SSDI Backpay Attorneys in Maryland Serving Clients Nationwide

The procedures of the Social Security Administration (SSA) can be daunting, especially for those who are entitled to Social Security Disability Insurance (SSDI) backpay.  

At Gordon, Wolf & Carney, we understand the complexities of SSDI and prioritize helping our clients receive the funds they rightly deserve. Our team has the experience, legal knowledge, and resources to cater to your best interests throughout the entire process.  

Understanding SSDI Backpay  

The term "SSDI Backpay" is used to describe past-due benefits, which are payments made to cover a period when an individual was medically eligible for disability benefits but had not yet been approved to collect them. These payments are critical as they help settle the delayed compensation for a period that often includes a prolonged application and approval process, including any initial rejections and appeals. 

Overview of the SSDI Process 

To gauge your eligibility for SSDI benefits, the SSA examines not just your medical condition but also your work history. The application process can be complicated, with stringent criteria and a high likelihood of encountering challenges. Here are the steps applicants typically go through before securing backpay: 

• Initial application submission, including the provision of medical evidence and work history documentation. 

• Probable denial due to strict evaluation criteria. 

• The subsequent appeal process, which may involve a reconsideration, an administrative hearing, a review by the Appeals Council, and eventually, federal court. Each stage involves distinct complexities and requirements. 

Your Rights to the Maximum Compensation 

Upon approval, the SSA awards SSDI backpay to bridge the gap between your original application date and the date of your benefit activation. Several types of backpayments are possible, depending on individual circumstances, as we explain in the sections below. 

The amount of back pay depends on various factors such as the date of your disability onset, when you filed for benefits, and when your claim is ultimately approved. There is also a mandatory waiting period, usually five months after the disability onset date, which affects the commencement and calculation of backpay.

Types of SSDI Backpay Available 

There are essentially two types of backpay: 

• Retroactive benefits, applicable for a maximum of 12 months before your SSDI application, considering both your onset date and application date. However, the waiting period affects this amount. 

• Past-due benefits, covering the period between application and approval, known as "backpay" which is the key focus for most applicants. 

To get a clearer perspective, consider the following examples: 

• Suppose your application is approved two years after your disability onset date, and six months of the five-month waiting period have passed, entitling you to 18 months of back pay calculated at your monthly benefit rate. 

• Or, if you had to wait 15 months for approval, your potential backpay could amount to 10 months, as the five-month waiting period is already accounted for. 

Maximizing Your SSDI Backpay Entitlement 

To ensure you receive the full backpay amount, make sure you aware of: 

• The Disability Onset Date: Your claimed "disability onset date" is pivotal. It is the date on which you assert that you became disabled and unable to work. This date must align with the medical evidence and the eventual decision made by the SSA, so it is vital to be both truthful and precise. 

• The Application Deadline: While the SSDI application process may feel overwhelming, understanding that retroactive benefits generally cannot extend beyond 12 months before your application serves as a reminder to apply as soon as you can, once your disability is apparent and likely to be long-lasting or lead to death. 

• Seeking Professional Assistance: Experienced legal representation or advocacy can significantly enhance your chances of securing sizable backpay. Professionals understand the nuanced interpretations and requirements of the SSDI process, avoiding potential pitfalls and ensuring the presentation of a robust case for backpay. 

Receiving Your SSDI Backpay 

Once your benefits are approved, the SSA aims to provide your backpay within 60 days in most cases. However, the actual amount can vary and must account for any fees designated to legal representatives involved in your SSDI claim, which generally do not exceed $9,200 or 25% of your backpay, whichever is less. 

The Tax Implication of SSDI Backpay 

SSDI backpay, as a form of Social Security benefit income, may be subject to taxation depending on your total income for the year. To mitigate potential tax obligations, the IRS provides avenues such as the lump-sum election, which redistributes past-due benefits into previous tax years' income. 

Final Insights and Preparatory Measures 

Having backpay in hand is a significant relief, but it is equally essential to make informed choices about managing and using the funds. Financial solvency, medical expenses, and debts are critical considerations that should guide your utilization of SSDI backpay. 

Do not view backpay as a windfall, but as a resource to build financial security. Assessing your long-term needs and strategizing its incorporation into your overall financial plan is prudent. 

For many, applying for SSDI is fraught with economic peril, often leading to mounting debts. Backpay offers an opportune moment to settle these commitments and stabilize one's financial situation. 

Our legal team at Gordon, Wolf & Carney can provide valuable advice after seeking SSDI backpay. Learn what they can offer by scheduling a consultation today.