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How Attorney Fees are Calculated and Paid

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In all Social Security Disability and Supplemental Security Income (SSI) cases, the rules for calculating attorney fees are the same. The fee is set by federal regulation 25% of the back benefits obtained for the claimant, up to a maximum fee of $5300.

As an example, if a claimant received back benefits of $10,000 the attorney fee would be 25% of that amount $2500. If the back benefits were $30,000 the attorney fee would be limited to the maximum of $5300, even though that is less than 25% of the total back benefits.

When the Social Security Administration grants past-due benefits to a claimant, the attorney fee is withheld from the back benefit paid to the successful claimant. Twenty-five percent is withheld, Social Security approves the fee, and the fee is then sent directly to the attorney.

Confusion may arise when a claimant is paid both SSI and Social Security, a very common occurrence. Part of the fee may come from each, but in no event will the total fee be more than $5300.

The Social Security Administration sends award letters to claimants after they win their claims. Unfortunately, these letters often give incomplete or misleading information about the attorney fee calculations.

At Kraft & Associates there is no charge for the initial Social Security or SSI consultation. We invite you to contact us with any question you may have regarding Social Security disability.


 

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