How Does Social Security Disability Back Pay Work?

Retroactive Benefits for Disability: How They Work & How to Get Them

When you win approval for Social Security Disability benefits, this exciting time can also come with many questions. How much will you get in your first check? Will you be paid for the months you were disabled but still waiting on approval? What about the months you were disabled before you applied?

The general answer is yes, you may get back pay (also known as “retroactive benefits”) for the period you were waiting for approval. In some cases, you may even get back pay for the time you were disabled before you applied.

However, the final amount you receive will depend on several factors. These factors include which federal aid program you applied for and how long you have had your disability.

Schott Mauss & Associates has a team of expert Iowa Social Security Disability attorneys who are here to help walk you through the process. Here’s what you should know about how back pay works, how much you can expect to receive, and other considerations.

Table of Contents

• SSDI & SSI Have Different Rules for Back Pay
• How Is Social Security Disability Back Pay Calculated?
• Back Pay Comparison: SSDI vs. SSI
• How & When Will I Receive My Disability Back Pay?
• Social Security Disability Back Pay & Attorney Fees
• Social Security Disability Back Pay & Long-Term Disability Benefits
• Work With Iowa’s Social Security Disability Experts

SSDI & SSI Have Different Rules for Back Pay

If you’re wondering how much back pay you may receive, it’s first important to know which of the two Social Security Disability programs you will receive benefits from.

• Social Security Disability Insurance (SSDI) is a program for people who have worked but are no longer able to. You are eligible based on your work history.
• Supplemental Security Income (SSI) is also a program for people who face work limitations due to a disability, but it is based on financial need.

Each program has a different set of rules for calculating back pay. In some circumstances, you may be eligible for both benefit programs at the same time. That means you could receive back pay through both programs, with each program’s part falling under different rules.

Let’s take a closer look at how your back pay will be calculated and the differences between these two programs.

How Is Social Security Disability Back Pay Calculated?

The Social Security Administration (SSA) calculates your back pay by looking at three “windows” of time. Here’s a closer look at the factors involved. 

1. The 5-Month Waiting Period (SSDI Only)

If you are applying for SSDI, there is a five-month waiting period between the date your disability begins and the date you are eligible to receive benefits. That means no matter when you file your application, you will not receive back pay for the first five months that you were disabled. There are some exceptions where this rule may be waived, such as if a person has had a prior disability period or is diagnosed with ALS.

If you are applying to SSI, there is no mandatory waiting period. 

2. Retroactive Benefits (The Time Before You Applied)

Many people do not apply for benefits at the exact time they become disabled. For some people, it may be weeks, months, or years before they request Disability benefits.

If you are applying for SSDI, you are eligible to receive up to 12 months of back pay for the time you were disabled before you filed your application. Factoring in the five-month waiting period, that means you would have to be disabled for 17 full calendar months before you applied in order to receive 12 months of back pay.

SSI does not offer retroactive benefits for this period of time. You can only receive payment for the time after you apply. This is why it’s important to file an application as soon as possible once you become disabled.

3. The Application Processing Period

Both SSDI and SSI offer back pay for the time you waited for your application to be approved. That’s because the Disability application process can take months or even years, depending on whether you must file an appeal and go to a hearing.

Again, all SSDI benefits are subject to the five-month waiting period. That means that even if you filed an application right after you became disabled, you would not receive any back pay for the first five months of the application processing period.

Back Pay Comparison: SSDI vs. SSI

Here’s a quick reference guide to the different rules for each of these two programs.

How & When Will I Receive My Disability Back Pay?

The Social Security Administration will notify you of your approval by sending you a “Notice of Award.” Following that notice, the SSA will begin the process of paying out your benefits, including back pay.

Back pay for SSDI often comes as a lump sum that arrives about 30 to 60 days following your approval. The SSA requires all payments to be made electronically. This means you will either receive your lump sum via direct deposit into your bank account or onto a Direct Express Debit Mastercard.

SSI back pay may take longer to arrive. That’s because the SSA performs a final check of your assets before sending your award. This ensures you are still eligible for benefits.

Depending on how much you are eligible to receive, the SSA may pay you in up to three installments, spread out over the course of several months. Talk with your attorney to learn more about when you can expect these payments in your specific case.

Social Security Disability Back Pay & Attorney Fees

When you work with a Social Security Disability attorney, you often pay nothing up front. Your attorney is compensated once you receive your back pay benefits.

The Social Security Administration limits the amount that an attorney can receive from back pay to 25% of your lump sum benefits, up to a current maximum of $9,200, which may be raised by the commissioner. Your attorney’s fee will be a one-time payment, not an ongoing expense that affects future benefits.  

The SSA will automatically deduct your attorney fees from your lump sum and send it to your attorney. That means you won’t have to worry about making a separate payment once you get it. You will receive the remaining balance of your back pay directly.

Social Security Disability Back Pay & Long-Term Disability Benefits

You may qualify for long-term disability (LTD) insurance benefits through your employer while you wait for approval for SSDI. In these cases, we often recommend that you apply for those benefits while you wait. They can help bridge the gap and provide income while you wait for monthly SSDI payments to begin.

However, if you receive approval for Social Security Disability benefits, your long-term disability program may require you to pay back some or all of the benefits you received while you were waiting. You don’t need to be concerned that the amount you owe back will exceed the amount you receive from Social Security Disability. However, we do recommend that you do not spend your lump sum immediately once you receive it. This will ensure you can pay back your LTD benefits if requested.

Read our guide to the relationship between SSDI and LTD to learn more.

Work With Iowa’s Social Security Disability Experts

Don’t let confusion derail your Social Security Disability case. Get clarity by working with Iowa’s Social Security Disability experts at Schott Mauss & Associates. We’re here to work with you every step of the way, even before you file. Contact us today to schedule a free consultation.