Does NYS Department of Labor unemployment count as income for social security benefits?
I'm 63 and currently receiving unemployment benefits from NYS Department of Labor after being laid off from my job at a manufacturing company. I'm planning to apply for early social security next year but I'm confused about whether my UI payments will affect my social security eligibility or benefit amount. I've been getting $405 per week from unemployment and I'm worried this might count against me somehow. Does anyone know if NYS Department of Labor unemployment benefits are considered income by Social Security Administration?
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Zoe Papanikolaou
Unemployment benefits don't count as earned income for Social Security purposes, but they can affect your taxes. Social Security looks at wages from employment, not unemployment compensation. However, your UI benefits are taxable income so you'll need to report them on your tax return. The Social Security earnings test only applies to wages from actual work, not unemployment payments.
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Andre Dupont
•Thank you! That's a huge relief. So I can collect both unemployment and early social security without one affecting the other?
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Jamal Wilson
just went through this same situation last year!! unemployment doesnt count but make sure you save money for taxes because they dont take out enough usually
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Mei Lin
Actually there's an important distinction here. If you're planning to take early Social Security at 63, you need to be aware of the earnings limit. For 2025, if you earn more than $23,400 in wages from working, Social Security will reduce your benefits. But unemployment from NYS Department of Labor doesn't count toward this limit since it's not earned income from employment.
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Liam Fitzgerald
•Wait I'm confused - so if I go back to work while getting early social security that WOULD affect my benefits? What if I only work part time?
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Mei Lin
•Yes, any wages from employment count toward the earnings limit. Part-time wages would still count, but as long as your total annual wages stay under $23,400 you're fine. Once you reach full retirement age the earnings limit disappears.
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GalacticGuru
I had such a hard time getting through to NYS Department of Labor to ask questions like this when I was dealing with my claim transitions. If you need to speak with someone at NYS Department of Labor about how your benefits might interact with other programs, I found this service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really saved me hours of calling and getting busy signals.
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Andre Dupont
•Interesting, I might need that if I have more questions about transitioning off unemployment when I start social security.
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Amara Nnamani
The whole system is so confusing!!! Why can't they just make it simple - you're either working or you're not working. Now we have to worry about different types of income and different rules for everything. At least unemployment and social security don't mess with each other but still...
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Giovanni Mancini
One thing to keep in mind is that when you do start receiving Social Security, you'll need to report that to NYS Department of Labor since it could affect your unemployment eligibility. Generally you can't collect unemployment if you're retired, but early Social Security might be treated differently. Worth checking with them before you file your social security application.
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Andre Dupont
•Good point! I hadn't thought about that. I guess I'll need to notify NYS Department of Labor when I apply for social security to make sure I'm following all the rules.
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Logan Stewart
@Andre Dupont I went through a similar situation when I was 64! The key thing Giovanni mentioned is really important - you definitely want to check with NYS Department of Labor about continuing unemployment once you start receiving Social Security. In my case, they told me that once I filed for Social Security (even early), I was considered "retired" and no longer eligible for unemployment benefits. It didn't matter that it was early Social Security - they viewed it as retirement income. So you might need to plan for a gap period or choose one or the other, not both simultaneously. Worth double-checking this with them before you make your Social Security application!
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