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How SSDI backpay works

On Behalf of | Jun 30, 2021 | Blog, Social Security Disability |

There are many North Carolina residents who file for Social Security disability benefits each year, which are claims that usually take a significant amount of time to process. The time period before approval is often a long and frustrating experience. However, there is a pot of gold awaiting after this bleak period, and that is called Social Security Disability Insurance “backpay” for those who qualify through the appeals process.

Retroactive benefit period

Individuals who apply for Social Security disability before age 62 are typically eligible for Social Security Disability Insurance benefits when they have sufficient tax deduction credits over the past 10 years. These benefits can begin at two different times depending on how the Social Security Administration determines when the disability began. While most claimants will be paid according to the application date minus six months of benefits, some claimants are allowed benefits back to the time that they actually became disabled. This can increase the amount of backpay in many cases.

How the benefits are paid

Once the SSA determines the monthly benefit amount, they then calculate the number of months that is retroactively owed to the disabled claimant. Many times a disability claim can take up to 18 months. The amount of monthly benefit is then multiplied by the number of past eligible months to reach the total backpay amount. There could also be some deductions to the payment, such as any Social Security disability attorney fees that may apply along with expenses incurred when processing the claim.

It is not unusual for a Social Security disability claim to take a considerable amount of time. However, some obvious claims are paid very quickly, reducing the backpay amount. The SSA issues permanent benefits only when approving SSDI, and once the backpay benefits are paid, recipients will then receive their monthly allowance for the remainder of their lives.