Sunday, June 16, 2024

How Do They Calculate Disability Payments

Don't Miss

Contact John R Colvin For Help With Your Ssdi Application

How do I Calculate Disability Benefits for Children of Disabled Parents?

John R. Colvin helps clients apply for SSDI benefits, and he knows how to steer applicants clear of pitfalls they might encounter when submitting an application. For someone struggling with a disability, the added stress of applying for benefits can seem overwhelming. For more than 20 years, John R. Colvin has worked with SSDI applicants throughout Tennessee and Alabama to get them the benefits they deserve.

If you have questions about applying for SSDI or appealing a denial from the Social Security Administration, we encourage you to contact John R. Colvin to speak to an attorney who can help you or your loved one.

Adults Disabled Before Age 22

An adult who has a disability that began before age 22 may be eligible for benefits if a parent is deceased or starts receiving retirement or disability benefits. We consider this a “child’s” benefit because it is paid on a parent’s Social Security earnings record.

The disabled “adult child” including an adopted child, or, in some cases, a stepchild, grandchild, or step grandchild must be unmarried, age 18 or older, have a disability that started before age 22, and meet the definition of disability for adults.


It is not necessary that the disabled “adult child” ever worked. Benefits are paid based on the parent’s earnings record.

  • A disabled “adult child” must not have substantial earnings. The amount of earnings we consider “substantial” increases each year. In 2021, this means working and earning more than $1,310 a month.

Working While Disabled: How We Can Help

How Are Social Security Disability Payments Calculated In South Carolina

If youve suffered an injury and can no longer work, then you might be wondering how you will support yourself. In circumstances like these, many people choose to file for Social Security Disability Insurance payments. SSDI can help support you as long as you are unable to work, and its a system that many people in the United States rely on.

When someone applies for SSDI for the first time, one of their primary questions is, How are Social Security disability payments calculated? Keep reading to discover what factors into calculating SSDI payments, and find out when you need to consult a disability lawyer for help with your application.

Don’t Miss: When Do Work Credits Expire For Ssdi

How Long Does It Take To Receive Your Disability Benefits

The VA claims process can vary in length from a few months to a year. The October 2021 claims process average was about 145 days.

Once your claim is approved and you receive at least a 10% disability rating, the VA said you should begin receiving benefits within 15 days. You may receive back pay of your disability compensation in your first few checks, depending on the effective date of disability in your VA letter.

Back Payments And Retroactive Payments Are Often Included Once You Are Approved

Group Short

When you are approved for SSDI or SSI, you are often approved with back payments or retroactive payments included. Back payments are any disability benefits that are past due, or the benefits that you would have been paid if your initial application was approved right away.Retroactive payments are for the months that you were disabled and could not work. You are eligible for retroactive payments only with SSDI and not SSI.

Recommended Reading: How To Apply For Disability Benefits In Texas

Your Disability Payment Is Based On Your Average Lifetime Earnings Before You Became Disabled The Severity Of Disability Does Not Factor In Although Payments From Other Sources Can

Unlike Supplemental Security Income , which also pays benefits to people who are disabled and unable to work but is based on limited income and resources, SSDI requires that you have worked and paid Social Security taxes for a certain length of time.

The average SSDI payment is currently $1,277. The highest monthly payment you can receive from SSDI in 2021, at full retirement age, is $3,148. This article covers how the monthly benefit is calculated.

What Our Customers Are Saying

I am just so impressed. If I had done this on my own, I would never have been approved. Allsup made this amazingly stress free.


Everyone always says you never get awarded the first time you apply, but Allsup made it possible. Thank you!

Jacksonville, FL – Asthma

I wanted to thank all of you at Allsup. Dealing with my disabilities was hard enough. Allsups many courteous, efficient and hard-working representatives made the process painless. I have recommended Allsup to all my doctors and anyone that I have met that needs help in dealing with SSDI.

Conroe, TX – Depression

I am absolutely happy with the service that Allsup, Brett Buchanan and his entire team gave me. I would have never been able to deal with the VA by myself. No one can. Ive already referred five or six veterans to your VA service, and Ill continue to do so because of your expertise in veterans disability issues.

Nevada – PTSD and Depression

I cant say enough about how Brett and his team helped me work with my VA disability claim. They were just excellent and so professional. I have trouble getting organized these days, but Brett went to the hearing with me and did everything that needed to be done. I was so impressed with Allsup that Ive already referred several other veterans, including my brother, who served in Vietnam.

Nevada – PTSD

Read Also: How To Calculate Disability Retirement Pay

When Will My Ssdi Payments Begin

Social Security Disability payments will begin after your application is processed and approved by the Social Security Administration . There is a five-month waiting period before your SSDI payments can begin, which usually starts running when your application is approved or your disability begins, depending on the situation. This opens the door toSSDI backpay, which is essentially payment of back benefits while you were waiting for your application to be approved.

Are Social Security Payments Taxed

How Social Security Disability Benefits Are Calculated: The Good Law Group

Yes and No. First, we are attorneys and not CPAs. Any tax question should be directed at your CPA or your tax preparer.

Generally, the IRS will tax your SSDI benefits when half of your benefits, plus other income, exceeds an income threshold on your tax filing status.

If youre filing single, head of household, married filing separately, or qualifying widower, the threshold is $25,000.

If youre filing married and jointing, that threshold is $32,000. And if youre filing separately but lived with your spouse during the tax year, the threshold is $0

Supplemental Security Income Benefits are not taxable.

Note: Visit to learn additional information on paying taxes social security benefits.

Read Also: Fired While On Short Term Disability

How Are Back Payments Made

If Social Security approves you for SSDI only, you’ll most likely receive one lump-sum payment for the entire amount of your SSDI back pay.

If you’re approved for SSI, or you get approved for both SSI and SSDI, the rules are different. Social Security generally pays the past-due benefits for SSI or combined SSI/SSDI in three equal installment payments, separated by six months each. However, you are eligible for larger first and second installments if you need money for “necessities” or to pay off debts for necessities. Or, you may be eligible for one lump-sum payment if you are not expected to live past the next 12 months or you are no longer eligible for SSI benefits at the time you receive your back pay . For more information, read our article on lump-sum payments of back pay.

What Are The Average Ssi And Ssdi Payments

There are limits to how much you can receive in disability benefits each month. In 2022, the average amount you can receive from SSDI is around $1,356 per month. Additionally, the limit for SSI is $841 for a single person and $1,261 for a couple. By the time you get approval for benefits, you will likely qualify for back pay as well. Social Security disability back pay is money you receive for past due benefits. This means you are compensated for the payments you would have received in the months between when you filed your application and when it was approved.

However, these numbers change yearly. Therefore, you should always check with your local Tulsa disability lawyers for the latest Social Security benefits statistics.

Also Check: Va Disability Benefits Direct Deposit

Calculate Your Total Adjusted Pensionable Earnings

First, find the Your pensionable earnings amounts for each year on the SOC that you got from the My Service Canada web site. These are referred to as your Unadjusted Pensionable Earnings .

For each year, divide the UPE for that year by the corresponding Years Maximum Pensionable Earnings .

The following link will provide you with a list of all YMPEs since the CPP began in 1966:

Next, multiply that result by the average YMPE for the five-year period ending in the year that your CPP will start.

x average YMPE for five-year period

Example calculation using the year 2018:

The average YMPE for the five-year period ending 2018 is $54,440, based on YMPEs of $52,500 for 2014, $53,600 for 2015, $54,900 for 2016, $55,300 for 2017 and $55,900 for 2018.

/ 5 = $54,440

So if a person had a UPE of $4,000 in 1966, the APE calculation would be:

x $54,440

The resulting APE would be $43,552.

This step effectively brings the earnings for each year up to a current year value. This means, for example, that a UPE of $5,000 in 1966 is worth the same as a UPE of $55,900 in 2018 when calculating your CPP retirement pension.

Your Total Adjusted Pensionable Earnings is now calculated by simply adding together all of the APE calculations for your entire contributory period.

Maximum And Average Disability Benefits For 2021 And 2022

2021 VA Disability Rates and Compensation

If you are planning to apply for disability benefits, some of the most important factors you need to understand are the average and maximum benefits. The average payout is also known as the standard payment, and both average payouts are different for SSI and SSDI. The following are the average and max disability benefits for 2021 and 2022 applicants:

Read Also: Edd Disability Form 2525xx

How Much Does Ssdi Pay

The Social Security Administration uses your Average Indexed Monthly Earnings and Primary Insurance Amount to calculate your SSDI benefits. The formula Social Security uses is quite complicated, and most people won’t be interested in trying to calculate their benefits on their own, especially because Social Security can give you a good estimate.

Disability Income From Other Sources

If you are receiving disability income from other sources, such as a private insurer or a provincial/territorial program, you may still be able to receive the CPP disability benefit. However, these other sources may change their payments if you are approved for the disability benefit through the Canada Pension Plan.

Contact your insurance company or social assistance program for details about your case.

Also Check: Va Direct Deposit Change Cut Off Date

Impact Of Receiving A Cpp Disability Pension

Receiving a CPP disability pension affects the calculation of a CPP retirement pension in two different ways.

First, any period of time when you were in receipt of a disability pension is excluded from your contributory period. For example, if you received a CPP disability pension for 10 years and applied for a retirement pension at age 65, your number of contributory months would be 444 and your general dropout would be 76 months

Second, if your disability pension continues right up to age 65, your adjusted pensionable earnings is based on the average Years Maximum Pensionable Earnings for the year that your disability began, instead of the year that you turn age 65. Your APE is then escalated from that value by any increase in the consumer price index up to age 65.

Know The Factors That Affect Your Ssdi Benefits

How is the CPP disability benefit calculated?

The Social Security Administration uses several different factors to calculate an applicants disability benefits. Depending on the specific circumstances of your case, any combination of the following may affect your Social Security disability benefits:

  • Work History:In contrast to the Supplemental Security Income program, an individual must have paid in to SSDI to be eligible for benefits. Your work history will impact both your eligibility and your level of benefits. As explained by the Social Security Administration, the number of work credits you need to qualify for SSDI benefits depends on your age. If you have questions about work history and your benefits, a Tennessee Social Security disability attorney can help.
  • Average Monthly Earnings:In calculating your SSDI benefits, the federal government uses a formula based around a number called Average Indexed Monthly Earnings or AIME. Essentially, the SSA uses a complex weighted curve to determine exactly how much should be paid in SSDI benefits based on an applicants age, work history, and career earnings. To get a better understanding of your potential compensation, the agency offers a basic Social Security benefits calculator that you can use to reach an estimate.

Recommended Reading: Once You Are Approved For Disability

Child Benefits Received From Disabled Parents’ Calculations

Benefits awarded to children based on a parents disability are much easier to calculate. The child receives an allowance that is equal to 50 percent of the parents benefit. When the disabled parent has multiple children, the same 50 percent allowance will be divided equally among the children. For example, if a parent of one child receives $1,500, the child would receive $750. If a parent of three children receives $1,500, the children would each receive $250, which is the 50 percent dependent allowance divided by three.

Your Monthly Benefits For Ssdi Is Not Based On Your Disability

The amount that you receive for Social Security disability is based on your earnings before you became disabled. Your payment is not based the severity of your disability, however your current income must be below a certain threshold to be eligible for SSDI. If you receive payments for your disability from other government sources, your monthly payment for SSD may be lowered.

Read Also: How Much Do You Get For Disability In Ca

What Happens After You Submit Your Application

After submitting your application or working directly with an SSA representative, your application will go through the determination process. Your local office will review your application before transmitting it to the Tennessee Disability Determination Section. Your application will be reviewed to be sure all requested information has been provided and that everything is accurate. It will then be determined whether you qualify for benefits.

It will generally take several weeks to find out whether your initial application has been approved. Though the time frame varies, depending on several factors, you can expect the wait to be anywhere between 30 to 90 days, or longer. It is important not to submit a second application before you hear back about your first. If SSA receives a second application, it can lead to a denial.

Benefits For A Disabled Child

2021 VA Disability Rates and Compensation

A child under age 18 may be disabled, but we don’t need to consider the child’s disability when deciding if he or she qualifies for benefits as a dependent. The child’s benefits normally stop at age 18 unless he or she is a full-time student in an elementary or high school or is disabled.

Children who were receiving benefits as a minor child on a parents Social Security record may be eligible to continue receiving benefits on that parents record upon reaching age 18 if they are disabled.

Don’t Miss: Ecv Rental Universal Studios Hollywood

The Average Disability Benefit

While it is impossible to tell exactly how much you will receive in Social Security Disability benefits until you are actually approved for benefits by the Social Security Administration, knowing the average Social Security Disability payment can shed some light on how much money the average disability recipient is entitled to.

Social Security disability benefits amount varies on a case to case basis. As of 2008, the average SSDI payment to individuals who qualify for Social Security Disability benefits was $1,063.00 per month. The average SSI benefit was $439 per month. The amount you receive if you are eligible for disability benefits may be higher or lower than these amounts depending on your past earnings, your current earnings and the number of dependents living in your household.

Since the SSI program is a needs-based program, some Social Security Disability recipients are able to qualify for both SSI and SSDI benefits depending on their household income and the number of dependents living in the household.

What We Mean By Disability

The definition of disability under Social Security is different than other programs. Social Security pays only for total disability. No benefits are payable for partial disability or for short-term disability.

We consider you disabled under Social Security rules if all of the following are true:

  • You cannot do work that you did before because of your medical condition.
  • You cannot adjust to other work because of your medical condition.
  • Your disability has lasted or is expected to last for at least one year or to result in death.

This is a strict definition of disability. Social Security program rules assume that working families have access to other resources to provide support during periods of short-term disabilities, including workers’ compensation, insurance, savings, and investments.

Recommended Reading: Will I Get A 1099 For Short Term Disability

How Much You Will Receive

The amount of your monthly SSDI benefit is based on your lifetime average earnings covered by Social Security.

If you don’t already have an estimate, you can get your Social Security Statement online with your personal mySocial Security account or use our Benefit Calculators to determine how much you could get if you became disabled right now.

How Much Disability Can You Get Deciding Factors

How Are Your Permanent Disability Benefits Calculated

As weve been exploring throughout this article, disability awards can vary dramatically from one claimant to the next. Even with calculators at your disposal, its still difficult to determine exactly how much you could ultimately receive.

This is because many different factors impact how much each claimant is eligible for. So, why do some people receive the absolute maximum, while others wind up getting less than average? Consider the following questions:

  • Are you receiving workers comp or state benefits? If you are, the SSA might pay reduced benefits, treating those other benefits as the primary benefits. Think of the income you were earning before you had your accident. Now, imagine 80% of that number. If your combined SSDI benefits and workers compensation add up to more than 80% of what you used to earn, the SSA will lower your SSDI payment to compensate.
  • Are you filing alone or with a spouse? Married couples are eligible for higher amounts than their single counterparts.
  • How much of your income qualifies? Not all income is counted toward the income amount that the SSA looks at for SSI. The more countable income you earn, the lower your SSI payment will generally be since SSI is need-based.
  • Can you get a state supplement? Pennsylvania and New Jersey both sometimes add state money to the federal SSI payment claimants receive from the SSA.

Recommended Reading: Aflac Short-term Disability Calculator

More articles

Popular Articles