Veterans receiving VA disability benefits are entitled to various forms of assistance, which potentially includes Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). However, the relationship between these benefits can sometimes be complicated, depending on the VA benefits received and the specific type of SSA benefits for which the veteran is eligible.
At Kerr Robichaux & Carroll, we help veterans understand how their VA disability benefits may affect their eligibility and the amount of SSI or SSDI benefits.
Determining Eligibility for SSDI, SSI, and VA Benefits
You may be eligible for SSDI if you have a disability preventing you from working and have paid into Social Security through your work history. Generally, you need to have earned a certain number of work credits (based on how long you’ve worked) and be under full retirement age.
SSI is designed for individuals who are disabled, blind, or aged (65 or older) and have limited income and resources. However, unlike SSDI, SSI doesn’t require a work history but focuses on financial need.
Veterans who have served in the U.S. military may qualify for VA benefits if they have a service-connected disability, illness, or injury. The severity of the condition determines the level of benefits, and veterans must apply through the Department of Veterans Affairs.
Supplemental Security Income (SSI) and VA Benefits
SSI is a needs-based program, meaning eligibility is determined by an individual’s income and assets. Veterans eligible for SSI benefits may also receive VA disability compensation, but there are some important rules to be aware of. One key factor is that the Social Security Administration (SSA) classifies VA benefits as “unearned income.” Any VA disability payments received will directly impact the SSI for which a veteran is eligible.
For SSI recipients, there’s a general exclusion of $20. This exclusion applies to all types of income, whether earned or unearned. So, the first $20 of VA benefits received will not count against the SSI payment. However, after that, VA disability benefits will be deducted dollar for dollar from the federal SSI payment amount.
For example, if a veteran receives $1,000 in VA benefits and is eligible for SSI, the first $20 is not considered, but the remaining $980 would be deducted from their SSI benefit. This means that the veteran’s SSI payment could be reduced significantly, depending on the amount of VA disability compensation they receive.
Social Security Disability Insurance (SSDI) and VA Benefits
Unlike SSI, SSDI is an insurance-based program that provides benefits to individuals who have worked and paid into the Social Security system. The good news for veterans is that VA disability benefits do not impact the amount of SSDI benefits they are eligible to receive.
SSDI benefits are not affected by “unearned income,” such as VA disability payments.
This means that regardless of how much a veteran receives in VA disability benefits, it will not be deducted from or reduce their SSDI benefits. Veterans who qualify for both VA disability benefits and SSDI will receive both benefits in full, provided they meet the eligibility criteria for each program.
Key Takeaways
- SSI and VA Benefits: VA disability benefits are considered unearned income and will reduce the amount of SSI benefits a veteran can receive after applying the $20 general exclusion.
- SSDI and VA Benefits: VA benefits do not affect SSDI benefits, and veterans can receive both their VA disability compensation and full SSDI benefits.
Talk To Our Social Security Disability Lawyers About the Benefits Available to You
Whether you are unsure about your eligibility for SSDI or SSI or need help understanding how your VA benefits impact your SSA payments, our team at Kerr Robichaux & Carroll is dedicated to helping you maximize the benefits you deserve. Initial consultations are always free.
Contact us today by submitting a form online or calling our office at 503-255-9092 for a free case evaluation.