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How Does SSDI Back Pay Work?

How Does SSDI Back Pay Work?

There may come a time when you are not able to work because of a condition that prevents you from doing so. If that is the case, you may qualify for financial assistance from the Social Security Administration. Social Security Disability Insurance is accessible to you if you were once able to be employed in the past but now cannot work for a minimum of one year.

What Is Social Security Disability Insurance?

Social Security Disability Insurance disburses benefits to you or family members who paid Social Security taxes through work earnings and worked long enough, and recently enough. It’s required that you have gained enough work credits to be eligible for SSDI. You are also required to have paid into the Federal Insurance Contributions Act, known as FICA, during the time you were working. The amount of work credits needed to be eligible are dependent upon age. For instance, if you are 50 years old, you will need 28 work credits meanwhile another person who is 40 years old will need 20 work credits. These benefits are paid if there is a medical condition that is anticipated to persist for at least a year. Once you are approved, the monthly payments can be used for your essential living needs such as rent/mortgage, utilities, and medical expenses.

What Back Pay Is

When you are owed back pay, it refers to the SSDI you would have acquired if your claim was approved promptly. Most claims for SSDI are denied at least once and involves a tedious process that can last for months, or even years. Once you are approved, you will obtain the SSDI benefits that you are entitled to. You will start receiving back pay for disability that goes back to the date of the disability onset. Due to a mandatory five-month waiting period, once you have been approved, you will not receive any payments until the five months have elapsed.

How You Will Receive Your Back Pay

All beneficiaries of SSDI benefits must have their payments directly deposited into their bank accounts. In order to obtain back pay, you must make sure that you have a bank account for the payments to be deposited to. If you were disabled for an extended period of time before you applied for disability, you may qualify for retroactive Social Security Disability payments for a timeframe of one year.

Retroactive Payments VS Back Pay

It’s important to understand that back pay is different from retroactive payments. Retroactive payments are paid out for up to the preceding 12 months prior to applying for SSDI benefits if you can demonstrate that you had a disabling condition throughout that time. Back payments are paid out to you up until the date you filed a claim to receive benefits.

How the Social Security Administration Determines Back Pay

The determination of back pay is associated with the date your disability claim was filed as well as the date the Social Security Administration (SSA) determines the established onset date. The distribution of the back pay is dependent on your approval for SSDI benefits. In some cases, you may have a long waiting period if your case needs to be determined by an administrative judge.

What Back Pay May Be Spent On

You may be receiving a lump sum payment that could add up to a substantial amount. You may have been in a financially tight situation while waiting for the Social Security Administration to approve your claim. It’s recommended that you utilize the back pay for basic living expenses such as rent, utilities, food, and health care. It’s also wise to pay off your bills. If you have extra money left over, you probably shouldn’t rush to go on a shopping spree. You may want to consider establishing a bank account that draws interest. Additionally, you may want to deposit the funds into an account in which you have easy access to just in case there is an unexpected emergency such as home repairs, car repairs, or a medical emergency.

Qualifying for SSDI

You may be eligible for SSDI if you are no longer able to work due to a medical condition. In order to be eligible, you need to medically qualify based on the guidelines set out by the Social Security Administration. There is a blue book that has categories for various systems of the body. For each system, there is a listing for the conditions the particular body system has that are debilitating. You will discover the types of medical benchmarks that are required to medically qualify for benefits. This includes treatments, test results, and other medical criteria. You can work together with your doctor to arrange any tests that are required to qualify.

For instance, if you have cancer, you must meet the benchmarks for a cancer listing. The listings for disability are separated based on where the cancer stems from. Each cancer has its set of criteria that are required to be met.

Understand the Difference Between SSDI and SSI

Many people get the terms SSDI and SSI mixed up. SSI is a disability program that is needs-based. Even though you still need to show medical documentation in order to medically qualify, you are also required to meet certain income criteria which include evidence of household income and the amount of people living in the household. Additionally, you are required to provide documentation of all assets such as stocks and bonds, cash, real estate, and bank accounts. There are resource limits that are maxed out at $2,000 per person and $3,000 when it’s a couple.

The Application Process

It’s recommended that you review the Adult Disability Checklist to round up the information and documents that are needed to properly complete the application. After you have gathered the needed items on the checklist, you will complete and submit the application. The application will be reviewed to ensure that you meet a few basic requirements for SSDI benefits. The Social Security Administration will analyze whether you put in enough years of work to qualify and evaluate any ongoing work-related activities. Your application will be processed and your case will be sent to your state’s Disability Determination Services office.

What Happens After You Apply?

After the Social Security Administration has received your application, the appropriate department will review it and contact you if there are any questions or if there are additional documents needed to process the application. You should be on the look-out for a letter that will be mailed out with their decision. If there were other family members included in the application, the Social Security Administration will notify you if they may be eligible to receive benefits.

If You Are Denied

There are plenty of reasons why claims could be denied. It’s not uncommon for disability claims to be denied upon an initial review. One of the most common reasons why claims are denied is due to inadequate medical evidence. You must demonstrate that you do not have the ability to work because of a disabling condition to qualify for disability benefits. A critical aspect in determining whether your claim is successful or not hinges upon medical records from your physicians. If your claim was denied from a previous application, you have an increased chance of being denied again without furnishing additional evidence. Additionally, your records will be under review to ensure that you are adhering to your physician’s recommended treatment plan. If you do not follow your physician’s recommended treatment plan, you could be denied for failure to cooperate. This is because the department that is reviewing your claim cannot correctly conclude if you are kept from working due to your condition.

Get Assistance from a Disability Attorney

Applying for Social Security Disability can be a daunting task with a long approval process and a high potential of being denied. If you have a disabling condition that has rendered you unable to work and you would like to apply for social security disability benefits, it’s wise to work with an experienced disability attorney. By working with an attorney who deals with these types of cases, you have an increased chance of your disability claim being approved.

Lilac City Law knows the Social Security Disability process. Our team will guide you through the disability process so that you can gain a better understanding of what to anticipate. Contact Lilac City Law to discuss your case.

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    Randi L. Johnson, Lilac City Law, Estate Planning, Social Security Disability, VA Disability

      Randi and her team are professional, helpful and know their stuff! I felt comfortable and cared for working with them!
      Kristen Saccomanno
      Kristen Saccomanno
      22:59 06 Oct 20
      The knowledge, compassion, and attention to detail are only a few of the reasons I love Lilac City Law. We had previously done a will that was basically fill in the blanks. Our experience at Lilac City Law was so different than our fill in the blank experience. Death isn't always easy to talk about, but it was made easier because of Randi and her staff. We were walked through the whole process, and if we had any questions, they were right there to answer them. With care and compassion. Thanks so much LCL!
      Cindy Cole Vanhoff
      Cindy Cole Vanhoff
      22:15 06 Oct 20
      I highly recommend everyone at Lilac City Law. They helped me through every step of the SSDI process. Thank you so much!!
      Scott Poe
      Scott Poe
      00:24 02 Jul 20
      I don’t know really where to start in order to cover the magnitude of professionalism, understanding, persistence and compassion Lilac City law showed me. From Randi to each one of her staff-they worked very hard on my case and pushed me to keep fighting in the midst of several set backs from disability. They were always atop of communicating with me and all others involved. I highly recommend them and not just because I received a favorable decision but because of the plan they executed; so even if the results were unfavorable-I would still not hesitate knowing I chose the right practice. Thank you for you compassion and patience😊
      Joyce Kelly
      Joyce Kelly
      22:01 02 Jun 20
      Randi serves humanity with compassion and grace in dealing with all matters of life and death. I would highly recommend her for all the services she offers.
      Sarah Boban
      Sarah Boban
      20:14 16 Apr 20
      I wholeheartedly recommend these people. I had a crazy case and at times I was a mess. My team, Randy, Pam, David, and, Marissa always treated me with kindness and compassion. Thank you guys so much for the huge difference you've made in my life.
      Jenni Boo
      Jenni Boo
      23:24 12 Mar 20
      I had my hearing yesterday for Social Security Disability. I was very nervous , but we won my case. Randy and the whole team at Lilac Law was very supportive and understanding! They truly want to help people win the benefits they deserve and I highly recommend them!
      Tiffani Pelella
      Tiffani Pelella
      17:38 03 Mar 20
      Initial meeting with David Morris went well. He treated me with respect and understanding. I felt that I was listened to. Even accommodated me when I arrived 1 hour early. Highly recommended.
      Tom Richardson
      Tom Richardson
      18:09 06 Feb 20
      The staff is so great, it was really great to work with them all, and they were able to help me tremendously! Thank you for a great experience!
      Becki Lynn
      Becki Lynn
      23:43 28 Jan 20
      Don't remember exactly when I first met with them, but they were absolutely amazing to work with and only took a few months for my disability claim to be approved.I highly recommend Lilac City Law.
      Matt Napora
      Matt Napora
      17:46 06 Jan 20
      Everyone needs to take care of their estate and make sure their family is well taken care of. Randi and her team will take very good care of you and protect you and your family’s future. You cannot go wrong using their services. Client service is their top priority!
      Kim Benjamin
      Kim Benjamin
      21:52 02 Nov 19
      Randi is a terrific lawyer and a terrific person. I wish we lived closer so that we could work with clients together more often.
      Meghan Freed
      Meghan Freed
      17:31 02 Nov 19
      They really CARE about their clients and work with passion! Highly recommend!!!
      Jamile Moraes Pellicer
      Jamile Moraes Pellicer
      00:36 30 Oct 19
      Randi and her team are knowledgeable, compassionate, and very helpful with their clients. I highly recommend Lilac City Law!
      Connie Kaplan
      Connie Kaplan
      18:36 29 Oct 19
      Excellent firm. They really care about their clients. You cannot go wrong with Randi and her team.
      John Nachlinger
      John Nachlinger
      12:27 18 Oct 19
      What a great place! Thanks again!
      S Binks
      S Binks
      22:39 01 Oct 19
      Randi and her Team helped me through my disability claim and they were there through every question I had. Great Customer Service! Timely returned calls and emails, very knowledgeable and helpful the entire time and even afterwards! Will definitely be working with Randi and her Team in the future!
      Ronda Wheatley Ives
      Ronda Wheatley Ives
      17:02 21 Aug 19
      Wow, these guys were so nice and easy to work with. It ended up that they couldn’t help us with what we needed, but the gentleman we worked with went above and beyond my expectations, and more. I could tell that they really care about people there, not just cases. He was super patient in explaining things to me when I didn’t understand, it wasn’t a stressful experience as I thought it would be. Thanks for everything guys!
      Melanie S
      Melanie S
      06:09 21 Aug 19
      Lilac City Law is an incredible firm! I had the pleasure of working with the amazing team at Lilac City Law for nearly 2 years. Their team is absolutely remarkable! They are extremely knowledgeable, helpful, and overall compassionate when it comes to working with their clients. I sought their assistance nearly 2 years ago and have continued to work with them. I had a great deal of interaction with more than just one member of the Lilac City Law team and therefore can attest to the fact that this group of individuals is absolutely unparalleled. Attorney, Randi Johnson, is an exceptionally skilled lawyer as well as an overall remarkable woman! Her support staff is incredible as well, including Cassandra, Pam, Marissa, David, etc. with all of them by your side you have been blessed and are going to receive the best results possible. I would absolutely recommend seeking assistance from this law firm, as they have the ability to change lives; they definitely did mine. Thank you all so, so much!
      Torrey Tolmie
      Torrey Tolmie
      17:03 22 May 19
      Lilac City Law went above and beyond to help my partner get her SSI. My partner had been trying to win for 12 years and finally won. We can't say thank you enough. Thank You Randi and team for all you have done.
      Malick Darian White
      Malick Darian White
      21:33 29 Apr 19
      Randi and team are amazing! We previously had our will and other documents prepared by another firm in the Seattle area where we are from. I met with Randi to update areas of my trust and was soooooo impressed with how much more she provides than the firm who first helped me. I love the short term care directive that she provides and think it is amazingly thoughtful!! Thank you so much Randi Johnson!!
      Noah Gross
      Noah Gross
      17:36 01 Feb 19
      I had a great experience with Randi and her team this past year when we worked with them to create our first-ever wills and trust. Planning for your untimely death and discussing personal finances aren't always fun topics, but we were appreciative of Randi's approach to these potentially uncomfortable conversations and especially liked the recorded legacy interview she conducted with us. Total 5-star experience!
      Tine Reese
      Tine Reese
      20:39 30 Jan 19
      I had a great experience with Randi and her team this past year when we worked with them to create our first-ever wills and trust. Planning for your untimely death and discussing personal finances aren't always fun topics, but we were appreciative of Randi's approach to these potentially uncomfortable conversations and especially liked the recorded legacy interview she conducted with us. Total 5-star experience!
      Tine Reese
      Tine Reese
      20:37 30 Jan 19
      My husband and I worked with Randi and her team to complete our last will and testament, advanced directive, and health care proxy in the summer of 2018. Randi, and her team, as well as David Morris, were exceptionally kind, very professional, and thorough. We had several meetings to go through the important stuff - the financial info, heirlooms, and disposition of my husband's motorcycle. At each meeting, Randi and her team listened to our intentions and concerns. At the signing ceremony, we got a huge binder with our info and a data stick for safekeeping. Included in our will is a review which will take place every other year. We also got a document which states who can take our children to give our babysitter in case something bad happens to us when we were out. I'm very satisfied with Lilac City Law, and their work. I would recommend them without qualification to anyone.
      Anna Marie Martin
      Anna Marie Martin
      23:52 29 Jan 19
      Parents are so intentional about so many aspects of their children's lives. Few will forgo putting together a will. But, what if you don't die? What if you are just incapacitated? Are you prepared for the unexpected? Are you leaving your children at risk? If someone else does raise them, do you know that they will be raised according to your wishes? Have you even thought through what your wishes are? All these questions and more will be covered in the process of completing a Family Protection Plan with Randi Johnson at Lilac City Law. Having our Family Protection Plan in place gives me an incredible sense of comfort and peace of mind. I highly recommend Randi and the staff at Lilac City Law. Hopefully you never need her services, but isn't it better to be prepared than to leave things to chance?
      Marchauna Rodgers
      Marchauna Rodgers
      03:16 22 Jan 19
      My Husband and I were fortunate to work with Randi on his disability case-she mindfully guided us through that process -we were so pleased with the results that Lilac City Law was of course our choice to have when producing our family trust. Again a very professional, heartfelt experience that made what seems to be a difficult process very easy thanks to Randi and her staff. We always recommend Randi to our community of friends and family. Pat and Patty Murphy
      Patty Murphy
      Patty Murphy
      20:05 12 Jan 19
      I became ill over two years ago now,at the age of 29.. I experienced seizure like movements that lasted for hours or even days at a time. The doctors were at a loss for a diagnosis so they called it a mental disorder. As I was unable to care for myself most days or work, I applied for social security and was denied. I sought the help of Lilac City Law, and was immediately greeted with compassion and action. My case was a hard one to win or prove. Amy Santa helped me and explained everything to me step by step.. She ALWAYS answered my questions and showed immense sympathy for all I was going through. My case went to trial and Amy was amazing in court and won me the benefits I so desperately needed. This process was so difficult and overwhelming on my own.. I couldn’t have done it without these amazing people and thanks to them I can focus on improving my health,and not worry about my family struggling. I’m thankful and very blessed to have had them on my side! Sincerely, Ashley Schauble
      Ashley Baldwin
      Ashley Baldwin
      01:33 11 Jan 19
      Lilac City Law did an amazing job with my estate plan, which was something I had 'thought' about doing for a long time, but avoided... Fortunately, Randi and her team made the process very easy and approachable. I now feel relief knowing everything is in order for my two daughters in the (hopefully unlikely!) event something were to happen to me. Thank you Lilac City Law for helping me sleep better at night! :)
      Amber McKenzie
      Amber McKenzie
      03:30 09 Jan 19
      This has been an awesome experience from beginning to end. Randi and her team were super helpful in helping us wrestle through all the aspects of our estate plan. Randi’s knowledge of estate and wills were very obvious from the beginning and we are thankful for her and her staffs expertise. Thank you so much!
      Kevin Bunce
      Kevin Bunce
      17:22 12 Dec 18
      This firm is the go-to for family planning and protection your children. Randi and her team are excellent!
      Melinda Grimaldi
      Melinda Grimaldi
      01:49 20 Nov 18
      I needed to get my husband's advanced health directive for a procedure he was having and it was so easy to find in our perfectly tabbed out legal binder. I found it right away, made a copy and stored it right back in the binder. Thanks for making us get it, and for making it easy to find and understand.
      Jessica Gruver Koefod
      Jessica Gruver Koefod
      19:40 12 Oct 18
      I highly recommend this law firm. They have the experience and skills to help people with their plans and their future. From their work with others, they take a pragmatic approach to law and don't over complicate things unnecessarily. With that said, if a matter is complex they are very capable of handling it.
      Christine Matus
      Christine Matus
      09:29 05 Sep 18
      Randi demonstrates a beautiful balance of expertise and compassion while dealing with difficult circumstances. I'm very thankful we had her in our corner! I can't reccomend her strongly enough.
      Darin Pike
      Darin Pike
      16:47 25 Jul 18
      Randi and her staff are the best! They help you with your case and are there if you have any questions.I highly recommend them!
      Tammy Reedy
      Tammy Reedy
      21:56 18 Jul 18
      Randi did a wonderful job of asking simple questions to help us determine exactly what type of trust we needed to match our goals. Thank you so much, Randi, for taking time out of your busy schedule to get us were we need to be!
      Michelle Darnell
      Michelle Darnell
      02:52 17 Jun 18
      Such a great meeting today with Randi. Tell me who wants to talk about wills and final arrangements, right? Well, my husband and I did this today and Randi, you made it easier than we expected. What a blessing to work with such talent and know you have our backs. Between you and Cary Wong. We will be sitting pretty, no matter what life brings us. THANK YOU!
      Missy Schaaf
      Missy Schaaf
      01:20 31 Mar 18
      Vincent Adolph
      Vincent Adolph
      13:30 26 Feb 18
      Randi and her staff are great to work with - no surprises, and she made it all so easy. Now we have a will and health directives, so our children won't be burdened when the time comes. I highly recommend!
      Sharon Robertson
      Sharon Robertson
      18:04 05 Feb 18
      Randi and her team do amazing work. Thank you very much for what you do.
      Erin Whitney-Neher
      Erin Whitney-Neher
      20:18 23 Jan 18
      Randi are her staff are amazing! They are all very knowledgable, helpful and passionate about serving others. Every step of services are explained clearly and follow-up exceeded expectations. In addition, Randi is active in the community and regularly volunteers her time and talents putting on presentations focusing on educating others on specific topics. She has a passion for assisting those with special needs or situations. For legal assistance with heart, Lilac City Law is highly recommended!
      Nadine Burgess
      Nadine Burgess
      18:14 25 Apr 17
      Excellent staff. Very knowledgeable and go out of their way to get the job done! Would recommend to anyone looking for services they offer!
      Jason Spade
      Jason Spade
      02:17 19 Oct 16
      Randi was an excellent attorney. Her staff was excellent as well. I was treated with kindness, compassion and dedication towards winning my complex and difficult case, which ultimately happened. I am very happy that I chose Lilac City Law to represent me. I would highly recommend them!!!
      Richard D. Seibert
      Richard D. Seibert
      15:56 03 Oct 16
      Melanie Jason Carter
      Melanie Jason Carter
      06:46 01 Sep 16
      Mia Martinez-Bermudez
      Mia Martinez-Bermudez
      04:22 30 Jul 16

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