Have you recently applied for SSD benefits? If you were approved for Social Security Disability benefits, you might think you have backpay and retroactive benefits on the way. What you may not be aware of, however, is that past due payments sometimes make you eligible for two separate forms. Many people don’t know that there is a difference between retroactive benefits and backpay. We’ll help you understand how these two are different and why it matters.
You may be entitled to retroactive benefits even if you are receiving backpay. Retroactive benefits apply between the time at which you were first disabled all the way through to your benefits application. The SSA looks at your disability begin date or disability onset date to determine retroactive benefits.
When filling out your application, one of the first things you will have to do is select an AOD (alleged onset date). The SSA can approve your alleged disability onset date by reviewing your records; they will then officially set your EOD (established onset date). In the event that the SSA finds a discrepancy with your AOD, however, they may provide a new EOD by using medical evidence. Your retroactive benefits will then be calculated by using your EOD through the date your application was filed. There is a limit to the maximum retroactive benefits you can receive as well as a five-month waiting period (similar to backpay). It is important to note that your EOD must be 17 months prior to you filing your disability application in order to receive a full year of retroactive benefits.
Backpay refers to the benefits you are owed from the time of your disability application all the way through your date of approval. When calculating future finances, keep in mind that there is a five-month waiting period. This means that the SSA will not provide backpay for the first five months after you file your application. Even if your claim was approved within five months, you may still not be entitled to immediate backpay. The maximum amount of backpay that you can receive is 12 months.
The whole process of applying for disability, backpay, workers’ compensation, and other types of benefits, can involve a lot of paperwork, confusing rules and regulations, the need for diligent follow-up, a lot of waiting, and more. Your best course of action when pursuing benefits of any kind is to retain the services of a knowledgeable and experienced attorney. At Cardinal Law Partners, we are dedicated to fight for the rights of our clients.
Don’t get caught up in red tape, paperwork, and the waiting game. Count on the professionals at Cardinal Law Partners to not only initiate your application but to see the process through to the very end. We will be at your side with dedicated representation every step of the way.
If you have backpay or retroactive benefits coming your way, contact Cardinal Law Partners for a free consultation today.