How Does Social Security Disability Back Pay Work?

social security disability back pay MarylandThe application process for Social Security Disability benefits (SSDI) is lengthy and complicated. By the time you have applied for SSD benefits and your application was denied at the initial application level, but approved upon reconsideration, months have gone by. SSDI back pay is a payment of the benefits that the Social Security Administration (SSA) says that you are entitled to all the way back to the date of your application up to when your claim was approved. The SSA uses four factors to calculate how much back pay you are due: the application date, the disability onset date, the established onset date and the five-month waiting period.

Your disability onset date is the date that you became disabled, which might be when you claim to have become disabled or when the SSA determined that your disability began. The established onset date is the date that the SSA agrees, based on the medical evidence that you have submitted, that you became disabled. If your established onset date is prior to your application date, you will be entitled to back pay from your application date onward.

Five-month waiting period for SSD benefits

Five months after your disability onset date you will become eligible for benefits. This five month waiting period applies to all SSDI applicants. To calculate when you would be entitled to benefits, you count forward five months from the established onset date (EOD).

Why it is helpful to work with a SSD attorney when you file a claim for benefits

Filing an application for Social Security Disability benefits can be incredibly complicated. Having a professional on your side who is familiar with the ins and outs of the application process can help you save a lot of time and effort and can help make sure that you get all the SSD benefits that you are entitled to receive. For example, your SSD attorney might let you know how important it is to establish a “protective filing date,” for your SSD application. The protective filing date is established by filing a written statement of your intention to file an application for disability benefits. It can also be established by starting to fill out the application online and getting part-way through the process without completing it.

Once you have been approved for SSDI you will likely receive your back pay on average about a month or two after you start receiving your disability payments. Your lump sum back pay payment will not have any federal taxes withheld from it, but you will receive a form 1099 from the IRS for each year that you receive SSD benefits. The legal fees that you owe your attorney will be deducted from your back pay by the SSA.

Learn more about Maryland Social Security Disability claims

Can You File for Unemployment While Waiting for Social Security Disability?

10 Common Mistakes to Avoid on Social Security Disability Applications

You are welcome to call Plaxen Adler Muncy, PA at 410-730-7737 or complete our contact form to schedule a free consultation today with an experienced Maryland Social Security Disability attorney. We have offices throughout Maryland and we are eager to speak to you about your Social Security Disability claim.