Ask Larry

Will Income From A Class Action Suit Affect My Disability Benefits?

I am part of a class action lawsuit and receive Social Security disability. I have Stage IV cancer and unable to work. My yearly income from disability is approx $18,000. If I receive a settlement do I need to report and will this affect my disability payments? Thank you.

Hi,

Assuming that you are receiving Social Security disability benefits and not SSI (Supplemental Security Income), income from a lawsuit shouldn't affect your benefits. However, if the proceeds of the lawsuit are in any way related to your past work, you would want to make a report to Social Security so that they will know that the proceeds are not related to current work activity.

Best, Jerry

Posted: 
May 8 2017 - 6:35am
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