Types Of Back Payments
Back payments are paid for the months between the date you applied for disability benefits and the date you were approved for benefits. Due to the number of people that are applying for disability benefits and the time it takes to process your application, there is usually a long delay between your disability application date and approval date. And for Social Security Disability Insurance benefits, there is five-month waiting period, so you are only eligible to receive back pay for any delay beyond the waiting period .
Another type of back payment that may be available to individuals who are receiving SSDI benefits are retroactive benefits. Retroactive benefits are paid for the months between when you became disabled and when you applied for Social Security Disability benefits. These are benefits that you were eligible for and would have received if you had applied for benefits earlier.
Qualifying For One Does Not Qualify You For The Other
The VA and Social Security Administration have completely separate processes and requirements for getting benefits such as these. Just because you are approved for one program does not mean you will qualify for another and just because you draw benefits from one does not mean you will automatically get the other. Each must be applied for separately and approved separately.
Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News
The Facts On Social Security Disability Insurance And Supplemental Security Income For Workers With Disabilities
Endnotes and citations are available in the PDF and Scribd versions.
Nearly one out of every six working-age Americans29.5 million peoplehas a disability, making them much more likely to experience economic hardship than people without disabilities. Many people with disabilities are able to work, although they face greater challenges finding work than people without disabilities. But many individuals with severe and long-lasting disabilities have no or only limited capacity to work and are particularly vulnerable to economic hardship.
For roughly 12 million people with disabilities, Social Security Disability Insurance and Supplemental Security Income, both core components of our nations Social Security system, provide critical lifelines. The modest but vital assistance that Disability Insurance and Supplemental Security provide makes it possible for individuals with severe disabilities and health conditions to live independently, keep a roof over their heads and food on the table, and pay for needed, often life-sustaining medications and other basic expenses.
This issue brief answers some of the common questions about Disability Insurance and Supplemental Security. Our focus in this brief is on nonelderly adults with severe disabilities. It is important to note, however, that Supplemental Security also provides vital support to some 1.2 million children with severe disabilities, as well as more than 2 million low-income seniors.
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The Social Security Administrations Windfall Offset Provisions
The Social Security Administration may adjust your back pay amount according to its windfall offset provision. The Social Security Administration determines an applicants SSI back pay amount based on their income. If you have been approved for benefits under SSI and SSDI, the back pay amount through SSDI will count as income for SSI benefits.
The Social Security Administration will automatically reduce your SSI benefits to account for your back pay income. The Social Security Administration will consider your SSDI back pay as income that has been available to you throughout the entire disability period. If youre unsure how much back pay you should be receiving, we recommend contacting Disability Advocates Group. Our legal team can help you ensure that youre receiving the full amount of back pay to which youre entitled.
Contact a Los Angeles Social Security Benefits Lawyer Today
Did your Social Security claim take a long time to process? If so, you may be entitled to up to 12 months of back pay from the Social Security Administration. Contact the experienced Social Security benefits lawyers at Disability Advocates Group today to schedule your initial consultation. We will carefully review your case and advise you as to whether you are entitled to back pay.
Make The Process Easier With Our Help
As you can imagine, the established date of your disability can have a big impact on the amount of benefits you receive. If you win your disability claim on appeal, you could potentially get back pay for the many months you were forced to live without your rightful benefits.
If you’re having trouble collecting rightful payment from Social Security, simply fill out the quick contact form on this page today to schedule a consultation with our attorneys at no cost to you.
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Limits On Retroactive Payments
The SSA will not pay you for more than 12 months of retroactive benefits. Since there is also the five-month waiting period, figuring out your retroactive benefits can be confusing. Using some examples may help clarify.
If you apply for benefits on October 1, 2015, and the SSA gives you an EOD of January 2, 2015 EOD, you would get retroactive benefits from July 1, 2015. You will not receive benefits from January to June, because that is your waiting period.
If you apply for SSDI on July 1, 2015, and your EOD is January 2, 2015, you will receive benefits from July 1, 2015.
If you apply for SSDI on October 1, 2015, and your EOD is January 2, 2014, you will not get retroactive benefits all the way back to July 1, 2014, because the SSA cannot give retroactive payments for more than 12 months. You will get benefits back to October 1, 2014.
If your EOD is more than 17 months from when you applied, you will still only get 12 months of backpay.
Will You Explain The 6 Month Retroactive Benefit
Would you please explain what the 6 month retroactive benefit is and how it works. I am 68 years old, my FRA was 66 and I am still working and haven’t filed for my S.S. retirement benefits yet
I’ll try. Since you are older than full retirement age , when you file for benefits you will have the option to claim benefits up to 6 months prior to your month of filing. However, taking the retroactive benefits will come at the cost of receiving a lower monthly benefit rate for life.
For example, say Bill turns age 70 in July 2017. If Bill files for his benefits in July, he’ll have the option to start his benefits either at age 70 or effective with any of the 6 months prior to that. If Bill’s age 70 benefit rate would be $2640, it would only be $2560 if he instead starts his benefits retroactive to January 2017.
You may want to strongly consider running the maximization software available on this website before deciding when to start drawing your benefits. Especially if you are married or have been in the past, you may have filing options that you haven’t yet considered.
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Back Pay Is Different Than Retroactive Payments
The Social Security Administration does not award individuals retroactive disability payments. For example, an applicant cannot recover compensation for the months before submitting their application for benefits, even if they were diagnosed with a disability during that period. You can only recover back pay if youve already applied for benefits and your application has been approved.
How A Social Security Attorney Can Help
The process of applying for benefits and obtaining them is not only tedious, but also confusing. Besides a number of legalities beyond the comprehension of a general applicant, not all applicants receive a fair review, because not all applicants have knowledge about:
- The proper documentation and records to be submitted with the application
- The required presentation to be given before the judge
- The amount of benefits that can be requested
- The procedure to change the EOD from the AOD
Hiring an SSDI lawyer can ensure that your application receives a fair review and you are given the benefits you deserve for your disability.
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How Does Social Security Issue Back Pay On Disability Benefits
It can take several months for the Social Security Administration to issue a decision on a disability claim. For this reason, nearly every person who is awarded Social Security disability will be owed past due benefits, also called disability back pay.
However, the amount of back pay granted to each claimant varies depending on the date used to calculate benefits.
How Much Are Ssdi Back Payments
How much back pay will you receive? The actual amount varies from case to case. Once your claim has been approved, you will be sent an award letter as notification. Besides telling you how much youll be receiving each month in benefits, it will also tell you the amount of back pay you are owed and when you can expect to receive it.
Unfortunately, theres no set timeframe for receiving your back pay. It could take anywhere from a couple of weeks to a couple of months. If its been longer than a few months and you still havent received your back pay, contact the SSA or your attorney.
Back payments are usually paid out in one lump sum. However, if the amount is too large, the SSA will split the payments into three installments. All SSDI payments are now made by direct deposit, so you will have to have a bank account to receive your payment.
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What You Give Up To Get Retroactive Benefits
At first, it might seem like asking for retroactive payments would be a no-brainer. However, there’s a trade-off in receiving benefits retroactively: The amount you receive is based on what you would have gotten if you’d filed for benefits on the retroactive date six months earlier rather than on your current age.
To see how this works, take an example. Say that a worker is entitled to receive a $1,500 monthly benefit at full retirement age. They decide to wait beyond that age to file, but then six months later, they decide they want to start their benefits.
If the worker takes regular monthly payments, then delayed retirement credits for the six-month waiting period will apply. That works out to a 4% higher payment, so the worker will get $1,560 per month instead of $1,500. That increase will apply for the rest of the worker’s life, with future cost-of-living adjustments based on the higher figure.
Alternatively, the worker can take six months of retroactive benefits. However, the retroactive amount will be based on the full retirement benefit of $1,500 without any delayed retirement credits, making the lump sum $9,000. Going forward, the worker will get just $1,500 per month rather than $1,560.
Social Security Disability Insurance Is Coverage That Workers Earn
Social Security Disability Insurance is a social insurance program under which workers earn coverage for benefits, by working and paying Social Security taxes on their earnings. The program provides benefits to disabled workers and to their dependents. For those who can no longer work due to a disability, our disability program is there to replace some of their lost income.
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If I Get Approved For Disability How Far Back Will Social Security Pay Me
If you get approved for Social Security Disability Insurance benefits, you might be eligible for back pay or retroactive benefits. Back pay might also be available if you qualify for Supplemental Security Income .
Retroactive benefits might go back to the date you first suffered a disabilityor up to a year before the day you applied for benefits. For SSI, back pay goes back to the date of your original application for benefits.
To speak to a disability lawyer about how far back Social Security will pay you, call Berger and Green at .
How The Ssa Determines Social Security Back Pay
The Social Security Administration determines the amount of back pay to which youre entitled based on the date you filed your disability claim and when they approved your claim. The specific process for determining how much back pay youre entitled to depend on whether you were approved for Social Security Disability Insurance Benefits or Supplemental Security Income benefits, or both.
If the Social Security Administration approved you for SSDI benefits, they would provide your back pay in a lump sum. Unfortunately, the Social Security Administration is notorious for delays related to back pay. The date you will receive your back pay is unpredictable.
In some cases, the Social Security Administration deposits an applicants back pay before theyve notified the applicant that their claim has been approved. In other cases, applicants receive their typical monthly benefits before receiving back pay. SSI payments will not arrive in a lump sum. Instead, they will be paid out over time, incrementally. Recipients of back pay do not receive interest on the total back pay amount.
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Five Things You Need To Know About Social Security Disability Back Pay
The Social Security Disability process can take a long time, especially since most claims get denied at least once. Its not uncommon for people to feel frustrated and want to quit but theres a good reason to stay the course. Most people who get approved for Disability benefits receive more than just monthly checks. They also receive a substantial amount of back pay, which is usually paid in one lump sum.
The amount of back pay you are owed depends on variety of factors, including when you became disabled, when you applied for benefits, and how long you waited before finally getting approved. Like most aspects of the Social Security Disability process, back pay can be very confusing. Here are five things you need to know about Social Security Disability back pay:
You may be entitled to back pay and retroactive benefits.
Back payments are past due benefits. That is, the money the Social Security Administration would have started to pay you if they had approved your application immediately after you filed. Back payments are owed to you from the date of your application to the date that the SSA approved you for Disability benefits.
Because of theres a huge backlog of Disability claims, nearly everyone who gets approved is entitled to some amount of back pay. There is no limit to the amount of back pay you can receive. All this time you have been waiting, back pay has been building up.
An Award Letter will spell out the details.
Ssi Benefits Begin With The Date Of Application
Supplemental Security Income applicants are entitled to monthly disability benefits beginning in the month in which they filed for benefits. SSI is a supplement. Therefore, in addition to proving disability, you must also meet the income and resource requirements of the SSI program. The income and asset restrictions are similar to those of welfare. For example, you cannot have more than $2000 in your bank account. You also cant have more than one from of transportation. Or, more than one house to live in. The SSA will also look at the income of the people you live with. Unless you are a separate household.
SSI benefits have state limits. For example, in Utah, SSI benefits are currently $794 per month. For a couple, the maximum monthly benefit is $1191 per month. Each state sets their own monthly SSI payment amount. In Nevada, the SSI payment is $769 per month. And, in Nevada per couple it is $1175. Californias SSI payment amount is $910.72 per month for an individual. Per couple, it is $1532.14 in California. Therefore, you can see that the amount of monthly benefit varies by state. Also, these are maximum amounts. Which means, the amount can go down depending on your assets or other income.
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If You Are Getting Other Benefits
If you get both a CPP survivor’s pension and a disability benefit, they will be combined into a single monthly payment. The total amount you get cannot be greater than $1,413.66 per month .
If you are receiving both a retirement and survivor pension, and are then granted a post-retirement disability benefit, you will receive the higher amount of the survivor or post-retirement disability benefit flat rate.
Take Steps To Protect Your Back Pay And Retroactive Pay Today
Once you are approved for Social Security disability back pay or retroactive pay, then you will typically receive the money that is owed to you in one lump sum unless you are also eligible for Supplemental Security Income in which case the rules differ. No interest will be paid on back pay or retroactive pay benefits.
Back pay and retroactive pay can be important to your financial future. Therefore, it is important that you contact an experienced Social Security disability lawyer as soon as possible. Our lawyers can help you gather the right evidence and make persuasive arguments so that you get the full amount of back pay and retroactive benefits that you deserve. Contact us today via this website or by phone to find out more about what we can do for you and how we can help you get the fair amount of Social Security disability benefits that you have earned. Contact Us by filling out a form or call us at 508-283-5500.
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What Is The Amount Of The Monthly Ssd Payment
The monthly amount of your SSD payment is different for every person. The SSA arrives at your monthly amount of benefits by looking at your work history. Depending on a variety of factors, such as your age and how many years you have worked, the SSA will determine your Primary Insurance Amount .
In order to be eligible for benefits on your own work record, you need to have 40 quarters of coverage. Or, you need to have worked for 10 years. Those quarters dont have to be consecutive. For example, you may not work for one quarter because of illness. Or, perhaps there was some other reason for not working. For example, an ill spouse or child. Perhaps, you didnt work for one quarter due to pregnancy. But if you return to work full-time, then you are once again obtaining quarters of coverage. Covered employment means a job where the employer is paying Social Security payroll taxes. And, the employer is deducting FICA contributions.
You SSD benefit depends on how much money you earn. If you are a high earner, then your monthly benefit may be $2000. Likewise, if you are a low wage earner, then you monthly benefit will be low. Perhaps around $500. It all depends on how money you earn while working. The average persons SSD benefit ranges from $1100 to $1500 a month.