Can I collect Social Security retirement and unemployment benefits at the same time without exceeding income limits?

That's a huge relief, thank you! I'll definitely call my state unemployment office tomorrow to check their specific rules. Do you happen to know if I need to report my SS benefits to unemployment once they start, or will they automatically know?

This is TOTALLY wrong information! Unemployment absolutely counts against your earnings limit!!! They will make you pay back every penny once they catch you double dipping like this! I had a coworker who got hit with a $6000 overpayment notice from SSA for doing exactly this!!! Don't risk it!!

No, that's incorrect. Unemployment compensation is NOT considered earned income by Social Security and does NOT count toward the retirement earnings test limit. Your coworker likely had a different issue - perhaps they continued working part-time or had self-employment income while collecting benefits. The SSA website clearly states that only wages and self-employment income count toward the earnings limit.

Thanks for the detailed breakdown! Yeah, I know taking SS early means a permanent reduction, but with the sudden job loss, it seemed like the best option. If I find part-time work, I'll be super careful about tracking those earnings. Do you know if there's an easy way to estimate how much I can work before hitting the limit? Like how many hours at X dollars per hour?

For Social Security purposes, unemployment benefits are NOT counted as EARNED income toward the earnings limit. They're considered unearned income, like investment income or pension payments. For tax purposes, however, unemployment benefits ARE considered taxable income, and if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds certain thresholds, your Social Security benefits might be taxable. So they don't affect the earnings test, but they might affect how much of your SS is taxed.

Oh wow, I've been trying to get through to SSA for days now. I'll check out that service - waiting on hold for hours is driving me crazy. Thanks for the tip!

does that service cost money? the SSA line is supposed to be free to call right?

Yes, there is a fee, but for me it was worth it to avoid wasting entire days on hold or getting disconnected. The SSA line is free but practically impossible to get through on sometimes. Saved me tons of frustration and I got the answers I needed.

Good point about the tax withholding - I hadn't thought about that! I'll look into having taxes withheld from both. Did you find that having both income sources pushed you into a higher tax bracket?

It did push me into a slightly higher bracket, and I ended up having about 85% of my SS benefits subject to tax. I'd definitely recommend having at least 10% withheld from unemployment and maybe 15% from Social Security if you can manage it. Better than owing a big chunk next April!

this is so true lol. my mom got 3 different answers from 3 different SS people about widow benefits last year. its like they make up the rules as they go!

This is extremely helpful - thank you! Breaking it down by weekly hours makes it much more practical for job hunting. I've been looking at some part-time positions in the $18-22 range, so this gives me a good framework.

Thank you so much for sharing your experience, Oliver! It's really reassuring to hear from someone who went through the exact same situation. I'm feeling much more confident about collecting both benefits now. I'm planning to call my state unemployment office tomorrow to get clarity on their specific rules about SS benefits. Did you find that the weekly certification process became more complicated once you started receiving SS, or was it pretty straightforward to report? Also, I appreciate the tip about standing my ground if they initially say I can't collect both. It's good to know that the SSA website clearly backs this up in case I need to reference it.

@Oliver Weber This is incredibly helpful - thank you for sharing your real-world experience! It s'such a relief to hear from someone who actually navigated this successfully. I was getting stressed about potentially having to choose between the two benefits. Your point about unemployment staff not always understanding the distinction between earned and unearned income is spot on. I ve'already gotten conflicting information from different sources, so I ll'definitely reference the SSA website if needed. Did you find that your state reduced your unemployment benefits once you started receiving SS? And roughly how long did it take to get through to someone knowledgeable at your state unemployment office? I m'prepared for some phone tag but hoping to get clear answers tomorrow. Really appreciate you taking the time to share all these practical tips!

@Oliver Weber This is exactly what I needed to hear - thank you for sharing your experience! It s'so reassuring to know someone went through the same situation successfully. I was getting really anxious about potentially having to choose between the benefits. Your advice about keeping detailed records is spot on - I ve'already started a folder with all my paperwork. I m'definitely going to call my state unemployment office first thing tomorrow to find out their specific rules about SS benefits affecting unemployment payments. Quick question - when you reported your SS benefits during the weekly certifications, did you report the gross amount or was there some other figure they wanted? And did you have any issues with the timing of when benefits started vs. when you had to report them? Thanks again for all the practical advice - this gives me so much more confidence moving forward!

@Oliver Weber This is so helpful - thank you for sharing your real experience! I ve'been stressed about this exact situation and your advice gives me confidence. One quick question - when you said some states reduce unemployment dollar-for-dollar with SS while others don t,'do you happen to know what determines this? Is it just state policy or are there federal guidelines involved? I m'in California and trying to get a sense of what to expect before I call tomorrow. Also really appreciate the tip about having taxes withheld from both sources. With unemployment being $380/week and SS around $1,850/month, I m'definitely going to look into that to avoid any surprises come tax time!

@Oliver Weber This is incredibly reassuring, thank you! I was starting to panic about whether I d'done something wrong by applying for both. Your experience gives me so much confidence. I m'particularly grateful for your point about unemployment office staff sometimes not understanding the earned vs unearned income distinction. I ve'already gotten mixed messages from different sources, so it s'good to know I should be prepared to reference the SSA website if needed. One question - when you reported your SS benefits during weekly certifications, did you report the full monthly amount or did you have to break it down differently? And did your state end up reducing your unemployment benefits once SS kicked in, or were you able to collect the full amount of both? Planning to call my state office first thing tomorrow armed with all this great advice!