Social Security and Unemployment Compensation

Date: December 14, 2010
Posted In: DLP Law

Carolyn was collecting Social Security retirement benefits and was working a part-time job as well.

ISSUE: Carolyn was laid off and wanted to know whether or not her unemployment compensation that she was receiving would reduce the amount of Social Security she was entitled to.

ANSWER: No. Unemployment benefits are not counted as wages under the Social Security\’s Annual Earnings test. Carolyn will find out though that her unemployment may be less if she is receiving a pension or other retirement income, including Social Security. Carolyn had taken her Social Security at sixty two years old because she was worried about the safety of the Social Security system based on rumors she had heard. At the present time, the Social Security trust fund, according to the fund\’s trustees, will be solvent until at least the year 2037.

Disclaimer: The above article is for instructive purposes only and each case is fact sensitive. Consultation with an attorney should be obtained instead of reliance upon the legal issues discussed in this column.

Tom Cummings
Thomas P. Cummings has been a Partner with Dougherty Leventhal & Price, LLP since 1996 and has been with the firm since 1991. He focuses his practice on workers’ compensation, Social Security Disability and personal injury cases.