Most people know that applying for Social Security disability benefits can be a lengthy process. In fact, many applications are initially denied and get approved on appeal. It can sometimes take months, or even years, from the date of your initial application until you finally get approved for benefits.
So, what happens to your disability pay during the time in which you are waiting for approval? Thankfully, you will be entitled to back pay to cover the months in which you were disabled but were waiting for your benefits to be approved.
Here is everything you need to know about how Social Security back pay works and how you can track your disability back pay.
How To Track Your Disability Back Pay
There are a few different ways to track your disability back pay. Your SSDI back payments are typically made within 60 days of your approval date.
However, sometimes, the process takes longer, and you might need to find a way to check on your payment status. Here are a few ways you can do that.
- Online – The easiest method for tracking your back pay is to utilize your my Social Security account. There, you can view the current status of your application, including information about back pay.
- You will also determine if the payment has been sent or is still being processed.
- Phone – You can call the SSA at the toll-free national number 1-800-772-1213 or your local Social Security office to request the status of your SSDI application and back pay.
- The automated features are available 24/7 and can tell you the lump sum payment due for back pay.
- In Person – You can visit your local Social Security office to meet with a representative who can provide you with an update on your SSDI application status and let you know how much back pay you are owed. They also answer any other questions you might have.
- Calling and scheduling an appointment before visiting your local Social Security office is always a good idea.
- Consult Attorney – If you’ve hired an attorney to represent you during the appeals process, they can contact the Social Security Administration on your behalf and get a status update on your back pay.
- An attorney may be able to get a quicker response than you get contacting them yourself.
Keep in mind that it can be difficult to get an exact date for when you will receive your back pay. Lump sum payments for back pay are processed by a different office than regular disability benefits.
KEY TAKEAWAYS
- Traditional back pay is calculated by multiplying your monthly disability amount by the number of eligible months between the time of application and the month you began receiving payments (capped at 12 months).
- The easiest way to check the status of your SSDI back pay payment and amount owed is by signing up for a my Social Security account and logging into your account to see the status updates.
- In rare instances, you may be eligible for “retroactive” pay from the time of your disability onset date to the date you applied for disability.
How is SSDI Back Pay Determined?
You might be wondering how your SSDI back pay will be calculated. The calculation is straightforward, although you should be aware of a couple of rules.
Once approved for benefits, you are entitled to benefits beginning on your alleged onset date. This is usually the date you first apply for benefits. Keep in mind that it can sometimes be more than a year from your application date until the time your benefits are approved. So, this means that you might be owed several months’ worth of benefits at the time of your approval.
Special Rules
First, you need to understand that there is a 5-month waiting period for SSD benefits. This means that you are not eligible to receive monthly payments until five months after the onset of your medical condition that qualifies you for disability. So, if your disability application date is January 1st, you would be eligible to begin receiving benefits on June 1. Most of the time, your disability onset date is the same as your application date.
In some rare cases, an administrative law judge may set your established onset date (EOD) earlier than your application date if there is some reason why you waited to apply for benefits.
Second, you should also know that you can only receive a maximum of 12 months’ worth of back pay from Social Security disability. So, even if your application takes 24 months to get approved, you cannot receive more than 12 months of back pay. This often happens, as the disability application process is quite lengthy.
Back Pay Calculation Example:
Example 1 – Imagine that you submitted your application in January and didn’t get approved until November 15. This means that you will not begin receiving your benefits until December.
In this scenario you would be owed from June (after 5-month waiting period) through November as back pay. This means you are owed 6 months of back pay. To calculate the exact amount owed, you take the number of months and multiply it by your monthly disability benefit amount. So, if you are paid $1,000 per month and are owed back pay for six months, then your payment amount will be $6,000. SSDI back pay is paid as a single lump sum into the same bank account where you receive the direct deposit for your monthly benefits.
Example 2 – Imagine that you submitted your application in January of 2024, but after lengthy appeals don’t get approved until September 20th 2025 and you don’t start recieving payments until October 2025.
In this scenario, you would be owed for 15 months of back pay. However, there is a restriction that you can only recieve up to 12 months of back pay. So, your back pay amount would equal 12 months multiplied by your monthly disability benefit amount. If your monthly benefit amount is $1,000, then you would be owed $12,000 in back pay.
Must read articles related to Social Security Disability
- A complete guide on “How to Apply for Disability“.
- A complete guide on “How to Apply for SSI“.
- Learn more about what conditions qualify for disability.
- Learn more about how to win SSDI appeal.
- Find out the signs that you will be approved for disability.
Types Of Disability Back Payments
There are two different types of disability back payments for which you can qualify.
- Traditional Disability Back Pay – These are past-due benefits that are paid from the time of your application until your application is approved, less the 5-month waiting period. Since the disability application process is usually very lengthy, most people approved for disability are owed some back pay.
- Retroactive Pay – You may be entitled to retroactive benefits if your disability onset date is prior to the date of your disability application. This pay will be for the time from the onset of your medical condition until you actually apply for benefits. Retroactive pay is not as common as traditional back pay.
Note: Back pay has a 12-month limit, so you can only receive 12 months of it, regardless of your established onset date. This limit applies to both traditional and retroactive back pay.
TIP
Any back payments you receive will be directly deposited into the same bank account that you selected when applying for disability benefits.
SSDI vs SSI Back Pay
Both types of benefits (SSDI and SSI) have a provision for back pay. This is helpful since both application processes can be quite lengthy.
Key similarities between SSDI and SSI back pay
- No interest is due on back payment amounts
Key differences between SDI and SSI back pay
- There are no retroactive payments available for SSI benefits. This means you cannot receive SSI benefits before your application date.
- Unlike SSDI there is no “waiting period” for SSI benefits, this means your back pay can begin accumulating immediately.
- SSDI back pay is made in a lump sum payment, while SSI back pay is paid in installments.
How Back Payments Are Made
Once you have determined your eligibility to receive back pay, you are likely wondering how the back payment will be made.
When it comes to SSDI benefits, you will receive a lump sum for the amount of your back pay. The amount will be deposited into the same bank account that you use for the direct deposit of your regular monthly benefits.
When it comes to SSI benefits, your back payments are made in installments. The first installment that you receive will be as much as three months’ worth of benefits. If you are owed more back pay than this, then the rest will be made in additional installments that are spaced six months apart.
There is a disclaimer to this rule: If you can show the Social Security Administration that you have an essential need for the money, then you can get the payments sooner.
The initial installment and all remaining installments will be made as a direct deposit to the same bank account as your monthly benefits.
The Bottom Line
If you get approved for disability benefits, there is a good chance that you will be owed some back pay. This means that you can become eligible for benefits before you get approved, in which case you will be owed back pay from the date of your approval back to the date of your first eligibility.
Since the disability application process usually takes so long, most people are owed some amount of back pay at the time of their approval. Tracking your back pay can be done in a few different ways, from checking online to visiting your local Social Security office.
If you need assistance with disability benefits, then you should contact a disability attorney. Most of them offer a free consultation.
Frequently Asked Questions
There are only a handful of conditions that are automatically approved such as ALS, organ transplants, and very serious types of cancer.
For other conditions, you will need to either meet or equal a listing or prove vocationally that you are unable to work due to your condition.
Your impairment must prevent you from performing substantial, gainful activity. This means that you must be unable to work due to your disability.
In addition, the disability must have already lasted or be expected to last for at least 12 months.
For SSDI, you must have a sufficient work history and earnings records to qualify under Social Security Disability Insurance. For SSI specifically, you must have limited income and resources to qualify.
From a medical standpoint, eligibility for SSI and SSDI programs is virtually the same.
In most cases, you will receive your back pay within 60 days of getting approved for benefits.
However, it typically takes about six weeks on average to get your back pay.
In some cases, you might even notice your direct deposit for back pay arrives before you receive your Social Security award letter.
The timeframe for getting SSI back pay is about the same. SSI back pay should arrive within 60 days, and most claimants report getting their back pay in about seven weeks.
Yes, back pay for SSDI benefits is paid as a lump sum. You will receive the entire amount at once, and there is no limit to the amount you can receive.
However, you can only receive up to 12 months’ worth of back pay, but there is no limit on the dollar amount.
SSI back pay is not paid in a lump sum. It is made in installments, with the first installment equal to three months’ worth of back pay.
If you are owed more than this amount, the remaining installments will be spaced six months apart.
There are no special tax considerations for disability back pay. The back pay is taxed just like your regular Social Security disability benefits. Whether or not your Social Security disability income payments are taxed depends on your total income for the year.
Since most people receiving SSDI payments have no other income sources, they potentially do not end up paying taxes on their disability payments.
This includes both their regular monthly payments and their back pay.
However, if your annual income exceeds the taxability threshold, you will owe regular income taxes on that amount.
You can find a Social Security Administration office near you by using our SSA office locator and searching for your closest location.
