• Each state administers unemployment benefits and may not allow individuals to receive both unemployment compensation and Social Security Administration benefits.government building image by Dumitrescu Ciprian from Fotolia.com
  
  In order to qualify for Social Security Disability payments, an individual must be considered totally disabled since the Social Security Administration (SSA) does not provide benefits for partially disabled or short-term disabled individuals. The SSA considers disabled individuals unable to perform work based upon the disabling condition. Unemployment compensation is provided to people who lost their jobs through no fault of their own. They must be able to work and actively seeking employment.
  
  

State Laws

• State laws determine whether Social Security benefits will be reduced when the disabled individual is also receiving unemployment compensation. Displaced employees who receive unemployment benefits are obligated to report these benefits to the state-level Department of Labor Unemployment Compensation Service for consideration of any income offset rules.
  
  Disabled employees who have submitted their applications to the SSA may apply for state unemployment compensation to cover any lapse of time from the period in which unemployment compensation ends and disability payments begin. The period of time during which the SSA application is pending is the only time individuals might qualify for unemployment and disability compensation.
  
  

Opposing Considerations

• The unemployment considerations are at odds with the disability definitions since disability is defined as a permanent and long-term inability to work based upon a person's disability. However, unemployment compensation is based upon a person's willingness to work.
  
  As provided in Part 604 of the Code of Federal Regulations, states may pay unemployment compensation only to individuals who are able to work and can be available for employment during the week benefits are received.
  
  Generally, states provide unemployment insurance compensation on a weekly basis. Each week, the unemployed individual must attest to actively looking for work and is available for immediate employment if the unemployment office locates a job. Some states require the submission of resume leads and job contacts to prove an individual is actively trying to find gainful employment.
  
  Under the SSA rules, the disability must last for over one year or result in death. The SSA assumes that individuals with short-term disabilities have access to other short-term welfare programs such as worker's compensation benefits.
  
  

Types of Social Security Disability

• The Social Security Administration (SSA) administers two types of programs to provide Social Security disability benefits. Both programs provide benefits to disabled individuals, but only SSI is paid to disabled individuals who have never worked or have not worked long enough to qualify for SSDI.
  
  SSDI or Social Security Disability Insurance pays benefits to disabled adults and their qualifying relatives only if they have earned enough working credits to qualify for the disability insurance program. Payments are generated through Social Security taxes contributed by employers and self-employed workers. The monthly payment amount is contingent upon how many credits the individual has earned over the course of total employment history.
  
  SSI or Supplementary Security Income pays benefits based upon a showing of financial need. The program provides payments to disabled individuals who may not qualify for SSDI. The monthly payment amount through SSI may be decreased by any other state or federal benefits the individual is receiving.
  
  

Unemployment Benefits

• Generally, if an individual received unemployment benefits or unemployment insurance proceeds, then the Social Security disability income is not reduced by the additional unemployment income.
  
  

Taxes

• If the disabled adult is receiving both unemployment income and Social Security disability income and the total proceeds of both benefits exceed $25,000 annually, then the individual will have to pay federal taxes on the total benefit amount. The income limit is $32,000 for married spouses who file jointly.