Social Security will not allow you to make more than 80 percent of what you were making when you were working. Sometimes when you combine your Workers’ Compensation check with your Social Security check, the total amount will go above 80 percent of what you were making when you were working. When that happens, Social Security will reduce (also known as offset) your Social Security check until you get below 80 percent of what you were making before you were disabled.
For example, if you were making $30,000 per year before you became disabled, 80 percent of your salary would be $24,000 per year or $2000 per month. $2000 would then become the most you could make in Social Security Disability and Workers’ Compensation combined each month. Now suppose you were receiving $1300 a month in Worker’s Compensation benefits. The difference between $2000 and $1300 is $700. Therefore, Social Security would likely reduce your Social Security check to $700.
Obviously, every situation is different. You might not have an offset or your offset might be even larger than the one described above. If you want help calculating your offset, we would be happy to help. You might have options to get rid of your offset. Specifically, if done right, settling your Workers’ Compensation case can sometimes reduce or totally eliminate your offset.