Payments

1. How Payments Are Made

All Social Security benefits, including SSDI and SSI, are paid through direct deposit into your bank account. This method is secure, reliable, and ensures you receive your payments on time. If you don’t have a bank account, you can choose to receive your benefits through the Direct Express® Debit MasterCard program, which allows you to access your benefits without a traditional bank account.

To set up or change direct deposit, you can:

• Log in to your mySocialSecurity account online.
• Contact the Social Security Administration (SSA) by phone at 1-800-772-1213.

2. When Payments Are Made

Your payment date depends on your birth date for SSDI recipients:

• If your birthday is on the 1st to 10th of the month, you’ll receive your payment on the second Wednesday of each month.
• If your birthday is on the 11th to 20th, your payment will be on the third Wednesday of each month.
• If your birthday is on the 21st to 31st, your payment will be on the fourth Wednesday of each month.

For SSI recipients, payments are typically made on the 1st of every month. If the 1st falls on a weekend or holiday, you’ll receive your payment on the last business day of the prior month.

3. Back Pay and Retroactive Payments

If your claim was approved after a waiting period, you may be entitled to back pay (or retroactive benefits). Back pay covers the time between when you applied and when your claim was approved. In most cases, this will be a lump-sum payment that you’ll receive after your regular payments begin.

• For SSDI: Back pay may include up to 12 months of retroactive benefits before your application date, depending on when your disability began.
• For SSI: Back pay is generally limited to the time between your application and the approval of your claim.

4. Cost-of-Living Adjustments (COLA)

Your benefits may increase each year due to Cost-of-Living Adjustments (COLA). These adjustments are based on inflation and are designed to help you keep up with rising living costs. COLA is automatic, and you do not need to take any action. If a COLA is applied, you’ll notice an increase in your monthly payments beginning in January of each year.

5. Payment Issues

If you notice any discrepancies or issues with your payments, such as missing payments or incorrect amounts, you should immediately contact the SSA to resolve the problem. Keep track of your payment history through your mySocialSecurity account or by reviewing your bank statements.

6. Overpayments and Repayments

Occasionally, you may be paid more than you are entitled to, which results in an overpayment. The SSA will notify you if this happens, and you’ll need to repay the excess amount. If the overpayment was not your fault or if repaying would cause financial hardship, you can request a waiver or appeal the decision.

To handle overpayments:

• Contact the SSA immediately to discuss repayment options.
• File for a waiver if you cannot repay the amount due to financial constraints.

7. Taxation of Disability Benefits

If you receive SSDI benefits, a portion of your benefits may be taxable depending on your overall income. Generally:

• If your individual income exceeds $25,000 per year, or $32,000 for joint filers, part of your benefits may be subject to federal income tax.
• SSI benefits are not taxable.

It’s a good idea to consult with a tax advisor to ensure you’re meeting any tax obligations related to your benefits.

8. Work and Payment Adjustments

If you return to work while receiving disability benefits, your earnings may affect your payments. The SSA allows you to engage in a trial work period without losing benefits. However, if you continue working beyond that period and earn above a certain threshold, your benefits may be reduced or suspended.

• Trial Work Period: You can work for 9 months within a 60-month period and still receive full benefits, regardless of your earnings.
• Substantial Gainful Activity (SGA): After the trial work period, the SSA will determine if your earnings exceed the SGA limit. If you exceed the limit, your benefits may stop.

9. Reporting Changes

Certain changes in your circumstances must be reported to the SSA to ensure your payments remain accurate. You should notify the SSA if you experience:

• Changes in your medical condition (improvement or worsening).
• Changes in your work status or earnings.
• Changes in your living situation (marriage, divorce, moving, or a change in household income).

Failure to report these changes could result in overpayments or disruptions in your benefits.

Conclusion

Understanding how Social Security Disability payments work is crucial to managing your benefits effectively. Make sure to set up direct deposit, keep track of your payment dates, and report any changes in your situation to the SSA. With proper management, you can ensure that your benefits continue smoothly and avoid potential issues with payments.