The short answer is yes, but the details depend on the type of disability benefits you receive. In many cases, it is possible to receive both alimony and disability benefits. However, the specific impact on your benefits depends on whether you’re receiving SSDI or SSI. While SSDI benefits remain unaffected by alimony, SSI payments can be significantly reduced or eliminated due to the program’s strict income requirements.
To better understand the interaction, let’s look at SSDI and SSI separately. SSDI is based on a recipient’s work history and contributions to Social Security through payroll taxes. Because SSDI is not a needs-based program, receiving alimony does not directly impact your monthly disability payments. Whether you receive $500 or $2,000 in alimony, your SSDI payments will remain the same because they are based on your earnings record, not your current financial situation.
SSI, on the other hand, is a needs-based program intended for individuals with low income and minimal resources. Unlike SSDI, SSI does factor in additional income, such as alimony, when determining eligibility and payment amounts.
For SSI recipients, alimony is considered “unearned income.” Under SSI rules, the Social Security Administration (SSA) reduces monthly SSI benefits by a portion of your unearned income. Specifically, the SSA deducts $20 from the total alimony payment as a general exclusion and then reduces your SSI benefit dollar-for-dollar by the remaining amount.
For example:
- If you receive $500 in monthly alimony, the first $20 is excluded.
- The remaining $480 is deducted from your SSI benefits.
This calculation means that receiving alimony can significantly reduce your SSI payments or even render you ineligible for the program.
Qualifying for Disability Benefits with Alimony
When applying for disability benefits, understanding the technical and non-technical criteria is essential. These requirements vary depending on whether you’re seeking SSDI or SSI.
SSDI Eligibility
To qualify for SSDI, you must meet two key criteria:
- Non-Technical (Work History): You need sufficient work credits, earned through previous employment and payroll tax contributions.
- Medical Requirements: You must have a qualifying medical condition that meets the SSA’s definition of disability. This means the condition is severe, expected to last at least 12 months (or result in death), and prevents you from performing substantial gainful activity (SGA).
For SSDI applicants or recipients, alimony does not affect the approval process or benefit amounts since SSDI is not needs-based.
SSI Eligibility
SSI applicants must meet stricter requirements because it is a needs-based program:
- Non-Technical (Income and Assets): SSI is available to individuals with limited income and resources. As mentioned earlier, alimony is counted as unearned income and will reduce your potential SSI benefit.
- Medical Requirements: Like SSDI, SSI applicants must have a qualifying disability under the SSA’s criteria.
Challenges to Approval
If you’re applying for SSI while receiving alimony, you may face challenges related to the program’s income limits. To overcome this, it’s crucial to document your financial situation thoroughly. Provide clear records of all income, including alimony, as well as evidence of your medical condition and its impact on your ability to work.
Additional Support and Resources
The relationship between alimony and disability benefits can be complex, particularly for SSI recipients. If you’re navigating these programs, it’s helpful to seek professional guidance.
How a Disability Lawyer Can Help
A disability lawyer can help you:
- Understand how alimony affects your SSI or SSDI eligibility and payments.
- Gather the necessary medical and financial documentation to strengthen your application.
- Navigate appeals if your claim is denied or if your benefits are reduced due to alimony payments.
Government Resources
The SSA website (www.ssa.gov) provides detailed information about SSDI and SSI programs, including how different types of income are treated. Additionally, state-specific resources on alimony laws can help you understand your rights and obligations.
Conclusion
If you’re balancing alimony and disability benefits or considering applying for SSI or SSDI, proper planning and documentation are critical. Working with a local disability lawyer can help you navigate the complexities, ensuring you receive the support you need. At Collins Price, we’re committed to helping individuals with disabilities apply for SSDI or SSI benefits and we represent claimants at every step in the process. Contact us today for a free consultation on your claim. We do not receive a fee unless your claim is approved.
