Claimants approved for Social Security Disability Insurance or Supplemental Security Income benefits may be pleased to know that they may be entitled to back pay. This back pay is made to compensate applicants for the sometimes lengthy amount of time that it takes the Social Security Administration to process disability claims. Back pay is distributed either in one lump sum or in three installments spread out over six month intervals.
After reviewing your claim, if the Social Security Administration has notified you that you are entitled back pay to be paid out in intervals, there is a further restriction that you must be aware of. In some cases, the installments will not be in equal amounts. If the back pay that is owed is more than three times the monthly Supplemental Security Income benefit amount, prior to deductions for income or support, then you will be paid in partial installments. The first two partial installments cannot equal more than three times your maximum monthly benefit. The third and final installment is in whatever amount is necessary to complete the back pay payments. Fortunately for those in need, there are exceptions to these rules.
Exceptions to Installment Payment Plan
- The amount of your first and second partial installment payments for back pay can be increased if you can demonstrate necessary medical needs or debts that relate to necessities, such as housing, food, or clothing.
- Installment payments can be converted to a lump sum payment if you can show that you are expected to die within 12 months.
- Installment payments can be converted to a lump sum payment if you become ineligible for Supplemental Security Income.
Managing Social Security disability claims in Dallas can be a complex process. To learn more about how we have helped many clients in situations like yours, view our client testimonials.
by Paul B. Burkhalter Managing Partner of Morgan & Weisbrod, Board Certified in Social Security Disability Law.