Hi. I have a question regarding backpay. I recently got approved for SSDI & SSI. My backpay was supposed to go back 3 years. It was for 48k...6k went to the lawyers that I had hired. ..so I were to receive 42k. I received two payments of 14k, which on my bank statement, said it was from SSDI. I also received 3k and it said it was from SSI. I received a letter in the mail stating that 12k was being 'withheld'. Now is that 12k from SSI and supposed to be paid to me every 6 months til it's all received or is that taxes that I owed from the backpay or something else? Will I ever see that 12k? Please help.
Hi. I can't give you a definite answer without access to your Social Security records, but here is the likely explanation. If someone is awarded both Social Security disability (SSDI) and Supplemental Security Income (SSI) for a retroactive period of time, they can only be paid a total of the amount that they would have been paid if the benefits had been paid timely. And, since SSI benefits are needs based, when a person receives both Social Security benefits and SSI payments their SSI payments are offset roughly dollar for dollar by the amount of their Social Security benefits. Thus, they can't be paid both their SSDI and SSI back pay in full.
For example, let's say Bob is awarded SSDI and SSI two years after his benefits should have started. We'll say that Bob's SSI payment amount should have been $800 per month not counting his Social Security benefits, and his SSDI monthly rate should have been $700. If Bob had been paid both benefits timely, his SSDI would have reduced his SSI payment from $800 to $100 (i.e. $800 - $700).
Before considering the effect of Bob's SSDI benefits, his full SSI back pay for 2 years would total $19,200 (i.e. $800 x 24 months). However, after his monthly SSI payment amount is reduced to account for his SSDI benefits, his SSI back pay only amounts to $2400 (i.e. $100 x 24 months). Therefore, Social Security would need to "withhold" $16,800 of Bob's SSI back pay, which in our example is equal to his SSDI back pay (i.e. $700 x 24 months). Bob would then end up with total back pay of $19,200, which is what he would have been due had he been paid timely (i.e. 24 months x $700 SSDI + 24 months x $100 SSI).
Best, Jerry
