If you are receiving disability payments and planning on taking a vacation, you may be wondering if your vacation pay will affect your disability benefits. The answer is: it depends on the type of disability benefits you are receiving. Let’s take a closer look.
Social Security Disability Insurance (SSDI)
If you are receiving SSDI, which is a federal disability insurance program for people who have worked and paid Social Security taxes, your vacation pay will not affect your benefits. This is because SSDI is based on your work history and earnings record, rather than your current income.
However, if you receive any other type of income while receiving SSDI, such as workers’ compensation or retirement benefits, that income may reduce your SSDI payments. This is because SSDI has strict rules about how much you can earn while still receiving benefits.
Supplemental Security Income (SSI)
If you are receiving SSI, which is a need-based program for people with limited income and resources who are disabled or blind, your vacation pay may affect your benefits. This is because SSI is based on financial need and any income you receive can impact the amount of SSI payments you receive.
Vacation pay is considered unearned income by the Social Security Administration (SSA), which means it counts towards the SSI income limit. As of 2021, the federal SSI payment amount for an individual is $794 per month. If you have other sources of unearned income, such as pension payments or child support, that combined with your vacation pay could reduce or eliminate your SSI benefits.
How to Report Vacation Pay to SSA
If you receive vacation pay while receiving disability benefits, it’s important to report it to the SSA as soon as possible. Failure to report this income could result in overpayments that you’ll have to repay later.
To report vacation pay, you’ll need to provide the SSA with the following information:
- The date you received the vacation pay
- The amount of the vacation pay
- The name and address of your employer who provided the vacation pay
You can report this income by contacting your local Social Security office or calling the SSA’s toll-free number at 1-800-772-1213.
Conclusion
In summary, whether or not your vacation pay affects your disability benefits depends on the type of benefits you are receiving. If you are receiving SSDI, your vacation pay will not affect your benefits.
If you are receiving SSI, however, your vacation pay may impact your benefits if it pushes you over the income limit. It’s important to report any vacation pay or other income to the SSA to avoid overpayments and potential penalties.