Understanding Unemployment Benefits vs. Disability Benefits

Unemployment Benefits

Unemployment benefits are designed to provide temporary financial assistance to workers who are actively seeking new employment due to losing their job through no fault of their own. These benefits are typically provided to individuals who are available to work and are actively looking for employment.

Disability Benefits

Disability benefits, such as SSDI or SSI, are designed to provide financial assistance to individuals who are unable to work due to a long-term disability. SSDI is for individuals who have worked and paid into Social Security, while SSI is a need-based program for those with limited resources who are disabled.

Can You Apply for Disability While Receiving Unemployment Benefits?

Yes, you can apply for disability benefits while receiving unemployment benefits, but there are important factors to consider. Here's what you need to know:

Incompatibility of Statements

When applying for disability benefits, the Social Security Administration (SSA) requires that you prove you are unable to work due to a disability. On the other hand, to receive unemployment benefits, you must be able and willing to work.

The SSA might question your claim for disability if you’re simultaneously stating that you are unable to work due to a disability while also claiming that you are ready and able to accept a job if one becomes available. This could cause a conflict of interest in your case.

Applying for Disability While Receiving Unemployment

You can apply for SSDI or SSI while receiving unemployment, but it is crucial to be honest about your situation. The SSA will look at the following factors:

• Unemployment Claim: If you are receiving unemployment benefits, you may be asked why you are unable to work due to a disability and also claim to be actively looking for work. Be prepared to explain your situation clearly. For instance, if your disability prevents you from working a full-time job, but you are actively looking for a different kind of job that accommodates your limitations, this could still potentially support your claim.
• Earnings and Availability: If you are applying for SSDI, the SSA will look at whether your income from unemployment (or any other source) exceeds the Substantial Gainful Activity (SGA) limit, which is $1,470 per month for 2025. If your earnings from unemployment or other work are above this threshold, the SSA may deny your disability claim.

Potential Complications

While you can apply for disability benefits while receiving unemployment, there are potential complications:

• Disability Evaluation: The SSA may interpret your receipt of unemployment benefits as an indication that you’re not as disabled as you claim. This could make it harder for you to qualify for SSDI or SSI.
• Delays and Denials: It’s possible that the SSA may delay or deny your disability claim if they believe there is a conflict in your statements. They might request further clarification or evidence of why you’re unable to work and yet still eligible for unemployment.

How to Navigate This Situation

If you're receiving unemployment and applying for disability benefits, here are some important steps to follow:

Be Honest in Your Applications

When applying for disability benefits, be clear about your limitations and the nature of your disability. At the same time, if you are receiving unemployment, make sure to provide details on how your disability affects your ability to work.

Consider Your Work History and Disability

If you are applying for SSDI, the SSA will evaluate your work history and whether you’ve worked enough to qualify for benefits. If you are applying for SSI, they will look at your income and resources. Your disability claim should focus on how your condition prevents you from engaging in meaningful work.

Seek Professional Assistance

Navigating both unemployment and disability claims can be tricky. It may be beneficial to consult with a disability attorney or advocate who can help ensure that your disability application is handled properly, and help explain any conflicting statements about your ability to work.