A:Your Social Security Disability benefits can be offset by any wage loss benefits you receive in a workers’ compensation claim. However, it also means that the amount of the workers’ compensation benefits that are being offset become taxable income. If you are concerned about your benefits, you should have us review your case and help you receive the maximum value of your claim.
We handle workers’ compensation cases on a day-to-day basis and understand how any settlement can affect the income you receive through Social Security.
If there is no language in your workers’ compensation settlement paperwork that protects your Social Security Disability benefits, you risk losing a significant amount of your settlement. For example, suppose you settle your claim on your own for $24,000 at a time while you should receive Social Security Disability payments of $1000 a month. After the settlement, you would not receive any Social Security for 24 months simply because you didn’t insist on settlement language that would have protected your Social Security Disability benefits. When the 2 years are up, you would go back to receiving your $1000 monthly benefits. In this case, the workers’ compensation claim would be settled for nothing because Social Security is taking credit for the $24,000 until the lump sum is used up. Additionally, the workers’ compensation benefits have now become taxable income.
To avoid such a scenario, call us to reach a settlement that is apportioned over a lifetime. This would result in no reduction in your disability benefits or a minimum reduction of $10-$20 monthly.
The Injured Workers Law Firm is a Richmond, Virginia based firm solely focused on serving clients with workers' compensation claims in Virginia. If you have questions about your benefits or if you would like more information on the Virginia workers’ compensation system, order our book, “The Ultimate Guide to Workers’ Compensation in Virginia” , or call our office today (804) 755-7755.