Some of the most common misconceptions about Social Security Disability have to do with “backpay,” or the past due benefits that can be available once someone is approved for disability. Sometimes clients will tell me they heard that Social Security wasn’t providing backpay anymore. I have also heard clients say someone told them that you can only get one year of backpay. Some people think you must wait five months after you are approved to receive any money. None of these statements are accurate. It’s likely that they are rooted in fact but reflect some misunderstanding.
SSDI Backpay Depends on When You File and When Your're Approved for Benefits
For example, it’s possible that someone could be approved for disability without there being any backpay. Social Security Disability Insurance (SSDI) benefits do not become available until five full months after the Social Security determines that someone became disabled. This does not mean that you must wait five months to receive your payments once you are approved. It works like this:
Say a disability claimant named Paul stops working on January 1, 2025 because his impairments have made him unable to continue. Two months later, on March 1, 2025, he files for SSDI. Social Security approves the claim six months after that, on September 1, 2025. The five-month waiting period would be for the first five months he was unable to work – January, February, March, April, and May of 2025. His SSDI would become effective as of June 1, 2025. At the time of approval, he would be due three months of backpay – for June, July, and August of 2025. Monthly benefits are paid the month after they accrue, so he would receive his September 2025 monthly benefit in October. Paul would not have to wait five months after being approved to receive his benefits.
Some Disability Claims May Be Approved Before Backpay Becomes Due
However, if someone stopped working and filed for disability immediately after being diagnosed with one of the cancers, brain disorders, or rare diseases identified as one of Social Security’s Compassionate Allowance Conditions, the claim may be processed very quickly and an SSDI claim could be a approved within the five-month waiting period, before any backpay becomes due.
Backpay Can Provide Vital Income Replacement for Disabled People
SSDI can be paid back up to a year before the claim is filed. This allows for income replacement when someone expects to be able to go back to work but becomes unable to do so. For example, if someone named John had a lumbar fusion surgery and expected to be able to return to work after recovery but was unexpectedly unable to return and filed for disability a year after the surgery, they could still potentially recover the same amount of SSDI backpay as if they had filed on the day of the surgery.
SSDI is available to workers who have earned the necessary work credits to insure themselves against disability by paying Social Security taxes. This eligibility is earned automatically with regular payment of payroll taxes and is not something you need to sign up for. Many workers may not even know they have it. SSDI is different than a private disability insurance plan (referred to as short-term disability or long term disability) that someone signs up for and purchases through their employer. Through SSDI, the Social Security Administration is essentially the disability insurance company for millions of working Americans, whether they know it or not.
SSI Backpay Functions Differently
Supplemental Security Income (SSI) is different. SSI can be available to those with little or no work history if they are disabled and have very minimal assets or income. There are differences between SSI and SSDI backpay. SSI is only payable as of the date someone files a claim – it cannot be paid back up to a year before the filing date, like SSDI. On the other hand, SSI does not have a five-month waiting period like SSDI.
In the example of John’s lumbar fusion, John could take a more patient approach with filing for SSDI without losing any potential backpay because SSDI can be paid back to before the filing date. Someone seeking SSI, on the other hand, may want to file for disability as soon as they believe they may have eligibility, because any delay in filing could result in lost backpay.
Can You Get Both SSDI and SSI Disability Benefits?
Many people seeking disability have eligibility for both SSDI and SSI. For an illustration of how these programs work together, consider the example of Georgia. She has worked hard and consistently for many years, continually earning Social Security work credits and making her eligible for the SSDI program with a monthly benefit amount far higher than SSI. However, her impairments have forced her to reduce her hours and spend significant amounts on medical treatments, leaving her without any income or savings when she ultimately stops working. She immediately files for disability. Without any income or assets other than a house and car, Georgia is also eligible for SSI. She is initially denied benefits and must go to a hearing with an Administrative Law Judge before she is approved, which occurs fifteen months after she stopped working and filed for disability. In this situation, she would receive five months of SSI backpay (for the months during the SSDI waiting period), then ten months of SSDI backpay. With SSDI income, she is no longer eligible for SSI, but this is a good thing because SSDI is a much better benefit.
3 Disability Backpay Tips from our Social Security Attorneys
These rules may seem complicated, but the Social Security Attorneys of Keller & Keller can help you understand them. Here are a few simple takeaways for someone considering or seeking disability:
- Even though SSDI allows someone to recover backpay up to one year before filing for disability, there really isn’t a good reason to wait to file disability once you realize you are going to be unable to return to work or think there is a high likelihood you will not be able to return. Depending on when Social Security finds that you became disabled, SSI may provide some income replacement during SSDI’s five-month waiting period, and the earlier you file for SSI, the earlier it can become effective.
- It’s always best to seek treatment for any disabling impairments as soon as possible. Hopefully, medical professionals can help and get you back to work as soon as possible so you can maximize your income and the ultimate amount of any Social Security disability or retirement benefit. If not, this treatment results in the generation of records that Social Security can review to understand your impairments. Those seeking disability have the burden of proving they are unable to work and the earlier you have records showing your disability, the more backpay you may be able to receive.
- If you have a working spouse or any meaningful savings, you are likely not going to be eligible for SSI, and SSDI’s five-month waiting period would leave you missing five months of income replacement if you become disabled. For this reason, consider a private short-term disability insurance plan you pay for through your employer to fill this gap. Private long-term disability insurance can also be useful in providing income replacement during Social Security’s often-lengthy evaluation period.
Whether you are ready to file for disability, need to appeal a denial of benefits, or would like to ask questions about SSI and SSDI, you can contact us here.
