APPROVAL FOR DISABILITY BENEFITS
If an individual is approved for benefits, they will not receive benefits for a full five months due to the Social Security Administration’s five month waiting period for benefit disbursement. Often, individuals must wait at least six months to a year due to the volume and backlog of pending cases with the Social Security Administration. Individuals are eligible for backpay of benefits for a period before their application date, which is called the onset date. Quite often, Social Security will determine the actual onset date based on the coinciding medical evidence of impairments and the individual’s inability to continue full time work.
If an individual is entitled to backpay benefits, these are often distributed first and usually divided into several payments depending upon the total amount of backpay awarded. Monthly disability benefits are directly deposited into individual’s accounts and are typically tax-free. However, if the total income for the disabled individual’s household exceeds a certain amount, they may be required to pay taxes on their disability benefits.