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The maximum back pay for Social Security Disability benefits depends on several factors, including which Social Security Disability (SSD) program you applied for, how long it took to approve your claim, and your monthly benefit amount.
Applying for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) and getting approved is often a long process. However, when you receive an approval for benefits, you will receive back pay for the past-due benefits owed to you.
A North Carolina Social Security Disability lawyer can help you understand how much back pay you may receive for each program, when you will receive it, and how it will be paid.
What is Disability Back Pay?
Disability back pay covers the time you were living with a disability and unable to work, but were waiting for the Social Security Administration (SSA) to approve your benefits. The application process for Social Security Disability benefits can take months or even years. Back pay ensures you are receiving retroactive compensation for the time between your disability onset date and when you begin receiving regular payments.
Social Security Disability has two primary benefit programs:
- Social Security Disability Insurance (SSDI): This program is based on your work history and earnings.
- Supplemental Security Income (SSI): This program is based on financial need, regardless of work history.
Both programs allow applicants to receive back pay, but the rules for calculating the amount and how it is paid are somewhat different.
How is Back Pay Calculated for SSDI?
For SSDI, the Social Security Administration bases back pay on:
- Disability Onset Date: This is the date you first became unable to work because of your medical condition. You list the date when you applied, but the SSA could adjust it based on medical evidence.
- Application Date: If you were disabled during that time, SSA allows SSDI applicants to receive back pay for up to 12 months prior to the application date under SSA POMS DI 25501.370. This is known as retroactive benefits.
- Five-Month Waiting Period: SSDI has a mandatory five-month waiting period after your onset date before benefits begin. In other words, you will not receive payments for the first five months after becoming disabled.
So, What is the Maximum SSDI Back Pay?
There is no formal maximum set by SSA for back pay. Instead, they determine the back pay amount based on:
- How far back your disability onset date is from your application date, which could be up to 17 months
- Your monthly SSDI benefit amount, based on your average lifetime earnings up to the current maximum payout
At the most, the maximum SSDI back pay will cover up to 12 months of retroactive benefits prior to your application, plus the amounts for the months you had to wait between the time you applied and the time you get an approval.
It is important to note that your fees for the Social Security Disability lawyers will come from this back pay if you worked with an attorney to file a claim or help you manage an appeal. Your attorney will answer your questions and explain how this works to you before they begin your case.
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How is Back Pay Calculated for SSI?
SSI works differently from SSDI. You could begin receiving SSI benefits the first month after your application. There is also no five-month waiting period. This means that SSI back pay covers the period from your application date to your approval date.
This also means that there are no retroactive benefits in SSI, either. Your back pay does not include the time your disability began, but rather, it starts on the day you applied for SSI.
Maximum SSI Back Pay
Since SSI payments are based on financial need, your back pay is the number of months since you applied for benefits to when you received your approval at the current federal benefit rate.
How is Disability Back Pay Paid?
How back pay is typically paid depends on the program, too. Most people who get approval for SSDI benefits receive a one-time lump sum payment for their back pay. This could easily be a significant sum, often reaching five figures.
While SSDI is generally paid as a lump sum within several weeks of your approval, the SSA pays SSI back pay differently. Under SSA POMS SI 02101.020, the SSA may split SSI back pay into up to three installments at 6-month periods. This is because a lump sum payment could cause issues with qualifying for benefits programs, including SSI.
However, there are special exemptions for serious needs. A Social Security Disability lawyer can help you take the necessary steps to seek a lump sum payout if you qualify. Some examples might include a significant medical need or a forthcoming eviction.
Can a Social Security Disability Lawyer Help You with Your Claim?
If you have questions about your back pay or need help applying for SSDI or SSI benefits in North or South Carolina, our team can help. Consider reaching out to a Social Security Disability attorney from Farmer & Morris Law, PLLC. Our attorneys can guide you through the claims process and help you get the benefits and back pay you need.
Over the years, our six attorneys have helped more than 10,000 people get compensation when they needed it most. You can count on our Social Security Disability team to help you. We have five locations to serve you:
- Rutherfordton, NC
- Spartanburg, SC
- Morganton, NC
- Shelby, NC
- Hendersonville, NC
Contact us today for a free consultation. We can help you prepare and file your claim, appeal a denial, or fight for fair back pay. Let us review your case for free and explain how our team can help. Contact us today to get started.
