Social Security Disability and Personal Injury: Can You Collect Both?

Why This Question Matters So Much to Injured New Yorkers

Many clients who come to us are not just injured, they are dealing with a life rearranged overnight. An accident that keeps someone from working does more than cost wages; it affects their identity, their routine, and their sense of independence. When a person suddenly finds themselves applying for Social Security Disability benefits while also pursuing a personal injury claim, the situation can feel confusing and emotionally heavy. People worry they might lose one benefit if they receive the other, or that accepting compensation from one system could jeopardize the support they desperately need from the other.

At Horn Wright, LLP, our personal injury attorneys have seen how deeply this issue affects clients. They want an honest, simple answer: Can I receive disability benefits and a personal injury settlement at the same time? The short answer is yes, in many cases you can, but with important differences depending on which type of Social Security benefit you receive and how the compensation is categorized. Once clients understand those differences, the fear behind the question often eases.

Understanding the Two Types of Social Security Disability Benefits

People often use “Social Security Disability” as a single term, but there are two very different programs, and each treats personal injury settlements differently. Social Security Disability Insurance (SSDI) is based on work history and earnings. In contrast, Supplemental Security Income (SSI) is a needs-based program for people with limited income and resources. Clients are often surprised that the distinction matters so much, because the programs look similar from the outside.

If someone receives SSDI, their personal injury settlement does not reduce their monthly disability payment. That relief is immediate when we explain it, and it often brings visible comfort. SSI, however, is more sensitive to financial changes. A personal injury settlement can reduce or suspend SSI benefits unless the funds are handled in a specific way. Understanding which program applies is the first step in protecting both forms of support.

• SSDI is earned through past work and payroll taxes
• SSI is based on financial need and strict income/resource limits
• Personal injury settlements affect each program differently

Once this difference sinks in, people realize they are not as vulnerable as they feared. The key is understanding which rules apply to their situation.

How SSDI and Personal Injury Compensation Interact

For clients on SSDI, the relationship between disability benefits and personal injury awards is surprisingly straightforward. SSDI benefits come from a person’s work history, not their financial need, so a settlement does not count as “income” for SSDI purposes. Clients who rely on SSDI often feel enormous relief when they learn this. They can pursue a personal injury case without worrying that their disability checks will be taken away.

But there is one caveat: some SSDI recipients also receive Medicare. When that’s the case, any settlement involving future medical expenses needs special handling to ensure compliance with federal rules. This isn’t a penaltyit’s simply a requirement designed to prevent the government from paying for injuries the settlement already covered. With the right planning, SSDI recipients can protect both their settlement and their benefits.

How SSI Responds to a Personal Injury Settlement

Clients receiving SSI face a different landscape. Because SSI is strictly needs-based, a personal injury settlement can temporarily push someone over the program’s income or resource limits. That does not mean they lose the settlement or that they will never qualify again, but it does mean the funds must be managed carefully to prevent interruptions to their monthly payments. Some clients use special accounts or trusts to maintain eligibility while still receiving their settlement.

• SSI counts most income and resources when deciding eligibility
• Personal injury settlements may temporarily suspend SSI if unmanaged
• Certain trust arrangements can preserve both the settlement and the benefit

This is often the most stressful part for clients, especially those who depend on SSI for daily necessities. But with proper guidance, it is possible to protect both.

The Importance of Informing the Social Security Administration

One of the biggest mistakes injured individuals make is failing to notify the Social Security Administration about a pending personal injury claim or settlement. Many fear that disclosure will cause benefits to be taken away immediately. The reality is the opposite: non-disclosure creates far more serious issues. The SSA expects accurate information and can impose penalties or overpayment demands if someone unintentionally violates reporting rules.

In most cases, the SSA simply evaluates how the settlement affects eligibility and communicates the next steps. When the information is provided promptly and honestly, clients avoid unnecessary complications. Transparency is the safest path, even when it feels intimidating.

How Personal Injury Attorneys Help Prevent Benefit Disruptions

Many clients assume their personal injury lawyer has no role in their disability benefits, but the truth is that coordination matters. An attorney who understands the full picture can structure the settlement carefully, communicate with disability counsel when needed, and avoid pitfalls that could disrupt benefits. Clients often feel relieved when they realize their legal team can help shield them from financial surprises.

• Attorneys can categorize settlement funds in ways that comply with benefit rules
• They can coordinate with financial planners or disability specialists
• Proper planning protects long-term stability

The goal is simple: clients shouldn’t have to choose between financial compensation for their injury and the disability benefits they rely on to live.

When You Can Collect Both Without Conflict

Many clients discover that they are fully allowed to collect both SSDI and a personal injury settlement without any reduction in benefits. Those who rely on SSI can often preserve most or all of their settlement with careful planning. When clients hear this for the first time, the emotional relief is clear. They realize they do not need to forfeit one lifeline to preserve another.

• SSDI recipients typically keep both
• SSI recipients can often keep both with proper structuring
• Settlement timing and planning make a meaningful difference

This clarity changes everything for clients who feared losing their only steady source of support.

Finding a Way Forward With Confidence

Navigating a personal injury case while receiving Social Security Disability benefits can feel overwhelming, but once the rules are explained clearly, the situation becomes far more manageable. Most clients find comfort in knowing they are not facing an impossible choice between their settlement and their disability income. Instead, they learn that with the right guidance, they can protect both.

At Horn Wright, LLP, we help clients understand how their settlement will interact with their disability benefits long before the case resolves. If you’re unsure whether you can collect both a personal injury settlement and Social Security Disability, or if you simply want clarity before moving forward, contact us. We’ll help you make informed decisions and approach the future with stability and peace of mind.