WINNING YOUR CASE: THEN WHAT
Congratulations if you win your disability case.
Some of the common questions that people have after receiving a favorable disability decision are answered below. These generally refer to cases in which you have applied for both Social Security disability SSDI and SSI benefits.
What's the difference between the Social Security disability and SSI disability programs?
Both programs require that you be disabled; but benefits are calculated differently for the two programs. SSI is a federal welfare program. As such, there is a limit on the amount of "assets" you may have in order to receive any payment at all. Also, the monthly amount of SSI benefits depends on your income from all sources, including the amount of your Social Security disability benefits.
Social Security disability, SSDI, on the other hand, is similar to an insurance program. You are eligible for Social Security disability benefits because you are disabled and because you paid Social Security taxes. There are also differences in the way the two programs are operated.
All SSI benefits are processed at your local Social Security Office. Social Security disability benefits for most people are processed in Baltimore, Maryland. Benefits of those people who are over age 55 are processed in regional payment centers.
Do I have to do anything such as visit the Social Security Office or complete some forms in order to get paid?
Yes. Payment of your SSI benefits will require that you update your financial information at the Social Security Office.
On the other hand, payment is automatic for your Social Security disability benefits. If you have children who were under age 18 (or under age 19 and still in high school) at any time after your "date of entitlement," it will be necessary to put in an application for them to receive benefits; but your own benefits will still be processed automatically.
How long will it take for SSA to pay me?
Your regular monthly checks should start in one to two months (or so) after being awarded. However, it may take several additional months for all of your back benefits to be paid. This is because you will be first "overpaid" SSI. The reason for the SSI overpayment is that the Social Security Administration (SSA) usually calculates your SSI benefits without counting the amount of your Social Security disability benefits. The SSI "overpayment" then will be deducted from your past-due Social Security disability check. (Nevertheless, the total amount of benefits from both programs should be the same as if the offset were not involved.) Even if you are not overpaid SSI, the payment center will hold up payment of your past-due Social Security disability benefits to see if you will be overpaid SSI. All of these bureaucratic maneuvers take several months, possibly six months. It will be necessary for you to be patient.
If you will be getting more than a year's worth of back SSI benefits, your benefits will be paid in two or three installments six months apart. The first two installments will each be equal to a year's back benefits. The third installment will pay whatever is remaining. If you have outstanding debts or anticipated expenses for food, clothing, shelter or medical care or if you plan to buy a house, you may ask that more back benefits be paid with the first or second installment.
How far back will my benefits go?
Your Social Security disability benefits should begin with the month of the "date of entitlement" in your case. Many people ask why Social Security disability benefits don't begin on the date the judge found that they became disabled. Social Security disability benefits never begin on the date one becomes disabled because of the waiting period of five full calendar months. Another rule limits payment of back benefits to 12 months before the date of the application. Therefore, your benefits begin either 12 months before the date of application or five full months after the date you were found to be disabled, whichever is later. Your Social Security disability benefits may be subject to the "SSI offset," that is, where SSA deducts the SSI overpayment that I mentioned above.
What will be the amount of my monthly Social Security disability benefits?
The amount of your first month's benefits will be based upon information obtained from the Social Security Administration. However, Social Security Administration may recalculate your benefit amount before it pays you. If SSA recalculates, it may come up with a higher benefit amount because, for example, all of your earnings might not have been posted when the original calculation was made. Also, there are cost of living increases which are applied every December.
How much will my monthly SSI benefit be?
This depends on the amount of your income, marital status and living arrangement. SSA uses complicated formulas to figure out the amount of SSI benefits. It is complicated.
Will I receive notices from SSA explaining my benefits?
Yes. For Social Security disability benefits you should receive a Notice of Award and a Benefit Information Notice. The first notice will show the "date of entitlement," the amounts of benefits for all months of back benefits, and the amount withheld for direct payment of attorney's fees. Usually a second notice will show the total amount of benefits to be paid to you. It will also show the amount of the "SSI offset." The notices may give you information about your Medicare eligibility. They may also give you some information about when to expect a "continuing disability review." You will also get an SSI notice that shows a monthly breakdown of benefits and a separate notice showing the amount of attorney fees you must pay me out of your SSI benefits.
When will I get the notices?
Notices will start arriving about a month or so after you are awarded disability. You will get a total of four or more notices over the next several months. Often it happens that a person gets a check before he or she receives the notice explaining it.
If I get a check first, should I wait until I receive the notice before I cash my check?
No. There is no need to wait. You will probably get your check for SSI back benefits first. Unless you have made arrangements for direct deposit, this check will come in a blue envelope and the check will say SSI on it.
When you receive your check for back Social Security disability benefits, it is best that you deposit your check in an interest bearing savings account and not spend it all until you receive the notice so that we can make sure you have not been overpaid.
Why would there be a problem if I were overpaid?
If you are paid too much, SSA almost always figures it out eventually. Then, after you have already spent all of the money, it will send you a letter demanding that you repay the overpayment. If you do not have the money to repay the full amount of the overpayment, SSA may threaten to cut off your checks until the overpayment is recouped. Usually, however, it will accept a more reasonable reduction of your monthly checks. Nevertheless, this is still a hassle and you may have trouble making ends meet during the time that your check is reduced. Under some circumstances, it may be possible to get repayment of all or part of the overpayment waived; but this is not something to count on.
Will I receive my regular monthly benefits on the first of each month?
Your regular monthly SSI benefit will come on the first of each month. The SSI check is intended to pay you for the current month. Social Security disability checks, on the other hand, are sent out to arrive on the second, third or fourth Wednesday of the month (depending on the day of the month on which you were born) and they pay benefits for the previous month. Thus, for example, the check for January's benefits will come in February.
Why do you advise getting a savings account that pays interest quarterly rather than monthly or daily?
If interest is paid quarterly on the bank account and it is $20.00 or less, it is generally not counted as income to be deducted from your SSI benefits. Be sure to keep your interest payment to $20.00 or less, otherwise all of the payment counts.
Won't a savings account affect my eligibility for SSI?
You will be allowed six months to spend your checks for back benefits. After that, in order to continue to receive SSI benefits, you won't be allowed to have more than $2,000 in assets (with some exceptions) if you are single and $3,000 in assets (with some exceptions) if you are married.
What are the exceptions to the asset limit?
SSA has a list of assets that don't count against your asset limit. In other words, you can own these things and still be eligible for SSI. Here are the most significant things on the list:
1. Your home. It can have any value; but if you move out and rent out the house, it becomes an asset and is counted.
2. Household goods and personal effects valued up to $2,000. (Note: The value of such things is what you can get for them at a garage sale.)
3. Wedding and engagement rings.
4. Household goods and personal effects required because of your physical condition, such as wheel chairs, hospital beds, etc.
5. A car of any value as long as it is necessary for employment, necessary for medical treatment, modified for handicapped use, or is otherwise necessary. If none of these rules apply, then there is a $4,500 limit on the value of a car.
6. If life insurance has a face value not exceeding $1,500, its cash surrender value won't be counted as an asset.
7. Term insurance, that is, life insurance which does not have any cash surrender value.
8. Burial insurance.
9. Burial spaces.