If you know you need to act, but you keep putting off filing for Social Security disability benefits, you’re not alone.
If you know you need to act, but you keep putting off filing for Social Security disability benefits, you’re not alone.
According to the Social Security Administration (SSA), the average applicant waits nearly eight months after becoming disabled before seeking benefits.
Maybe you’re having trouble filling out the disability application. Or you applied before, and the SSA denied your claim.
If you’re thinking a Social Security disability attorney would improve your chances of winning benefits — you’re likely right. If you’re wondering if you can afford one — you almost definitely can.
Let’s break down how much a disability lawyer costs.
How much do disability lawyers charge?
A disability lawyer costs nothing upfront. You only pay if your lawyer wins your case and the SSA approves your claim.
You start with a free consultation. Then, if you decide to move forward, you sign a contingency fee agreement. Next, your lawyer submits documentation to the SSA for approval.
If the SSA signs off on the agreement, and your claim is approved, your lawyer collects the contingency fee. The industry standard is 25% of your first check. By law, the maximum a disability attorney can receive is $9,200.
What they’ll actually receive depends on the size of that first benefit payment, which is determined by your “back pay.” We’ll dive into back pay more below, but generally speaking: The longer your case goes on, the more the government “owes” you for all the time you should have received benefits but didn’t.
You’ll get paid all those past-due benefits, once you’re finally approved — and your lawyer will get 25% of that, up to $9,200.
The exception is if your case goes beyond the administrative law judge (ALJ) and into federal appeals, then the lawyer’s fee is 25% with no cap. Most disability claims don’t go past the ALJ because few people appeal after that stage.
This contingency fee structure doesn’t vary among Social Security disability lawyers because the law limits the amount. Plus, your lawyer doesn’t get any compensation from your future checks.
Changes in the Social Security disability attorney fee structure
The $9,200 fee cap, effective November 30, 2024, ensures Social Security disability lawyers are paid fairly. The fee has only increased three times since 1990. "Our programs can be complex, and quality representation—from initial claims to appeals—helps people navigate the process," said Martin O'Malley, the former Commissioner of Social Security, in a statement.
What is back pay?
Back pay accumulates while the SSA reviews your claim. The SSA determines your monthly benefit amount and then compensates you for the months between the onset of your disability and your approval.
Determining back pay is all about dates. Here’s how Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) figure it out:
SSI dates back to the application date or the date you became disabled, whichever is later.
SSDI dates back to the application date (plus 5 months) or the date you became disabled. With SSDI, if you became disabled before you applied, you can receive back pay for the time between your disability’s onset date and your application date. Back pay is capped at a maximum of one year.
Why does back pay start five months after your application date? The SSA considers five months a reasonable processing time for Social Security disability claims. You’re not “owed” anything for that stretch of time, and so you don’t receive that back pay.
For example, let’s say the SSA awards you $500 a month in SSDI benefits, one year after you filed your claim. Your first back paycheck comes to $3,500.
You’ll receive $3,500 because it’s $500 x 7 months, not 12 months.
As a contingent fee, your lawyer gets 25% of your back-pay check, or $875. This deduction means you’ll see