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Supplemental Security Income and Unemployment Benefits

The COVID-19 pandemic may have a devastating impact on individuals who are receiving SSI disability benefits.  SSI beneficiaries who were working and lost their jobs because of COVID-19 may have been eligible for unemployment insurance (UI) benefits; including the expanded federal UI benefits that were available through the CARES Act.

SSI benefits will be reduced or suspended if a participant has earned or unearned income. SSI is reduced $1 for every $1 of UI benefits after the first $20. By comparison, earned income reduces SSI by $1 for every $2 that is earned after the first $85. The enhanced federal UI benefit would have reduced an SSI participant’s benefits to $0.00 when it was $600 a week or $2400 a month, far greater than the $783 SSI monthly payment. The enhanced UI benefit stopped on July 26, 2020 but state UI benefits continued and may have been low enough that it would not result in a loss of all SSI income. The newly passed COVID-19 Relief Act provides for a federal UI enhancement at a rate of $300 per week or approximately $1200 a month. This will also result in a suspension of SSI benefits for anyone receiving it. SSI suspensions for 12 consecutive months could result in the need for the individual to reapply for disability benefits which could be a long process if the individual has to prove that they are still disabled. There is also the possibility that SSI beneficiaries will receive notices that they were overpaid SSI because SSA suspended most overpayment actions from March through September 2020. Individuals who receive notice of an overpayment because of UI income should file a waiver to avoid collection. Finally, Medicaid benefits should not be stopped because of the loss of SSI benefits during the COVID-19 Pandemic.

The receipt of UI benefits should not have an impact on SSDI benefits because SSDI is not reduced for unearned income.

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