How Social Security disability benefits are paid, depends on the type of disability for which you have applied for and were approved. Generally in order for a person to be eligible for Social Security Disability benefits (SSD) they had to have worked and earned at least four credits in the last 10 years before they became disabled.
If they did not work and earn these credits, and they meet asset and income qualifications, they could be eligible to receive Social Security Supplemental Income benefits (SSI). SSI benefits are usually paid to lower income or disabled individuals who have worked little or not at all (such as children), or who have not earned four work credits per year in the last ten years before they became disabled.
In cases where the individual has not worked enough to earn all of their work credits, they would not be eligible for the max SSD payment, in this case they could receive a lower SSD payment and have it supplemented by an SSI payment.
In order for a person to be eligible for max Social Security Disability benefit or retirement, they had to have an accumulate of 20 credits earned in their life. Max benefit amounts are based on amount paid into Social Security and points earned prior to the onset of the disability. A person could have earned less points, they would not get the max benefit, but could be eligible for SSI in conjunction with the SSD.
Children who receive disability usually have never worked and are paid benefits, off of their parents work credits or under the Supplemental Security Income guidelines. This is a set amount by the Federal Government that is income and asset based to determine the amount and eligibility.
If assets and income from parents are too high, then the disabled child is usually not eligible until they turn eighteen, at which point they are considered their own household and in many cases, have to reapply when they are an adult. Some children meet guidelines where they only get a small amount of benefit, as they rely on the support of others and those in their households income is counted against their benefit amount.
Children’s benefits are paid to a representative payee, usually parents, but occasionally care givers, case workers and fudiciary entities. Their monthly benefit comes in the form of a direct deposit or check. The check is made in the payees name, with a for the benefiter on the check or payment.
For adult benefits, SSD and SSI is paid by direct deposit or check. If the adult is incapable of managing their own money or unable to, a payee is assigned or requested. The check then goes to the payee on behalf of the person receiving benefits. The payee is responsible to pay their bills, manage and account to Social Security, yearly or more often if needed, where the money was spent.
For the adult that is disabled, but capable of managing their own money, the check is sent directly to their bank, mailbox or benefit card. They manage all the reporting information and accounting information as well. The same rules for disability eligibility, work credits and determining asset limits apply to adults as well.
If you have not worked, and you are low income, you may be eligible for SSI. If you have worked, and earned credits, you may be and your children may be eligible for monthly benefits as well. It all depends on how many work credits you have earned and how much you have paid into Social Security.
One of the important factors that the Social Security Administration attempts to focus on and clarify is the work history and the date you actually were no longer able to work as a result of your disability. They only go ten years back from the date of when you became unable to work, or your disability interfered with your ability to provide substantial support.
This is important for you to recognize. The reason being is this, say you have had this disability for 15 years, but continued to work, the first ten years, you earned significantly more money than the last five. Unless you tell the Social Security Administration that your disability began over 15 years ago, they will determine your monthly benefit amount on this, five years of significant earnings and five years of not so significant earnings.
This could limit the monthly benefit amount you could be entitled to. If they had known the disability began on an earlier date, they could have counted the ten years of significant earnings and attributed the last five of lower earnings to your worsening condition and your benefit would be higher. It is important to state when your disability began, so your benefit amount can be correctly figured.
Back payments owed to applicants that took a long time to determine eligible, are usually paid after they start receiving their regular monthly check. This back payment, unless significant cause is determined or need is great, is usually split into three consecutive payments around three to six months apart.
The payment is sent to the benefiter or payee. If an attorney is involved, the payment may go to them first and after their fees are deducted, will be reimbursed the remaining balance if any is due. All remaining back payments will be forwarded to you. If the amount is greater than the cost of the attorney, that amount is still split into even three to six month increments for disbursement. Once the attorney has been paid in full, the remaining balance will be distributed to you accordingly.
Failure to fill out the annual report of where the money was spent, could delay payments or stop benefit payments in the future. They need to be filled out on time and mailed back in to ensure no delay in monthly benefit amounts. Annually a cost of living increased is usually granted and your check may be increased by around twenty dollars each year in January, for inflation and cost of living increases.
Medicare coverage is taken out of your check, before you even see your check if you have chosen to sign up for Medicare. The only time it is not, is if your State Welfare program or private insurance covers your monthly premium payment. There will not be a deduction for it on your check usually or it will be reimbursed later on if taken out. SSD payment schedules are run by the first letter of your last name, from the 3rd of the month to the 25th, check with your local Social Security Office to determine which day your payment would come. SSI recipients are usually paid on the first of each month.