Friday, January 21, 2022

How Far Back Does Social Security Disability Pay

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Will I Receive A Notice From The Social Security Administration Explaining My Benefits

How Does Social Security Disability Back Pay Work?

Yes. That notice is usually called a Notice of Award. This notice will show the date of entitlement and the amounts of benefits for all months of back benefits. It will show the total amount of benefits to be paid to you. It will show the amount of benefits withheld for direct payment of attorneys fees. It may also give you information about your Medicare eligibility and monthly Medicare premium. It may also give you some information about when to expect a continuing disability review.

When Can The Ssa Change Your Alleged Onset Date

If the SSA disagrees with the date you say you became disabled, it can establish an onset date that’s later than you think is correct. If the SSA sets the onset date, it’s called the established onset date , rather than the alleged onset date . However, the SSA has to have contrary medical evidence to show that your alleged date is wrong and that its EOD is correct.

To determine your EOD, the SSA will look at your AOD, when you last worked, and what the medical evidence shows.

If the SSA finds that an applicant went back to work for some time period after applying for benefits, the agency will likely give the applicant an EOD of the date the applicant last worked this job.

The Offset Provision In Practice

Say you pay premiums for a disability insurance policy worth $5,000 per month in benefits once you become disabled. Your policy has the offset provision, so you have to apply for SSDI as well. SSDI is free to you â itâs a tiny tax that everybody pays â so you should apply anyway.

But say you become disabled on March 1. Your LTDI policy has a three-month waiting period, also known as an elimination period, so you become eligible to receive LTDI benefits from the insurance company on June 1. You receive your first payout of $5,000 on July 1.

Meanwhile, your SSDI claim is still processing. It finally becomes approved later that year, for SSDI benefits of $1,000 per month. You receive a catch-up payout for each month you shouldâve been receiving SSDI payments.

If your catch-up payment is three monthsâ worth and youâve been receiving long-term disability insurance benefits for two months, you only owe the offset for those two months: $2,000. But, in this example, if youâve been receiving LTDI benefits for three or more months, youâll have to give the whole catch-up payment to the disability insurance company.

Additionally, once your SSDI benefits kick in, your LTDI benefits will be offset for every month. Now you receive $4,000 from the disability insurance company and $1,000 from the government.

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What If There Is Extra Money

If you pay your bills and take care of some necessities and have money left over, you shouldnt go overboard and waste it. Instead, you should use your funds wisely. You should consider opening a bank account, which draws interest.

That way, you can have your funds put away and be getting interest, which will add to your total cash amount. You will want to put the money in an account so it can be accessed if there is an emergency, such as a vehicle that breaks down and either needs repairs or replacement, or you may have a medical emergency or need to make repairs to your home. You can also use these funds for insurance deductibles in situations when you must file a claim with your health, auto, or homeowners coverage.

Remember, emergencies do happen. If you have some extra funds to put away it can be very helpful to your family and can help resolve future financial crisis that you may face.

There are emergencies that require financial resources more often than you think, so having some cash that you can access in such situations can be a real life changer. Check with different banks about interest drawing accounts and learn which would be more suitable for your specific needs.

When Will I Receive My Ssdi Back Pay

Social Security Back Pay

It usually takes around 60 days to receive your back pay. Unlike SSI, SSDI back pay is often provided as one lump sum payment. However, it can only be paid by direct deposit, so you will need an active bank account in order to receive these funds. The SSA is very careful about calculating the Social Security benefit amounts for SSDI applicants, so you should not expect an overpayment.

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Prevent Delays In Receiving Your Disability Benefits

How long does it take to get disability back pay? The answer for most applicants waiting for social security benefits is too long. The Social Security Disability Benefits attorneys at Marc Whitehead & Associates want you to receive your disability benefits with as little delays as possible.

While we cant speed up the SSAs deliberation process, we can help you avoid the kinds of mistakes that could add months or even years onto the time it takes to get your claim approved. We can also ensure you receive the total back payment of benefits you are entitled to. Dont risk any unnecessary delays in getting the benefits you deserve. Contact the law offices of Marc Whitehead & Associates to schedule a free consultation with an experienced disability benefits lawyer to discuss the best way to proceed with your Social Security disability claim. Call us today at

When Are The Aod And Eod The Same

If you are approved for benefits and Social Security or DDS decides that your disability began when you alleged, the AOD effectively becomes the EOD.

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    What Is A Protective Filing Date

    Whether you are applying for SSDI or SSI, you can request a protective filing datea date earlier than the date of your disability application.

    Because SSDI works like an insurance policy, it is only available to for workers whose jobs have paid taxes to Social Security. If you apply for disability benefits after the last day you worked, the SSA may deny your claim on the basis that the policy no longer covers you.

    To protect against this, you may send a written statement of intent to file for SSDI to the SSA. You should do this prior to leaving your job. Initiating an online application, even if it is incomplete, can also preserve your protective filing date.

    When Will Social Security Reopen A Prior Application

    How far back will Social Security pay benefits if I am found disabled?

    Once Disability Determination Services has made its initial determination, Social Security may generally reopen previous applications that are less than a year old for any reason if the determination or decision was incorrect when it was made, and Social Security’s time limits and conditions are met.

    Keep in mind, however, that even if you request that your claim be reopened within the 12-month time frame, Social Security is not required to reopen the claim. Also, if your prior application is older than a year, it can be very difficult to get it reopened. You can learn more about when the SSA will, and will not, reopen an earlier application by reading our article on reopening prior Social Security disability claims.

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    How Back Pay Works

    Suppose worsening arthritis sidelined you from your job Jan. 15, 2020. You applied Feb. 1 for Social Security Disability Insurance but your claim was denied. You appealed and eventually got a hearing with an administrative law judge.

    Based on new evidence you were able to present at the hearing, the judge ruled in your favor, determining that your disability did indeed begin in January 2020. Based on your earnings history, Social Security calculates that you’re entitled to an SSDI benefit of $1,200 a month. But now it’s May 2021, and you haven’t drawn a paycheck in more than a year.

    That’s where back pay comes in. Fifteen months elapsed from the time you became disabled what the SSA calls your onset date to when your claim was finally approved. By law SSDI benefits have a five-month waiting period they start the sixth full month after the onset date so you’re entitled to 10 months of past-due benefits.

    Social Security typically pays past-due SSDI in a lump sum within 60 days of the claim being approved. If a lawyer or other professional advocate represented you in your disability case, the SSA will pay their fee out of your back pay.

    The SSA must approve your fee agreement with a lawyer or advocate in advance, and the fee is generally capped at $6,000 or 25 percent of back pay, whichever is less. In this case, with past-due benefits totaling $12,000, your representative would get up to $3,000 off the top.

    Contact An Attorney For Help

    It can be difficult, but well worth it, to convince Social Security that you meet Social Security’s requirements for reopening an earlier claim. But doing so successfully almost always requires the help of an experienced disability attorney. To see if reopening a prior claim could help you get more backpay, contact a disability attorney.

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    Will I Have To Pay Taxes On The Social Security Disability Benefits I Receive

    Probably not, but this depends on the amount of your total income. Most people wont have to pay taxes on their Social Security disability benefits. Couples whose combined incomes exceed $32,000 and individuals with income exceeding $25,000 will pay income tax on a portion of their Social Security disability benefits. The IRS has an odd way of figuring out total income for this rule. The IRS uses adjusted gross income as reported on Form 1040, plus one-half of the total Social Security benefits received for the year, plus non-taxable interest.

    Single people with incomes over $34,000 and married people with incomes over $44,000 pay tax on a higher percentage of their Social Security disability benefits.

    Heres an odd thing: People whose Social Security benefits are reduced because of the workers compensation offset or offsets for other public disability benefits must count the amount of Social Security benefits not paid when determining taxability of their benefits. But if a child receives benefits on a parents account, those benefits count only for determining if the child must pay taxes on Social Security benefits received.

    Tax law is very complex. Please talk to a tax specialist if you have any questions about taxes on your Social Security benefits.

    The Retroactive Benefits Are Best Explained Through Examples Lets Go Through A Couple Of Examples So You Can Get A Better Idea Of What Kind Of Benefits You Can Expect:

    Social Security Disability Back Pay
  • Disability date that is the same as your filing date: For the first example lets look at you having a disability date that is the same as your filing date. An example of that would be that you are working full time, you get into a major car accident, and you are paralyzed from the neck down. You put in your application through the hospital while you are going through surgery, or your caseworker puts in your application. Therefore, this is going to be the same date as your disability date, the date of the accident. Lets use January 1, 2013, as your accident date. This is also going to be your filing date as well. Your case is finally approved, it takes seven months for them, Social Security, to approve your case, look through your medical records, see whats going on with your treatment, and then make a decision. They approve your case on July 1, 2013. The back benefits you would get would go back to January 2013. But, then you have to consider the five-month wait period. Five months from January would be June 2013. Your benefits would start as of June 1, 2013. Say your benefit is $1,000 per month . You would get back benefits from when your claim was approved back to the end of the five-month wait period. So in this example, you would get $1,000 in back benefits.
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    What Can You Spend Back Pay On

    When you receive your back pay for your disability claim, it could be a significant amount. After all, you will be receiving the monthly benefits for the number of months dating back to when you became disabled. It could take 6 months to have your claim approved, and you may have been disabled for more than a year before you filed your claim. You may end up with 17 or 18 months of pay.

    If you have struggled financially because of your lack of income while you were waiting for your claim to be approved, you will want to make sure you use your funds wisely. First, you may want to pay off as many bills as possible. You may then want to use funds on the basics, such as groceries, medical care, insurance, and utilities.

    The Cover Sheet Of The Favorable Decision Says That The Appeals Council May Review The Decision On Its Own Motion What Does This Mean

    In a very small number of cases the Appeals Council in Falls Church, Virginia, will decide on its own to take away benefits awarded by the decision of the administrative law judge. If it is going to do this, the Appeals Council will almost always send you a notice within 60 days of the date of the judges decision. This is rare, so it is unlikely that the Appeals Council will do this in your case but if it happens you will have to work out with your attorney how to deal with it.

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    When You Have To Pay Back Long

    Most long-term disability insurance policies contain a rule, called the offset provision, that forces you to apply for SSDI in addition to claiming LTDI benefits. If your LTDI policy has this provision and you receive SSDI payments, your LTDI benefits will be reduced by the amount you received in SSDI.

    The Social Security Administrationâs definition of disability, which describes how disabled you have to be before youâre eligible to receive benefits, is very strict, and most people get denied. In addition, it may take months or years to start receiving SSDI benefits. However, if youâre granted benefits, youâll receive a lump-sum catch-up payment for every month the SSA spent processing your eligibility.

    Ready to shop for disability insurance?

    During the time you spent waiting for SSDI benefits, your LTDI benefits may have already started paying out. If your LTDI policy has the offset provision, you may have to pay all or part of the catch-up payment to the insurance company to offset the amount the company was obliged to pay you during that time.

    When You Applied For Disability And When Your Disability Began Dictate How Much Backpay You’ll Get

    How Far Back Do My Benefits Go If I Am Approved for Social Security Disability?

    In almost every case where a claimant is awarded Social Security or SSI benefits based on disability, past due disability benefits, or disability “backpay,” will also be received, back to when the disability application was filed, or sometimes even earlier. The reason for this is plain: Social Security disability claims take a long time to process.

    How far back you will receive benefits for depends on three factors.

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    Back Pay Compensates You For This Wait Time

    During this time, your back pay is adding up. If we convince Social Security to approve your application, you will begin receiving direct deposits each month. In addition, you might receive a lump sum payment for your back payif you are getting SSDIor several smaller paymentsif you qualify for SSI.

    For a free legal consultation, call

    How Long Does It Take To Get Disability Back Pay

    For a lot of people who become too injured or ill to continue working, their Social Security Disability benefits cant be paid out too soon. However, before they can receive benefits, their claim must be investigated and approved. The Social Security Administration has a huge backlog of cases to consider. Three to six months is the average time it takes for the SSA to come to an initial decision on a claim. If the claim is rejected, it may take several more months or even years for the applicant to make their way through the appeals process.

    If youve been waiting a seemingly endless time to receive your benefits, theres good news. Once your claim for SSDI or SSI benefits is approved, youll be qualified to receive back payment for the past due benefits that have accrued between the date of onset the date you became disabled and the date you were approved for benefits.

    The date of onset can be up to 12 months before you filed your claim. In order to receive back pay for all 12 months, however, youll have to be found to be disabled 17 full months before your filing date thats because theres a five-month period after your EOD before you can receive benefits.

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