Can you collect unemployment and Social Security at the same time?

You can collect unemployment and Social Security at the same time, and for retirement, spousal, and survivor benefits, neither one reduces the other. The exceptions are worth knowing before you file: unemployment reduces SSI, and claiming Social Security early to cover a job loss shrinks your monthly check for life.

Can you collect unemployment and Social Security at the same time?

Yes, as long as you qualify for each on its own. Your state decides whether you get unemployment, based on your recent work and why the job ended. Social Security decides based on your work record, your age, or a disability.

Which Social Security benefit you receive determines how the two interact.

Social Security retirement, spousal and survivor benefits

The Social Security Administration (SSA) offers retirement, spousal, and survivor benefits to provide income assistance to older Americans. If you qualify for retirement benefits on your own work record, your spouse’s record, or a deceased spouse’s record, you can typically collect these types of Social Security payments and unemployment benefits at the same time.

Social Security disability benefits

Social Security provides two types of benefits to people with disabilities: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). You might be able to collect unemployment while receiving Social Security disability benefits, but it depends on your situation and the laws in your state.

Collecting both can be more complicated than collecting unemployment and Social Security retirement benefits because the purpose of unemployment is to provide short-term relief for people who are actively looking for a job. And disability benefits are meant for people who are unable to work.

If you’re receiving SSDI or have a claim pending, talk with a disability attorney or a free legal aid office before filing for unemployment, because the work-availability statement you sign can be used in your disability case.

Read more >> Does Filing for Unemployment Affect Your Credit Score?

Does unemployment affect your Social Security benefits?

Unemployment doesn’t affect Social Security retirement benefits because it’s not considered income for the earnings test. Typically, if you start collecting Social Security retirement benefits before you reach full retirement age and you continue working, your benefit is reduced by $1 for every $2 you earn above the SSA’s annual limit. In 2026, the limit is $24,480. (If you’ve reached full retirement age, your benefits aren’t reduced no matter how much you earn.)

Receiving unemployment benefits doesn’t typically affect your SSDI payments, but it reduces SSI payments dollar for dollar.

Can Social Security affect your unemployment benefits?

Some states used to reduce unemployment benefits for people collecting Social Security. None do today: Minnesota, the last holdout, repealed its offset in 2022.

A pension paid by an employer you worked for during your claim period can still reduce your unemployment in some states, so ask your state unemployment office if you get one.

Read more >> How to Save for Retirement

Does unemployment affect your Social Security earnings record?

Unemployment benefits aren’t included in lifetime earnings on your Social Security earnings record. The earnings record is used to determine your retirement benefits by calculating the average of your 35 highest-earning years, indexed to wage growth.

If you have fewer than 35 years on your record, your benefit is reduced. If you have more than 35 years on your record, higher-earning years can replace lower ones, increasing your benefit.

Log in to your mySocialSecurity account to check your earnings.

What to consider before collecting unemployment and Social Security

Your age

Full retirement age is 67 if you were born in 1960 or later. You may be able to start receiving a reduced benefit at age 62. But filing for Social Security before you reach full retirement age reduces your retirement benefit for life. If you haven’t reached full retirement age, applying for unemployment while you look for work could allow you to delay applying for Social Security. This may help you qualify for a larger benefit in the future.

Employment potential

If you’re planning to return to work, collecting Social Security may not be necessary if you’re able to qualify for unemployment until you find a new job.

Taxes

Unemployment benefits are subject to federal income tax. They also count toward the income test that decides how much of your Social Security is taxable. You can have 10% withheld from unemployment benefits by filing IRS Form W-4V with your state.

‍You don’t have to pay for tax help. The IRS runs Free File for most filers and VITA, which offers help for people under certain income limits, people with disabilities, and limited-English speakers. TCE covers anyone 60 or older.

Call 800-906-9887 to find a site, or call AARP Tax-Aide, which runs most TCE sites, at 888-227-7669. For anything more complicated, talk with a CPA or enrolled agent. Enrolled agents are licensed by the IRS and usually cost less.

Bottom line

If you’re collecting Social Security retirement benefits, file for unemployment too; neither reduces the other. If you’re on SSI or SSDI, check the rules before you file.

Neither benefit shows up on your credit report. What can show up is how you bridge the weeks before the first payment arrives. If cards are covering groceries in the meantime, your balances climb and so does your utilization. Kikoff Credit Monitoring shows how much of your available credit you’re using, day over day, so you can see it before a lender does. Plans start at $5 a month.