Skip to main content

HAVE YOU WAITED TOO LONG (TO FILE FOR DISABILITY)?

Yes, there are deadlines to apply for Social Security disability.  Have you waited too long?

 

The Many Adventures of a Disney

Social Security uses a thing called "Date Last Insured" or DLI.  In the simplest terms, DLI is the last date on which you can file a new application for disability based on your work record.  The DLI is based on the date you last worked and paid FICA from your payroll checks.  The DLI is usually about 4 to 5 years after you stopped working and paying FICA.

So, for many workers, they would need to file a disability claim within about 4 years after they stop working or risk a problem with Date Last Insured.

Social Security disability coverage is not free.  And it is not paid for from the US general tax budget.  Social Security operates within its own resources and is self sufficient. It takes in and spends its own money. When you work, your employer deducts a percentage of your pay and matches it.  These funds (called FICA* withholding) are sent to the Social Security Administration under your name and SSN.  This purchases a disability insurance plan from the US government, formally called Social Security Disability Insurance (SSDI). When you stop making payroll deductions (or otherwise paying FICA) the countdown towards to your Date Last Insured begins.

You can't accurately determine your Date Last Insured.  The best bet is to call your local Social Security office and ask them for the DLI.  The office will give you the exact date when your SSDI coverage ended, or will end.

There is one exception to an expired DLI.  You are allowed to file one (and only one) disability claim after your Date Last Insured.  However, you must have medical evidence to prove that your disability began prior to your DLI.

For example if your DLI was 12/31/20, you can file one disability claim after that date.  However, the burden is on you to prove that you became disabled (unable to work) on or before 12/31/20. Proving that your disability started after 12/31/2020 will do no good because you were not insured for SSDI at the time your disability began.

I compare this to my automobile insurance.  I could file an accident claim after my auto insurance policy expired.  But the accident must have occurred before my policy expired.  Social Security Disability Insurance (SSDI) is similar.

The longer you wait to file an SSDI claim, the more trouble you could potentially run into.  

Persons sometimes say, "I hope to get better soon and be able to start working again."  This is admirable indeed.  However, if there is a high probability that you may not be able to work within 12 months, I recommend filing for disability.  Later, if you become able to return to work, you can still work and surrender your SSDI benefits or withdraw your application for benefits.  The "Ticket to Work" program at Social Security even permits you to continue receiving SSDI benefits while you transition back into the work force--but there are conditions and stipulations.  You should speak to the local Social Security office before starting back to work after you begin receiving SSDI benefits.

____________

FICA stands for Federal Insurance Contribution Act.   This 1937 law requires employers to withhold (6.2% of gross pay for Social Security and 1.45% for Medicare.  It is mandatory for most workers, so most people do not get a chance to opt out. It is an "unseen" insurance program that many individuals don't know about.  But not everyone is covered by Social Security Disability Insurance, only those who have worked and paid into the system in recent years.  Coverage does expire at some point after you stop working and stop paying FICA.

 

Comments

Post a Comment

Popular posts from this blog

WHAT YOU WILL BE ASKED AT A DISABILITY HEARING

Most Social Security disability claims will be denied twice:  First at the end of the Application process, and again after the "Reconsideration" process.  The third stop will be a hearing before a federal Administrative Law Judge (ALJ). It is here at the hearing level that most SSDI claims are paid.  So, what do you need to know about your Social Security disability hearing?     First, the judge will follow the rules established by the Social Security Administration.  His or her job is to determine whether you meet the particular laws and rules to receive disability payments.  So, it is a legal proceeding where you must prove certain things in order to get paid. Among the things you must prove:  Your insured status with Social Security:  You have worked recently enough and paid into the Social Security trust fund to gain the required "work credits" to support your claim.  You have a severe medical or mental impairment supported by adequa...
Post a Comment
Read more

MISTAKES THAT RUIN A SOCIAL SECURITY DISABILITY APPLICATION

MISTAKES THAT RUIN A SOCIAL SECURITY DISABILITY APPLICATION  The paperwork for Social Security disability is daunting:  page after page of never-ending questions.  But, since most applications will be denied, it behooves you to complete the application correctly.  Here are some mistakes on your Social Security disability application that may ruin your claim.   Failing to Fill Out the Forms —The Social Security Administration (SSA) will send you a lot of forms to fill out. It’s up to you to make sure that you fill out every part of those forms correctly.  Don’t forget: if a question doesn’t apply to you, put “not applicable” or “N/A” in the provided space.   Do not leave anything blank. Return all forms within 10 days. If you don't your application may be discarded or withdrawn. Writing Illegibly —If your case reviewer can’t read your answers, then he/she can’t really say that you answered that question. Be sure the  answers to questions are nea...
Post a Comment
Read more

WHAT TYPE OF DENIALS DOES SOCIAL SECURITY ISSUE?

In Social Security disability, the most common denials are medical denials.  This means that Social Security doesn't believe the medical evidence in your case meets the exacting standards for an award of disability.  There are technically two kinds of medical denials: 1.  You are able to perform some of your past relevant work.  They have looked at your work history for the past 15 years and judged that your medical conditions permit you to perform one or more of your past jobs.  This is what we call a "Step 4 denial." 2.  You are not able to perform any of your past work - but there is other work in the national economy that you are able to do.  This is called a "Step 5 denial" because it occurs at the 5th and final "step" in the decision making process. There are other types of denials, not nearly as common as the two above.  We sometimes think of these as "automatic" denials or "technical denials."  They are not medical decisions...
Post a Comment
Read more