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Yet another possible hurdle to obtaining SSDI benefits

Many who have been through the process know that applying for Social Security Disability Insurance can be like paddling a canoe upstream. Sometimes it can seem that no matter how hard you work at it, the end goal seems further out of reach with each passing day.

As we noted last week, if you succeed in getting benefits there are things the Social Security Administration may use to trigger a reduction or loss of benefits. And the decision isn't always based on solid evidence. Earning too much is one thing that may flag your case. Indications during a case reassessment that you're not seeing a doctor anymore could be taken as a sign that you've recovered, even if it's not true.

This week, we explore yet another scenario that one retirement analyst says could prove harmful to your efforts to obtain the disability benefits to which you are entitled. It involves applying for unemployment while you're waiting for your application for SSDI to be processed.

It can take a lot of time for a claim to be handled. That's time that may leave the claimant dead in the water as far as revenue stream is concerned, and that can drive some to fill in the gap by filing for unemployment.

As the retirement analyst notes, it is not against the law to collect unemployment while you're waiting for SSDI benefit approval. However, he suggests it's not a good idea because the government sees it as counterintuitive. People on unemployment are supposed to be actively looking for work, but people seeking disability are saying they can't work for at least a year.

The result of such an assumption is that you could be denied your benefits. If they are granted, they might be scaled back based on the unemployment received.

Source: Fool.com, "Social Security Disability: 3 Critical Mistakes to Avoid When Applying," Dan Caplinger, Sean Williams and Keith Speights, June 27, 2015

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