1. What Is SSDI Back Pay?

SSDI back pay is the money the Social Security Administration (SSA) owes you for the period between when you became disabled and when you were officially approved for benefits. Because SSDI claims often take many months—or even years—to process, this back pay amount can be substantial.

• If your disability onset date is earlier than your application date, you could also qualify for retroactive benefits.
• The back pay is meant to “catch you up” on the benefits you missed while waiting for SSA to make a decision.

2. The Role of the Onset Date

The onset date is a critical factor in determining your back pay. There are two important types:

• Alleged Onset Date (AOD): The date you claim your disability began when filing your application.
• Established Onset Date (EOD): The date SSA agrees your disability started, based on the medical and other evidence in your file.

Your back pay is calculated from the EOD—not necessarily your AOD. If SSA sets a later EOD than the date you claimed, your back pay amount will be reduced. This is why providing thorough and consistent medical evidence is crucial.

3. The Five-Month Waiting Period Rule

SSDI has a built-in five-month waiting period after your EOD before benefits start. This waiting period applies to everyone, regardless of how long your case takes.

• Example: If SSA establishes your disability onset date as January 1, benefits start in June, even if your case isn’t approved until a year later.
• This means your back pay will not include those first five months after your EOD.

4. Retroactive Benefits

Retroactive benefits apply when you became disabled before you applied for SSDI. In these cases, SSA may pay you for up to 12 months prior to your application date, in addition to your back pay.

• To qualify, you must prove through medical evidence that you were disabled during that earlier period.
• This is especially important for people who delay filing for SSDI after becoming disabled.

5. How Back Pay Is Paid in New York

• SSDI back pay is typically paid in a single lump sum.
• Payments are usually sent via direct deposit into your bank account, although paper checks are possible if you do not use direct deposit.
• If you worked with an attorney, their approved fee (usually up to 25% of your back pay, capped at a certain amount) will be deducted before you receive your payment.

6. Taxes and Other Deductions

While many SSDI recipients do not owe taxes on their benefits, you may have to pay federal taxes if your total household income is above a certain threshold.

Other possible deductions include:

• Workers’ compensation offsets – Your SSDI could be reduced if you receive workers’ comp.
• Overpayments – If SSA previously overpaid you, they may deduct the balance from your back pay.

7. Common Mistakes That Reduce Back Pay

• Not providing accurate medical records to prove your EOD.
• Missing appeal deadlines, which delays your approval and back pay.
• Failing to mention earlier periods of disability when applying.