits you and your family receive may be affected.

The amount of your SSDI benefit will not be reduced by any of the following types of public benefits:

  • Veterans Administration benefits
  • State and Local benefits if Social Security taxes were deducted from your earnings; or
  • Supplemental Security Income (SSI).

Social Security will not consider (and therefore won't deduct) any disability payments from:

  • Private sources including employer-based disability policies or pension benefits.
  • Disability payments from private insurance you took out yourself.
  • Employer salary continuation plans.
  • Payments of bonuses, commissions or other earnings for past work.
  • Veterans Administration benefits.
  • State and local government benefits if Social Security taxes were deducted from your earnings.
  • Supplemental Security Income (SSI).

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