Key Takeaways:
In most cases, Veterans can receive disability compensation from the U.S. Department of Veterans Affairs (VA) and Social Security disability insurance (SSDI) at the same time, without either benefit reducing the other. However, the programs define disability differently, so even a 100% VA disability rating doesn't guarantee SSDI approval. Veterans with a 100% permanent and total VA disability compensation rating and those who became disabled while on active duty on or after October 1, 2001, may qualify for expedited processing. Phillip M. Hendry Law focuses on the Social Security side, using medical records and other evidence developed through the VA to help establish SSDI eligibility.
You served and came home with injuries or conditions that changed what your body or mind can handle. Then you worked your way through the VA claims process. That monthly compensation payment helps. But if those same conditions now prevent you from maintaining regular employment, it may not stretch far enough to cover your household.
Some Veterans across the Ark-La-Tex never apply for Social Security disability because they assume one federal disability benefit rules out the other. It doesn't. Phillip Hendry represents Social Security disability claimants throughout Louisiana, East Texas, and Southwest Arkansas.
For a Veteran, the medical records already in a VA file can provide a strong foundation for an SSDI claim. Here is how the two benefits fit together.
Table of Contents
Does VA Disability Compensation Reduce SSDI?
No. SSDI is an insurance program funded by the Social Security taxes you paid while working, including during active-duty service. The Social Security Administration (SSA) doesn’t count VA disability compensation against your SSDI check, and the VA doesn’t reduce compensation because you receive SSDI. If you qualify for both, each agency pays its full amount based on your eligibility.
This standard sets VA compensation apart from some other benefits. For example, workers’ compensation can reduce SSDI when the combined payments pass a certain limit. VA compensation triggers no such offset.
When Other Benefits Can Be Affected?
The no-offset rule applies specifically to SSDI and VA disability compensation. Two needs-based programs follow different rules.
Supplemental Security Income (SSI)
SSI is based on financial need rather than work history. The SSA treats VA compensation as unearned income for SSI purposes, which can reduce or eliminate an SSI payment. Our article on SSDI and SSI explains why the two programs treat outside income so differently.
VA Pension
This is separate from VA disability compensation. SSDI counts as income for pension purposes and can reduce or eliminate your pension payments. Additionally, Veterans generally cannot receive VA pension and VA disability compensation simultaneously. If you qualify for both, the VA pays the higher benefit. If you receive a VA pension, it’s worth running the numbers before you assume an SSDI award is pure gain.
Does a VA Rating Guarantee SSDI Approval?
Veterans are often surprised when a high VA rating doesn’t lead to a quick SSDI approval. The agencies ask different questions about the same conditions.
The VA rates service-connected conditions in 10% increments, from 0% to 100%, and recognizes partial disability. Many Veterans work full time while receiving VA compensation.
Social Security, on the other hand, doesn’t have partial ratings. Under its 5-step evaluation process, you must be unable to do substantial work because of a condition that has lasted or is expected to last at least 12 months or result in death. Whether the condition is connected to your military service doesn’t matter.
While the SSA isn’t bound by your VA rating, it does consider the medical evidence behind it. For example, consider a Veteran rated 70% for post-traumatic stress disorder who also lives with the effects of a traumatic brain injury. This person may meet Social Security’s standard, while someone with a higher rating who’s still working above the earnings limit will not.
Can Veterans Get Their SSDI Claims Expedited?
Two programs move Veterans’ SSDI claims to the front of the line:
- Veterans with a 100% permanent and total (P&T) VA rating receive expedited processing when they identify themselves as rated 100% P&T and give the SSA a copy of their VA notification letter.
- Through the Wounded Warriors initiative, Veterans who became disabled while on active duty on or after October 1, 2001, also receive faster handling, no matter where the injury happened.
However, a quick review doesn’t mean a lower standard, so the evidence still has to meet SSA rules. Here are some other situations that fast-track a disability claim.
What SSDI Adds Beyond a Monthly Check
An SSDI approval also provides Medicare eligibility after 24 months of entitlement. Many Veterans rely on VA health care, and Medicare coverage through SSDI can expand their access to providers closer to home. This is a vital alternative for Veterans in rural parishes and counties far from the nearest VA medical center.