How Much Backpay Can You Receive After Winning an SSDI Claim?
Applying for Social Security Disability Insurance (SSDI) benefits isn’t a fast or simple process. Many applicants wait months—or even years—before finally receiving an approval. During this period, individuals may be without any steady income, all while battling a disabling condition that limits their ability to work.
This is why SSDI backpay exists: to compensate claimants for the time they were eligible but had not yet started receiving benefits.
At Cannon Law Offices, PLLC, we help individuals throughout Greenville, North Carolina, and the greater Pitt County area work through the challenges of the SSDI process. Once a client is approved, one of the first questions we often hear is, “How much backpay will I receive?” The answer depends on several key factors, which we’ll walk through below.
What Is SSDI Backpay?
SSDI backpay refers to the lump-sum payment a person receives after being approved for disability benefits. This payment covers the period between when an individual became eligible and when the Social Security Administration (SSA) finally approved the application.
Rather than starting benefits from the approval date, the SSA retroactively applies benefits back to a specific point in time—either the date of application or, in some cases, the date of disability onset. The goal is to compensate claimants for that waiting period where they were qualified but not yet receiving monthly payments.
This leads us to the next important question—how does the SSA calculate this period of eligibility?
Establishing Your Onset Date
Before determining the amount of SSDI backpay, the SSA must first identify your established onset date (EOD)—the date it agrees your disability began. This date is incredibly important because it determines how far back your benefits can reach.
When applying, you’ll include your alleged onset date (AOD), the date you believe your disability started. If your medical records and evidence support that date, the SSA may accept it. If not, it may select a later date based on the evidence in your file.
Here’s where backpay becomes more precise. SSDI benefits are only payable starting five months after the established onset date. This means:
The first five months of disability aren’t paid.
Backpay starts on the sixth full month following the EOD.
For example, if your EOD is January 1, 2023, your payments would begin in June 2023. If your claim isn't approved until March 2024, you'll receive backpay from June 2023 to March 2024.
This five-month waiting period is mandatory and not waived, regardless of how severe your condition is.
When Your Application Date Matters
The SSA won’t award backpay that predates your application by more than 12 months. This means the maximum retroactive backpay you can receive before the application date is one year.
Let’s say:
You became disabled on January 1, 2022.
You filed for SSDI on March 1, 2023.
Your claim is approved in April 2024.
You’d be eligible for backpay starting from June 1, 2022 (five months after your EOD), but only through March 1, 2023—since that’s when you filed. In this case, you could only receive nine months of backpay before the application date, not the full amount from the onset date.
This rule is important when calculating expectations and understanding how far back your backpay can realistically reach.
How Long the Process Takes Affects Backpay
It’s common for SSDI cases to go through multiple stages before approval. Some applicants are approved at the initial application stage, while others must go through reconsideration or even a hearing before an administrative law judge.
The longer your case takes, the more backpay you may accumulate. Here’s a general look at how the timeline can affect what you receive:
Initial approval: Typically within 3 to 6 months of applying. Backpay may only span a few months.
Reconsideration: May add several more months, increasing your backpay.
Administrative hearing: Can take a year or more. Backpay can stretch significantly, especially if the judge agrees with your original onset date.
The time it takes to get approval not only affects stress levels—it also directly influences the total amount of your SSDI backpay.
What Factors Affect the Amount of SSDI Backpay?
Several elements contribute to how much you ultimately receive. These include:
Your established onset date: The earlier your disability began (and the more of it that’s supported by evidence), the greater your backpay may be.
Date of your application: The SSA won’t pay retroactive benefits for more than 12 months before your filing date.
Length of the approval process: Longer cases tend to result in higher backpay amounts.
Your monthly SSDI benefit: Backpay is calculated by multiplying your approved monthly amount by the number of months owed.
SSDI payments vary based on your earnings history. As such, two people with similar conditions could receive vastly different backpay amounts depending on their prior income and how long their case was pending.
How SSDI Backpay Is Paid
Once you’re approved, the SSA will typically issue your SSDI backpay as a lump-sum payment. This is usually sent by direct deposit, and in many cases, it’s received within 60 days of your approval date.
However, there are exceptions. In certain cases, such as when you’re receiving both SSDI and Supplemental Security Income (SSI), your backpay may be split into installments rather than given all at once. But for SSDI-only recipients, one full lump sum is the norm.
It’s important to plan for this payment. While it can provide significant relief, it also comes with responsibilities, especially when it comes to budgeting and possible tax obligations.
What Happens if You Had Representation?
If you worked with a lawyer to help you through your SSDI application, part of your backpay may go toward paying legal fees. The SSA regulates how much a lawyer can charge in these cases.
Currently, the fee is:
Capped at 25% of your SSDI backpay
Not to exceed $7,200
This means the lawyer’s fee will never be more than 25% of your awarded backpay or $7,200, whichever is lower. The SSA automatically deducts the fee and sends it directly to your lawyer. You receive the remaining balance.
Having representation often helps avoid delays and increases the chances of approval, especially during hearings. Since fees are based only on what you win, there are no upfront costs.
Can Backpay Be Taxed?
Whether SSDI backpay is taxable depends on your income level and filing status. For many recipients, benefits are either partially taxable or not taxed at all.
The IRS may tax a portion of your SSDI backpay if:
You file as an individual and your total income exceeds $25,000
You file jointly and your combined income exceeds $32,000
The SSA will issue a Form SSA-1099 for tax purposes. Because SSDI backpay is often a large lump sum that covers multiple years, you may be able to allocate the income across the years it’s owed, reducing the overall tax burden.
We often advise clients to speak with a tax professional after receiving SSDI backpay to assess whether any portion should be reported and how to minimize their liability.
What if You Receive Other Benefits?
Receiving other types of benefits can affect your SSDI backpay. These may include:
Workers’ compensation: May offset your monthly SSDI amount, reducing total backpay.
State disability benefits: Can also affect how much you’re eligible to receive.
Unemployment: Though technically allowed in some cases, claiming unemployment while pursuing SSDI can complicate your case and backpay eligibility.
When calculating SSDI backpay, the SSA will consider all sources of income and adjust accordingly. That’s why it’s important to disclose every benefit you’re receiving while your claim is pending.
How to Protect Your SSDI Backpay
Once you receive SSDI backpay, it’s wise to use it in a way that supports your long-term financial stability. We recommend:
Paying down debt: Especially medical or housing-related expenses that built up during the claims process.
Creating an emergency fund: So you’re prepared for unexpected expenses or interruptions in benefits.
Saving for medical care: Future treatment costs may not be fully covered by Medicare or Medicaid.
Consulting a financial advisor: To help manage large sums and avoid unnecessary tax penalties.
This money often represents years of waiting and uncertainty. Using it wisely helps build some security for the future.
Speak to an SSDI Lawyer
At Cannon Law Offices, PLLC, we work with clients in Greenville, North Carolina, and throughout the Pitt County area, including Beaufort County, Craven County, Lenoir County, Martin County, and Greene County.
Waiting for SSDI approval can be challenging, but your backpay can provide crucial support once your claim is approved. If you have questions about SSDI or need help with a claim, we’re ready to assist you.