Can You Get Unemployment While on Social Security?

Can You Get Unemployment Benefits and Social Security at the Same Time?

In most states, workers can collect unemployment insurance benefits while also drawing Social Security.

In most states, workers can collect unemployment insurance benefits while also drawing Social Security. However, Minnesota is an exception. Some workers in Minnesota may need to reduce their unemployment insurance benefits by up to 50% of their Social Security benefits. This requirement depends on when they started receiving Social Security and the time between that date and when they began collecting unemployment benefits. For more details, visit the Minnesota Department of Revenue website.

Keep in mind that you don’t have to wait to begin receiving one benefit before filing for the other. You can file for both benefits at the same time. Also, remember that because each benefit is provided by a different agency, the time frame for receiving payments after you file will vary.

How Do You Apply for Unemployment Compensation?

Each state has its own rules and processes for unemployment insurance. You can find information for your state by visiting the U.S. Department of Labor online.

The online application process is typically straightforward and allows you to file from the comfort of your home. Some states also offer the option to apply by phone or in person at local unemployment offices.

After applying, you will need to file weekly or bi-weekly claims to continue receiving benefits and may be required to attend job search workshops or counseling sessions as part of your eligibility. Be sure to check your state's specific requirements and guidelines to ensure a smooth application process.

Who Is Eligible for Unemployment Benefits?

To be eligible for unemployment benefits, you generally need to have lost your job through no fault of your own. You must be able to work, available for work, and actively seeking employment. If you're working part-time while looking for a full-time job, you may still qualify for partial benefits. The number of hours you work and your earnings will affect the amount of benefits you receive.

Your work history also affects your benefit amount and duration. Those with longer, higher-paying job histories typically receive more benefits. Recent laws have expanded eligibility to include independent contractors, self-employed workers, and gig workers, allowing many who were previously ineligible to now qualify for benefits.

You can apply for both unemployment and Social Security benefits at the same time. Each program is managed by a different agency, so the processing times may vary.

How Do You Apply for Social Security?

Social Security is a federally funded program operated by the U.S. Social Security Administration (SSA). You can apply for benefits online, which is the fastest and most convenient method.

To start your application, visit the SSA website and follow the prompts to create an account. You'll need to provide personal information such as your Social Security number, birth certificate, and detailed work history. The application process will also require you to choose the type of benefits you’re applying for, whether it’s retirement, disability, or survivors benefits.

Once you submit your application, the SSA will review your information and may contact you for additional documentation or clarification. You can track the status of your application online through your SSA account.

Who Is Eligible for Social Security Benefits?

If you want to apply for Social Security benefits, you need to meet certain conditions.

First, you must have worked for at least 40 quarters, which is equivalent to 10 years. A quarter is a three-month period during which you must have earned at least $1,730 in 2024. Meeting this requirement makes you eligible to apply for Social Security benefits.

Second, you must have reached the appropriate retirement age, which varies depending on the year you were born. If you wait until your full retirement age to collect benefits, you'll receive the full amount.

You can choose to start collecting benefits as early as age 62, but your monthly benefit will be reduced by about 25% for the rest of your life. Conversely, if you delay collecting benefits past your full retirement age, you can earn delayed retirement credits, which will increase the amount you receive each month when you do start collecting.

For more detailed information and to begin your application, visit the Social Security Administration online.

How Do Unemployment Benefits Impact Social Security & Vice Versa?

As mentioned previously, the state of Minnesota is the only state in the union that currently offsets the unemployment benefits of those who are already receiving Social Security income. If you live in this state, your unemployment benefits may be reduced by an amount equal to half of your Social Security benefits. 

But, collecting unemployment benefits never has any type of impact on the amount of Social Security you receive. If you take Social Security at age 62 and are still working, then your earned income can reduce your Social Security benefit, but because unemployment benefits are considered to be unearned income, there is no impact. 

How Do Other Retirement Payments Impact Unemployment Compensation?

Income that is drawn from a qualified retirement plan, annuity, or IRA can reduce your unemployment compensation in many states. If you are taking distributions from your 401(k) plan or receive a pension every month, this amount may be used to offset your unemployment benefits. 

You’ll need to contact your state’s unemployment office to find out what the rules are for where you live. In some states, your unemployment benefits may be reduced if you have a pension or retirement income. In other states, such as California, retirement income is exempted.

Also note that you can't make IRA contributions using your unemployment benefits because this ins't considered earned income by the IRS. 

How Will Going Back To Work Affect Your Social Security Benefits?

If you're able to find a job and start working again after filing early for Social Security benefits, your earnings may reduce your Social Security retirement benefits until you reach full retirement age.

If you start working after filing for Social Security benefits before reaching full retirement age, your benefits may be reduced based on your earnings. For 2024, if you are under full retirement age for the entire year, your benefits will be reduced by $1 for every $2 you earn over the annual limit of $22,320.

In the year you reach full retirement age, the limit is higher, at $59,520, and the reduction is $1 for every $3 earned over this amount. Once you reach full retirement age, there is no limit on your earnings, and your benefits will no longer be reduced regardless of how much you earn.

For more detailed information on how your earnings affect your Social Security benefits and to calculate specific impacts, you can visit the Social Security Administration's page on receiving benefits while working​.

What You Need To Know About Collecting Unemployment and Social Security Disability Benefits Simultaneously

Contrary to what you might think, it is possible to collect Social Security disability insurance (SSDI) and unemployment benefits at the same time. That said, it can be difficult to qualify for both at the same time because the eligibility criteria are fundamentally at odds: To qualify for unemployment, you must be actively looking for a job. To qualify for a disability claim with SSDI, you must be permanently and totally disabled. Only a small handful of applicants can meet both of these criteria. 

If you receive unemployment benefits, the Social Security Administration will take them into account when they examine your SSDI application. It is your responsibility to prove to the SSA that there’s no conflict between the two benefits.

The same is true for Supplemental Security Income (SSI) benefits, which are paid to people who are disabled. While it is theoretically possible to receive this benefit alongside unemployment benefits, the criteria for the two programs are again largely at odds with each other.

Unlike receiving Social Security retirement benefits and SSDI, receiving unemployment benefits may reduce your Supplemental Security Income benefit. Claimants should consult with a qualified disability attorney in either of these cases in order to ensure that they are following the rules and receiving every benefit that they qualify for. 

Let’s Summarize...

The bottom line with unemployment benefits is that they bear no relation to Social Security retirement benefits or Social Security Disability benefits except in the state of Minnesota. If you are receiving one of these two benefits and are now contemplating filing for the other, then nothing should stop you from doing so.