Social Security disability benefits come from payroll deductions required by the Federal Insurance Contributions Act (FICA) to cover the cost of Social Security benefits such as retirement, as well as spousal and survivor benefits. 5 Some of this funding goes into the Disability Insurance Trust Fund (DI) and pays for disability benefits. 6
3 The estimated average monthly Social Security benefits payable to a disabled worker, their spouse, and one or more children in Jan. 2021 is $2,224. 4 .
You should apply for Social Security disability benefits as soon as you become disabled. The application process can take three to five months, according to Social Security, and counts as part of the mandatory waiting period of five months after the onset of your disability. 12
There is a mandatory waiting period of five months after your disability begins before you can start receiving benefits.
If Social Security determines that your condition does not interfere with basic work-related activities, you will not be considered disabled. If your condition does interfere with basic work-related activities, move on to question three.
Social Security Disability Insurance should not be confused with Supplemental Security Income (SSI), which pays benefits to those who have financial needs regardless of their work history. Although these two names sound similar, the qualifications to get the payments and what you might receive are very different. 8
Again, the maximum the disability attorney or nonattorney advocate can charge is 25% of your backpay for his or her services, up to a maximum of $6,000. For example, if your back-dated benefits are calculated to be $10,000, your representative will be paid $2,500 and you will receive $7,500. However, an experienced representative is likely to be able to get you more in backpay by negotiating your disability onset date with the SSA —s omething you can't do without a hearing (in an "on-the-record" ALJ decision) if you're not represented.
During the course of representation, a disability attorney or nonlawyer advocate usually has to request a claimant's medical, school, work records, and occasionally medical or psychological examinations; these can be expensive.
The representative will be paid only out of your past-due benefits, or "backpay." If no back-dated benefits are awarded, the representative will not receive a fee. However, in this situation and a few others, the representative is allowed to submit a fee petition to Social Security to request a higher fee.
It doesn't usually cost you anything to hire a representative; the fee will be paid out of the disability award you eventually receive. Some representatives, however, will ask you to pay a nominal amount for costs (see below) at the beginning of your case.
Social Security Disability attorneys and advocates work "on contingency," meaning they get paid only if you win your case. Unlike many attorneys, disability lawyers do not charge up-front fees or require a retainer to work on a Social Security disability case. Most disability attorneys and nonlawyer representatives will be paid a fee only ...
The fee is limited to 25% of the past-due benefits that you are awarded. That payment is capped at $6,000. So, as an example, if you are approved for disability benefits that are backdated for two years and your benefits for those two years come out to $48,000, one-fourth of that amount would equal $12,000.
When you retain an attorney or an advocate for your Social Security disability case, you will complete paperwork including documents that specify the attorney’s fees and how much you will pay your representative in the event he or she wins your claim for you. These documents include a contingency fee agreement.
What happens if you are approved for benefits and there is no back pay awarded? If there are no back-dated benefits awarded during your claims approval, your attorney will not be paid a fee. If there is no back pay, or if there are other extenuating circumstances, your lawyer or advocate can submit a fee petition to Social Security to request a higher fee to ensure he or she is paid for their work. Back pay is calculated by going back to the date the SSA determined your disability began, which is a maximum 12 months back preceding the date of your application for benefits.
Often, people fail to consult with an attorney because they are under the misconception that an attorney’s fees must be paid upfront before he or she is willing to take their case and represent them throughout their disability claims process. However, that is not accurate.
Getting Started with an Advocate or an Attorney. There usually is no fee to hire a disability attorney upfront because the fee will be paid out of the disability award that you eventually receive.