Individuals can wait several months to a few years before receiving a favorable decision on their Social Security Disability Insurance (SSDI) application if their appeal is successful. While claimants are without benefit payments for a considerable amount of time, favorable decisions entitle claimants to back pay for their SSDI. Today, our team covers what SSDI back pay entails and what you can expect.
- Retroactive Benefits: Money you can get for up to 12 months before you applied if you were already disabled during that time.
- Back Pay: Money you get for the months your SSDI application was still being reviewed after application.
- Application Date: The day you filed your SSDI claim, which helps decide how much back pay you can get.
- Established Onset Date: The date Social Security decides your disability began.
- 5-Month Waiting Period: A rule that delays your SSDI payments for the first five full months after your disability start date.
The Two Types of “Back Pay” for Successful SSDI Claimants
Retroactive Benefits for SSDI
- This figure is limited to 12 months before your application date;
- Is only paid if you were suffering from a qualified, long-term disability during that time period; and
- Is subject to the 5-month waiting period rule from the established onset date; so in essence, retroactive benefits will only consist of 7 months.
Back Pay for SSDI
- This covers the period from application date to approval;
- Has no time limit and can span multiple years;
- Will include months during which your application status was pending approval.
Together, these two amounts combine to form your entire lump-sum amount you will receive if your SSDI appeal is successful.
Important Dates That Can Determine The Total Lump-Sum Payment
There are several important dates that help determine how your SSDI benefits are calculated, including whether you qualify for back pay and when your monthly checks start.
- Application Date: The day you filed for SSDI (crucial for calculating retroactive pay).
- Established Onset Date (EOD): When SSA determines your disability begins.
- First Payment Date: When regular monthly benefits begin.
How the 5-Month Waiting Period Rule Is Factored Into the SSDI Payment Equation
The 5-month waiting period is a rule that delays your SSDI payments for the first five full months after the Social Security Administration decides your disability began. However, this waiting period only happens once and doesn’t restart for different types of payments.
A Quick 5-Month Waiting Period Example
For example, if your disability began on January 1, your benefits would start June 1, which reduces your total back pay but doesn’t remove it completely.
Common SSDI Back Pay and Retroactive Pay Misconceptions Explained
Our team has found these to be the most common misconceptions that clients encounter regarding SSDI back pay during their appeals process:
Misconception 1: Total Back Pay Is Capped at 12 Months
The Truth: Only retroactive pay is limited to 12 months. Back pay can cover the period from application date to approval, and in theory, can include many years depending on final approval date.
Misconception 2: There Is a Maximum Dollar Amount
The Truth: There is no statutory maximum or specific dollar amount for SSDI benefits you are entitled to receive, only time-based limits.
Misconception 3: Waiting Longer to Apply Increases Back Pay
The Truth: If you need SSDI, you must apply as soon as you are qualified to apply. Waiting longer does not help and may preclude you from being entitled to benefits at all in some circumstances.
Michael Armstrong Law Is Ready To Partner With You for Your SSDI Appeal
If you’ve applied for SSDI and have been denied, the best time to appeal an unfavorable decision is now. Our team has over 33 years of experience diligently serving the community of New Mexico. If you receive a favorable decision on your appeal, you could be entitled to SSDI back pay that can help you maintain your quality of life.