Can I Get SSDI and Workers’ Compensation in Texas at the Same Time?

 Posted on October 07, 2025 in Social Security Disability

If you were hurt at work and cannot return to your job, you may qualify for both Social Security Disability Insurance (SSDI) and Workers’ Compensation. These programs have different rules but can sometimes overlap. Our experienced Plano, TX SSDI lawyers can help you understand how these two systems work together. We aim to protect your income and prevent any issues that may negatively impact your benefits.

How Can SSDI and Workers’ Compensation Overlap?

SSDI is a federal program managed by the Social Security Administration (SSA). It pays monthly benefits to people who cannot work because of a long-term or permanent disability. To qualify, you must have enough work credits. You earn those credits by paying Social Security taxes while working. Under 42 U.S.C. § 423(d)(1)(A), a person is considered disabled if he or she cannot do "substantial gainful activity" because of a medical condition that is expected to last at least 12 months or result in death.

Workers’ Compensation is a state program. In Texas, it covers medical costs and part of your lost wages if you are injured on the job. It is meant for short or long-term work injuries. Because SSDI covers all serious disabilities and not just work-related ones, it is possible to qualify for both programs if your condition keeps you from working for a year or longer.

What Is the Workers’ Compensation Offset?

Even though you can receive both benefits, the SSA may reduce your SSDI payment through something called the Workers’ Compensation Offset. Under 42 U.S.C. § 424a, the SSA makes sure that the total amount you receive from both programs is not more than 80 percent of what your average income was before you became disabled.

For example, if your average income before the injury was $4,000 a month, the most you can receive from both programs combined is $3,200. If Workers’ Compensation pays $2,000 a month, your SSDI payment would be reduced to $1,200. This rule ensures that you are not receiving more in benefits than you earned while working.

This rule also applies to lump-sum settlements from Workers’ Compensation. According to federal regulations, under § 404.408, the SSA may treat a settlement as if it were spread out over several months. The wording of the settlement agreement can affect how much SSDI you receive.

How To Protect Your SSDI Benefits

Handling SSDI and Workers’ Compensation at the same time can be complicated, but there are steps you can take to protect yourself:

• Report all Workers’ Comp payments to the SSA right away. If you do not, you might receive overpayments and be required to repay the extra money.

• Keep copies of all checks, letters, and settlement documents. These records can help you fix mistakes or answer questions later.

• Talk to an SSDI lawyer before you agree to a Workers’ Compensation settlement. A lawyer can make sure the settlement is written in a way that will not unfairly reduce your SSDI payments.

• Stay in touch with the SSA if your health or income changes. Reporting updates can prevent delays or problems with your benefits.

Schedule a Free Consultation With a Collin County, TX SSDI Attorney Today

With over 60 years of combined legal experience, The Law Offices of Coats & Todd have helped many Texans successfully apply for and protect their SSDI benefits. Our team has earned multiple professional honors and has held leadership roles in groups such as the National Association of Social Security Claimants’ Representatives and the Dallas Association of Social Security Claimants’ Attorneys.

If you need help applying for SSDI, contact our Plano, TX SSDI lawyers at 972-671-9922 today for a free consultation. We can answer any questions about how Workers’ Compensation can affect your claim.