Tragedy can hit anyone, anytime. Under such circumstances, getting financial assistance would alleviate much of the inconvenience. The inability to work and receive a regular paycheck could be a huge setback.
Acting quickly is imperative, as is understanding how much financial assistance you can get through the Social Security Administration (SSA).
As it happens, the SSA often takes a while to investigate each presented claim before giving their final approval. This waiting period could go on for months. Does that mean that you miss out on disability pay?
Here’s our detailed answer to that question, in addition to basic information you should know about disability back pay.
What Exactly Is Disability Back Pay?
This is the amount of money a person should receive once they become disabled. However, filing for disability benefits takes some time. At the very least, there’s a 5-month mandatory waiting period before approving the claim.
This amount still counts, though, and if that person is found to be eligible for disability benefits, they can also apply for back pay to cover the previous period.
To get a precise idea about the amount of back pay in question, two dates should be specified:
- The disability onset date
- Claim approval date
The disability onset date is often tentative. It’s up to the SSA to specify when the disability became severe enough to disrupt the applicant’s ability to work. The claim approval date is more specific, as it refers to the official approval date of the claim.
How to Find Out if You Have Back Pay?
There’s some guesswork regarding receiving financial assistance related to disability. This happens with private medical insurance and the Social Security Administration (SSA).
The reason is that some people who become sick or injured don’t realize that this also comes with being disabled. They might not be able to pinpoint the exact moment they were incapacitated, much less to prove it legally.
Preparing the necessary medical reports, HR letters, and other documentation is crucial for proving eligibility for receiving financial assistance. Calculating the owed amount from the onset date to the claim approval date is vital.
Having submitted the claim and documents, the only way to find out if you have back pay is through contacting the SSA.
How to Estimate Your Disability Back Pay?
Calculating backpay is a bit complicated. There’s a mandatory five-month waiting period before approving the eligibility claim, and that’s where many people assume that they’ll get only five months’ worth of back pay. This isn’t accurate, though.
The SSA is the apparent party you’d go to to determine how much you’re owed in back pay. They’re not the only party, though. A disability lawyer can work with you on that. You might also be entitled to retroactive benefits.
Retroactive benefits are reimbursement between getting injured/disabled and filing a claim for receiving disability back pay. It has a limit of one year, and it’s payable like regular back pay.
What Are the Best Ways to Track Disability Back Pay?
Two main methods to receive updated information about your back pay are through the phone or online. Once you receive the latest status, you can monitor and track your deposits further through bank statements.
Contact the SSA
One of the easiest ways to track disability back pay is to talk to an SSA representative. You can call the SSA at 1-800-772-1213, connecting you to a suitable administrative officer.
You can ask about:
- The disability back pay process
- How the back pay sum is calculated
- Claim status updates
- The amount of your back pay
- The estimated arrival date of the back pay deposit
Check the SSA Website
The SSA website provides helpful information about disability pay claims. You’d need to create an account first; then, you can access the available details.
The website explains the disability benefits program and how to calculate back pay. You can also find estimated timelines for the back pay.
Set Up a Dedicated Bank Account
Your local bank can help you set up a dedicated account to receive the disability back pay. This might seem a bit over the top, but the monthly deposits and issued statements would help you keep track of your checks immensely.
Additionally, you can get a clear idea every month how exactly your cash flow increases with these deposits. This makes budgeting more accessible and more accurate.
Create a Spreadsheet to Keep Track of Payments
Our schools often forget to educate us about money matters, but we somehow learn how to create and update a spreadsheet. Starting one to keep track of your insurance and social security payments is often a good idea.
It’s best to add notes about any updates or important dates related to the disability back pay. You can also link that spreadsheet to other household or personal accounting sheets.
FAQs
Would I receive my disability back pay as a lump sum?
SSDI back pay is almost always deposited as a lump sum for one time only. There are some exceptions, though; if the administrator perceives a need, the back pay can be divided into three installments.
Once these retroactive benefits are fulfilled, subsequent SSDI monthly payments are deposited/issued monthly. This lasts until the person becomes fit enough to resume work or needs different support.
Do I have to pay taxes for the disability back pay?
Social Security Disability Insurance (SSDI) is considered a form of income, so it’s taxed as such. Similarly, the back pay received should be declared in your statement.
It should be noted that the back pay might not be paid in full all in the same year. In that case, you can file it as income received over two years. This could lower the total taxes on that sum per year.
This approach is innovative, but it’s best to solicit the services of a professional accountant and a specialized lawyer.
Can I speed up the disability back approval process?
An experienced and reputable law firm known for handling that kind of claim is your best bet. Their solicitors are well-versed in presenting the proper documents and speeding up the process.
To Sum This Up
Tracking your back pay means you’ll receive the total amount you’re entitled to. It also helps you in planning your spending based on the incoming pay.
It’s best to call the SSA, create an online account on their website, and get bank statements reflecting the exact dates and amounts of your back pay. That’s the easiest way to obtain accurate information and monitor your monetary benefits.
You can also solicit the services of specialists who would help you prepare all the required documents and follow up on the disability benefits application process. This often streamlines the steps and ensures you get the benefits your case entitles.
