Nearly everyone has been squeezed by inflation and rising medical costs. It's no surprise most family caregivers spend a good amount of their income on their loved one's medical, housing, food costs, and more. Is there any way to reduce the financial costs? Has your aged relative recently qualified for Supplemental Security Income? If so, your loved one could be entitled to back pay to cover the economic strain of disability.
When people get approved for Supplemental Security Income (SSI) benefits after a long wait, they get a one-time payment called SSI back pay. This payment covers the benefits they were eligible for starting from their application date. The back pay is distributed in three installment payments over six months to make sure the funds are available for essential needs and long-term financial security.
Social Security Disability Insurance (SSDI) is for people with a sufficient work history who become disabled, while Supplemental Security Income (SSI) offers income support to those with limited resources and income, regardless of work history. The rules for back pay differ significantly between the two programs.
Note: When someone qualifies for SSI, they are often automatically eligible for Medicaid, which provides access to essential healthcare services. Medicaid eligibility can also open the door to additional support through Medicaid waivers. Some of these waivers offer programs like structured family caregiving where family members can be compensated for providing care to their loved ones. Learn more >>
SSI back pay is based on when the application was submitted and approved. Unlike Social Security Disability Insurance (SSDI), SSI has no waiting period, so payments start from the application date.
Here's an easy way to think about it:
For example, if your loved one qualifies for $800 a month and the Social Security Administration took six months to approve the application, the back pay would be $4,800 ($800/month x 6 months). This amount would be sent to your loved one.
There is no set maximum amount someone can receive in SSI back pay, as it depends on their monthly benefit amount and the length of time between their application and approval.
The maximum monthly SSI benefit in 2024 for an individual is $914. The total back pay will vary based on how many months of benefits are owed. For example, if approval takes a year (12 months), the back pay could be up to $10,968 ($914 x 12 months), but the exact amount will depend on the applicant's specific situation.
When helping with a disability benefits claim, pay attention to the "disability onset date." This is the date when your loved one became disabled and stopped working. It's important because the onset date can affect how much back pay they receive.
If the Social Security Administration questions this date, it could reduce the amount of back pay your loved one gets. To avoid this, it's a good idea to seek advice from a disability attorney specializing in these claims. Their expertise can help ensure your loved one gets the full benefits they deserve.
When applying for benefits, the date on the application is known as the "alleged onset date." If the Social Security Administration agrees with this date, it becomes the "established onset date," determining when the benefits start.
You may hear the term "retroactive payments," which are benefits paid for a period before the application date. Retroactive payments DO NOT apply to SSI back pay. SSI does not provide retroactive benefits for the time before the application date. SSI back pay only covers the time from the application date to when the claim is approved.
Living arrangements influence SSI eligibility. If your loved one resides in another person's household, like yours, the Social Security Administration might consider a portion of your income as a "deemed income" when calculating their benefit amount.
Countable assets could reduce their monthly benefit. The Social Security Administration sets a definite resource limit for benefit payments. Talk with your disability lawyer about how your living arrangement may cause legal hurdles with the initial claim.
Receiving a lump sum payment is an exciting windfall. Help your care recipient manage it to avoid jeopardizing future benefits.
Back pay is a non-countable resource, granting a nine-month grace period for approved expenses like food, rent, or medical bills.
Here are some suggestions for using back pay wisely:
You may not be eligible for SSI if you have more than $2,000 in assets (not including your car and home). We recommend you stay updated on the latest requirements on the Social Security Administration website and talk to a disability attorney about protecting your loved one's retroactive benefits.
Standard processing for SSI claims takes some time. In some situations, the Social Security Administration offers expedited payments:
If you need to receive your payment faster, contact your local Social Security office and explain why you urgently need financial help. They will check if your situation qualifies for faster processing based on factors such as presumptive disability, emergency need, or reinstatement of benefits. If your application is ultimately denied, you will need to repay any faster payments you receive.
We understand the financial stress that family caregivers face while supporting their loved ones. If your loved one has recently qualified for SSI, don't hesitate to seek professional advice to ensure they receive the benefits they deserve. Caregiving is challenging, and you don't have to do it alone—let us support you.
