After 6 long yrs. I have finally been approved. My question is - how far back will the back pay go if it says I was disabled since 12/1999?
Also, how much taxes do I have to pay? Is there a certain percentage?
Thanks in advance,
If you were approved it will tell you in your decision what your onset date is, and that is the date you will receive benefits back to, minus five months. Usually the most Social Security goes back is a year prior to your application date, so I would read your decision carefully. I doubt you are going to receive back pay going back 9 years. That just never happens.
Back pay is tied to the application date. They will go back up to one year prior to the application date. You always want your onset date to be several months before the application date so the 5 months withholding doesn't affect you.
No taxes were taken out of my backpay. I"ve been reading IRS Publication 915. Can't find the one for 2008 yet, but the 2007 version has worksheets in back to help figure out how much of the backpay is taxable. Even though I received a large lump sum and don't have the right forms in hand yet, it appears that there will be very little tax due. The form is at [url]www.irs.gov/pub/irs-pdf/p915.pdf[/url]
They allow you to calculate taxes as if you received it in the prior years, if it helps lower your taxes. It also depends on your living situation, and if you had other taxable income. I think the lawyer fees can be counted as an expense.
congrats, I too just got full approval, mine also goes back 6 years. My onset date is 11/2002, i filed 2/2003, so my lawyer said that I will be paid back to 2002 minus 5 month waiting.
I M not sure about yours, if they found you disabled back to 1999, that should be your onset date, minus the 5 months.
Well good luck to you, keep me posted on when you get your backpay, and I will do the same.