You can collect both, but Social Security may reduce your unemployment payments
Yes, you can receive unemployment benefits and Social Security simultaneously. However, the interaction between the two programs depends on which type of Social Security you are collecting and the rules in your state.
If you are collecting Social Security retirement benefits, most states will reduce your unemployment payment dollar-for-dollar by the amount of your Social Security check. A few states do not reduce unemployment for retirement benefits, but this is rare. If you are collecting Social Security Disability Insurance (SSDI), you cannot collect unemployment at the same time — you must choose one or the other. If you are collecting Supplemental Security Income (SSI), the rules vary by state, but many will reduce or suspend your SSI while you receive unemployment.
The reason for these reductions is that both programs are designed to replace lost wages. When you receive income from one program, the other adjusts downward to avoid paying you twice for the same loss of work.
Key Takeaways
- Social Security retirement benefits and unemployment can be collected together in most states, but your unemployment payment will be reduced by the amount of your Social Security check.
- SSDI recipients cannot collect unemployment benefits at the same time and must choose which program to receive.
- SSI and unemployment interact differently depending on your state, so you need to contact your state unemployment office to learn the exact reduction.
- You must report all income, including Social Security, when you file your weekly or biweekly unemployment claim.
- The reduction in unemployment is temporary — it ends when your unemployment benefits run out, and your Social Security continues unchanged.
How the offset works with retirement benefits
When you collect Social Security retirement and file for unemployment, your state unemployment office will ask you to report your Social Security income on your claim form. They then subtract that amount from your weekly unemployment benefit. For example, if your weekly unemployment benefit is $400 and your weekly Social Security payment is $300, you would receive $100 in unemployment that week.
This offset applies in most states. A small number of states — including New York and a few others — do not reduce unemployment for Social Security retirement income, so you would receive the full $400 unemployment plus your $300 Social Security. You can confirm your state's rule by calling your state unemployment office or checking their website.
The offset is not permanent. Once your unemployment benefits expire (typically after 26 weeks in most states, though this varies), the reduction ends. Your Social Security continues at its normal rate, and you keep the full amount.
SSDI and unemployment cannot overlap
If you are receiving Social Security Disability Insurance, you are not permitted to collect unemployment benefits at the same time. SSDI is based on the premise that you cannot work; unemployment is based on the premise that you are able and willing to work. These two conditions contradict each other in the eyes of both programs.
If you want to pursue unemployment, you would need to contact Social Security and ask to have your SSDI suspended or terminated. This is a significant decision because SSDI includes health insurance (Medicare after two years of benefits) and other protections. Once you suspend or end SSDI, restarting it later can take months and require new medical evidence.
Before making this choice, speak with a Social Security representative about what suspension means for your specific situation. Some people in work-incentive programs may have other options, so it is worth asking.
SSI and unemployment: state-by-state variation
Supplemental Security Income (SSI) is a needs-based program, meaning your income and assets determine whether you may have access to and how much you receive. When you earn unemployment income, SSI counts it as unearned income and reduces your SSI payment accordingly.
The exact reduction depends on your state's rules. Some states reduce SSI dollar-for-dollar, while others allow a small amount of income before the reduction begins. A few states have special work-incentive programs that allow you to keep more of your earnings. You must contact your state SSI office or your local Social Security office to learn how unemployment will affect your specific SSI payment.
Unlike SSDI, SSI does not prohibit you from collecting unemployment. However, the combination of the two may not increase your total income much, or at all, depending on how your state structures the offset.
What you must report and when
You are required to report all income on your unemployment claim form, including Social Security. This is typically done weekly or biweekly, depending on your state. Failing to report Social Security income is considered fraud and can result in overpayment demands, disqualification from future benefits, and penalties.
When you file your claim, you will see a field asking about other income. Enter the gross amount of your Social Security payment — the full amount before any deductions for Medicare or other withholdings. The unemployment office will handle the offset calculation themselves.
If your Social Security amount changes — for example, if you reach full retirement age and your benefit increases — report the new amount on your next claim. Keep records of your Social Security statements so you can verify the amounts you report.
How long the offset lasts
The reduction in your unemployment benefit continues for as long as you are collecting both Social Security and unemployment. Once your unemployment benefits end, the offset stops, and you receive only your Social Security (assuming you remain may be able to access for it).
In most states, regular unemployment benefits last 26 weeks. During a recession or period of high unemployment, some states or the federal government may extend benefits to 39 or 46 weeks. Throughout that entire period, if you are collecting Social Security retirement, your unemployment will be reduced.
If you return to work and earn wages, you may no longer be may be able to access for unemployment. Your Social Security, however, will continue. If you earn above a certain threshold (the earnings test), your Social Security retirement benefit may be reduced, but that is a separate rule from the unemployment offset.
Frequently Asked Questions
Will I lose my Social Security if I collect unemployment?
No. Collecting unemployment does not affect your Social Security may be able to access or your ability to receive it. Your Social Security payment amount stays the same. What changes is your unemployment payment, which is reduced by the amount of your Social Security in most states.
Can I collect SSDI and unemployment at the same time?
No. SSDI and unemployment are mutually exclusive. You must choose one. If you want to pursue unemployment, you would need to suspend or end your SSDI, which is a major decision with long-term consequences. Consult a Social Security representative before doing this.
What if I live in a state that does not reduce unemployment for Social Security?
A few states, including New York, do not offset unemployment benefits for Social Security retirement income. If you live in one of these states, you would receive your full unemployment benefit plus your full Social Security payment. Contact your state unemployment office to confirm whether your state has this rule.
Do I have to report my Social Security when I file for unemployment?
Yes. You must report all income, including Social Security, on your unemployment claim form. Failure to report is fraud and can result in overpayment demands and disqualification. Report the gross amount of your Social Security check each week or pay period.
What happens to the offset when my unemployment benefits run out?
The offset ends. Once your unemployment benefits expire, you receive only your Social Security at its normal rate. The reduction was temporary and applied only while you were collecting both programs.