Where is my back pay

The Social Security Administration has a huge backlog of cases to consider. Three to six months is the average time it takes for the SSA to come to an initial decision on a claim. If the claim is rejected, it may take several more months or even years for the applicant to make their way through the appeals process. The date of onset can be up to 12 months before you filed your claim. Since , the Social Security Administration required all recipients of SSDI benefits to receive their monthly disability payments via direct deposit into their bank accounts.

Technically, back pay begins on your application date. If the SSA agrees with your claim that an alleged onset date indicates your disability began earlier, they will issue retroactive benefits. But keep in mind that this retroactive payment is limited to a month maximum. It usually takes around 60 days to receive your back pay. However, it can only be paid by direct deposit, so you will need an active bank account in order to receive these funds.

It is money that should have been paid to you from the time of the onset of your disability. There are no special tax considerations, other than how it contributes to your total amount of income and general rules about income tax. Taxes vary from state to state but are consistent at the federal level. Some states might have a tax on your lump-sum back payments, but most do not. By contrast, SSI benefits are not taxable. For one, the amount falls below a taxable threshold. Secondly, SSI benefits are themselves culled from previous taxpayer contributions, so it does not make sense to tax an SSI recipient twice.

However, if you are an SSDI and SSI recipient, your income tax situation may be different, and it may behoove you to strategize your financial plan with a disability attorney. When applying for SSDI, there is a standard 5-month wait that does not count towards back pay. Do not attempt to wait out your illness or see how it develops. When you apply, make sure you provide all the necessary paperwork, meet the deadlines, and show up to your interview, in order to speed up the process.

In some cases, you will benefit from soliciting the services of a Social Security disability lawyer to help you file a case. Back pay covers any time between your application, otherwise known as the EOD. Retroactive pay covers any time period between the onset of your illness and when you filed your application, if the SSA agrees with your claim in such matters. Javascript must be enabled to use this site.

Please enable Javascript in your browser and try again. Now Reading:. Membership My Account. Rewards for Good. Share with facebook. Share with twitter. Share with linkedin. Share using email. How back pay works Suppose worsening arthritis sidelined you from your job Jan.

Tax impact Like all Social Security benefits, a portion of disability back pay may be taxable if your overall income exceeds a certain level. Keep in mind Back pay covers the months between application and approval.

SSI is not retroactive. A lawyer or advocate handling your disability claim may petition the SSA for a fee that exceeds the cap, particularly if an appeal goes beyond the hearing level.

If Social Security approves the petition, it still pays 25 percent of back pay to the representative. You are responsible for any additional fees. Published May 10, Will my Social Security disability benefits change when I reach retirement age?