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What is the Difference Between Back Payments and Retroactive Benefits?

Applying for disability benefits can be a daunting task with many moving parts. Most times you begin focused on supplying medical evidence and other requirements, but there are addition things you need to know that affect the amount of payment that you can receive.

The eligibility for back payments and retroactive payments depend on a few factors which includes when you became disabled, when you applied for benefits and when you were approved for benefits. In both cases, you are eligible to receive additional funds, which can be of great help to you while you’re unable to work. These two areas help account for any lost time that you may have.

What are back payments?

– These are payments that are past due. If the Social Security Administration could start payments as soon as you submitted your application, this is what you would have missed. There are things that must be confirmed before payments are made so there will probably be a delay.

– These are the benefits you would have received between when you submitted your application and when your application was approved.

– These are payable for both Social Security disability as well as SSI disability claims.

– These may be paid in a lump sum.

What are retroactive benefits?

– These are payments that are paid for all of the months you were disabled. You may not have applied as soon as you became disabled, but you are able to receive benefits for this time even if you didn’t apply immediately. This can be of great assistance since you have probably been missing funds for an additional period of time.

– These payments are from before your application date.

– These are only for SSI disability claims,

– These may be paid in a lump sum.

– These can be for up to 12 months, but can’t be before the onset of the disability or the five month waiting period.

It’s important to be confident in how the process works for applying for disability benefits. You may want to seek representation if you’re unsure of how to move forward. If you have any questions regarding your eligibility or how the process of back payments and retroactive payments are handled, please don’t hesitate to contact us.

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