How is SSDI back pay calculated?
Back pay covers the months between when you became eligible and when you were approved. Social Security removes the 5-month waiting period from your onset date, and pays retroactively no more than 12 months before your application date. The payable months are multiplied by your monthly benefit.
What is the 5-month waiting period?
SSDI is not payable for the first five full months after your established onset date. Your benefit becomes payable in the sixth month. This waiting period reduces your back pay and does not apply to SSI.
How far back can SSDI pay retroactive benefits?
At most 12 months before your application date, and never for the 5-month waiting period. So even with an early onset date, retroactive pay before your application is capped at 12 months.
Is SSDI back pay paid as a lump sum?
Yes. SSDI back pay is normally paid in a single lump sum after approval. (SSI back pay over a threshold is instead paid in installments.) Back pay may be taxable depending on your total income.