This week we had a client facing the difficult situation of – do I or do I not terminate my Unemployment Benefits so that I may receive my disability benefits?  As a law-firm that focuses specifically on Social Security Disability Law this is a question we are often faced with.  This particular disabled client recently applied for SSI – but is still collecting Unemployment from her previous employer.  The client called us to see if they should renew the Unemployment application to continue receiving Unemployment benefits OR if this would it hurt their chances on receiving SSI benefits.  It’s could be at least another 12-months before this client would be able to receive disability benefits.  So if the client cancels their Unemployment now, how will they get by the next 12 months?!   It’s very unfortunate that this is not a unique case.  Like the majority of our clients – this is exactly what it means to be stuck between a rock and a hard place.  A fall back plan we recommend if you are disable, unable to work and in the process of applying for SSI or SSD is to apply for temporary government assistance. 

Here’s the long story short:
Collecting unemployment and filing for disability benefits is allowed and is not illegal.  Nonetheless, it is important to understand that when you collect Unemployment benefits, you are saying each week that “you are ready, willing and able to work” but are unable to find work.  When you apply for Disability Benefits, you are claiming that you are unable to work due to a physical or mental impairment.  You can see that there is an obvious contradiction here and we always want to make sure our clients are 100% aware of this. Again, there is nothing illegal about applying for both, but a Social Security Judge may need a clear explanation as to why you made the assertion to the state that you are “ready, willing and able” to work while simultaneously filing for disability benefits.

Article Resources: Askville, Social Security Administration