Ask Larry

How Will Settling A Wage Case Affect My SSDI Benefits?

I have been on SSDI for just over2 years. A long story short my lawyer wants me to settle a wage case from 18-19. It is for 45 k. I did not try to hide income it is a long story. How will this effect my SSDI Thanks

Hi,

A settlement like that won't affect your Social Security disability (SSDI) benefits assuming that it doesn't involve work that you performed after the disability onset date established by Social Security. However, if the settlement proceeds are subject to Social Security tax withholding you'll want to be sure to report that income to Social Security and subject any documentation that they require to prove that the income isn't from earnings for work performed after your disability onset date.

Best, Jerry

Posted: 
Mar 2 2020 - 3:57pm
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